Strategic Analysis of an Organization | Deal Study

Running head: STRATEGIC ANALYSIS OF AN ORGANIZATION
STRATEGIC ANALYSIS OF AN ORGANIZATION
Name of the Student
Name of the University
Author Note

STRATEGIC ANALYSIS OF AN ORGANIZATION1
Table of Contents
Introduction to the report.................................................................................................................2
An evaluation of the relevant levels of strategy..............................................................................3
A critical evaluation of the key stakeholders...................................................................................4
External Analysis – using PESTEL to identify and explore key trends..........................................5
Industry Analysis – using 5 Forces to critically analyze the relevant industry factors...................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendices....................................................................................................................................14
Appendix 1 – Stakeholder matrix of Royal Dutch Shell...........................................................14
Appendix 2 – Global value chain..............................................................................................16
Appendix 3 – Oil and Gas revenues..........................................................................................17

STRATEGIC ANALYSIS OF AN ORGANIZATION2
Introduction to the report
The report will be based on the study of the deal that had been made between Royal
Dutch Shell and Chrysoar. Royal Dutch Shell had aimed at selling 3.8 Billion Dollars’ worth of
the North Sea based assets to the oil exploration firm named Chrysoar. The step had been mainly
implemented by the organization as a debt reduction based measure. Royal Dutch Shell is mainly
aiming at reducing its debt levels with the help of sales of its assets to another organization
(Bbc.com, 2020). The analysis in the report will be mainly based on the strategies that have been
implemented by a major organization like Royal Dutch Shell. The PESTEL framework will be
implemented for the purpose of analyzing the external environment of the organization. The
Porter’s framework will be used for understanding the industry in which Royal Dutch Shell has
been operating with the help of its resources.
Shell is energy based organization that has expertise in the production, exploration,
refining and marketing of natural gas and oil. The organization had been established in the year
1907 although the history of the firm can be traced back to first half of 19th century. The
headquarters of the organization are mainly in Hague in the Netherlands and the CEO or Chief
Executive Officer is Ben van Beurden. The parent organization of Shell is mainly Royal Dutch
Shell Plc. which had been incorporated in Wales and England (Shell.com, 2020). The purpose
that has been mainly set by the organization is based on the progress of power and development
of the cleaner energy based solutions. The strategic ambitions that have been set by the
organization are as follows,
 To offer a world-class level of investment case.

STRATEGIC ANALYSIS OF AN ORGANIZATION3
 To thrive in energy transition by providing response to the desire of the society to
become more clean, competitive and convenient.
 To sustain the strong societal license in order to operate and make positive
contribution to the society as well (Shell.com, 2020).
An evaluation of the relevant levels of strategy
The different levels of strategy that are implemented by the organizations can have an
impact on the operations and the levels of profitability as well. The various strategy levels that
are considered to be an important part of the organizational operations include network level
strategy, corporate level strategy, business level strategy and functional level strategy. Network
level strategy is mainly based on the ways by which an organization is able to involve its
operations with entities and people who are related to the firm on an internal and external basis
(Berkowitz, Bucheli and Dumez 2017). Corporate level strategy is able to identify the range or
scope of an organization that are based on the factors like product diversity, geographic location
and resource allocation as well. Business level strategy is considered to be the competitive
strategy which is concerned with the competition that exists in the market. Functional level
strategy of an organization is helpful for the organization so that it is able to meet the corporate
level and the business level strategies as well (Bryson 2003).
Strategy implemented by Royal Dutch Shell – The strategy of Royal Dutch Shell is
based on the ways by which an organization is able to strengthen its position in the industry as a
leading energy based company. The organization will aim at continuing the operations of
different upstream businesses while growing the customer-faced businesses. The ethical
behaviors, social responsibility and compliance are considered to be major aspects of the
operations of an organization like the Royal Dutch Shell. The company has been transforming its