Organizational and Product Success
The oil company, Shell, that is known to many and in high competition with other oil companies, didn’t start in the market for oil. The company started in 1883 by Marcus Samuel in London. The company started off selling antiques and oriental shells. By 1886, the company was passed down to his son Marcus Samuel Jr. and his brother Sam Samuel. They exported British machinery, textiles, and tools to the newly developing Japan and the Far East. They also imported rice, silk, china, and copperware to the Middle East and Europe. Along with exporting and importing goods, they also traded sugar, flour, and wheat worldwide. While in Japan, their interest for oil sparked. From that day on they found ways to carry oil in bulks to different ports that they formed contracts with. World War I was the spark of success for Shell. They were the main fuel supplier of the British Expeditionary Force and shortly after became the world’s leading oil company, which in result founded Shell Chemicals.
Shell strives to be the leader in the oil industry and their strategy plan states it; “Our strategy seeks to reinforce our position as a leader in the oil and gas industry while helping to meet global energy demand in a responsible way. Safety, environmental and social responsibility are at the heart of our activities.”. Their six themes of success are as follows:
Business Focus: Their business focus is on the energy demand for the oil and gas industry.
Closely related products: Not only is their focus on the oil and gas aspects, but also in chemicals and lubricants for vehicles.
Focused R&D: They are always researching and trying to develop new technologies for the company. They have two groups of business organizations that they strive to improve, Upstream and Downstream. In Upstream, they search for crude oil and natural gases as well as transporting it to the desired market. They also extract thick heavy oils, bitumen, from oil sands to convert into synthetic crude oil. The Downstream side manages the refining and marketing for the oil products and chemicals. All of their products target different groups, such as home, transport and industrial use. This part of the business also trades oils and chemicals, along with providing shipping services for one of the world’s largest fleets of liquefied natural gas and oil tankers.
Consistent Priorities: Shell’s goal is to meet the demand for energy worldwide and improve energy efficiency. With their engineering expertise, they are committed to stay on top of the technology and innovation in the world.
Adaptability: With the financial and project-management skills that are available, they have the ability to adapt to any changes in technology and to deliver large field development projects.
Organizational Cohesion: Shell sets high standards of performance for its employees, as well as ethical behaviors. Their reputation is an important factor in how they live up to their image as a company. Their Code of Conduct directed to their employees reflects their core values of “honesty, integrity and respect.” By setting high standards for its employees, it provides them with knowledge about the laws and regulations in regard to their customers, communities, and colleagues. To reassure their employees, they make sure they are recognized and rewarded for their individual achievement through pay and bonuses. They also offer benefits, which in return give the employee the desire to fulfill their job and commit to a long-term of employment.
Entrepreneurial Culture: Shell’s main focus is to provide a work environment that is compatible with any type of work ethic, including those with disabilities. They provide the right job of skills and talents to the employee that fits the position regardless of their color, ethnicity or physical ability. They are always continuing to provide the necessary programs and training needed to improve the working abilities of not