Case Study

Case Study: Case 8 - Royal Dutch Shell: Fueling the World

Discussion1

The planning process that used by Royal Dutch Shell is scenario planning which mean

identifies the alternative future scenarios and makes plans to deal with each scenario that may

help of hinder the progress towards your objectives. The company always creates and does

something by making future prediction. The objective of this company was succeeding by using

this planning process.

Scenario planning is planning tools and techniques and the Royal Dutch Shell used this

technique to solve their problem such as had to deal with more recent advancements in

alternative fuel sources, which had previously received less attention due to the minimal expense

of oil based products. This is because the Royal Dutch Shell was expecting that the oil and gas

will be gone because the oil and gas was renewable source. So that the Royal Dutch Shell find

the alternatives to overcome this problem.

The Royal Dutch Shell also realized the potential and importance of globalization and

decided to take the approach of utilizing local talent in higher positions with the company

respective countries where it operated. We also can see through their first achievement in

transferring oil by using their first bulk oil tanker, which had a dramatic impact on the

transportation of this hard-to-deliver product.

This planning process was being able done and achieved because Royal Dutch Shell

always used approach of looking forward and predict for the future. Royal Dutch shell was

spending a time and cost to improve their companies into global field of marketing. In aspect of

transportation, communication and field of business, Royal Dutch Shell made a research and

development trough forecasting. As we see, Royal Dutch shell has successfully delivering the oil

via massive oil tanker.

By all this we can make a conclusion that the Royal Dutch Shell is really good in

planning for their current and future, this company always planning by manipulated their

current condition than they will find their way to overcome problem and made a good

decisions for the problem and for future by predicting any result, target and goal an than

what steps to be taken to reach the goals.   The ability of this company to drive their future to

bigger achievement is undoubted was excellent. They can always planning to become better

in future. The result is as we can see how big the name of this company today

Discussion2

The planning tools and techniques that been utilized by Royal Dutch Shell is contingency

planning. Contingency planning identified the alternative courses of action to take when things

go wrong. This was happening during 1930s the depression forced Royal Dutch Shell to reduce

its workforce and World War II forced the demolition of many of its locations. This is because

the Royal Dutch was having problem that was hindered the companies to continue their business

as before. But the difficulties is about to whose the oil is about to sell?  Royal Dutch Shell

second plan is making contract with one of the force that participated on that war.

Royal Dutch Shell has become the main supplier for fuel to British Expeditionary Force

during World War 1. This has gave the company good state in running the business. Beside

that the Royal Dutch Shell uses contingency planning to solve the problem of lacking with oil

sources. In 1900s, Royal Dutch Shell began to seek out new source of oil including explorations

in Russia, Romania, Venezuela, Mexico and the United States.

I suggest that Royal Dutch Shell should use contingency planning as the planning tools

and techniques to achieve their objective as the oil empire. This tool or technique can help their

overcome their problem and help them to improves their business. The globalization as example,

this situation as the same time gives the advantage to their business to explore their business and

product to other part of the world.

Discussion3

I feels that Royal Dutch Shell has uses a strong involvement strategies to implement its

plans. Royal Dutch Shell has been begun to seek out new sources of oil by exploration in Russia,

Romania, Venezuela, Mexico and United States. By 20th century Royal Dutch Shell has growth

his business significantly and expanded across global markets. Transportation of oil was

improved with the introduction of the supertanker which enabling evens more oil to be

transported by sea. In 1960s, Royal Dutch Shell has approached of utilizing local talent in higher

positions. As a result of a disastrous oil tanker spill off the coast of Spain, Royal Dutch Shell was

forced to evaluate its environmental standards and find ways to improved it.

Now a day, Shell has occasionally sought to diversify away from its core oil, gas and

chemicals businesses. Nuclear Power was been discovered by a short-lived and costly joint

venture with Gulf Oil in United States. Another sources like coal, Shell has play a role in mining

and marketing. For metal, Shell has acquired Dutch metals-mining company Billiton to work on

the project. Electricity generation, Shell had joint venture with Bechtel called Interment to

cooperate in the project. Besides that Shell also make a lot of effort on alternative energy, Shell

invest in solar power, wind power, hydrogen and forestry. Shell also involved in large-scale

hydrogen projects.

