Strategy and S.W.O.T. Analysis

Solution Preview

ABSTRACT
For over one hundred years Shell has advanced their commercial reputation through the distinction of their services and products, and through their professionalism and core values they display in every business setting from their consumers to shareholders worldwide. Shell's objectives are to engage proficiently, conscientiously and advantageously in oil and gas, oil products, and chemicals to explore and expand all energy sources to meet global demand. Even with the shift in the global market, Shell stays focused on their growth and delivery while maintaining a well-built portfolio. (www.shell.com, 2009)

Shell is a petrochemical and energy corporation aimed at meeting the energy provisions of our culture, by methods that are socially, environmentally and economically viable. Shell employs approximately 102,000 people in more than a hundred territories and countries. Their operational challenge is to support economic growth by supplying infinite amounts of additional energy, meeting these demands through social, environmental and economic accountability. (www.shell.com, 2009)

My overall impression of Shell is they too have been affected by the global economic recession. Their second quarter earnings were down seventy percent from the same quarter a year ago, thus creating a very taxing environment for their company and shareholders. Since the demand for energy is fragile, the excessive market capacity is keeping industry costs high. Shell is currently trying to adapt to the new market by focusing in the areas of affordability and delivery, via taking steps to reduce costs while continuing investments. This is being accomplished through a blend of lower flexible spending and reduced vendor costs. In doing so, Shell hopes to reduce 2010 primary spending by over ten percent, or approximately $28 billion dollars. (www.shell.com, 2009)

While financial earnings may be currently amiss, the upside is that Shell has made six note-worthy breakthroughs in the United States Gulf, Norway, Malaysia, and Australia; and has increased its overall acreage through the acquisition of their latest discovery licenses in areas such as Italy, Guyana, USA, Brazil, Norway, Jordan and Egypt. Furthermore, trade and natural gas earnings were higher in 2009's second quarter, revealing augmented assistance from North America and Europe. (www.shell.com, 2009)

If Shell continues to contribute to a sustainable progression, creating broader trade values and reducing financial and operational risk, they can become a more lucrative and competitive company. Their pledge to innovation and ...