Strategic Management Project - Shell

COMPANY: SHELL

Introduction

Shell is one of the world’s leading energy group and petrochemicals companies. It has around102000 employees in more than 100 countries. The objectives of the Shell Group are to engage efficiently, responsibly and profitably in oil, oil products, gas, chemicals and other selected businesses and to participate in the search for and development of other sources of energy to meet evolving customer needs and the world’s growing demand for energy.

Mission Statement

Shell’s innovative approach ensures that they are ready to tackle the challenges of new energy futures.

1.1 Topic of investigation having a strategic implication.

This report explains the team buildings and teams work in Shell and development of its research work progress within the organization. It also presents suitable analysis of the project management and planning, advisory and project implementation of work.

In this report, positive results of theories and its test showed that effective teamwork can lead to a success and achieving critical goals of Shell. It may also be able to gain the sustainability of competitiveness.

Moreover, study explains that how team performance can be improved through leadership with project planning to face the upcoming challenges in modern era of business environment Shell operates in.

1.2 The aim, scope and objectives of the project.

• How can we improve Shell’s research study about lubes oil?
• What strategy we should adapt for improving Shell’s research?
• How and effective team force can be made for this purpose?

The aim of the project is to achieve such team management, technology and resources that meet the new emerging energy challenges. Shell need to adapt such management strategies which will make a strong workforce with experienced and skilful team members. Shell wants to be recognised as a great company-competitive successfully and a force for progress. Shell has a fundamental belief that they can make a difference in the world because of it’s worth in the global market. A strong consumer proposition has been developed for the brand and embodied in the line “World Quality” which communicates Shell value-based offering in a precise manner, to its core target audience. The purpose of the advertising in the first instance is to support this strong value proposition and secondly to tailor the media solution to the store.

1.3 Justifying the scope, aim and objective.

In meeting the energy challenges, the world faces three hard truths. The first is that there has been a step-change in global energy demand, with rapidly developing countries like China and India entering the energy-intensive phase of growth. Even with huge improvements in energy efficiency and substantial growth in renewables, fossil fuels will still be the main element of the energy mix by mid-century.

The second hard truth is that easy-to-access oil and gas is in decline. As a result, energy will come increasingly from unconventional sources, such as oil sands.

The third hard truth is that the increased burning of fossil fuels especially coal for power generation could mean unacceptably high emissions of carbon dioxide (CO2) and other greenhouse gases that contribute to global warming and climate change.

Meeting the energy challenge

Shell is helping to meet the energy challenge with a broad range of approaches. It uses advanced technologies that can unlock oil and gas in more remote or hostile environments, and new techniques to extend the lives of existing fields. We are increasing production from unconventional sources, including oil sands.

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Shell helps make the most of cleaner-burning natural gas through our output of liquefied natural gas (LNG) and gas to liquids (GTL) products. We are helping to develop second-generation bio fuels that do not compete with food crops; and we are developers of wind and solar power.

1.4 Evaluation of project research methodology.

Methodolgy

Research Study should be verified by seniors because all research is based on practical data and that data may vary by location of the research and by person. Need to Understand the Hypothesis before research and development. Which department are more feasible and which person is more interested and suitable for that research. Research should be complete on time. Research conduct at same time on different locations

2.1 Identify sources of data and information that will support the aim of the project.

For a company like Shell having the right information about the environment, customs, laws and customer needs is of key importance. To gather this information the company will firstly see the law of the country in which it is going to start business, as we are talking about their business in UK the law allows this business. Here in UK there is a high demand it is a rich environment for the company to run their business. Data about this can be obtained by doing surveys and examining the current market i.e. by observing the similar businesses running in the country.

Scanning the Environment

In this research study, an appropriate approach of environmental scanning is considered in the industrial organisations that are operating in the chemical industry.

Different types of information were used in this study. It included general information about the industry and specific about the participating companies.

The type of data that was included was;

• Formal data that concerns the company’s character.
• Data that is publicly available, like in annual reports.
• Interviews of managers that provided the history and culture of the companies.

This information was very important to analyse and research the topic and to see how other companies are operating in the industry.

