Strategic Investigation of Royal Dutch Research Paper

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In addition to that, it also has strong exploration and technological capabilities. (Jonker & Zanden et al., 2007)

Shell PLC is known to have a highly capable workforce, starting from its CEO to CFO and other major and minor employees of the organization. (Jonker & Zanden et al., 2007)

Weaknesses

Lack of control or control weaknesses may occur due to large scale operations. (Jonker & Zanden et al., 2007)

The presence of the organization in a number of global markets lead to issues in relation to the applicability of various laws in those regimes. In other words, the organization may be required to too many laws due to global operations. (Jonker & Zanden et al., 2007)

The formulation uniform policies and procedures due to the performance of operations in various global culture is a very difficult task. (Jonker & Zanden et al., 2007)

The existence of high degree of variation and instability in the energy sector and oil prices. (Jonker & Zanden et al., 2007)

Shell PLC has been confronting the issues in relation to corruption, instability and level of productivity due to the performance of exploration functions in various locations. (Jonker & Zanden et al., 2007)

Opportunities

The organization has the availability of a number of new fields in the various emerging economies, which it can explore and take. This, as a result, would lead towards an increase in the chances of growth and development. (Jonker & Zanden et al., 2007)

The organization due to its capable workforce has an ability to fight the constraints and grow. (Jonker & Zanden et al., 2007)

There has been an increase in the demand for products like LPG and CNG because of a rise in the prices of other petroleum products and an enhancement of awareness for environmental protection. (Jonker & Zanden et al., 2007)

The identification of new and better quality products and areas for exploration due to extensive and high quality research and development. (Jonker & Zanden et al., 2007)

Threats

The presence of economic crisis throughout the globe, which includes the deteriorating impact of circular debts. (Jonker & Zanden et al., 2007)

The emergence of terrorism activities on large scale around the globe can also have deteriorating and damaging impact on the profitability of the organization as it has already towards an increase in the operational costs of the organization. (Jonker & Zanden et al., 2007)

The entrance of new organizations in the market that offer lower rates as compared to Shell PLC. (Jonker & Zanden et al., 2007)

Increasingly stringent and rigid rules and regulations in relation to the environment.

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(Jonker & Zanden et al., 2007)

6. FINANCIAL ANALYSIS

On the basis of the following information it can be said that the organization is operating well in financial terms. It has favorable financial ratios and a great potential to move towards further enhanced financial returns and customer base as well. (Royal Dutch Shell, 2013)

FINANCIAL RATIOS

2012

2011

2010

2009

2008

Return on average capital employed

12.7

15.9

11.5

8.0

18.3

Return on average capital in service

17.7

22.6

18.5

13.0

25.5

Return on sales

4.9

5.6

4.6

3.5

4.8

Return on equity

14.7

19.3

14.0

9.4

20.6

Current ratio

1.2

1.2

1.1

1.1

1.1

Long-term debt ratio

13.6

15.1

18.7

18.3

9.7

Total debt ratio

16.6

17.9

22.8

20.2

15.3

Gearing ratio at December 31

9.2

13.1

17.1

15.5

5.9

(Royal Dutch Shell, 2013)

7. COMPANY CULTURE, SOCIAL RESPONSIBILITY, ETHICAL STANDARDS

The organization has a decentralized and friendly culture. Once they become a part of the organization, the employees are a member of team that has a high degree of cohesion and passionately and dedicatedly work to achieve the shared goals. The organization also enables the employees to further strengthen their skills and abilities as well. (Mcintosh & Thomas, 2001)

The Code of Conduct of the organization enables the employees and contractors to the standard of behavior that is expected from them in an appropriate manner. The organization also provides confidential channels to the people who want to report breaches anonymously via telephone and global websites. In addition to that, mandatory training is provided to all the employees in relation to ethical and legal issues. (Mcintosh & Thomas, 2001) the Code of Conduct of the organization includes a number of areas including:

Fighting corrupt practices,

National and international trade, and Safeguarding information and assets. (Mcintosh & Thomas, 2001)

The organization has been planning rigorously to reduce the damaging impacts that its operations might have on the environment. The key areas which are included in this planning are management of the levels of carbon dioxide (CO2) emissions, achieving low levels of energy and water deployment, preventing spills, achieving low levels of burning of gas that is produced with oil, and acquiring high levels of biodiversity conservation. (Mcintosh & Thomas, 2001)

8. CONCLUSION

The organization values its human resource and provides them with a pleasant work environment. It focuses on polishing the skills of its employees and provides them with abundant opportunities.....

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