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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 Shells 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 Chinas 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 worlds 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 cleanerburning 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. Shells 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 worlds 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. Knights 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 Perezs 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 Nikes 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.

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 Im 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.

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 Unilevers 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 Unilevers 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 worlds 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. Its a new way of wrapping the fragrance up in tiny bundles that open slowly throughout the day when the body moves, releasing it when its 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 Plans 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 ones 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 BPs, 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 weve 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 pass 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, sustainabilityrelated, 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.