Report: Global Business Environment Analysis for Royal Dutch Shell

This report provides an in-depth analysis of the global business environment, focusing on Royal Dutch Shell as a case study. The report begins with an introduction to the global business environment, emphasizing the impact of technological advancements and globalization. The main body of the report includes a SWOT analysis of Royal Dutch Shell, identifying the company's strengths, weaknesses, opportunities, and threats based on PESTLE analysis. Furthermore, the report explores the operational impact of these factors on functional areas such as marketing and finance. The analysis highlights how the company's strengths, such as advanced technology and supply chain management, positively influence its marketing and financial performance. Conversely, weaknesses like legal issues and economic instability, along with threats like climate change concerns, are shown to negatively affect its operations. The report concludes by summarizing the key findings and emphasizing the importance of technology, cultural effectiveness, and competitive advantage in establishing and enhancing a business in the global environment.

Global business
environment

Table of Contents
INTRODUCTION.......................................................................................................................3
MAIN BODY..............................................................................................................................3
Swot analysis of firm according to the data of pestle analysis. .............................................3
Operational impact analysis in accordance with swot analysis of functional areas. .............4
CONCLUSION...........................................................................................................................5
REFERENCES............................................................................................................................6

INTRODUCTION
Global business environment means to to depict the real nature of international trade. It
determines current shifts in context with global environment which is mainly caused by
advancements which are done in technology as well as the consequences which are caused by
globalisation. Due to globalisation, it lead to an impact on political, economic as well as social
chnages. Global business environment is further divided into two parts; internal as well as
external environment. There are various forces which relates to shaping the nature as well as
changes that occur in global commerce. To establish any business especially the business
which is evolving around the globe there are three main contents which should be considered;
competitive chnages, advancements in technology and intercultural effectiveness. The below
report includes swot analysis as well as operational impact on functional areas. The report is
based on royal dutch shell. It is a multinational oil and gas company whose headquarters are in
netherlands. It is one of the fifth largest oil and gas company whose net income is around
US$16.4 billion. (Hamilton and Webster, 2018)
MAIN BODY
Swot analysis of firm according to the data of pestle analysis.
 Strengths:- As royal dutch shell is one of the largest as well as leading company in
context with its competitors there are many strengths like the company uses advanced
technology as compared their competitors. Due to use of good and advance technology
it led to high growth in financial sector and became leading company. It also enhanced
the concept of artificial inetlligence due to which they were able to perform all their
activities effectively. The company also enhanced as well as developed its supply
chain management due to use of block chain technology as they were now able to deal
with amny problem related to their supply chain. The company also invested a huge
amount in providing training to employees due to which workers became skilled and
performed their tasks efficiently. (Kokodey, Gnezdova and Lomachenko, 2018)
 Weakness:- Royal dutch shell faced many weakness like there were many legal issues
which led to difficult in operating their bsuiness. According to political factors there
were certain policies in context with climate change it became a weakness for firm
because it led to instability especially in middle east. The economic conditions are not

same across the world so it can affect the company in both positive as well as negative
aspect. (Wei, Thurasamy, and Popa, 2018)
 Opportunities:- According to technological factors, as supply chain management is
enhancing as well as developing through block chain technology so it was considered
as an opportunity for the firm. In context with legal factors also, there were many
effective laws which protacts data especially when company is being operated within
its different branches across the world so it became an opportunity for them to
establish their firm and grow in their industry as compared to their competitors. Due to
increase in demand for fuel the company's profit also increased. (RAO, 2020)
 Threats:- Every organisation has certain threats and they try their best to deal with
threats. In accordance with royal dutch shell, Due to different economic conditions
across the world the company was getting affected in a negative manner company was
itself getting various variations due to which they were not able to develop in their
own country. It was also analysed that people usually has a perception that fuel
companies is dangerous in context with safety as well as quality. So, it was very
difficult for company to change their thinking. The company was also facing issue
regarding climate change as well as geographical issues which was a threat for them.
(Kotabe and Helsen, 2020)
Operational impact analysis in accordance with swot analysis of functional areas.
There are many functional areas which is affected by firm's strengths, weaknesses,
opportunities as well as threats. In accordance with marketing and finance the company
affected both of its functional areas. The impact of operational impact analysis is explained as
below:-
 Marketing:- According to company strengths, they used advanced technology which
enhanced their growth so in context with marketing department, technology is very
important as there are many competitors who deal in same sectors so better use of
technology leads to high growth in their sector. As there are many competitors and
large workforce is there so company provided high training to employees due to which
they performed really well in organisation which led to positive impact on them.
(Damarwulan and Farida, 2018) Due to different economic conditions it became a
weakness for the firm which led to a negative operational impact in accordance with

marketing functional area. The company also had opportunities as they were
establishing their firm across the globe so in marketing department it was very
important to grown more in context with their competitors. (Hampden-Turner and
Trompenaars, 2020)
 Finance:- The functional area related to finance department also gets affected by
company's strangths, weaknesses , opportunities as well as threats.(Akhtar, and
Sushil,2018) Every firm wants that their financial sector always remain in profit. So,
according to royal dutch shell, they developed their supply chain management due to
which they faced a growth in their financial sector also as well as when they invested a
huge amount in providing training to employees they earned a good amount of profit
because employees were performing effectively and through this fuel demand got
increased but at the same time people's peception was not positive for their company
as it was believed that oil companies are not safe due to which their financial sector got
affected in a negative way.
CONCLUSION
According to the above analysis it is concluded that every firm is affected by their
strengths, weaknesses, opportunities as well as threats in both positive as well as negative
way. When a company wants to establish their business as well as enhance their business they
must consider three main elements that are improving their technologies, cultural effectiveness
and competitive advantage. Every firm enhances their profit and grow their business by the
use of their strengths as well as considering opportunites through which they can increase their
profit and must have a workforce that can deal with their weaknesses as well as threats.

REFERENCES
Books and Journals
Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain
business environment. Business Process Management Journal.
Damarwulan, L.M. and Farida, N., 2018. The Role of Quality of Entrepreneurial Networking
and Responsiveness to Global Business Environment in improving the Marketing
Performance of Indonesian Exporting SMEs. Quality-Access to Success .19 (165).
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford
University Press.
Hampden-Turner, C. and Trompenaars, F., 2020. Riding the waves of culture: Understanding
diversity in global business. Hachette UK.
Kokodey, T., Gnezdova, I. and Lomachenko, T., 2018, October. Modeling the global business
environment based on polycyclic theory. In The International Science and
Technology Conference" FarEastСon" (pp. 487-499). Springer, Cham.
Kotabe, M.M. and Helsen, K., 2020. Global marketing management. John Wiley & Sons.
RAO, S.P., 2020. International business environment. HIMALAYA.
Wei, L.H., Thurasamy, R. and Popa, S., 2018. Managing virtual teams for open innovation in
Global Business Services industry. Management Decision