Strauss (1987) emphasizes the usefulness of the case study approach when used with grounded theory. Grounded theory seeks to generate theoretical statements and, ultimately, complex theories based on empirical evidence, although it can be used in different ways and reach various degrees of complexity. The research design framework adopted in this study can be described as a multiple case study, composed according to the theory building structure, as described by Yin (1989), i.e., where the sequence of chapters follow a theory-building logic, and using the grounded theory method of qualitative data analysis.

2.2 Synthesise the data and information for options or alternatives that support the project aims.

An effective information infrastructure was implemented to assess the information required in this research, which included technological information, processes and information acquired by people.

A rich collection of scientific and technical information was gathered, which was managed by professionals having different backgrounds. However, some companies just provided a consistent picture which was a small collection made up of journals, literature and reports mainly.

The information being pervasive is one of the main reasons in having difficulty in accounting for the costs involved in the research as it depends on specific roles and their performance.

The data that was collected showed that in medium or large chemical companies data and information was being handled by 50% staff while in smaller companies about 9% staff was involved.

The scope of the companies was assessed by their links with Research and Development organisations and hoe they collaborate with the regulatory agencies.

Strategic change

Larger companies like Shell influence the planning adoption but some other factors also interfere with the tendency, for example in what form the organisation is and what is the management style of the organisation. No evidence was found that suggests that the subsector companies should adopt the planning technique as a planning tool. While, the planning offices are also rare and their main duty is to collect the difficult data which is needed by the top management for decision making.

The strategic change analysed mainly talked about increasing the quality of the product, which includes mainly improving the conditions of production. Environmental protection was also an issue in some cases there were highly pollutant industries. Globalisation and diversification were also some important strategic changes. Companies that targeted globalization pursued growth in the industry but some companies just secured their positions in the internal market due to the threat of major competitors operating in the main market. Companies which had a little scope of growth adopted specialization.

The main target was to improve the product quality. Some companies claimed that they always pursue improving the production quality while other companies admitted that they have to improve the quality of the product to satisfy the EC regulations.

2.3 Determine an option or alternative that supports the project aims.

Other way of supporting the project aim is to use theoretical information and implement it directly on the company. Information is like team management theories.

Inductive and deductive research can be used to gather information and to move towards the aim.

Deductive research

Deductive reasoning works from the more general to the more specific. Sometimes this is informally called a “top down” approach. Conclusion follows logically from premises

Inductive research

Inductive reasoning works the other way moving from specific observations to broader generalizations and theories. Informally, we sometimes call this a “bottom up” approach. Conclusion is likely based on premises..It involves a degree of uncertainty. Inductive type based on induction. Data is collected on a subject and researcher tries to develop theory from this data.

3.1 Evaluate the research analysis to enable conclusions to be made.

Team Management

It is difficult to build a team and maintain good working relationships. However, team members go through a number of development stages to work together effectively in team performance management. Individuals performing well are rewarded while those who are not performing good are motivated.

The functions and roles of its members should be recognised by its team. The leader should establish continuous communication lines and set clear goals that are understood. A team that performs well accomplishes projects quickly and with less difficulty, misunderstanding, and divergence.

Strategic Objectives

Strategic goals or objectives are broad, high level aims, derived from organisation’s mission statement and purpose, affecting the whole organization (sometimes referred to as corporate aims). These will be:

• Long term (time horizon of several years), although they should be monitored regularly (typically annually) and may be revised periodically.
• Responsive to external factors such as new competition, changes in global economic conditions, or customer demands.

The term ‘strategic’ denotes a particular focus of the managers’ planning and decision making responsibilities. Senior mangers focus mostly on ‘why’ questions, concentrating on the ‘big picture’ and providing vision and leadership for employees across the whole organisation.

Alignment of team performance and corporate goals

To achieve the corporate aims it is necessary that the direction of the teams is towards the long term strategic goal. Managers and team leaders have to keep in mind what they need to achieve overall. And hence, to control the teams in such a way that either they are working on long projects or short it’s all adding up to the final goal.

In the case of Shell the main objective of the company is to provide good quality chemicals. To achieve this there has to be a proper direct and control system of the staff working at the stores from the top management to the staff working on the floor. A good communication and understanding will always lead to easy achievement of goals, satisfying the customer at the end. Mangers are supposed to take into account the demand and supply of the products to make sure every product is available on time and then work should be allocated to the subordinates in a proper system to get all the work done systematically and easily. Proper team management should be done by the supervisors and the team leaders. All the staff should be divided into small teams which have to work in different sections. Proper training should be given to all the team members and a standard way of achieving the goal. This performance target should be given to all the team members and should be monitored and reviewed constantly. This standard should be according to the company policy and should be according to health and safety and customer satisfaction oriented. Providing good work at the end of every shift, which is the availability of all the products on time with good customer service.

