Innovation is the process whereby organizations use their skills and resources to develop new goods and services or to develop new production and operation systems so that they can better respond to the needs of their customers (Jones et. al., 2006). Innovation and technology are vital to providing a wider, more sustainable mix of energy resources for the world’s growing population. Thousands of Shell scientists, researchers and engineers around the globe are working to develop tomorrow’s groundbreaking solutions, collaborating with experts and specialists beyond our industry (Innovation through R&D, Shell Global, 2016).
Innovation brings about change and along with such comes high-level risk due to the amount of uncertainty with research and
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Values and norms can reinforce the entrepreneurial spirit and allow an organization to react quickly and creatively to a changing environment. Intrapreneurs are entrepreneurs inside an organization who are responsible for the causes or failure of a project (Jones et. al., 2006). Shell’s commitment to technology and innovation continues to be at the core of the organization’s strategy. As energy projects become more complex and more technically demanding, Shell believes their engineering expertise will be a deciding factor in the growth of our businesses (Our Strategy, Shell Global, 2016).
Shell’s key strengths include the development and application of technology, the financial and project-management skills that allows them to deliver large field development projects, and the management of integrated value chains. Shell aims to leverage their diverse and global business portfolio and customer-focused businesses built around the strength of the Shell brand (Our Strategy, Shell Global, 2016).
Structure influences the way people behave, creating the right setting is important to foster an intrapreneurial culture. Factors, which stunt innovation and reduce the ability to introduce new products, are organization size, organization age, vertical and horizontal innovation, people and property
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The paper conveyed that the company is a multinational enterprise, which has a tall hierarchical structure with divisions and affiliates all over the world. Owing to Shell’s international reach, it was highlighted that the company employees from various parts of the world with varying cultural differences but the given organisational structure has mechanisms in place that generally keep all associates on the control. The paper taught that Shell has a very wide multidivisional organisational chart, which emanates from its reach; although, decision-making filters downstream. We learnt that Shell is a fierce rival in terms of negotiations and contracts when it comes on to gaining the advantage over stakeholders. The company tactfully endeavours to advance its position in the industry by entering selected joint ventures and engaging in strategic alliances. It was revealed that Shell also takes over other business entities to further its position in our industry. While the company’s corporate social responsibility policies appear to be quite ethical, the company has not always lived up to expectations because there have been numerous allegations about Shell in terms of its inappropriate handling of the environments - as with the oil pollution case of the Niger Delta region of Nigeria. The paper also visited the area of innovation as it relates to Shell’s mechanism
With annual revenue of US $19.02 billion, Chevron Corporation is the 16th largest integrated oil and gas energy company in the world. Globally they account for a workforce of approximately 62,000 (Forbes 2011). In 2010, the company produced 2.763 million barrels of oil per day (Chevron 2012). Corporations as large as Chevron owe a great amount of responsibility towards the society and environment above and beyond the economic and legal obligations. The industry is strongly linked to environmental scandals and companies make various efforts to address these issues (Farache and Perks 2010, 235). The following thesis will review the Environmental performance of Chevron in terms of fulfilling social needs within society and stakeholders.
In recent years companies have been suffering a loss of legitimacy and confidence caused by a growing social awareness about their irresponsible behavior related to social injustice and damage to the environment. In this context, the case of the oil company Shell allows us to have an overview of the complexity of this type of situations. In the 90 ' Shell was involved in two major problems that has caused serious tensions between the company and its stakeholders because of the removal of the Brent Spar oil platform and problems in Nigeria. The relevant stakeholders involved in this case were consumers, investors and specially the local community that were affected with pollution caused by the company operation.
Although Shell had the support of the UK government regarding its deepwater disposal option through the issuance of the disposal licence, Shell ultimately decided not to sink the Brent Spar due to “its decline in sales along with the public pressures of its European consumers” (Zyglidopoulos 2002). This demonstrates that merely complying with the legal obligations is not enough to justify corporate actions which ignore the public concerns and damage the environment. As Mr Zyglidopoulos illustrated, corporations should comply with legal obligations as well as be responsible for its social and environmental
To compete in the global high-tech market, Mannerly envisages changing to a matrix organization structure, wherein managerial control will be shared by both product and functional managers (Jones, 2013, p. 426). In utilizing the matrix structure, the boundaries leading to subunit orientation are diminished, due to nominal differentiation, which allows for product teams to be agile in responding to customer demands (Jones, 2013, p. 427). Likewise, the matrix structure offers the opportunity for open communication, learning and development of all employees, which fosters innovation (Jones, 2013, p. 427). Additionally, the fluid structure of the matrix organization provides the ability to move employees with specialized skills and knowledge between product teams as needed (Jones, 2013, p. 427). Furthermore, the shared functional and product focus allows the product teams to invent quality products while the functional oversight keeps costs constrained (Jones, 2103, p. 427). However, the lack of a vertical bureaucratic structure can lead to role conflict and role ambiguity (Jones, 2013, p. 394 & 427). Similarly, financial resources are strained due to competition between the functions and product teams leading to infighting (Jones, 2013, p. 428). Moreover, the flexibility afforded in a matrix structure eventually results in stovepiping, as informal leaders build core competencies and resist knowledge transfer (Jones, 2013, p. 428). Also, the flexible structure becomes constricted and morphs to a mechanistic structure in order for management to gain greater oversight, as goal achievement diminishes (Jones, 2013, p. 428). The industry in which IBC operates requires continually creating new product. Therefore, Mannerly’s strategy in organizational change will allow IBC to use its core competency in innovation of high-tech products to gain a competitive advantage in the global market
Shell’s strategy is strongly positioned to adapt to changes, their extensive scenario planning activity allowed them to constructively think of what operations to promote in order to face environmental changes (Cornelius, P. et al, 2005). They have extensively invested in new technology and renewable resources, adapting to the environmental and social-ethical variables (Shell website, 2016).
