...Shell is an Anglo–Dutch multinational oil and gas company incorporated in the United Kingdom and headquartered in the Netherlands. Created by the merger of Royal Dutch Petroleum and UK-based Shell Transport & Trading in 1907. By 2011, they became the second largest company in relation to revenue, growth and profitability in the oil and gas sector (Bruijn et al, 2002). The company operates in all areas of oil and gas industry, these areas include exploration of oil and gas, supplies and distribution, marketing, production, refinery, petrochemical development and power generation (McIntosh, 2001). The company is also concerned about environmental conservation, and it has invested heavily on the production, and distribution of renewable energy (Carroll, 1999). It supports initiatives of developing and distribution bio-fuel energy, wind and solar power, and hydrogen energy. The oil boom of the early 1920s, particularly at Shell’s Signal Hill, California site, provided the company with an opportunity to penetrate the Los Angeles area with sales of Shell gasoline and petroleum products manufactured in its new refineries nearby. In 1922, Shell Company of California and Roxana Petroleum merged with Union Oil Company of Delaware to form a holding company called Shell Union Oil Corporation. Approximately 65 percent of the holding company’s shares was held by Royal Dutch/Shell Group. Upon developing the ability to synthesize 100-octane gasoline, Shell began supplying this fuel to the U...
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...Describe the structure of Royal Dutch/Shell Group. Does it differ from the equity listings of other companies that you know? These equity listings are different from companies such as BP and Exxon. All subsidiary companies’ shares were held by the Group Holding Companies in the ratio of 60/40 (Royal Dutch/Shell). The corporate structure is outlined in the figure below. Individuals and Institutions Individuals and Institutions Royal Dutch Petroleum Company Netherlands 60% The “Shell” Transport and Co, PLC UK 40% The Shell Petroleum Company LTD. UK Shell Petroleum Inc. USA Shell Petroleum NV Netherlands Service Companies Operating Companies Shell Oil Company USA Individuals and Institutions Individuals and Institutions Royal Dutch Petroleum Company Netherlands 60% The “Shell” Transport and Co, PLC UK 40% The Shell Petroleum Company LTD. UK Shell Petroleum Inc. USA Shell Petroleum NV Netherlands Service Companies Operating Companies Shell Oil Company USA 2. What are ADRS? Why might companies find it attractive to issue ADRs? ADRS stands for American Depository Receipts, which is an underlying security that trades in the US financial markets. Foreign companies would find it attractive to issue ADRs because it would allow US investors to invest in their company, potentially increasing the value of the company. 3. Identify price differentials between different equity listings of the Royal Dutch/ Shell Group...
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...ersity a Inc and clusion at Roy Dutc Shel yal ch ll most o for tributions to th success of o company. S he our Shell’s I am m grateful to Linda Cook f her many important cont Liquefied N Natural Gas (L LNG) capacity h risen by ov 60% in the last five years, with more to come. has ver tch rmer CEO Jer roen van der V Veer.1 —Royal Dut Shell’s for Peter V Voser, CFO an soon-to-be CEO of the oil and gas c nd e company Roy Dutch She (hereafter Shell) yal ell realized th the “optic surrounding the comp hat cs” position of his just-announ s nced Executiv Committee (EC) ve e were not g good. It was May 27, 2009 and Voser w addressin 200 of She 9, was ng ell’s top mana agers in Berlin His n. all-white, male, Swiss, American, an British eig nd ght-person team was a sig gnificant depa arture from th of hat his predecessor, Jeroen van der V n Veer. Absent were the two female members: Linda Cook, a 25 year o a 5 veteran w who had lost the battle to become CE and whos track recor in growin the firm’s LNG o EO se rd ng business h had brought her wide rec cognition, an Roxanne D nd Decyk, forme erly Corporat Affairs dir te rector, who took on a new po osition as hea of governm ad ment relations in the Unite States. The were no D s ed ere Dutch members, strange for a firm headqu uartered in Th Hague and founded in 1907 through the alliance of the he d h oil compa any Royal Du utch Petroleum Company and the Brit ...
