Company analysis phase 1- Shell oilCompany analysis phase 1- S.docx

Company analysis phase 1- Shell oil
Company analysis phase 1- Shell oil Comment by Gisela
Salas: Include a page header (also known as the "running head")
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Comment by Gisela Salas: Title Page
The title page should contain the title of the paper, the author's
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Name: Keith Griffin
Institution: Saint Leo University
Course: MBA 599
Lecturer: Dr. Salas
Date: 7/20/14

Introduction Comment by Gisela Salas: Make certain to insert
a page break when you need something to begin at the top of the
next page.Comment by Gisela Salas: You do not need a space
between your header and paragraph.
Shell Oil Company is the United States-based subsidiary of
Royal Dutch Shell, a multinational "oil major" of Anglo-Dutch
inceptions, which is amongst the biggest oil organizations on
the planet. More or less Approximatly 22,000 Shell workers are
situated in the U.S. The U.S. head office is in Houston, Texas.
Shell Oil Company, including its united organizations and its
experience value organizations, is one of America's biggest oil
and characteristic gas makers, common gas advertisers, fuel
advertisers and petrochemical producers. Comment by
Gisela Salas: Each paragraph should be indented half an inch.
Shell is the business pioneer through give or take with an
extimated 25,000 Shell-marked corner stores in the U.S. which
additionally serve as Shell's most unmistakable open vicinity.
Shell Oil Company is a 50/50 accomplice with the Saudi
Arabian government-possessed oil organization Saudi Aramco
in Motiva Enterprises, a refining and showcasing joint wander
which claims and works three oil refineries on the Gulf Coast of
the United States. Comment by Gisela Salas: Not certain that
this is the word you want to use here.
The Shell Oil Company Warehouse, implicit 1925 and founded
at 425 S. N. sixteenth Ave. Phoenix, Arizona. It is recorded in
the National Register of Historic Places. Comment by Gisela
Salas: This is not a correct use of this word. Comment by
Gisela Salas: You do not need to be so specific with an exact
address.
Shell items incorporate oils, fills, and card benefits and
investigation, creation, and refining of petroleum products.[1]
The Shell Oil Refinery in Martinez, California, the first Shell
refinery in the United States, supplies Shell and Texaco stations
in the West and Midwest.

Shell fuels awhile ago incorporated the Ru2000 and Su2000
lines (later there was a Su2000e) yet they have been superseded
by the V-Power line. Comment by Gisela Salas: Whys is
this important? Was this an expansion of the market. Was Shell
doing something different than its competition?
History
1912 - The Beginning
In 1912, the Royal Dutch/Shell Group established the American
Gasoline Company to offer fuel along the Pacific Coast, and
Roxanna Petroleum to purchase oil item properties in
Oklahoma.
1915 – First Continuous Process Refinery
Finished in 1915, Shell's Martinez Refinery was the nation's
first current, consistent procedure refinery, obliging just
infrequent shutdowns for cleaning. For a long time, it served as
a model for different U.S. refineries.
1921 – Signal Hill
The Signal Hill field in California was ranrun across by Shell in
1921. This notable strike set off an oil blast, with the uplifting
news voyaging so quick that the penetrating teams were
compelled to invest much of their time grouping tourists off the
derrick floor. Sign Hill turned into the country's most gainful
field, as far as barrels for every section of land.
1928 – Shell Development Company Formalized
In 1928, Shell Development Company was sorted out to
distinguish concoction items that could be produced using
refinery repercussion gasses. One year later, Shell Chemical
Company was sanctioned to make these items, which run today
from modern chemicals to polymers and impetuses to shopper
items.
1931 – Synthetic Ammonia
In 1931, Shell Chemical opened its Shell Point manufactured
alkali plant close Pittsburgh, California. It was the first plant on
the planet to utilize characteristic gas to make alkali. Rural