In September 2010, Shell agreed to a 12 billion dollar joint venture with Brazilian

sugarcane producer Cosan to develop sugarcane-based ethanol and power. Besides that, Shell has

been responsible for the largest oil spill which was Shell tank ship in Magdalena, Argentina

collided with another tanker has been overcome into freshwater in the world. From 2009 until

2010, Shell acting under East Resources donated more than 300,000 dollar to governor of

Pennsylvania to protect the environment of natural gas drilling.

Shell subsequently published an unequivocal commitment to sustainable development.

Shell plan to develop products and services in conditions of clean, convenient and affordable

energy for example produce more cleaner-burning natural gas, and develop a transport biofuels

business. Shells also try to improve in designing, build and run the operations to lessen

environmental impact to benefit local communities.

The Shell Commitment and Policy on Health, Security, Safety, the Environment and

Social Performance is designed to help protect people and environment. Shell are committed to :

Pursue the goal of no harm to people, protect the environment, use material and energy

efficiently, contribute to societies how to operate, develop energy resources, public report on

performance, manage HSSE & SP matters as any other critical business activity. Shell had been

warned by governments by playing a leading role in demonstrating ways to manage CO2

responsibly. Shell had measures, reports and manages the emission of greenhouse gases from our

worldwide facilities under our operational control.

To reduce the chance of safety incidents, accidents or oil spills from bulk transport ships,

company-wide ship quality assurance standard has been introduced in 2003. This is to reducing

harm to people, to environment, damage to Shell’s reputation and financial claims on Shell.

During 2011 a pilot scheme has been under way at more Shell service stations across South

Africa. Shell offers tests for TB, blood pressure, anemia, cholesterol and sugar levels. Shell also

shares the coast of the tests with service station owners and works in partnership with the South

African Business Coalition for HIV/AIDS to run the scheme.

Shell and China National Petroleum Company (CNPC) has strengthened their partnership

to developed gas field at Changbei which is China’s first and largest oilfield. The legendary “iron

man” spirit had led the pioneering era of the Chinese oil industry in evidence. Shell strives to

become the world’s most competitive and innovative energy company. A sense of responsibility

as it builds a shared vision and strong partnership with CNPC growing energy needs.

On the visit to Changbei gas field, Shell explore how engineers had brought cleaner-

burning gas to Beijing by achieving the longest distance for onshore horizontal drilling in China.

The two companies are exploring tight gas and shale gas in Sichuan basin and jointly acquired

Arrow Energy in 2010 to explore coal bed methane in Australia. Shell, CNPC and Qatar

Petroleum International are also pursuing an opportunity to build an integrated refinery and

petrochemical plant in Zhejiang Province.

Shell have back in Iraq for large projects, including one with their long-term Malaysian

partner PETRONAS. Shell also joint with Cosan in Brazil to negotiate a novel technical service

agreement for gas development in Kuwait. Shell’s Australian partner Woodside and United

States company Conoco Philips has select Shell Floating LNG technology for the Sunrise gas

development. Partnership with Petro China helps Shell entering deeper into potentially the

world’s biggest energy market, China. Exploration finally has successes in the Gulf of Mexico

and those companies have gained extensive new acreage for unconventional gas exploration and

production in the world. All Shell companies are expected to comply with the Shell General

Business Principles. In joint ventures, Shell has influence to persuade their partnership to adopt

and apply principles consistent with Shell. Shell will always stands for intelligent, capable,

innovative, trustworthy long-term partner.

Further Research

There are a lot of alternative fuel sources currently used and research by the world

today. These alternative fuel is developed because they want to find or overcome the issues

of depleting sources, many corporate sector invest in their money to research and develop

this alternative sources of energy. They know if they mastered and conquer this field it may

come in much profit. There were many types of these alternative sources like Biomass,

Biofuel, Solar power, Liquid nitrogen and Nuclear power. But one of the most popular

alternatives fuel today is hybrid technology.

            Hybrid technology is the technology that implied on machine to generate electrical

energy. Almost all the developer put in this technology to main vehicle, car. Car is one of the

most consuming petrol on road. And it is always become a problem to human when the price

of petrol is increase year by year. This problem seems cannot be put aside as the sources of

petroleum is depleting years by years.

