Abstract

Companies face a number of opportunities and challenges in as far as their growth is concerned. An analysis of the Shell Oil Company reveals a number and therefore a consideration of the same in their strategies is necessary. This paper looks at a number of issues surrounding this company in as far as its performance as a business is concerned.

The Analysis of Shell Oil Company

One of the household names across many countries of the word when it comes to oil and oil products is the Shell Oil Company. Undeniably, Shell Oil Company is one of the largest oil multinational companies controlling huge market share not only in the United States of America, but the world as well. The Shell Oil Company which is a subsidiary of the Royal Dutch origins is headquartered in Houston, Texas (Pirog, 2007). Shell Oil Company together with its consolidated and equity companies is arguably the America’s largest producer of natural gas and oil. Besides production, Shell Oil Company markets natural gas and gasoline as well as petrochemicals. In the United States of America, Shell Oil Company significantly contributes to economic growth and development not only due to the large market spectrum and production, but job creation as well. This is because the company has absorbed approximately 22, 000 employees in the U.S America are approximately 22, 000 Shell Oil Company employees in the U.S. of America (Pirog, 2007). This paper provides a descriptive analysis of Shell Oil Company in relation to production, marketing competitiveness and challenges affecting the energy sector.

Roles of the Firm

Apart from its normal business of selling oil and oil products, Shell Oil Company and its subsidiaries participate in various community development initiatives, environmental mitigation initiatives both in the United States of America and the subsidiary countries. This acts in their favour in terms of making their presence within the communities they work more significant and relevant. Furthermore, they are able to meet their moral obligation of ensuring that the communities they work with are at home doing business with them. For instance, Shell initiates environmental conservation programs in vulnerable oil producing nations including but not limited to Niger Delta and Nigeria (Pirog, 2007). The programs facilitate the restoration of degraded environmental ecosystems. This is in tune with what is going around across many other organizations and individuals who are out to ensure that the environment is kept safe from degradation in order to promote human life. The initiatives therefore promote environmental conservation stewardships and biodiversity through sensitization, research activities and reduction of pollutants.

On the other hand, the company provides competitive global transport fuel to 10 million customers daily. The customers are served through the 44,000 fuel stations spread in over 70 countries of operations. Equally, Shell’s products and services are designed to fulfill various business needs, encompassing chemicals to shipping and construction to aviation industries among others. Overall, Shell is a globalised group of energy and petrochemicals companies producing, marketing and enhancing sustainable environmental conservations. Globally, the company has employed approximately 92, 000 people in more than 70 subscribing countries and territories (Rexler, 2010). Moreover, Shell Oil Company has significantly capitalized on the technological advancements in bid to foster innovative approaches for sustainable energy production and marketing. However, the Shell Oil Company has also experienced challenges in equal measure in bid to accomplish the outlined goals and objectives. Therefore, the newly appointed CEO Ben van Beurden in together with the company’s top management team brainstorm on potential solutions to the problems affecting the company and its subsidiaries.