generation then relied on copious and shoddy manufactured
smelling salts to profoundly streamline compost application.
1941 – 100-Octane Gasoline
Shell researchers created an approach to blend the 100-octane
gas required for another era of flight motors. This finding would
have history-molding ramifications in World War II. At the start
of World War II, Shell fabricated 25% of the 100-octane flying
fuel utilized by the military.
Oil slick in Nigeria
With a history of spills in the Niger Delta, "546 million gallons
of oil spilled into the Niger Delta over the most recent ﬁve
decades" (Nossiter, 2010, p. xx). The most recent spill, June 20,
2010, has made Nigerian officials ask Shell Petroleum
Development Company to enough remunerate the influenced
groups ( Ezigbo, O. & Bassey, O. 2010). The nearby groups and
NGOs are upset, "Shell Petroleum Development Company
(SPDC) yesterday debated a report by Amnesty International
and Friends of the Earth International (Foei) that its operations
in the Niger Delta breached essential principles for dependable
business set out by the Organization for Economic Co-operation
and Development (OECD)." (Alike, 2011, p. xx). Shell has
additionally been blamed for using" discredited and deluding
data to occupy fault for oil contamination in Nigeria.
Comment by Gisela Salas: You inserted a quotation mark
here but there is not another one indicating the beginning or end
of the quote.
Vision
To be the biggest ecological amicable vitality supplier
organization on the planet.
Mission
Shell is a worldwide gathering of vitality and petrochemical
organizations. Our point is to help society, in ways that are
monetarily, socially and naturally practical, now and later on.

Comment by Gisela Salas: Is this all a direct quote?
• Provide clean and feasible vitality to take care of society
demand everywhere throughout the world.
• Emphasize security and solid working environment for our
representatives.
• Be a socially and earth dependable organization.
The mission statement for the company satisfy seven out of the
nine elements and is suitable as it serves for customers,
employee welfare, technology, growth structure among others.
Social responsibility is also key in this area.
Targets
The targets of the Shell Group are to captivate productively,
dependably and beneficially in oil, oil items, gas, chemicals and
other chose organizations and to take an interest in the quest for
and advancement of different wellsprings of vitality to help and
the world's developing interest for vitality.
Systems
• More Upstream, Profitable Downstream stays on track.
Comment by Gisela Salas: This seems to be a compilation
of ideas. Please put into paragraph form. You need to
substantiate what you are saying with citations and synthesize
with management concepts that you have learned throughout the
course. An easy way of doing this is to use your textbook for
citations. However, since this is a capstone, you must research
and extend your area of knowledge in the field.
• Shell's system to put resources into the improvement of
significant development ventures, principally in the upstream
organizations of Exploration & Production and Gas & Power
• Our system has four portfolio topics: managing our heartlands,
center nations that have the foundation, mastery and remaining
development potential we need; concentrating on new oil and
gas ventures where engineering is a differentiator; building
incorporated gas open doors; and keeping on opening flighty oil
and gas assets.

• Our procedure is to be the heading leading oil sands
administrator by concentrating on operational greatness and
beneficial development.
• To remain a worldwide pioneer in the downstream business,
our procedure is to:
� Ensure proceeded with possession uprightness and
operational wellbeing;
� Continue reshaping our portfolio by putting specifically in
key markets and stripping non-vital holdings;
� Enhance our concentrate on conveying operational brilliance
and being an expense pioneer in the downstream organizations;
� Reinforce our heading worldwide brand position over the
downstream organizations by concentrating on activities, for
example, separated energizes, ointments and building a material
option fills business;
� Continue to expand the estimation of our incorporated
hydrocarbon worth chain by living up to expectations towards a
tighter reconciliation of the Oil Sands, Oil Products and
Chemicals organizations;
� Maintain train in our capital using; and
� Continue to create our kin
• The Chemicals system stays concentrated on our arrangement
of saltines and chose first-line subsidiaries, which supply mass
petrochemicals to expansive mechanical clients. Our system is
to fortify our advantage base in the Americas and Europe
through operational perfection and exceedingly focused on
ventures, and to accomplish productive development in Asia-
Pacific and in the Middle East as activities with the right
blending of feedstock, expenses, and portfolio are developed
and mature.
Leadership structure
Jorma Ollila Comment by Gisela Salas: You need wot work
this information into a narrative. You also need to explain the
importance of the individuals in the leaderhip positions and why
they are good fit for the company (or not).

