Analysis of Shell Company's Business Strategies and Structure

This report analyzes the business strategies and organizational structure of Shell Company. It examines Shell's approach to international expansion, focusing on its operations in Russia, and details the company's strategies related to brand image, customer service, and pricing. The report highlights Shell's target market segments and its customer-centric approach. It also explores Shell's organizational structure, from the board of directors to frontline managers, and addresses the challenges the company faces, including cutting estimated oil reserves, volatile prices, and environmental regulations. The report references relevant academic sources to support its analysis.

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Shell Company
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1SHELL COMPANY
1.
The present strategy of shell in Russia is concrete on its own business and the selected
market areas. Through means of making use of thins strategy, the company is expanding its
business internationally by upgrading the petrol pumps. The company concentrates in three
main areas and they are brand image, customer service and service quality and quantity. Shell
targets not the only the high class segments but also the middle and the lower class as well.
The company is operating with a core aim of satisfying its customers and providing them
better services than the rest of its competitors. In context of pricing, the company sets low
price for its new products in order to grab the attraction of a large number of buyers and large
market shares. It uses four more strategies apart from this and they are:
 Price premium for better services
 Price premium for high quality and purity (Movassag et al. 2016)
 Setting the prices of its own products according to the prices that are offered by its
competitors in the market.
Furthermore, the service of the company is not only present in urban areas, but in rural
areas as well and this is attracting a large number of customers towards its service and they
need the same in their countries as well. Also, the company opts for mass marketing as its
distribution is considered to be extensive and this helps Shell to create its brand awareness in
the international market as well. Apart from advertising its products on print and electronic
media, the company has also introduces its magazine named “Spirit” in order to promote its
products internationally.
2.
Organisational structure is basically a hierarchal concept of the subordinates of the
entities which aids and collaborates together in order to serve a common aim (Dima and Man

2SHELL COMPANY
2015). Shell is an international corporation and hence it has a tall structure that is further
divided based on their functions, geographical division and products and services. It has a
wide network of outlets with a very complex organisational structure. The organisational
structure of the company is formulated below:
However, the single outlet of shell is different in its structure
Control issues present in Shell
Board of directors
Zonal heads
Territory managers
Franchise heads
Service heads (Convenience store,
petroleum and oil change etc.)
Front line managers
Franchise head
Service heads (Convenience store,
petroleum and oil change etc.)
Front line managers

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The company sometimes face difficulties in cutting away its estimated oil reserves.
Secondly, with the rise in the global demand for highly volatile prices and increasing
stringent environmental regulations, the company is facing three major challenges in the
current years and they are of reduction in costs, improving its environmental footprint and in
optimising the performance and quality of its industrial based assets (Newell, Pizer and Raimi
2013). Production of crude oil and other refined products at low cost in order to stay
competitive in the domestic and international market is the major challenge that the Shell
Corporation is facing these days.

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References:
Dima, I.C. and Man, M., 2015. Organisational Entities Under the Conditions of Market
Economy Globalisation. In Modelling and Simulation in Management (pp. 49-66). Springer,
Cham.
Movassag, S.Z., Taher, F.N., Razmi, K. and Azar, R.T., 2013. Tube bundle replacement for
segmental and helical shell and tube heat exchangers: Performance comparison and fouling
investigation on the shell side. Applied Thermal Engineering, 51(1-2), pp.1162-1169.
Newell, R.G., Pizer, W.A. and Raimi, D., 2013. Carbon markets 15 years after Kyoto:
Lessons learned, new challenges. Journal of Economic Perspectives, 27(1), pp.123-46.