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...functioning as a single company instead of two separate companies. Yet, they are functioning as two separate companies. The Shell Company in the Netherlands, the Shell Company in the UK and the Shell Petroleum Company in the USA all appear to be maintaining their own identities in their respective countries. The Royal Dutch and Shell Company share equally in the Shell Company in the Netherlands, The Shell Company in the UK and the Shell Company in the U.S. They are not separate companies since they are linked by corporate charter. There is a separation of the two entities on the holding company level and all operational entities are a 60/40 owned by the two holding vehicles. The equity listings of the companies I am familiar with are more like a merger of two companies. In a merger, both companies would become one sharing everything that they own. The two listed organizations have entered into profitsharing agreements with each other, and equalizationratios exist to keep the economic performances of the two stocks linked to each other. ADRs: An ADR is an American Depository Receipt which is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold just like stocks through a bank or brokerage. Investors usually find it more convenient to own an ADR since ADRs allow easy comparison to securities of similar companies as well as access to price and trading information. Companies may find it attractive...
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...WAL-MART STORES: “EVERY DAY LOW PRICES” IN CHINA Prepared by: Daniel Magen Report Distributed February 10, 2012 Prepared for Florida Atlantic University MAN 4602: Global Business Operations Spring 2012: F 9:30 - 12:30 Focus/Perspective Joe Hatfield, President and CEO of Wal-Mart Asia. Responsible for implement Wal-Mart’s business model Every Day Low Prices (EDLP) to China. Recommendation & Plan for Implementation Wal-Mart has to implement their business model EDLP and define a different strategy for Chinese market and culture. Internal & External Strategic Issues Wal-Mart faces several environmental, cultural, political, economical, social and legal issues and challenges that may act as obstacles for being successful in China. Several internal issues include: * Employees * Shoplifting Wal-Mart pays low salaries and does not offer any type of share for employees. As a result, high rate of managers turn over and unhappy workforce, makes very difficult reproduce domestic business model in China. Corruption and delinquency are very common in under developed countries. China is not the exception, having a high rate in corruption, is another obstacle for Wal-Mart to be efficient amd keep low prices. Several External issues include: * Chinese Consumer Behavior * Too Many Competitors * Diverse Population * Local Protectionism * Backward Infrastructure * Regulatory restrictions Chinese behavior in terms of consumption...
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...Code of Ethics: Shell Oil PHL 323 University of Phoenix June 10, 2014 Mission Statement for Shell Oil is statements that allows and offer a well diverse and direct message to all customers and employees. Shell Oil Company is a company that uses the code of ethics, or better known as employee code of ethics. They use the code of ethics to maintain a very truthful working environment and to make sure that all employees are all under a comfortable way of working and providing services to the customers. A happy employee offers a happy welcome and makes the customer feel good. In our opinion Shell Oil Company uses an end driven, with duty driven ethical system. There primary objective is to make the employees offer the best they could to the customers. It is mention that is a duty driven ethics because it makes sure that the employee know what is expected from them and with all it also understood what they are to expect from their superiors. The code of ethics are base rules and guidelines that enables the company to have a standards and to maintain a well functional dynamics that allows all the different areas accessible and to keep thing more of a black and white than having many grey areas. The code of ethics as guideline helps the employer to be able to stand before his employees and direct them neither in manner that allows them to understand that the company stands for many things and will not tolerate nor with...
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...i. Summary Royal Dutch Shell is a Dutch and British based company that in 2009 was named the world’s largest corporation by Fortune and world’s second largest corporation by Forbes. Stuck in a quagmire of violence and political issues in Nigeria, Royal Dutch Shell’s challenge was to establish socially responsible business practices to enable the company to sustain and expand its operations in Nigeria and the Niger Delta in particular. A conflict resolution and public policy consultant was brought in how to develop some constructive ideas on how best to address the problems Royal Dutch Shell faced in Nigeria. This case is intended to introduce students to some of the complex the complex issues faced by multinational corporations in developing countries. Although Shell is very lucrative company that makes millions of dollars a day, they would be very hurt to lose business operation base in Nigeria. Shell went from an egoistic operation in Nigeria to a benevolent and principle based operation. If Shell even took on a larger sense of social responsibility, they would have gained a larger competitive advantage over the competition. ii. Chronology 1. This case begins when Benjamin Aaron, a conflict resolution and public consultant, receives a request from one of his important clients, a potential new member to the board of Royal Dutch Shell, to provide advice on how to address the problems that Royal Dutch Shell faced in Nigeria. 2. The case goes on to review the turbulent...