Chairman
Born August 15, 1950. A Finnish national, appointed Chairman
of the Company with effect from June 2006.
Chairman of the Nomination and Succession Committee
Hans Wijers
Deputy Chairman and Senior Independent Director
Born January 11, 1951. A Dutch national, appointed a Non-
executive Director of the Company with effect from January
2009.
Ben van Beurden
Chief Executive Officer
Born April 23, 1958. A Dutch national, appointed Chief
Executive Officer with effect from January 1, 2014.
Simon Henry
Chief Financial Officer
Born July 13, 1961. A British national, appointed Chief
Financial Officer of the Company with effect from May 2009.
Guy Elliott
Non-executive Director
Born December 26, 1955. A British national, appointed a Non-
executive Director of the Company with effect from September
2010.
Euleen Goh
Non-executive Director *
Born April 20, 1955. A Singaporean national, appointed a Non-
executive Director of the Company with effect from September
1, 2014.
Charles O. Holliday
Born March 9, 1948. A US national, appointed a Non-executive
Director of the Company with effect from September 2010.
Gerard Kleisterlee
Born September 28, 1946. A Dutch national, appointed a Non-
executive Director of the Company with effect from November
2010.

Sir Nigel Sheinwald GCMG
Born June 26, 1953. A British national, appointed a Non-
executive Director of the Company with effect from July 2012.
Linda G. Stuntz
Born September 11, 1954. A US national, appointed a Non-
executive Director of the Company with effect from June 2011.
Patricia A. Woertz
Born March 17, 1953. A US national, appointed a Non-
executive Director of the Company with effect from June 1,
2014.
Gerrit Zalm
Born May 6, 1952. A Dutch national, appointed a Non-executive
Director of the Company with effect from January 1, 2013.
Michiel Brandjes
Company Secretary
Born December 14, 1954. A Dutch national, appointed as
Company Secretary and General Counsel Corporate of the
Company in February 2005.
Associations outer open doors and dangers
Opportunities
• Increase utilization for vitality
• Increasing cost of vitality
• Increasing penchant of individuals to use
• Increasing versatility of work, capital and engineering
• Demand shifts for renewable vitality
Arrangement of dangers
• Regulations confined unreasonable outflow of CO2
• Depletion of common vitality assets
• Exxon Mobil is contention in the business
• The credit emergency and unstable item costs that developed
in the second a large portion of 2008 influenced numerous parts

of the nature's turf
• The tropical storm affect in the US Gulf Coast locale, coin
trade sway
• Disruption in gas supply to the Nigeria LNG wander
• Currency trade misfortunes of $650 million in 2008 were
mostly determined by the appreciation of the US dollar.
Competitive Profile Matrix
(CPM) Comment by Gisela Salas: For figures, make sure to
include the figure number and a title with a legend and caption.
These elements appear below the visual display. For the figure
number, type Figure X. Then type the title of the figure in
sentence case. Follow the title with a legend that explains the
symbols in the figure and a caption that explains the figure:
Figure 1. How to create figures in APA style. This figure
illustrates effective elements in APA style figures.
SHELL
EXXON MOBIL BP
Critical success factors
Weight
Rating
Weighted score
Rating
Weighted score
Rating
Weighted score
Advertising
0.20
3
0.60
3
0.60

3
0.60
Product quality
0.10
4
0.40
2
0.20
3
0.30
Management
0.07
3
0.21
3
0.21
4
0.28
Financial position
0.10
2
0.20
3
0.30
3
0.30
Customer loyalty
0.05
3
0.15
3
0.15
2
0.10
Global expansion
0.20

4
0.80
4
0.80
3
0.60
Market share
0.09
3
0.27
4
0.36
3
0.27
Logistic
0.15
3
0.45
3
0.45
3
0.45
Production capacity
0.04
3
0.12
4
0.16
3
0.12
Total
1
3.20
3.23
3.02

Advertising and global expansion are the most important critical
success factors, as indicated by a weight of 0.20. Shell’s and
Exxon Mobil’s global expansion is very well, as evidenced by a
rating of 4; product quality of Shell is good, as indicated by a
rating of 4; Exxon Mobil is the lowest, as indicated by a rating
of 2. Exxon Mobil’s market share is the highest, as evidenced
by a rating of 4, BP’s and Shell’s market share is not bad too, as
evidenced by a rating of 3.
Besides, by using this table, note that Exxon Mobil has the best
market share and production capacity; Shell has the best product
quality; and BP has the best management in the company as
indicated by the ratings. For a total weighted score, Exxon
Mobile
achieves the highest weighted score of 3.23, Shell’s weighted
score of 3.20 and BP‘s weighted score is 3.02.
External Factor Evaluation (EFE) Matrix
KEY EXTERNAL FACTORS
WEIGHT
RATING
WEIGHTEDSCORE
Opportunities
1. Increase usage for energy
0.12
3
0.36
2. Increasing price of energy
0.13
2
0.26
3. Increasing propensity of people to spend
0.06
2
0.12
4. Increasing mobility of labor, capital and technology

