1. Introduction:The aim of this essay is todiscover the strategic decision of the company Shell and operation managementtheme of the organisation in UK. This would help to acknowledging the businesstactics of running the operational activities efficiently. Shell covers a hugemarket in oil industry that includes refined oil, oil refining process, naturalgas processing and the fractionation process (Ethane, Propane, butane andisobutane) (Shell 2017c).
In this case, we will discuss more about Refined oiloperations of shell company in UK. Through this study, it is also useful toidentify the existing issues of the company and recommend some possiblestrategies to overcome the issues and improve operational proficiency forsuccessful expansion of the company in the UK. 2. Background of the company:Shell Oil company is aUnited State based multinational oil company and it is proficient in gaininghigh competitive advantage in the global oil and gas industry. The products ofthe organisation are diesel fuel, gasoline and LPG through which the companytargets the customers and business clients for doing their operational activitiesglobally (Shell, 2017a). It is one of the United States’ largest oil andnatural 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 conglomeratemainly tries to meet the energy needs of the society. Figure 1: Official logo of Shell(Source:Shell, 2017a)The company tries todeliver quality products and services which are economically, socially and environmentallyviable for the organisation in running their business sustainably.
Totalrevenue of the company was $233.6 billion and total income in 2016 was $4.8billion. The company operates refining and marketing business (Shell, 2017b).
Otherdownstream operations of the organisation include manufacturing and marketingof lubricants, carbon dioxide and chemicals as well as manufacturingalternative energies (Shell, 2017c). The operations of the company are widelyspread and the company is successful in targeting the right customers forbusiness and securing future sustainable development. 3. Order-qualifiers andorders-winners:Order qualifiers arethe competitive priorities where the company can meet the needs and preferencesof the customer by providing the oil product and services. The features of theproducts 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 productsand services that are developed by a firm for gaining competitive advantage.Through order winner, the company can gain high market share due to highcustomer’s retention and sales volume through new product development andservice innovation. In this present case study, the company Shell tries todevelop order winners through products and service innovation where theconglomerate aims to produce lubricants, chemicals and other energies (Shell,2017c).
4. Strategic decision of Shell:Corporatelevel strategy:In 2012, the companyShell 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.toincrease their activities of the business worldwide. The organisation alsodeveloped the strategy of improving their human resource by hiring experiencedstaff who are proficient in delivering quality products and services to theclients for maximising their values. Businesslevel strategy:The strategy of thecompany is to strengthen their leadership in the oil and gas industry whenpositioning the company in the international level (Shell, 2017e). As corporatefirms are changing their strategic planning towards low carbon energy system,the company Shell tries to develop their business by managing safety along withenvironmental and social responsibility.