Analysis Case Study:Shell Oil Company

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The following analysis evaluates the challenges faced by Royal Dutch Shell Oil Company involving their monumental proposed investment into their Nigerian operations. When global companies experience extreme criticism such as Shell, they are usually tasked with identifying optimum solutions to reverse the negativity. In addition to assessing the challenges, this analysis provides some potential strategies that can be implemented to resolve the issues within this case.

Problem Statement

Royal Dutch Shell Oil Company proposed to execute the largest industrial investment ever made in Africa. Their proposal was a response to three separate issues. However, there were problems with the proposal. A major problem was that two critical entities that Shell proposed to share in the investment, made it clear that it would take some time before they could even consider Shell's proposal. Other major problems included political and social instability within regions where Shell operated. Shell acquired a very negative public image, and it was primarily due to the following: Shell had also been accused of waging an ecological war against natives and the natural habitat. Furthermore, the company was accused of being responsible for the deaths of natives from the land in which Shell procured oil.

Situation Analysis

Shell Oil is one of the largest oil traders in the world. With extensive international operations their largest African operation existed in the country of Nigeria. In this case, Shell's operations in Nigeria created a very complex situation, thus creating numerous factors for the various components included in the environmental scanning analysis.

The economic factor consis...

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...implementation of all three alternatives would be a complete and well rounded solution for the problems facing Shell. Of the three alternatives, the most appropriate solution is number three. Shell Oil Company has a responsibility to the people of Nigeria to move forward with this project only with the people and land in mind. Through redefining their strategy, Shell will be able to reposition itself and operate as a socially responsible organization. Shell needs to create a committee that will oversee the public relation activities in Nigeria. The committee should include Shell representatives, government officials, local business people, and civilians. This alternative is the best option because of the broad scope of redefining their strategy. Through the reengineering process, Shell can actually incorporate the other two alternatives to make their reform complete.

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