0.08
2
0.16
5. Demand shifts for renewable energy
0.05
3
0.15
Threats
1. Regulations restricted excessive emission of CO2
0.08
4
0.32
2. Depletion of natural energy resources
0.12
3
0.36
3. Exxon Mobil is rivalry in the industry
0.09
1
0.09
4. The credit crisis and volatile commodity prices that emerged
in the second half of 2008 affected many aspects of the business
environment
0.10
1
0.10
5. The hurricane impact in the US Gulf Coast region, currency
exchange impact
0.07
1
0.07
6. Disruption in gas supply to the Nigeria LNG venture
0.06
1
0.06
7. Currency exchange losses of $650 million in 2008 were

mainly driven by the appreciation of the US dollar
0.04
1
0.04
Total
1.00
2.09
Organization’s internal strengths and weaknesses
List of strength
• Strong money related position with salary of $26.5 Billion and
capital financing $38.4 Billion
• High creation limit - creating 2% of the world's oil, 3% of the
world's gas and offering 7.5% of the world's LNG
• Worldwide client base
• Investment in R&d more than $1.2 Billion
• Spending on option vitality and CSS $1.7 Billion in the most
recent 5 years
• Generating wind power for almost 250,000 homes
• Operating in more than 100 nations and with around 45,000
administration stations around the world
• Running more than 25 refineries and synthetic plants
weaknesses
• Loss of $474 millions in synthetic and corporate portfolios
• LNG offers of 13.05 million tons, down 1%
• Oil Sands – higher working expenses, lower bitumen creation
volumes
• Chemicals – altogether lower edges, lower pay from value
accounted ventures and higher operating expenses.8
Internal Factor Evaluation (IFE) Matrix
KEY INTERNAL FACTORS
WEIGHT
RATING

WEIGHTEDSCORE
Strength
1. Strong financial position with income of $26.5 Billion and
capital investment $38.4 Billion
0.11
4
0.44
2. High production capacity - producing 2% of the world’s oil,
3% of the world’s gas and selling 7.5% of the world’s LNG
0.09
4
0.36
3. Worldwide customer base
0.07
3
0.21
4. Investment in R&D more than $1.2 Billion
0.08
4
0.32
5. Spending on alternative energy and CSS $1.7 Billion in the
last 5 years
0.06
3
0.18
6. Generating wind power for nearly 250,000 homes
0.05
3
0.15
7. Operating in more than 100 countries and with around 45,000
service stations worldwide
0.09
3
0.27
8. Running more than 25 refineries and chemical plants
0.09

3
0.27
Weakness
1. Loss of $474 millions in chemical and corporate portfolios
0.12
1
0.12
2. LNG sales of 13.05 million tonnes, down 1%
0.04
2
0.08
3. Oil Sands – higher operating costs, lower bitumen production
volumes
0.09
1
0.09
4. Chemicals – significantly lower margins, lower income from
equity-accounted investments and higher operating expenses
0.11
1
0.11
Total
1.00
2.60
Strength-Weakness-Opportunity-Threats (SWOT) Matrix
Comment by Gisela Salas: Make sure to include your
analysis of the SWOT. In other words a narrative that expalains
the strengths, weakness, opportunities, and threats.
STRENGTH - S

last 5 years
WEAKNESS - W
volumes
OPPORTUNITIES - O

SO STRATEGIES
1. Extend number of service station to more rural are capture
more market share (S1, S7, O1, O3)
2. Promote renewable energy worldwide (S3, S7, O5)
3. Research for renewable energy and alternative energy (S4,
S5, O5)
4. Increase number of refineries and chemical plant worldwide
(S8, S7, S3, O4, O2)
WO STRATEGIES
1. Promote LNG energy as the most cost effective alternative
energy for petrol vehicles (W2, O2)
2. Relocate chemical plants to more cost effective location to
cut down operating expenses (W4, O4)
THREATS - T
environment

exchange impact
ST STRATEGIES
1. Promote alternative energy (S5, S3, S7, T2)
2. Develop alternative way of supplying gas which will reduce
disruption (S4, S2, T6)
WT STRATEGIES
1. A
2. B
Internal-External Matrix (IE Matrix)
Division
Revenues ($ million)
Revenues (%)
Profits
($ million)
Profits (%)
EFE scores
IFE scores
1. Exploration and Production
20,841

