Global Strategy Development and Implementation: Challenges for Shell

This report delves into the complexities of international strategic management, identifying and analyzing the unique challenges that multinational corporations face when operating in a global environment. Using Shell plc as a case study, the report examines how political, economic, social, and legal factors impact the company's strategic decisions and overall performance. It highlights challenges such as currency fluctuations, political instability, economic sanctions (specifically related to the Russia-Ukraine war), and cultural differences. The analysis emphasizes the importance of strategic management in mitigating risks and capitalizing on opportunities in the international arena, while also considering the need for companies like Shell plc to adapt their strategies to navigate dynamic and often unpredictable global conditions. The report concludes by underscoring the necessity for businesses to understand and address these challenges to sustain growth and profitability in the international market.

Global Strategy Development
and Implementation
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INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Identify and analyze the unique challenges of international strategic management. Use
company examples to illustrate these challenges in practice.................................................4
Language Barriers.............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
International strategic management is mainly defined as a comprehensive as well as ongoing
form of management planning process which is mainly aimed towards developing and
implementing strategies. This aid business organization to effectively develop international
strategic planning process to conduct their business operations on international business
platforms successfully (Abuseridze and Grasis, 2022). In simple terms it is a management
planning process through which organization can underlined goals and strategies in context with
international settings to deal with various challenges or issues that they can face in future on
international platforms, along with the strategies to overcome them effectively. With the help of
this organization can conduct an efficient international strategic planning process through which
they can have competence and resources to perform on global environment in effective manner.
International strategic management is an ongoing process which allow organization to
successfully compete in international scenario. With the help of this process organization can
conduct the strategic planning in an effective manner and can have a structure and plan to deal
with the changing environment. With the help of this process organization can successfully fulfill
their benchmark goal and can deal with various issues in effective manner.
Present report is conducted to analyse and identify the unique challenges of international
strategic management that organization can face that can affect their overall growth and
profitability in adverse manner. It is essential for organization to understand the importance of
international strategic management process and apply the same in their business structure in
order to deal with the dynamic challenges that can later impact on their global operations. For
this report Shell plc is considered which is a British multinational oil and gas company
headquartered in London United Kingdom.
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MAIN BODY
Identify and analyze the unique challenges of international strategic management. Use company
examples to illustrate these challenges in practice.
International strategic management is an ongoing comprehensive management planning process
which helps organization to effectively compete in international business environment. With the
help of these strategies and organization can identify the issues and challenges and further
improvement strategies accordingly in order to make significant improvement in the quality of
services (Rabinovych, 2022). With the help of implementing international strategic management
process business organization can evaluate the issues and political, economical, legal and social
environment along with the challenges that are affecting business growth and profitability in
order to successfully sustain on any international platform (Borozna, 2022). It is important for
organization to undertake the advantage of international strategic management process. It enables
organization to compete effectively and overcome the international issues that can affect their
business growth. With the help of implementing the strategies company can have a strategic
approach and can trigger mind the goals and strategies to further contact their operations in a
well defined and effective manner. To successfully operate business organization strategic
management on international context is essential for organization like Shell plc who is operating
its roles and responsibilities as a multinational oil and gas company and headquartered in London
United Kingdom (Mashkova, 2022). There are different type of elements and factors prevailing
in political, social, economical and legal environment that is affecting the business operations of
Shell plc on international platform. For example the current political, economical, social and
legal international challenges due to Russian and Ukraine war there are many issues which is
affecting Shell plc business for example currency restriction, United Kingdom government
sanctions on Russia legal complexities and more (Doverholt, 2022). It has been identified that
financial markets in many countries including United Kingdom have been adversely impacted
which is causing irrepressible loss of wealth of organization. In this the rising global inflation
currency restriction and other adversities are causing jitters in Shell plc economy.
