1. Introduction: The aim of this essay is

 

1.   
Introduction:

The aim of this essay is to
discover the strategic decision of the company Shell and operation management
theme of the organisation in UK. This would help to acknowledging the business
tactics of running the operational activities efficiently. Shell covers a huge
market in oil industry that includes refined oil, oil refining process, natural
gas processing and the fractionation process (Ethane, Propane, butane and
isobutane) (Shell 2017c). In this case, we will discuss more about Refined oil
operations of shell company in UK. Through this study, it is also useful to
identify the existing issues of the company and recommend some possible
strategies to overcome the issues and improve operational proficiency for
successful expansion of the company in the UK.

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2. Background of the company:

Shell Oil company is a
United State based multinational oil company and it is proficient in gaining
high competitive advantage in the global oil and gas industry. The products of
the organisation are diesel fuel, gasoline and LPG through which the company
targets the customers and business clients for doing their operational activities
globally (Shell, 2017a). It is one of the United States’ largest oil and
natural gas producers, gasoline marketers and petrochemical manufacturer
(Shell, 2017a). The core values of the company are to maintain honesty,
integrity and respect for the people to improve trust and customer loyalty.
This is also helpful for improving brand reputation in the market. The conglomerate
mainly tries to meet the energy needs of the society.

Figure 1: Official logo of Shell

(Source:
Shell, 2017a)

The company tries to
deliver quality products and services which are economically, socially and environmentally
viable for the organisation in running their business sustainably. Total
revenue of the company was $233.6 billion and total income in 2016 was $4.8
billion. The company operates refining and marketing business (Shell, 2017b). Other
downstream operations of the organisation include manufacturing and marketing
of lubricants, carbon dioxide and chemicals as well as manufacturing
alternative energies (Shell, 2017c). The operations of the company are widely
spread and the company is successful in targeting the right customers for
business and securing future sustainable development.

3. Order-qualifiers and
orders-winners:

Order qualifiers are
the competitive priorities where the company can meet the needs and preferences
of the customer by providing the oil product and services. The features of the
products are almost same for all the competitive brands operating in the industry
(Slack, 2015). On the other hand, the order winners refer to the oil and gas products
and services that are developed by a firm for gaining competitive advantage.
Through order winner, the company can gain high market share due to high
customer’s retention and sales volume through new product development and
service innovation. In this present case study, the company Shell tries to
develop order winners through products and service innovation where the
conglomerate aims to produce lubricants, chemicals and other energies (Shell,
2017c).

4. Strategic decision of Shell:

Corporate
level strategy:

In 2012, the company
Shell acquired acreage in Texas from Chesapeake Energy and the deal was for
$1.9 billion to expand the opportunities for successful expansion of the brand
(Vault, 2017). In the last year, the company completed acquisition of BG Group.to
increase their activities of the business worldwide. The organisation also
developed the strategy of improving their human resource by hiring experienced
staff who are proficient in delivering quality products and services to the
clients for maximising their values.

Business
level strategy:

The strategy of the
company is to strengthen their leadership in the oil and gas industry when
positioning the company in the international level (Shell, 2017e). As corporate
firms are changing their strategic planning towards low carbon energy system,
the company Shell tries to develop their business by managing safety along with
environmental and social responsibility.