4
20,235
77
3.1
2.8
2. Gas and Power
24,576
5
5,328
20
2.9
2.7
3. Oil Sands
558
1
941
4
2.4
2.7
4. Oil Products
368,853
80
446
2
2.1
1.8

5. Chemicals
43,494
9
(405)
(2)
2.1
2.4
6. Corporate
39
1
(69)
(1)
1.3
1.7
Total
458,361
100
26,476
100
Quantitative Strategic Planning Matrix (QSPM)
STRATEGIC ALTERNATIVES
INVEST IN SOLAR & WIND ENERGY
INVEST IN BIOFUEL
KEY FACTORS
WEIGHT
AS
TAS
AS
TAS
Opportunities

0.12
2
0.24
4
0.48
0.13
2
0.26
4
0.52
0.06
2
0.12
3
0.18
0.08
2
0.16
3
0.24
0.05
4
0.20
3
0.15
Threats
0.08
3
0.24
1

0.08
0.12
2
0.24
3
0.36
0.09
-
-
-
-
environment
0.10
-
-
-
-
exchange impact
0.07
2
0.14
1
0.07
0.06
-
-
-
-

0.04
-
-
-
-
1.00
Strength
0.11
3
0.33
4
0.44
0.09
-
-
-
-
0.07
2
0.14
3
0.21
0.08
2
0.16
3
0.24
last 5 years
0.06

-
-
-
-
0.05
4
0.20
1
0.05
0.09
1
0.09
4
0.36
0.09
1
0.09
3
0.27
Weakness
0.12
-
-
-
-
0.04
2
0.08
1
0.04

volumes
0.09
-
-
-
-
0.11
-
-
-
-
1.00
2.69
3.69
Financials
· 2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
TTM
Revenue USD Mil
265,190
306,731

318,845
355,782
458,361
285,129
378,152
484,489
481,700
459,599
456,164
Gross Margin %
16.4
17.6
17.5
16.6
13.7
19.9
18.6
18.2
17.8
17.0
16.8
Operating Income USD Mil
31,933
37,341
39,240
41,924
45,694
21,020
35,344
55,660
50,289
35,234
30,532

Operating Margin %
12.0
12.2
12.3
11.8
10.0
7.4
9.3
11.5
10.4
7.7
6.7
Net Income USD Mil
18,183
25,311
25,442
31,331
26,277
12,518
20,127
30,918
26,592
16,371
12,704
Earnings Per Share USD
29.93
7.56
7.90
9.98
8.52
4.08
6.56
9.94
8.48

5.20
4.04
Dividends USD
—
—
1.89
2.81
3.12
3.32
3.36
3.36
3.42
3.56
3.60
Payout Ratio %
—
—
23.9
28.2
36.6
81.3
51.2
33.8
40.3
68.4
89.1
Shares Mil
607
3,348
3,221
3,139
3,086
3,064

3,070
3,111
3,134
3,147
3,144
Book Value Per Share USD
14.70
27.87
33.57
39.92
41.58
44.57
48.10
50.96
55.42
57.20
56.94
Operating Cash Flow USD Mil
25,587
30,113
31,696
34,461
43,918
21,488
27,350
36,771
46,140
40,440
42,865
Cap Spending USD Mil
-12,733
-15,904
-22,922

-24,576
-35,065
-26,516
-26,940
-26,301
-32,576
-40,145
-39,680
Free Cash Flow USD Mil
12,854
14,209
8,774
9,885
8,853
-5,028
410
10,470
13,564
295
3,185
Free Cash Flow Per Share USD
21.16
4.24
2.72
3.15
2.87
-1.64
0.13
3.37
4.33
0.09
—
Working Capital USD Mil

1,185
12,928
15,137
21,013
11,041
11,668
12,342
17,118
17,755
10,085
—
Key Ratios
Margins % of Sales
2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
TTM
Revenue
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00