       The invention of hybrid technology has become a good answer to overcome the

problem of depleting resources of petroleum. This is why some giant of automotive company

like Toyota and Honda is competing in developing and producing the hybrid car. World

citizen is quiet happy to hear this things and those hybrid has become more and more popular

and widely being used in few country. Those cars like Toyota Prius have been used by

United State as their patrol car. 

The invention of hybrid technology is obviously known that it is developed in order

to respond to the problem of depleting sources of petroleum. But as the technology is

developed a bit early, it is at the other side have turn to become a threat to the oil industry.

At today current situation, it may still look like just a normal thing. But if we look up to little

five year forward. The oil industry may feel the impact of lowering number of

petrol consumer. The reducing number of petrol consumer is occurring when the hybrid

technologies become cheaper when expert become more advance in mastering this

technologies.

         This is a normal thing that, when any technology is become more mastered by human

it will become cheaper and more affordable by human. So the same thing goes to Hybrid  and

this is absolutely will give impact to oil industry.  And Royal Dutch shell itself as the big

company in oil industry will affected. The demand of their petrol fuel will decrease

periodically as the hybrid technology is become more familiar time by time.     

Case 10: NIKE, Spreading Out to Stay Together

1. Informal structures are the shadow organization that represents the actual working and

communication relationships that may not resemble the formal organizational chart.

When knight remained on the board, old communication relationships may have

survived his departure from the CEO position, cutting Perez off from valuable

information. Knight’s access to the informal communication network may have worked

to spread rumors to Knight and back down the communication chain. These rumors may

have contained inaccurate information, caused resistance to change and distracted

members from their work. This may have reinforced Perez’s position as an outsider.

2. Mechanistic designs are highly centralized and bureaucratic with an emphasis on

command and control. This might persuade some students that mechanistic designs are

appropriate for manufacturing in foreign countries. Organic designs are adaptive,

decentralized and tend to respond to change more quickly. This would probably be a

good fit for an organization that has far flung operations in different countries with

different cultures that try to respond to rapidly changing technology, fashion, customer

demands and economic conditions.

3. Decentralized control present in an organization that uses organic designs is still control.

Organization members in an organic/adaptive company that are responsible for

monitoring foreign contractors and labor conditions may be just as committed to control

standards as members of a mechanistic/bureaucratic company.

4. Network structures use information technology (IT) to link with networks of outside

suppliers and service contractors. The case outlines Nike’s efforts to outsource many

nonexecutive responsibilities to reduce overhead. In addition to outsourcing production,

the research and marketing business centers listed in the case could be part of a network

structure. Other functions may include design, advertising, licensing, compliance sports

and entertainment marketing. The network structure may look similar to figure 10.6 on

page 246.

5. Students will find a large number of different brands of athletic shoes in addition to top

competitors Adidas, Rebook; additional competitors include New Balance, Puma, Asics,

Keds, And 1, Etniesand Vans.

CASE QUESTION 13

Unilever: Leadership Knows No Boundaries

1. How does Unilever display its commitment to leadership?

Leadership at Unilever begins with Paul Polman, CEO, who shares his thoughts on the

leadership conviction at Unilever as:” everybody is a leader, as far as I’m concerned. And my

definition of leadership is very simple: if you positively influence someone, you are a leader.”

With leadership beliefs such as this at the top of the organization, it is clear why Unilever has

been able to achieve such a high level of success in this industry. Unilever is a fast moving

international consumer goods company. On the other words, Unilever has seriously considered

behavioural resources for winning in the global markets and developed a competency model, the

‘Leadership for Growth Profile’ (LGP), which has been influence world-wide.

Besides, Unilever concerned about quality in manufacture of products with effective in

local markets as a multi local multinational company. This is how Unilever display its

commitment to outline the role of cultural differences in the process of building leadership

competencies in this global corporation. For Unilever, leadership competencies in a

multinational company will combine all the idea. Multinational companies consider that

leadership among their competencies will be influence leadership behaviors and leadership

development in their international operations.

In the multinational companies the concept of leadership is associated not only with

traditional dimensions such as traits and styles, but also has been developed to the level of

leadership competencies generated through historic process of organizational learning. It this

form leadership is viewed as the important of strategic importance that may influence global

performance of multinational company.

