SWOT Analysis of Shell Group

This report provides a SWOT analysis of Shell Group, including its strengths, weaknesses, opportunities, and threats. It also discusses the operational impact analysis of the company.

BM461 Global
Business Environment

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Apply SWOT analysis in respect of chosen organisation...........................................................1
Operational impact analysis.........................................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment is considered as the internal and external atmosphere of the
business which impacts the organisational performance in affirmative and adverse manner.
Moreover, there are various frameworks which aids firm to ascertain such external or internal
elements in case of establishments (Liu, 2020). The undertaken entity for this report is Shell
Group, which is also known as Royal Dutch Shell. It is also considered as one of world’s largest
gas and oil firms having headquarters is in Hague, Netherlands. The main aim of this report is to
perform The SWOT analysis and functional areas of entity are discussed.
MAIN BODY
Apply SWOT analysis in respect of chosen organisation
SWOT Analysis
It is considered as the essential model that is described as the analysis of development of
internal aspects which how the entity is implementing as per its intrinsic resources as well as this
aids in determining the abilities, drawbacks, growth options as well as risk of firm. Moreover,
the SWOT analysis is performed in respect of Shell Group are discussed below:
STRENGTH
Wide Product Portfolio: Shell have a diversified product portfolio. Moreover, they are
active into a various kind of marketplace and it expanded towards natural gas, oil product, crude
oil and chemicals prices. In addition to this, with respective diversified portfolio product, they
mitigate price volatility risks into this marketplace. It is useful within present markets in which
oil cost has been lower as well as production have been cut and also at this time, production of
natural gas are not much low.
WEAKNESS
Dependency upon oil price: Shell Group profitability is strongly based upon the oil price.
Moreover, the cost of oil has reduces due to consequences of COVID-19, that minimises oil
demands. Also, the present lower oil price decreases respective firm’s value and their revenues.
In addition to this, they have to develop transitions towards another energy sources. Previously,
it always has a higher and stabilised dividend (Ncube, Soonawalla and Hausken, 2020).
OPPORTUNITY
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Economic Growth: This is also considered as one of the key drivers of demand for Shell
group’s product. Additionally, the economic growths for year 2020 have been extreme adverse
affects through corona virus within longer term the international world economy is anticipated to
develop. Mainly for LNG, economical point of view is affirmative. Within year 2019,
international demand develops through 13% as well as in anticipated for developing into further
period.
THREAT
Competition: The oil and gas marketplace is much competitive. In addition to this, Shell
Group has essential competition from, within others, the following huge entity, together called
super majors; some key competitors are British Oil & gas firm, French oil and gas entity and
many others (SWOT Analysis, 2020). Apart from this, it has competition from entities like
Petrobras, CNPC and many others.
Key Drivers
 Economical growth
 Higher dependency upon oil prices
 Huge competition
 Wider portfolio of products
Operational impact analysis
Respective analysis represents that the crucial impacts of operative activities has been
conducted with circumstances in future times (Onyshchenko, Maslii and Ivaniuk, 2020).
Additionally, it provides information relevancy which have been used by firm into their
operational tactics.
Marketing: The marketing is the essential functional areas of all firms and also it plays
crucial role in analysing as well as determining the products, services which may be utilised to
enhance its profit and productivity. so, the impact of some key drivers in respect of Shell Group
are:
 Economical factor: It is considered as essential key drivers and impacts the marketing of
Shell Group negatively within international business atmosphere. Moreover, at the time
of COVID-19, this minimises oil demands. Due to this, it reduces the oil price as well as
sales.
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 Wider portfolio of products: This is also undertaken as the key driver and has
affected upon marketing functional areas of Shell Group positively. As the wider
products portfolio of respective entity has affirmative affects as this enhances their
profitability and sales in effective and efficient way (RAO, 2020)
Human resource management: This functional areas plays essential role within Shell
Group and some key drivers have impacts upon this are discussed below:
 Economical factor: It has impacts upon human resource management of Shell Group, at
the period of Pandemic situation have higher unemployment within entity and staff did
not have much work to perform as well as they has to develop various strategies for
development. Additionally, this influences their performance because of COVID-19 and
it has lower human resources tactics as well as it do not at operative level.
 Wider portfolio of products: It is also the key driver and has impacts upon the human
resource of Shell Group in positive way. As this enhances the various opportunities to
recruit competent human resources and also the existent staff can able to gain their
knowledge about diversified product portfolios in effective and efficient way (Zaika and
et. al, 2020). Also, this maximise their productivity and performance of entity.
CONCLUSION
As per the above report, it has been concluded that external as well as internal environment
of business is essential for all organisation as this is helpful in managing their operative functions
of business. Moreover, this is needed to determine the competitive advantages in order to obtain
their favourable as well as unfavourable aspects and therefore, this is vital in evaluating to
operate business effectively. In addition to this, respective report undertakes the analysis of
SWOT based upon PESTEL of entity as well as various operational areas which are associated
with this for effective acknowledgement of global business environment concept.
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REFERENCES
Books and Journal
Liu, Y., 2020. The micro-foundations of global business incubation: Stakeholder engagement
and strategic entrepreneurial partnerships. Technological Forecasting and Social
Change, 161, p.120294.
Ncube, M., Soonawalla, K. and Hausken, K., 2020. The links between business environment,
economic growth and social equity: a study of african countries. Journal of African
Business, pp.1-24.
Onyshchenko, S., Maslii, O. and Ivaniuk, B., 2020. The impact of the external environment on
the economic security of Ukrainian business. ЕКОНОМІКА І РЕГІОН Науковий
вісник, (1 (76)), pp.22-29.
RAO, S.P., 2020. International business environment. HIMALAYA.
Zaika, Y.A. and et. al., 2020. Innovative Management Methods in terms of the Information
Business Environment at the Enterprise. International Journal of Management
(IJM), 11(3).
Online
SWOT Analysis. 2020. [Online]. Available through:< https://www.stratagoras.com/shell-swot-
analysis/ >.
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