100.00
100.00
COGS
83.59
82.36
82.97
83.87
86.76
80.10
81.35
81.84
82.21
83.03
83.20
Gross Margin
16.41
17.64
17.52
16.61
13.68
19.90
18.65
18.16
17.79
16.97
16.80
SG&A
6.29
5.47
5.21
4.67
3.71
6.11

4.11
2.96
3.03
3.19
3.18
R&D
0.21
—
—
—
—
0.39
0.27
0.23
0.27
0.29
0.29
Other
-2.13
—
—
0.15
—
6.02
4.93
3.48
4.04
5.83
6.63
Operating Margin
12.04
12.17
12.31

11.78
9.97
7.37
9.35
11.49
10.44
7.67
6.69
Net Int Inc & Other
0.17
2.36
1.69
2.43
1.12
—
—
—
—
-0.36
-0.37
EBT Margin
12.21
14.53
14.00
14.22
11.09
7.37
9.35
11.49
10.44
7.31
6.32

Profitability
2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
TTM
Tax Rate %
46.74
40.39
41.04
36.88
47.90
39.50
42.07
43.97
46.63
50.80
55.47
Net Margin %
6.86
8.25
7.98
8.81
5.73
4.39
5.32
6.38
5.52

3.56
2.79
Asset Turnover (Average)
1.47
1.49
1.40
1.41
1.66
0.99
1.23
1.45
1.37
1.28
1.26
Return on Assets %
10.09
12.29
11.19
12.41
9.52
4.36
6.55
9.26
7.54
4.56
3.51
Financial Leverage (Average)
2.29
2.41
2.23
2.17
2.22
2.14

2.18
2.04
1.91
1.99
2.01
Return on Equity %
22.67
28.92
25.88
27.28
20.92
9.49
14.15
19.47
14.86
8.88
7.02
Return on Invested Capital %
19.52
25.75
23.39
24.05
18.53
7.98
11.46
16.01
12.72
7.45
5.94
Interest Coverage
—
—
—

—
—
—
—
—
—
60.14
47.59
2004-12
2005-12
2006-12
2007-12
2008-12
2009-12
2010-12
2011-12
2012-12
2013-12
Latest Qtr
Revenue %
Year over Year
31.46
15.66
3.95
11.58
28.83
-37.79
32.62

28.12
-0.58
-4.59
-2.97
3-Year Average
25.17
19.57
16.49
10.29
14.33
-3.66
2.05
1.87
19.10
6.72
—
5-Year Average
20.27
15.51
18.72
14.67
17.84
1.46
4.28
8.73
6.25
0.05
—
10-Year Average
—
—
—
—

17.21
10.47
9.75
13.61
10.38
8.58
—
Operating Income %
Year over Year
46.43
16.94
5.09
6.84
8.99
-54.00
68.14
57.48
-9.65
-29.94
-34.32
3-Year Average
16.88
27.96
21.63
9.50
6.96
-18.79
-5.53
6.80
33.75
-0.10
—

5-Year Average
15.96
8.79
14.43
18.66
15.94
-8.02
-1.09
7.24
3.71
-5.07
—
10-Year Average
—
—
—
—
30.86
3.27
3.73
10.78
10.93
4.91
—
Net Income %
Year over Year
45.51
39.20
0.52
23.15
-16.13

-52.36
60.78
53.61
-13.99
-38.44
—
3-Year Average
18.77
39.03
26.74
19.89
1.26
-21.05
-13.72
5.57
28.55
-6.65
—
5-Year Average
16.20
14.75
18.58
27.17
16.03
-7.19
-4.48
3.98
-3.23
-9.03
—
10-Year Average
—
—

—
—
54.01
3.84
4.70
11.04
10.94
2.74
—
EPS %
Year over Year
34.38
-12.09
4.50
26.33
-14.63
-52.11
60.78
51.52
-14.69
—
-44.19
3-Year Average
67.57
67.77
7.27
5.09
4.07
-19.77
-13.05
5.27
27.62
—

—
5-Year Average
43.36
29.14
34.01
44.20
5.89
-13.85
-2.80
4.70
-3.21
—
—
10-Year Average
—
—
—
—
64.73
11.13
12.04
18.45
18.14
—
—
Advantage and disadvantages of new strategies
Invest in solar and wind energy
Focal points
• Solar and wind vitality are cleaner and delivered all the more
commonly

