INDIVIDUAL RESEARCH TOPIC:

ROYAL DUTCH SHELL

Presented To Prof Col (R) Manzoor Iqbal Awan Presented By: Sohail Bilawal Raza 091020 2011 (BBA-5A) Date 7 Oct

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Royal Dutch Shell

Royal Dutch Shell plc (LSE: RDSA, RDSB), commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world (and the second-largest energy company) according to a composite measure by Forbes magazine and one of the six oil and gas "super majors". It is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power. Shell has operations in over 90 countries, produces around 3.1 million barrels of oil equivalent per day and has 44,000 service stations worldwide. Shell Oil Company, its subsidiary in the United States, is one of its largest businesses. Shell has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has secondary listings on Euronext Amsterdam and the New York Stock Exchange. Royal Dutch Shell plc is a global group of energy and petrochemicals companies with around 93,000 employees in more than 90 countries and territories. Our innovative approach ensures we are ready to help tackle the challenges of the new energy future. SHELL STRUCTURE The central feature of the reorganization plan of 1995 was the dismantling of the threeway matrix through which the operating companies had been coordinated since the 1960s. In its place, four business organizations were created to achieve closer integration within each business sector across all countries. It was intended that the new structure would allow more effective planning and control within each of the businesses, remove much of the top-heavy bureaucracy that had imposed a costly burden on the Group, and eliminate the power of the regional fiefdoms. The new structure would strengthen the executive authority of the Committee of Managing Sohail Bilawal Raza (091020) Page 2

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Directors by providing a clearer line of command to the business organizations and subsequently to the operating companies, and by splitting central staff functions into a Corporate Center and a Professional

Shell Values Shell employees share a set of core values- honesty integrity and respect for people. We also firmly believe in the fundamental importance of trust, openness, teamwork and performance and pride what we do.

Sustainable Development
We commit to contribute to sustainable development. This requires balancing shot and long term interests, integrating economic, environmental and social considerations into business decision making.

Responsibilities
Shell companies recognize five areas of responsibility. Shareholders: To protect shareholder investment and provide a long-term return competitive with those of other leading companies in the industry.

Customers: To win and maintain customer by developing and providing

product and services which offer value in term of price, quality and environmental impact, which are supported by the requisite technological, environmental and commercial expertise.

To employees: To respect the human rights of our employees and to provide

them with good and safe working conditions and competitive terms and conditions of employment. We recognize that commercial success depends on the full commitment of all employees.

To those with whom we do business: To seek mutually beneficial

relationships with contractors, suppliers and in joint ventures and to promote the application of these Shell General Business Principles or equivalent principles in such relationships. Sohail Bilawal Raza (091020) Page 3

[ROYAL DUTCH SHELL] Society: To conduct business as responsible corporate member of society, to
comply with applicable law and regulations, to support fundamental human rights in the line with legitimate role of business and to give proper regard to health , safety, security and the environment.

Company main principle

Economic :(Long term profitability is essential to achieving our business goals and our continued growth) Competition: (We seek to compete fairly and ethically and within the framework of applicable competition laws) Health, Safety, Security and Environment: Local Communities: (We manage the social impacts of our business activities carefully and work with others to enhance the benefits to local communities ) Communication and Engagement: Compliance: (we comply with all applicable law and regulations of the countries in which we operate..)

Shell Eco-Marathon
The shall Eco-Marathon challenges students to Design, build and run the ultimate fuelefficient vehicle.( in all the world Universities)

SHELL & Formula One

Looking ahead to 2011, 19 races will feature on the Formula One calendar, making it the longest season in the sports history. The lights will go out for the first time in Australia on March 27 while the world-famous Interleague circuit in Brazil will close the season on November 27. India is a new addition to the championship, and will host a race in New Delhi on October 30.

Loyalty :Shell offers customers Loyalty Cards in 24 markets all over the world. By using their
card each time they purchase Shell fuels on-site, customers earn points. They get the gifts.

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Subsidiaries
Shell is working in more then 90 countries like
Shell Australia Shall Canada Shell Nigeria

Shell Pakista Shell Pakistan

Royal Dutch Shell is Ethnocentric Global Corporation. Its main business principle and responsibilities are like the home country.

History in Pakistan
The Shell brand name enjoys a 100-year history in this part of the world, dating back to 1899 when Asiatic Petroleum, the far eastern marketing arm of two companies: Shell Transport Company and Royal Dutch Petroleum Company began importing kerosene oil from Azerbaijan into the subcontinent. Even today, the legacy of the past is visible in a storage tank carrying the date - 1898.

Retail Promotion : Shell lunches his current promotion activity with Omore Icecream in Pakistan.

Shell Pakistan Local Initiatives

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Shell has always taken a leadership role in contributing to society through a structured social investment program. Shell supports a variety of education and youth-oriented programs.

Social Activities Shell voluntary contribution to support communities and societies. In 2008 they spend $148 millions in different social works. There are some social work in Pakistan 1: Free Eye Camp 3 : Shell Tameer Pakistan 5: HIV/AIDS Initiative 2: Neighborhood Beautification 4: Scholarship Program

Road Safety Initiatives Shell Pakistan has always great important on health,
safety and environment aspect of society it does business in. 1; Safar Bakhair (Road Safety) Program 2: Journey Management System

3: Driver Training& Attitude Improvement 4: Haulier/Contractor Professionalism

Challenges in Pakistan:
These are some challenges in Pakistan. *Law & order rate *Prices of Oil *Bad Political situation *High inflation

Shell Canada
Shell celebrates the 100 year business in Canada

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[ROYAL DUTCH SHELL] Heating Fuels: Shell introduce the heating Fuel in Canada and other European
countries which are facing very hard winter. This make your house warm and comfortable in during the coldest months.

Services Cards: Shell introduce the different credit cards to serve their customers.
Like Shell master card, shell prepaid etc.

On The Road: In Canada and other Europeans countries SHELL provides information
about service stations, Select stores, fuel, oil, charge cards, AIR MILES Reward Program, and gasoline pricing.

The Energy Challenges In the World

The world faces three hard truths in meeting the energy challenge. 1. Firstly, demand for energy is growing rapidly, as countries including China and India enter the most energy-intensive phase of economic development. 2. Secondly, supplies of easily accessible oil and natural gas are unlikely to keep up with demand after 2015. The world will have to use energy more efficiently and increase its use of other sources of energy. This means more renewables like solar, wind and biofuels, more nuclear energy, more coal and more oil and natural gas from difficult-to-reach locations or unconventional sources like oil sands. 3. Thirdly, as a result CO2 emissions from energy responsible for more than half of man-made GHG emissions are set to rise, even as concerns about climate change grow.

How Meet These Challenges

To meet the energy challenge oil companies should using advanced technologies to unlock oil and gas in more remote or hostile environments, and new techniques to extend the lives of existing fields. Oil Companies should increasing production from Sohail Bilawal Raza (091020) Page 7

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unconventional sources, including oil sands. And we are part of wind and solar power projects.

Conclusion
Shell is the one of the best global origination. Which fallow the Ethnocentric strategic predisposition. Shell organizational and management structural is very strong. Thats why they perform very well in global recession. They build the strong loyalty in customer mind through their best services and social welfare programs.

Recommendations:
Improve the customer services according to host country culture. Increase the effectiveness and efficiency to reduce the extra cost. Give some relaxation in rules according to the host country culture With new technology and they increase their business Bibliography: <www.shell.com> <www.shell.pk > <www.shell.ca> <www.yousigma.com>
<www.google.com >

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