Innovation is the information of utilizing apparatuses and machines to do errands all the more proficiently. We utilize innovation to control the planet we live in. Since the craft of making fire and making hand tailored instruments, our human progress has progressed beyond anyone's expectations. Innovation today has an incredible vitality on preparation. Each progression on engineering makes the preparation simpler, faster and easily. Engineering has an incredible effect on short-run bends by when innovation developments then processing of units will build.
The high demand for the product, proves to be a problem. As the world population constantly increasing, this means demand for energy, petrol, fuels would rise. Taking into account of what people need energy for and how high the demand for it, will show that Shell is not a sustainable business. Machinery needs energy to be able to operate so that it can manufacture people’s needs and wants, things such as phones, electricity, cars, the internet, homes and more. The higher the demand, the more oil Shell has to extract from the reserves, meaning a higher rate in oil reserved depleting, this will lead to Shell losing one of its main source of income. Another reason why Shell is an unsustainable business is that it is also not environmentally sustainable. As with many incidents from Shell spilling oil, and polluting the environment, this shows that Shell is not at all environmentally sustainable. As problems arise to shows that the use of oil, fuels and high-carbon based resources to be converted into energy is damaging the Earth, and with the current demand for these resources, it will lead to the environment gradually degrading and more
Shell Petroleum Development Company of Nigeria (SPDC) is a multinational company based in Nigeria for the last 50 years dealing with petroleum products. Apart from offering exploitation and drilling of oil in Nigeria, shell has ventured in the power generation to serve the small and medium enterprises in Nigeria. The production of oil takes place in the Nile Delta region which stretches 30km2 where the company is working in 90 oil fields with a total of 1,000 oil wells. This paper provides a long term strategy that will ensure that the company will be able to expand and be able to withstand both social and political pressure
Innovation, what is innovation? Innovation is the creation and implementation of new ideas, methods, or strategies that facilitate a process, add value, or improve quality (Tidd & Bessant, 2013). In fact, innovation is the reason for all the new amenities of today’s 21st century. Moreover, innovation has brought forth new perspectives and ideas that have inspired numerous of businesses to expand and improve their daily operations, increase productivity, resolve dilemmas, and attain a level of success. However, such success cannot be attained without properly examining, planning, embracing, and managing innovation. In other words, organizations must carefully map the process of innovation in order to succeed.
Apple and Nokia, both value teamwork and having the company involved. Based of research, I have learned that innovation architecture can be very beneficial to companies and that not every company with have the same type of strategy. They all create one that they feel works best for the company. Innovation architecture, allows companies to take a lot idea, and narrow them down to what seems best for their targeted goals are for the future of the company. What process and system might actually stifle innovation and intrapreneurship are ones that are view as permanent, which does not allow the organization those companies to be open for change. They need to be opened for change within the innovation architecture because a new idea or direction may develop, that could benefit the companies’ enhancement and success. I also learned that innovation architecture takes time to create because it has to be a clear dialogue, that both the company can understand and has reachable goals. (Dryer & Gregersen, 2009). The type of structures or process I would use are the one similar to Nokia; which are created three themes that represent the foundation of the structure, to help narrow down ideas that are focus on the goals of the product(s). I would also want the culture to be diversified based off specialization, the environment
An organisation can be structured in many ways which depends on an organization’s strategy and objectives. Therefore the organizational structure defines how tasks are controlled within a business. This is to allow correct allocation of tasks to different functional teams. These teams are developed and allocated specifically on the performed tasks in order to meet the organization’s objectives and required goals. Delic, A., Alibegovic, S. D. and Mesanovi, M. (2016) found that a narrower Organisational structure with very fewer hierarchical levels is appropriate for the development of intrapreneurship within an organisation. (Damanpour, 1991; Fadeyi et al., 2015) added that an organisational structure includes the nature of formalization, the
... each response they will be criticized for their lack of professionalism and inability to maintain and establish a long-standing relationship. This can be seen with the case of Shall Petroleum Development in Nigeria. Shell was criticized for delayed reaction to the accusations of their environmentally damaging methods. Shell lost respect internationally and negative effects in Nigeria. Because of the communication technology and global media, international news has increased and will only continue to rise as our world becomes even more connected.
In addition to invention process, innovation is an important process for countries to level up their technology capacity. Innovation process is more complex and more organized compare to invention due to the fact that invention may accidently take place. On the contrary, innovation should be planned and needs more effort to enhance technology and research which are important to increase innovative activities in countries.
Prahalad, C K & kRISHAN, M S (2008). The new age of innovation . New York: McGrawHill. p4-5.
Innovation has a significant impact on the organization giving it a competitive advantage, and today organizations must be innovative to be successful and competitive in the marketplace. Ideas of innovation not only impact organizational strategy, the process, service, and products offered to the consumers. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.