Strategic management is the organization of an affiliation's resources for achieve its goals and
targets. Key administration incorporates setting targets, separating the merciless environment,
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analyzing the inside affiliation, surveying strategies, and ensuring that organization completes
the frameworks across the affiliation. Worldwide key administration is an organizing pattern of
making a worldwide framework toward achieving an essential fit between the affiliation's ability
and resources and the overall environment under which it will in everyday work. A constant
cycle adheres a relationship to fight in a worldwide circumstance (Wenzel, Stanske and
Lieberman, 2020). Moreover, it has been underlined that International Strategic Management
(ISM) is a constant organization orchestrating process highlighted making frameworks to allow a
relationship to become abroad and fight universally. Key orchestrating is used during the time
spent encouraging a particular global procedure. Strategic management is the technique engaged
with advancing targets, frameworks, and objectives to make an association or affiliation more
merciless. Routinely, fundamental organization looks at really passing staff and resources on to
achieve these targets. Routinely, fundamental organization joins philosophy appraisal, inside
affiliation assessment, and methodology execution all through the association (Dragneva and
Hartwell, 2022). In business, key organization is huge on the grounds that it allows an
association to explore locales for useful improvement. All around, they can follow either a
logical cycle, which perceives likely risks and opens entryways, or notices in general standards.
Given the plan of the affiliation, an association could choose to follow either a prescriptive or
unmistakable method for managing key organization. Under a prescriptive model, strategies are
delineated for progression and execution. Amazingly, an obvious approach portrays how an
association can cultivate these systems.
Political:
Furthermore, it has been underlined that change in currency is also one of the major unique
challenges of international strategic management. It has been evaluated that due to the present
situation, in which the United Kingdom has put sanctions and ban on Russia in this Shell can
face major challenges about price value setting and payment methods (Kervalishvili, 2022).
These are significant contemplations, in this, it has been evaluated that currency rate fluctuation
is one of the most challenging international business problems which Shell is currently facing,
checking trade rates should be a focal piece of the system for every single global business.
Nonetheless, worldwide monetary unpredictability can make gauging benefit particularly
troublesome, especially when rates vary at erratic levels (Wenzel, Stanske and Lieberman, 2020).
Significant vacillations can genuinely affect the equilibrium of operational expense and benefit.
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For example, the organization is paying suppliers and production costs in U.S. dollars, however,
due to the sanctions company is now facing challenges to even pay to suppliers. One method for
safeguarding against huge vacillations in cash is to pay providers and creation costs in similar
money as the company selling in (Ferreira, Mueller and Papa, 2018). This could mean changing
to greater neighborhood creation where possible to all the more promptly change your outgoings
and arrangements pay. Another decision for letting the bet free from unpredictable cash rates can
be setting up a forward understanding and agreeing an expense quite a bit early for future
arrangements. This possibly suggests missing more important advantages should rate shift on the
side of yourself. In any case, it can safeguard Shell bargains from the gamble that can be made
by unsteady money.
Also, it has been assessed that gamble for worldwide business is political vulnerability and
unsteadiness. Countries and creating business areas that could offer broad entryways for
developing overall associations may moreover introduce troubles, which more settled markets
don't. Prior to considering an endeavor into a new or dark market, a bet evaluation of the
financial and political scene is essential. Issues, for instance, problematic situations in current
political ties between the United Kingdom and the Russian government are immensely creating
risks for Shell to conduct its business operations (Vorzhakova and Redko, 2022). In addition to
this, it has been underlined that number of sanctions by the U.K government is leading Shell to
make changes in their business policies which is among the major challenge of international
strategic management Changes in states can acquire changes in strategy, guidelines, and loan
costs that can demonstrate harming to unfamiliar business and speculation (Greene and
Robertson, 2022). A developing pattern towards financial patriotism additionally makes the
current worldwide political scene possibly antagonistic towards global organizations.