• Require less work to screen the vitality creation as the vitality
made and transmitted to the end-client straightforwardly
• Global warming could be expected our vitality wanting
lifestyle, so we ought to investigate all the more ecologically
neighborly vitality sources
Weaknesses
• The sun based engineering is unreasonable because of high
cost of the sun powered creating gears
• The sun based vitality depends to hotness while the wind
vitality depends to persistent wind, it is legitimately difficult to
get the consistent wind and sun powered vitality unless battery
is utilized to store the exorbitant vitality and reused later
Put resources into biofuel
Favorable circumstances
• Biofuel is more worthy and effortlessly target-ready to the
business in light of the fact that the fuel business is developed
while the regular asset exhausting and the interest for fuel stay
high.
• Biofuels generously lessens nursery gas outflows when
contrasted with petroleum and diesel.
• Biofuel is less investigated as it obliges high financing which
Shell bears in view of their ceaseless financing in R&d.
• The UK Government specifically has acquainted numerous
impetuses with drivers of 'green autos' focused around
emanations - with lessened assessment subject to how

ecologically benevolent customer's vehicle is. This would
progressively create interest for biofuels.
• Save costs for the customers on the grounds that biofuel is
lower value contrast with fossil energizes.
Burdens
• Many original biofuels are not manageable. It is important to
make manageable biofuel creation that does not impact
sustenance generation, and that doesn't result in ecological
issues.
• If biofuels get to be lucrative for agriculturists, they may
develop crops for biofuel generation rather than sustenance
creation. Less nourishment creation will expand costs and
reason an ascent in expansion.
• To create biofuels, huge number of oil estate area would be
obliged and in this manner expansive amounts of rainforests
need to be relinquished.
Particular techniques and long haul destinations
Proposeding methodology
I propose thate Shell to put and center in concentrate on Biofuel
to deliver financially savvy powers as an option to the current
draining fossil energizes. Biofuel is empowered by government
through expense decrease for purchasers who utilizes Biofuel or
ecological agreeable autos. This would bit by bit expand
interest for the biofuel from the buyers and if Shell taketakes
the activities to execute the procedure, they would turn into the
pioneer in delivering savvy biofuels that would cater the
interest.

Long haul Term Oobjective
1. Turn into the heading biofuel supplier on the planet by
advertising the biofuel points of interest all through the world
and supply the biofuel in every administration station.
Comment by Gisela Salas: Do you mean leading?
2. Make biofuel the fundamental patron to Shell's vitality assets
to the extent that 30% in 8 years time.
3. Enhance the gainfulness and usage of biofuel vitality by
constant R&dD.
Venture Costs
Anticipated expense of speculation for next 5 years (in Billion)
2010 2011 2012 2013
2014
Put resources into America 14 16 18 10 10
Put resources into Europe 10 14 15 8 8
Put resources into Asia 8 9 10 6 6
All out venture 32 39 43 24 24
Examination of Strategies
Shell's current system is to put resources into the improvement
of significant development ventures, fundamentally in the
upstream organizations of Exploration & Production and Gas &
Power. Accordingly their current methodology is concentrating
on new oil and gas ventures where engineering is a
differentiator; building coordinated gas open doors; and keeping

on opening unpredictable oil and gas assets. Then again, our
system is to put and center in Biofuel to deliver practical
powers.
The correlation demonstrates that both methodology are in
adjust to one another though Shell procedure is to put and create
significant development extend in Gas & Power while our
suggestion restricted it down to Biofuel venture which is
likewise Gas & Power. Their plan to concentrate on oil and gas
undertaking match with our suggestion to contribute by locale
as Biofuel is an option vitality that has high capability of
supplanting fossil powers in those locales.
Usage of Recommended Strategies
We ought to put expansive sum in the first year focused around
area and reinvest the amassed procuring for the following 2
years. We ought to contribute area by locale and the expenses
are diverse for each of the district. This is on account of the
expense is a financing arranged focused around the locale's
populace and their fame for biofuel.
For the first year, we put 14 billion in America locale emulated
by 10 billion in Europe and 8 billion in Asia. The venture would
be utilized to procure current biofuel ranches, create new
estates, assemble biofuel transforming plant, create biofuel
supply system, expand biofuel particular administration
stations, and promote generally to make purchaser mindfulness
on biofuel.
Result Expected
We anticipated that the speculation would gives back where its
due of half over the financing. The salary produced in the first
year would be utilized to reinvest for the one year from now.
Again the financing would be utilized at the same way however