3.2 Recommend a course of action that achieves the project aim.

Skills that need some development

• Communicating
• Decision-making
• Leadership
• Prioritizing
• Valuing and
• Skills need to be achieved.
• To respond problems, experiences and opportunities from which to learn.
• To generate ideas without constraints of policy or structure or feasibility.
• Involving with other people i.e ideas bouncing off them, solving problems as part of a team.
• Need to have a limelight/high visibility i.e can chair meetings, lead discussion, and give presentations.
• To be engaging myself in short, activities such as business games, competitive teamwork tasks, role playing exercises.

Supporting Others

• Motivating
• Analysing
• Delegating
• Reporting

3.3 Analyse the impact of the recommendations.

Training courses at Shell for career progression.

Management Development Programme Includes:

• Consumer Legislation
• Customer Service
• Employment Law
• Health and Safety
• Human Resource Management
• Policies & Procedures

Opportunity development builds competitive positions by identifying and utilizing opportunities in the environment. Opportunity development is necessary because your existing positions are constantly being degraded by change. Opportunities exist as “openings” in the environment that allow you to advance your position in the direction of your mission. These openings are usually small, but by taking advantage of the small openings, you eventually position yourself for the big advances you want.

Training

After the initial audit our ethical trade specialists work with the suppliers to support them through remediation of any issues that are found. Training is offered to suppliers on particular issues and best practice, at regular intervals. Shell is in the process of more than tripling the size of its own ethical trade team that focuses on training and intensive problem solving with its suppliers. These individuals are trained to the highest levels and are equipped to address endemic problems in the supply chain and come up with viable solutions for the suppliers.

4.1 Produce the results of the investigative project.

The purpose of this study was to explain the team buildings and teams work in Shell and development of its research work progress within the organization. It also presents suitable analysis of the project management and planning, advisory and project implementation of work. In this report, positive results of theories and its test showed that effective teamwork can lead to a success and achieving critical goals of Shell. It may also be able to gain the sustainability of competitiveness. Moreover, study explains that how team performance can be improved through leadership with project planning to face the upcoming challenges in modern era of business environment Shell operates in.

The main result was in the adoption of the learning and training courses within the company in order to prosper and enhance in the future. Shell is one of the leading companies in the world in the chemical an oil sector and it felt pride in taking these training and development steps in order to move forward and to achieve its project aim as a result of the research program.

4.2 Evaluate the impact of the investigative project

The future sustainability of any organization heavily depends on the quality of project management to be able to cope with today’s dynamic business environment. There is direct co relation between stake holder business project and the people within the firm.

Shell is one of the four largest companies in the UK and has been ranked number one of the top 100 graduate employers in the UK and all over the world. The sustainability of Shell competitive advantage of its brightest people is depending on the successful team work and leadership. The best leaders know how to get others to follow and the best team members know how to follow their leaders.

REFERENCES

BOOKS:

• Aguilar, F.J. (1967) Scanning the Business Environment. New York: McMillan.

  Robert , buttrick ,(2005).The project workout: pearso education limited Edinburgh gate Education 3rd (1) pp, 305-350

  Strauss, A. & Corbin, J, (1990). Basics of Qualitative Research: Grounded Theory Procedures and Techniques. London: Sage.

  Strauss, A. (1987) Qualitative Analysis For Social Scientists. Cambridge: Cambridge University Press.

  Total Quality Management: The route to improving performance by John S. Oakland (Hardcover – 15 Mar 1993)

  Shell employee control hand book 07/08

  Personal development as a strategic manager unit 7001: level 7 strategic management and leadership

CMI Checklist:

• Personal development planning
• Developing strategy for world class business

E-learning

• Your role in improving personal effectiveness
• Development needs and planning development

Web links:

• www.milum.net 13/12/2009
• www.enotes.com 13/12/2009
• www.quickmba.com 13/12/2009
• www.managers.org.uk 10/12/2009
• www.shell.co.uk 20/12/2009