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...works n Preparing for the discussion n discussion n Performance share nomination n Pay outcomes appendix - factors affecting Performance Ranking 3 4 5 5 6 6 6 6 6 7 7 7 7 7 8 8 8 8 9 9 9 9 10 10 11 within the objectives of simplifying and standardising Hr processes across the Shell Group, these global guidelines are distributed for adoption by Shell Group companies. any resulting changes to current practices may require, in some locations, compliance checks with local legislation and/or consultation with employee representative bodies. no rights can be derived from this guide and the process described within is not contractually binding in relation to terms and conditions of employment or agreements with Trade unions or Staff councils. This guide is intended for managers and employees of the Shell Group and is consequently for internal Shell use only. IndIvIdual Performance revIew (IPr) 3 IndIvIdual Performance revIew (IPr) GuIdelIneS Shell is committed to creating and maintaining a high performance culture. our strategic aim is to become the world’s most competitive and innovative energy company. To achieve this we must commit to developing and supporting our employees, while rewarding their contributions. The IPr process is...
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...of managing business ethics in the aftermath of major problems in its international operations in the mid-1990s, only to be mired in further controversy during the 2000s. The case provides an opportunity for assessing the substantial challenges involved in business ethics management, and in particular for examining the benefits and drawbacks of various components of ethics management discussed in the chapter. Operating in over 135 countries, and employing more than 90,000 people, the UK-Dutch oil giant Royal Dutch Shell is one of the world’s largest companies. In recent years, Shell has been at the forefront of developments in social reporting and stakeholder engagement, and looked to be finally overcoming the reputational crisis that overwhelmed the company in the mid-1990s when it became a prime focus of attack from environmental campaigners and other critics. However, the firm’s turnaround came off the rails in 2004 when a major accounting scandal erupted over its overstating of oil reserves. This, and the continued challenge posed by campaigners over its alleged ‘hypocritical’ approach to sustainability and social responsibility, has raised questions over the firm’s ethics at a time when it would have hoped to have finally converted the sceptics. So, whilst the firm has won prizes and plaudits for its actions, for many, the question still remains whether its attempts to marry profits with principles is just window-dressing for an essentially unsustainable approach to...
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...A Study of Shell Oil and its Stakeholders in Nigeria Part 2 (Week 9) A review of basic issues regarding the Background and Interests of Stakeholders of Shell Oil Company in Nigeria Somaya Rhoda 16069635 Chapter 1 Introduction In a major oil spill that occurred in the Niger Delta Region of Nigeria in 2008, Shell Petroleum Development Company (SPDC) stated that this was caused by a fault in a pipeline. In the town of Bodo, tens of thousands of oil barrels caused pollution to the land and creek. Shell’s official investigation report claims that 1,640 barrels of oil were spilt in total. Nigerian regulators have confirmed that the spill lasted for 72 days and estimate that between 103,000 and 311,000 barrels were spilt in this time. Besides the under-recording of this incident, Shell has repeatedly claimed to its investors, media and customers that the majority of the spill was caused by sabotage. Amnesty International has now confirmed that more than 50% of the oil spill was a result of operational failures. After more than 3 years since this oil spill, Shell has failed to perform a proper clean-up to the affected area, or to pay any form of official compensation to the affected communities. Thousands of activists in more than 14 countries have undertaken protests against the major oil giant, and the people of Bodo have now taken their claim of a leak of 500,000 barrels to the UK courts. Observing this particular situation involving Shell in Nigeria, an...
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...voiced by some members of the organization before it festers into discontent and organizational tension. “Voser did not think it appropriate to measure his commitment to diversity and inclusion by looking only at the group of eight people at the very top of Shell” (Sucher 2020, p.1). It is important that Voser points out that the creation of the new Executive Committee (EC) does not represent the efforts of the organization to be both diverse and inclusive. He should reaffirm throughout the ranks that the mission will continue to be diversity and an atmosphere that encourages inclusion. It is pretty obvious from reading the case that the committee does not adequately reflect the culture that has been devised within the Royal Dutch Shell Company. I feel that it is important that this issue of negativity be dealt with and not overlooked. If left unattended it could lead to distrust, skepticism, and low morale amongst the employees. It should be handled properly and promptly before the situation becomes critical. As a new CEO, Voser needs to quickly clarify his position of diversity to gain trust and begin to build a good relationship with him employees. These efforts might start by having a session with the top levels of management to clarify his intent concerning the formulation of the committee. It is particularly important that he does not lose the support at this level of the organization. He should brief them on his plan to further...