2 How has this commitment to leadership allowed it to capitalize on opportunities in

the marketplace?

The strategy with brands and marketing is simple, discover what consumers want and give it

to them. But consumer needs are complicated, and people are very concerned about the quality

of the product. Therefore, they should ensure that a product complies with consumer preferences,

and must better than their competitors.

They have to make sure that the product can compete in international markets and they

focus on what's important striving towards sustainable products that consumers prefer. They

operate a rigorous system of testing their products against consumer main rivals in every key

market to ensure they deliver the attributes that consumers want. Whether it's toothpaste in India,

tea bags in Russia, laundry liquids in Turkey or bouillon in South Africa, they want to find out

what consumers desire from their products, whether they prefer them and why. Is it the taste, the

fragrance, the cleaning properties or the packaging.

They conduct a careful analysis of what it is about a product that consumers are

searching for. One of their key strengths is how they quickly use the ideas across their

geographies, categories and brands, which allow them to focus investment and resources more

wisely and efficiently. For example, taking the fragrance technology expertise we used to

improve Rexona and applying it to Skip detergent.

To grow, they need to reach more consumers with their products and they are well placed

to do so. For example, they can take brands into markets that many companies do not have the

resources and experience to develop. In 2011, consistent with their strategy of making based on

takeover to strengthen their portfolio in key countries and categories, Unilever acquired Alberto

Culver, helping accelerate their transition to becoming one of the world's leading personal care

businesses. Their aim is to grow in developed markets too. For example, they were launched

Domestos in Western Europe in 2011 on the back of new technology that allows the product to

cling to the toilet, for longer lasting germ kill. Success here would establish Unilever as a key

player in a big emerging market, as well as giving us invaluable knowledge of local supply and

distribution.

If you were an upper executive within Unilever, how would you apply the concepts you

have learned about leadership to your position?

If we want to create a better future for consumers, for the environment, our business,

and to achieve that vision, we need to improve existing products and create new ones. But we

know that the world is full of brilliant people, with brilliant ideas and we were constantly looking

for new ways to work with potential partners. These ideas could come from individuals,

businesses, existing suppliers, or anyone who has a fresh, serious approach to new thinking.

By working with us, they could help change the world even if it is a little at a time. More

than 2 billion people use a Unilever product every day, and improving our products, or creating

new ones, makes a difference to millions of people's lives. We were looking for help in achieving

our most important ambition. We want good ideas to become reality quickly who ever thought of

them first. Often we will have specific challenges we had welcome your collaboration on a new

formula, a new technique, new packaging or a fresh design solution to a product we already have

in mind.

Next, we are committed to improving the health, hygiene and diet millions of people.

Campaigns to improve public health are part of our DNA as a business our Lifebuoy soap

contributed to the reduction of cholera in the UK more than a century ago. We are looking for

innovative products, techniques or devices that will help us meet our commitment to improve the

health and well-being. Hand washing, oral care, self-esteem, and drinking water safety are all

areas where we're committed to making a difference, and where we want to work together with

partners who would like their ideas to help make people healthier.

Besides, we helping people make healthy food choices. We have made a commitment to

double the proportion of our portfolio that meets the highest nutritional standards, and help

people achieve a better diet. Open innovation could play a big role. We would like to work with

partners who could help us develop foods which supply food at a price affordable enough for the

world's poorest communities to have a better health.

2. Investigate Unilever’s international operations. Where do you feel it possesses the

strongest presence? What is it doing to further its position in the international

market?

Science is one of the key drivers of Unilever’s continuing success. They invest in research

and development (R&D) to make sure they are first with the innovations that will make their

brands bigger, better and more profitable. Central to innovation is their Genesis programmer,

R&D process set up in 2009 which fuels their longer term pipeline, applying breakthrough

technology across categories. The programmer is delivering results and they are already seeing

some of these innovations in the market. For example is Rexona for Women with Motion sense

technology. Rexona has long been one of the world’s biggest deodorant brands. The

conventional wisdom was that there was nothing that could be done about that, but they

developed a new technology to combat the problem.