Economical:
In context with this factor it has been underlined that there is a direct link between political and
economic environment as the decisions of government has major impact upon economic
environment and business operations of an organization. For example sanctions by United
Kingdom government on Russia is affecting Shell plc in economical manner. It has been
evaluated that due to the sanctions of United Kingdom government on Russia is causing
escalating gas prices which is causing Shell plc to enhance their production cost and pay more to
run machinery. Furthermore it has been underlined that government of United Kingdom is
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creating a political environment which is causing direct impact upon the economic environment
fluctuation which is causing Shell plc to face many challenges which is affecting their business
growth and profitability (Doverholt, 2022). It has been identified that due to the sanction there is
increase in oil prices which is creating many economical challenges. In addition to this it has
been underlined that sanction on Russia is creating high risk movement for the Federal Reserve
and other central banks which is leading shell plc to face unexpected strong recovery
(Johannesson and Clowes, 2022). The price of oil and gases are continuously increasing and the
sanctions and fighting have not only disrupted the global economic environment but it also
leading towards increase in prices especially for oil gas and energy, as it has been identified that
Ukraine and Russia together produce almost 12% of the world oils and 17% of its natural gas. In
his due to the sanctions shell plc is finding many economical challenges which is affecting their
growth and making them too increase their price and production cost (Teece, 2019). Furthermore
it has been underlined that on global platform in which Shell plc is operating in energy oil and
gas industry has been evaluated that Russia is a vital important supplier of gas oil and energy. In
this due to the sanctions of United Kingdom government on Russia is leading towards higher
prices of important commodities which is increasing the inflict economic damage around the
world. United Kingdom relies on Russia for most of its natural gas and oil in the sanction is
significantly threatening the growth of Shell plc and can creating economic setback that can
impact their overall growth and profitability (Abuseridze and Grasis, 2022). In this it is essential
for organization to implement the framework of strategic management in terms with international
context in order to implement the strategies to reduce the negative impact of this situation on
business profitability.
Social:
It has been evaluated that Cultural differences can also influence market demand for
products or services. The need business might address at home may as of now be met or not
exist by any means abroad. Local market knowledge is critical, and there are various effective
brands whose plans of action weren't practical in abroad business sectors (Kervalishvili, 2022). It
is essential for an organization to understand skill, demographics and cultural as well as practices
of individuals on international business platforms in order to conduct business operations in a
well define and effective manner (Peng, 2021). In context with situation with oil companies like
Shell plc having to disengage from Russia due to sanction is creating many skill gap within
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company. It has been identified that corruption is tolerated more in Russia as comparatively to
West. Furthermore it has been that cultural acceptance is also being significantly accepted in
country no due to sanctions shell plc is needed to have skilled and effective workforce another
international platform to conduct business operations. It is essential for Shell Plc to evaluate all
these social cultural challenges or issues in order to conduct business rules and responsibilities in
a well defined and effective manner.
Legal
Legal aspects plays important role for an organization on international platforms as
regulatory environment corporate governance environmental laws and other regulations is
tougher in West as comparatively to Russia. However it has been underlined that due to the
sanctions of United Kingdom government on Russia Shell plc is facing major challenges. In this
it is essential for them to follows in order to conduct business operations in domestic market.
Furthermore it has been underline that due to the current Russia and Ukraine war there is
significant increase in legal laws regulations and practices which is essential for company to
avoid in order to conduct their business operations in a well define and effective manner.
Alongside getting organization structure set up, acquiring an extensive comprehension of the
local laws and regulations is vital. From trading laws to tax implications, exploring navigating
legal requirements is a focal capacity for any effective worldwide business (Lynch, 2018).
Eligibility to exchange is a huge thought, as are expected taxes and the lawful expenses related
to entering new markets. Beyond submitting to true regulations, participating in global business
regularly requires keeping other unwritten social rules. This can demonstrate particularly testing
in developing business sectors with badly characterized guidelines or likely defilement.
Accordingly, organizations like Shell which is carrying on with work in many international
countries should maintain the Foreign Corrupt Practices Act. According to the analysis it has
been identified that it is essential for Shell plc to implement strategic international business
strategies and order to all the laws and legal practices of home country in order to assure long
term sustainability and conduct business operations without facing any legal challenges (Oviatt
and McDougall, 2018). Legal practices plays important role for organization especially those
who are forming their business on international platform with the help of this company can play
successful role. In context with Shell plc negligence of the United Kingdom sanctions on Russia
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can impact organization overall growth and profitability in adverse manner. In this it is essential
for company to avoid all these new laws practices and tax implications in order to navigate the
legal challenges that they can face proper avoidance of legal laws and practices. This will help
company to conduct their roles and responsibilities in effective manner.
Thus according to the abovementioned analysis it has been identified that due to the impact
of multinational sanctions on Russia by United Kingdom government, there is significantly
increase in the foreign inflow from emerging market to western financial market. In addition to
this it has been evaluated that the nagging impact of 19 has not yet recovered by Shell yet get
again the company is affected due to this new magnitude to the sanctions. Furthermore it has
been underlined that economic challenges due to the war between Russia and Ukraine is directly
impacting Shell plc business operations (Mashkova, 2022). It is essential for Shell plc to conduct
business operations according to the jurisdiction of United Kingdom government. However
company is facing challenges in terms of export bans which is causing them to increase their
prices on other global platform that can impact business. It is essential for company to
continuously keeps on analysing the global international business environment in order to
implement strategies to overcome them in effective manner.