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...Shell Company Analysis Dr. Scruton Methodist University Management and Organization Abstract Shell Oil is a global company in the oil industry. This long established company has withstood the test of time in this competitive market. Management practices have established the resources necessary to overcome the obstacles of a global company. This detailed analysis of Shell Oil focuses on management in order to provide an understanding of how the company is able to succeed. The organizational analysis provides insight into Shell’s goals, culture, and resources. An example of a specific problem that Shell faced, oil spills in Nigeria, continues off of the company analysis. Nigeria is a major extraction location for shell, but sabotage and oil leaks grew to be a major concern. Shell faced court cases in search of relief in Nigeria, but the majority of the oil leaks were a result of sabotage; therefore, shell was not responsible. However, people believed that it was shell’s responsibility to safeguard the oil lines and prevent sabotage in the first place. Shell funded the cleanup of previous oil spill sites along with a major advertising campaign to avoid a negative impact on its business. Some people still believe that Shell should be taking more responsibility for the oil spill crisis in Nigeria. Shell Company Analysis Oil is a resource that has been in great demand since the production of combustion engines, as well as other industrial machines. Royal Dutch...
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...Introduction The Royal Dutch Shell is a Dutch Multinational oil and gas company with headquarters in Netherlands. The company has been in operation for 107 years and has averagely annual revenues of over $400 billion. In addition to this, the company has an employee base of over 87,000. My role in the company is an assistant consultant that is in charge of communications and management. Since its inception, the company has utilized a management style referred to as Taylorism. With this approach, the company has always utilized the best way principle which means that decision making is a purview of top management, each job is performed through a standard method, employees work on a function based on experience and knowledge and workers are trained a standard operational method. This management technique was introduced in the 1900s and the company has made little changes to fit into the changing market which has giving its competitors a cutting edge. The paper will analyze the company’s management approach, its efficiency in the current market and if there is need to change the approach in a bid to fit in. Problem Statement With major shifts in management approaches to incorporate among other things technology and market dynamics, is it possible for Shell to remain as a relevant company with its century long approach? This question is best answered after analyzing the company’s revenues in the past ten years relative to that of its competitors, its recent expansions,...
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...(Oxy) and Valero Energy Corporation (Valero) are both international oil and gas companies, with Valero also specializing in marketing of transportation fuels, petrochemical products, and power. Each company has made an international footprint on the earth by extracting billions of gallons of oil and petroleum products worldwide. Oxy was founded in California in 1920, but did not make its first major discovery until 1961. It began operations in the Middle East over 40 years ago, which now accounts for more than one third of its production. In 1983, Oxy opened additional operations in Latin America. Since then, more than one billion barrels of oil have been produced at its Caño Limón location in Columbia. Today, nearly two-thirds of its production comes from the United States, with specific operations located in California, Colorado, Kansas, North Dakota, Oklahoma, New Mexico, and Texas (Occidental Highlights, 2013). Valero was created in 1980 and is headquartered in San Antonio, Texas. In 1997, it began adding more refineries and today stands at a total of 16. Valero expanded into the retail and wholesale markets and now supplies 7,300 outlets, to include the brands of Diamond Shamrock, Shamrock and Beacon, Ultramar, and Texaco in the United States, the Caribbean, Canada, the United Kingdom, and Ireland (Valero History, 2013). Occidental Petroleum and Valero Energy Corporations Like many petroleum companies, Oxy and Valero both are committed to protecting the environment...
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...I am working with Bharat Petroleum Corporation Limited which is involved in Oil Refining and Marketing Business. BPCL is also making inroads in exploration i.e. upward integration. Oil and Gas being one of the strategic sectors from development as well as defense point of view and hence been largely controlled by the Indian government. Prior to independence only Multinational like Burma Shell, Caltex etc. were operating in India. Due to strategic importance M/s Indian Oil Corporation (IOC) for Oil refining and Marketing and Oil and Natural Gas Corporation (ONGC) for Oil exploration were established by the Government. Later on in 1976, based on the experience in Indo China war, MNCs closed their operation and Bharat Petroleum Corporation (BPC) was formed by nationalization of Burma Shell and Hindustan Petroleum Corporation (HPC) by nationalization of Caltex Esso were established by the Government. In 1990s Government of India started inviting private sector in Oil Refining and Marketing and as a result Reliance Industries and Essar Oil limited established large capacities of Oil refining and started creating marketing network. Major products in Oil marketing are: * Motor spirit (Petrol), HSD (Diesel) & SKO * LPG * Aviation * Industrial Products * Lubricant In 1992, Government of India decontrolled lubricant business which gave entry to lot of international players to establish themselves in Indian market giving a tough competition to state players like...
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