marginally bigger than some time recently. On third year, we
will actualize the same strategy. On the fourth year ahead, we
will decrease and institutionalized the speculation as we will
lessen cost on commercial. We will keep up the same financing
figure on the grounds that we energize the same level of growth
for biofuel.
Projected Financial Statements
Forecast Statement of Income ($ million)
2010
2011
2012
2013
2014
Revenue
Exploration & Production
Gas & Power
Oil Sands
Oil Products
Chemicals
Corporate
30,011
35,389
734
492,293
44,956
32
36,013
42,467
778
539,878
48,990
27
43,216
50,960
1,096
559,712

51,003
23
51,859
61,153
1,259
612,839
56,223
25
62,231
73,384
1,593
698,531
58,861
30
Total
603,415
668,153
706,010
783,358
894,630
Cost of sales
482,447
534,882
552,980
631,992
708,291
Gross profit
120,968
133,271
153,030
151,366
186,339
Selling, distribution and administration expenses
Exploration
Share of profit of equity-accounted investments
Interest and other income

Interest expenses
17,982
2,211
7,391
1,092
1,209
18,921
2,309
8,434
1,380
1,938
20,487
2,746
8,587
1,487
2,321
21,942
2,866
9,342 1,032
1,993
22,133
3,003
9,873
1,447
2,207
Income before taxation
108,049
119,917
137,550
134,939
170,316
Taxation
43,397
46,213
53,909
56,210

61,219
Income for the period
64,652
73,704
83,641
78,729
109,097
Income attributable to minority interest
234
126
656
715
455
Income attributable to Royal Dutch Shell plc shareholders
64,418
73,578
82,985
78,014
108,642
Recommend specific annual objectives and policies
Annual objectives
• Make biofuel the primary supporter to Shell's vitality assets
build consistently by 4%
• Increase the offers of biofuel by least 10% consistently
• Improve biofuel vitality quality and use the generation
• Advertise consistently to make brand mindfulness and hold
prerequisite for biofuel
• Enhance administration of biofuel supply and consistently
secure more extensive supply arrange
Arrangements
• Encourage workers to utilize biofuel for their vehicles as the
first venture of inward showcasing the biofuel guarantees
nature.
• Promote all publicizing materials in green and guarantee the
materials utilized as a part of the administration are natural

benevolent.
• Ensure workers working in great and security environment
constantly.
Propose methodology for technique survey and assessment
Survey and assessment helps the firm to guarantee the
methodologies are actualized and completed suitably coming
about to the wanted results. For Shell, the assessment will be
carried out through survey over the deals figures. The dissection
will be carried out by the administrators and later explored by
office supervisors. Meetings and presentations will be led by
the division directors showing the current assessment of the
methodologies to the office heads.
The deals report and presentation would be the assessment
instrument for the office heads to judge the aftereffect of
methodologies. A decent procedure execution would come about
to a decent assessment as the anticipated deals accomplished
and goals satisfied from time to time.
References
1. Royal Dutch Shell Plc Annual Review and Summary
Financial Statements 2008 Comment by Gisela Salas: Do
not insert numbers.
Your references should begin on a new page separate from the
text of the essay; label this page "References" centered at the
top of the page (do NOT bold, underline, or use quotation marks
for the title). All text should be double-spaced just like the rest
of your essay.
You did not use the hanging indent for your Reference Page.
References should be in alphabetical order.
Please see link below for guidance pertaining to APA format:

2. Royal Dutch Shell Plc Sustainability Report 2008
3. Fred R. David, Strategic Management concepts and cases,
2007, 11th Edition, Pearson Education International
Phase 1 Assignment
Prepare a Financial Ratio Analysis and IFE for the company you
selected for your Strategic Management Case.
Prepare a written analysis of the company’s internal capabilities
and implications for your strategic decisions to follow.

Integrate this with your work from Modules 1-2
(From Module 1)
• Outline for Strategic Management Case
• Company history
• Vision and mission statement
• Strategic elements of the history
• Assessment of mission and vision
(From Module 2)
• EFE and CPM
• Analysis of competitive position, opportunities, and
threats

Company analysis phase 1- Shell oilCompany analysis phase 1- S.docx

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