CONCLUSION
According to the above mentioned report it has been concluded that, international strategic
management plays important role for an organization who are operating its roles and
responsibilities on global platform. This strategic management is a comprehensive way to
develop and implement strategies through which organization can deal with challenges and
dynamic issues that can affect their overall growth in business operations adversely. International
strategic management plays important role for business organization in today’s business world as
there are many challenges on international platform which is affecting business organization to
conduct their roles and responsibilities smoothly. In addition to this it has been underlined that
international strategic provide strong way to strategic manager to significantly oversee strategic
management plan to fulfill business objectives effectively. From this report it has been identified
that due to global tension Shell is facing numerous challenges such as currency rate, legal
barriers, cultural differences, problematic situation in government of different countries etc. All
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these challenges on international platform is affecting business to conduct their operations. In
this with the help of taking advantage of international strategic management company can
overcome negative impact of these challenges.
REFERENCES
Books and Journals
Abuseridze, G. and Grasis, J., 2022. Legal and Economic Consequences of Russia's
Expansionary Policy. In Handbook of Research on Ethnic, Racial, and Religious
Conflicts and Their Impact on State and Social Security (pp. 243-256). IGI Global.
Borozna, A., 2022. Domestic Sources of Russian Foreign Policy. In The Sources of Russian
Foreign Policy Assertiveness (pp. 221-265). Palgrave Macmillan, Cham.
Doverholt, T., 2022. Dynamic interaction in a limited war: A single case study of the Russian-
Ukrainian dynamic interaction in the conflict in eastern Ukraine.
Dragneva, R. and Hartwell, C.A., 2022. The crisis of the multilateral order in Eurasia:
authoritarian regionalism and its limits. Politics and Governance, 10(2).
Ferreira, J., Mueller, J. and Papa, A., 2018. Strategic knowledge management: theory, practice
and future challenges. Journal of knowledge management.
Greene, S.A. and Robertson, G., 2022. Affect and autocracy: Emotions and attitudes in Russia
after crimea. Perspectives on Politics, 20(1), pp.38-52.
Johannesson, J. and Clowes, D., 2022. Energy Resources and Markets–Perspectives on the
Russia–Ukraine War. European Review, 30(1), pp.4-23.
Kervalishvili, I., 2022. Negative Effects of Corruption on the Global Level. In World Politics
and the Challenges for International Security (pp. 145-164). IGI Global.
Koval, N and et. al., 2022. Morphological Analysis of Narratives of the Russian-Ukrainian
Conflict in Western Academia and Think-Tank Community. Problems of Post-
Communism, pp.1-13.
Liadze, I., Macchiarelli, C., Mortimer-Lee, P. and Juanino, P.S., 2022. The Economic Costs of
the Russia-Ukraine Conflict.
Lynch, R., 2018. Strategic management. Pearson UK.
Mashkova, D., 2022. Directions for increasing the competitiveness of Ukrainian goods and
services in the world market (Doctoral dissertation, Університет імені Альфреда
Нобеля).
Oviatt, B.M. and McDougall, P.P., 2018. Toward a theory of international new ventures.
In International Entrepreneurship (pp. 31-57). Palgrave Macmillan, Cham.
Oxford Analytica, 2022. Polish society may accept large Ukrainian influx. Emerald Expert
Briefings, (oxan-db).
Peng, M.W., 2021. Global strategy. Cengage learning.
Rabinovych, M., 2022. EU-Ukraine “deep” trade agenda: the effectiveness and impact
perspectives. International Politics, pp.1-19.
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Sullivan, K., Thomas, S. and Rosano, M., 2018. Using industrial ecology and strategic
management concepts to pursue the Sustainable Development Goals. Journal of
Cleaner Production, 174, pp.237-246.
Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers, 53(1), pp.1-43.
Vorzhakova, Y. and Redko, K., 2022. Fundamentals of international business: practice.
Wenzel, M., Stanske, S. and Lieberman, M.B., 2020. Strategic responses to crisis. Strategic
Management Journal, 41(7/18).
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