SWOT Analysis of Shell Group

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
1