They introduced Motion sense technology in 2011 with Rexona deodorant products. It’s a

new way of wrapping the fragrance up in tiny bundles that open slowly throughout the day when

the body moves, releasing it when it’s most needed. Subsequent testing showed that this gives

Rexona a clear win over its key competitors. Their world class R&D facilities are constantly

making breakthroughs that keep Unilever at the forefront of product development. Integral to the

way they work are partnerships with universities, scientists, large and small companies and

entrepreneurs. In 2011, around 500 partners had one or more of their projects under

development. In addition, they have been working with their strategic suppliers to develop co

innovation programmers and to ensure that they bring great ideas to Unilever. One of their key

strengths is how they quickly use the ideas across their knowledge which allows them to focus

investment and resources more wisely and efficiently.

We feel it possesses the strongest presence was in Indonesia. Here is highly successful

launch in Indonesia in 2010, the Magnum ice cream range was rolled out in North America in

2011. Good jobs to a great product along with extremely effective advertising and marketing,

Magnum achieved early success in these two highly competitive markets delivering more than

80 million in turnover. Its US advertisement was one of the most successful in Unilever food

history.

To further its position in the international market, companies must take risks, adapt

quickly, and get employees to think differently. Many of their large international customers take

a strong stance on sustainability, and they have set ambitious targets in areas such as energy use,

greenhouse gas emissions and waste. Their products reach markets through customers and from

multinational retail. International retail customers such as Wal-Mart, Tesco, Carrefour and

Metro predominate in the US and Europe but also have a growing presence in developing

markets too.

In November 2010 they launched the Unilever Sustainable Living Plan, their vision to

grow their business sustainably. Under the plan, by 2020 they aim to source all their agricultural

raw materials sustainably and good partnerships with suppliers are crucial to achieving this

target. Working with partners to manage their supply chain is critical to delivering on their Plan’s

goals, and creating a truly sustainable global business. To support the successful delivery of

their sustainable living plan objectives, they have introduced a range of initiatives which have

become guide on their business

Question 18

Discussion – What may BP have learned from this disaster? How will this information

assist it in future operations?

According to official news, an explosion on the BP operated Deep-water Horizon oil rig

killed eleven crew members on 20th April 2010, sparking the greatest environmental disaster in

United States history. In combination with the Texas City Refinery Explosion and the Prudhoe

Bay Oil Spill, this marked the third serious incident involving BP in the United States in five

years. Scientific estimates put the amount of oil that was being discharged from the broken well

at above 1,470,000 US gallons per day! There are over 400 different species of animals living in

the area affected by the spill. 464 sea turtles and 60 dolphins were found dead within the spill

area (NOAA). BP operated oil skimmers and other clean-up tools to try to remove oil from the

water and Louisiana began building oil containment berms to halt the spread of oil. On July 15,

2010 BP successfully stopped the flow of oil from the wellhead, after spilling 190 million

gallons of oil into the gulf over a period of 3 months.

BP learns some throughout this disaster. Firstly, take responsibility. Whenever disasters

strike, as they will solemnly do, always take charge and fix the issues. In this cruel litigious

society, finger pointing is perhaps the second activity your lawyers will ask you to perform.

However, any responsible, corporation should put the needs of the public ahead of the perceived

lawsuits. Next, make sure your house is in order.

It is not fair to point out one’s shortcomings without first criticizing the precipitating

events that led to the eventual shortcoming. Unfortunately, BP's culture appears to have been one

which sanctioned extreme risk-taking and hid facts, ignored expert advice even leading up to the

20th April collapse of the Deep-water Horizon. It is always a good idea to always do the right

thing as a corporation. If there is ever a disaster in which positive public perception is necessary

to perverse your corporate image, then you stand a better chance if your house is order. Besides

that, anticipate obvious types of mishaps.

In February 2009, BP filed an application with the now defunct Minerals Management

Service( MMS ). In the application BP claimed that it was unlikely that any accident would

occur during their work and therefore they did not provide any action plan in case something did

happen. Such optimism is cute but unfortunate. In a high risk industry such as BP’s, one would

expect stringent safety regulations especially given the depth of exploration and the potential

environmental effects that we have sadly come to be well familiar with. While it is impossible to

anticipate all kinds of problems in any kind of project you are working on, it a good idea to

recognize the obvious ones and plan for them accordingly.

Apart from that, never downplay safety in favor of cost. This almost goes without

saying but in a world of shareholders, performance bonuses and corruption it is worth

mentioning. In no case should it ever be appropriate to downplay safety in order to save cost or

meet deadlines. More often that not, such an exercise will only be putting the lives of your

employees in danger and potentially the environment and animals which depend on it. It will also

help to have safety protocols and training on such protocols for all employees to follow.

Safety briefings should be a must in every project that involves machinery or moving

vehicles. Also, stringent rules should be in place to make sure that employees are always

adhering to the safety requirements. From what we’ve gathered from this disaster, we should use

it to assist our operation in the future. First, offshore drilling is a risky business that can cause

expansive economic harm and widespread environmental damage. In announcing the recent

decision to restart deep-water drilling like BP's well — a wrong-headed decision, I believe —

administration officials have acknowledged that we cannot ever eliminate the risk of oil spills

entirely. In other words, some spills are inevitable.

Now that the spill is no longer on the national news every night, let's not forget how

bad this one was. More than 600 miles of Gulf Coast were hit with oil, thousands of birds died,

1,000 rare sea turtles either died or were severely oiled and hundreds of square miles of sensitive

marsh were covered in oil. Tens of thousands of fishermen and tourism workers were put out of

work. The second is to be sceptical of industry and government claims that everything is safe and

well managed in the oil business. In newspapers, congressional hearings and TV coverage, we

were shocked to learn about the gaps in regulations, the inadequate inspections and safety

equipment, the cosy industry-regulator relationships, and the risky decisions that were made on

the rig by managers who wanted to drill deeper, faster and cheaper — but not safer.

The federal government then told us that most of the oil was gone a month after the spill

ended, when in fact much of the spilled oil was still out there. The third is that we need to end

our dependence on oil. This wasn't just BP's string of mistakes. Americans use too much oil —

25 per cent of global consumption. This is polluting our air, warming our earth and oceans,

making us too dependent on energy from foreign sources and causing us to drill for oil in

sensitive places.

The extraction, transport, and use of oil and gas across America is an on-going

environmental disaster. Wherever we allow offshore oil drilling, no combination of technology

and/or response methods can definitively protect our beaches, fisheries and wildlife from

potential destruction. Yet oil companies and our own government continue to call for more and

more drilling in our sensitive oceans. We need to stop and apply the lessons of the BP oil spill.

Instead of opening up new places for drilling, we need to protect our coasts and beaches. Instead

of letting the oil industry threaten coastal economies, we need to harness American ingenuity to

make our cars much cleaner and more fuel-efficient.

We need to drive fewer miles by investing in public transit, and shift to wind and solar

power. In the wake of the Exxon-Valdez spill, President George H.W. Bush initiated, and then

Congress expanded, a moratorium on drilling that protected our Atlantic, Pacific, and Alaskan

shores from oil drilling for nearly a quarter century. Will President Barack Obama find the

resolve to restore these protections and lead us in the direction of using less oil? I hope so.

Lastly, environmental risks can threaten the viability of a business. Reducing risk was the

core focus of environmental efforts for many years so it got a bit passé as a forward-looking

argument for sustainability. But it certainly is making a comeback now. As someone who's

written for years about how going green can drive profits and growth, I've probably also

downplayed the role of risk reduction in creating green value. So let me make the very easy case

for BP's poor risk management .As of today, BP has lost over a third of market value, worth

about $70 billion. Last week, The New York Times went so far as to suggest that BP could be

vulnerable to takeover once all its liabilities for this spill are accounted for. Of course for most

companies, sustainability-related, enterprise-threatening risks are not quite as tangible as miles

and miles of your product killing an entire ocean.

But even harder-to-measure threats can destroy a business model. Think of the "stroke of

the pen" risk from regulations that outlaw a component of a product due to toxicity (one recent

candidate: plastics chemical BPA). Or consider at the risk to companies that do not meet the new

sustainability-themed supply-chain demands from business customers. Or look at a company's

ability to attract and retain talent based on how well the company manages its environmental and

social performance. Ironically, BP leaders have told me in the past that their reputation as a green

leader was making recruiting the best engineers far easier. But that reputation is shattered.