Comprehensive Business Case Analysis: Shell Company New Zealand

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This report presents a business case analysis of Shell Company New Zealand, focusing on the petroleum industry. It begins with an overview of the industry, including its structure (upstream, midstream, and downstream) and the level of competition. The report then delves into the critical success factors for marketing within Shell NZ, emphasizing the importance of effective communication, customer experience, and skilled marketing personnel. Authority and sustainability factors are also discussed. Furthermore, the report examines Shell NZ's marketing information needs, including internal company data, marketing intelligence, and market research. The analysis includes financial data like profit, sales, and purchase statistics. The report concludes with an analysis of the key components of the petroleum industry, competitive strategies, and the importance of critical success factors and information needs to sustain the company. The report also addresses the use of sales revenue metrics to solve business problems and defends the alignment of business problems and success factors.
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Running head: BUSINESS 1
Business Case of Shell Company New Zealand
Student’s Name
Institution Affiliation
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Table of Contents……………………………………………………………………………2
A. Organization and Summary of the Industry……………………………………………….3
I. Level of Competition in Petroleum Industry……………………………………….3
B. Critical Success Factors of Marketing in Shell Company New Zealand………………….5
I. Authority and Sustainability Factors………………………………………………..5
C. Shell Company New Zealand Marketing Information Need……………………………...5
D. Analyzed Information in Section A, B and C……………………………………………..8
References…………………………………………………………………………………….10
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Business Case of Shell Company New Zealand
A. Organization and Summary of the Industry
The research organization is the Shell Company New Zealand which is an international
corporation in petroleum industry. According to Haque et al. (2017) is that petroleum industry is
generally termed as the oil pitch or oil industry in most nations. Thus, oil and gas industry or
petroleum industry is a complex chain constituting of three key components. The primary
components in petroleum industry include the upstream industry, midstream industry and
downstream industry. The upstream industry is responsible for the finding and production of
crude oil and natural gas. Upstream industry can be referred as the exploration and production or
E&P section of the petroleum industry (Jones, Harrison & Felps, 2018). Conversely, the
midstream industry of the diligence involves various activities such as processing, storage,
marketing and transportation of oil products such as the crude oil, NGLs or natural liquid gas
such as ethane, butane and propane as well as sulphur. As observed by Haque et al. (2017) is that
midstream industry normally provides the connection between long distance petroleum
producing regions and populated regions where consumers are residing. On the other hand, the
downstream industry involves the oil refineries companies, petro-chemical plants, and oil and
gas products wholesalers, retail outlets such as Shell Company New Zealand. Lastly in the
downstream industry is the distribution companies of natural gas. In addition upstream industry
soupçons reach every consumer and it provides hundreds of thousands products to the
consumers. The products include the diesel, artificial rubber, stimulants, medicines, ordinary gas,
plastics, heating lubricant, jet oil, pesticides, herbicides and fuel (Jones, Harrison & Felps, 2018).
Level of Competition in Petroleum Industry and Competitive Advantage
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The Shell Company New Zealand is being faced by various problems include the
retaining of knowledge, maintenance of efficient processing system, talent management, and stiff
competition level in the petroleum industry (Karas, 2016). However, the competition strategy
level in the oil and gas industry include business unit and corporate level, marketing,
technological and intellectual possessions management, and environmental level strategy in
competition. The business unit and corporate of Shell New Zealand has faced stiff competition
because of the inadequate implementation and designing of the two unit for profitable growth
and enhancing of the shareholder value inside the company. As the company consumers are
upstream, downstream and services companies (Laszlo & Zhexembayeva, 2017). By building the
appropriate business management approach the fundamental understanding will be revealed to
reduce the competition level in the oil and gas industry. In addition, the marketing, advancement
of technology and management company intellectual possession will eradicate the stiff
competition level being faced by most companies in the petroleum industry (Laszlo &
Zhexembayeva, 2017).
Competitive advantage can be described has the situation or condition that place an
organization in the most suitable or superiority to generate more profit when contrasted with
other firms in the same industry. Source of organization competitive advantage in connection to
its business value in the market are the localization of Shell Company New Zealand into
international market, the strategic acceptable between marketing and manufacturing in the
industry, appropriate human capital or workforce in the company, advancement and adaptation
of technology changes (Mignot, Ferrari & Mork, 2015). Other competitive advantages are the
improved production techniques, organization wide market orientation and consumers cluster has
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study indicate that companies near consumer assess more competitive advantage in terms of
innovation when compared to other companies outside the clients cluster.
B. Critical Success Factors of Marketing in Shell Company New Zealand
Virtaluoto, Sannino and Engeström (2016) stated that critical success factors can based
on firm marketing strategies. CSFs essential marketing components of Shell Company New
Zealand are the key company will enable the company to achieve its objectives, vision and
mission. According to Suhonen (2017) organization marketing CSFs forms the capacity of an
organization successful aspect in its industry. Some of the marketing CSFs that can be based on
Shell New Zealand Company include the developing of effective marketing communication
skills, enquiry of customers’ experience on the services being provided by organization, and
employing of the best individual with the right marketing to increase the market size of the
company (Silva et al., 2017). Effective marketing communication skills will enable salespersons
to convince consumers about the advantages of company products and services in the petroleum
industry in contrast to others firms in the same industry who their marketers cannot sale their
services to potential clients. By delivering a great services to consumers Shell Company New
Zealand will be able to compete with other competitors’ favorably. Other CSFs are also the
mandatory marketing aspects, because they formulate capability of the firm in the petroleum
industry.
Authority and Sustainability Factors
On the other hand, authority and sustainability are the aspects which will able the
organization marketing team to survive the industry and determine flexibility in the market
despite of the competition faced by the firm (Weerawardena & Salunke, 2017).
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C. Shell Company New Zealand Marketing Information Need
Permitting Weerawardena and Salunke (2017) argument on the role and principle of
marketing information need they find out that all organization have to encirclement it, because
all marketers and marketing departments depend on marketing information needs to establish a
marketing strategies. Hence, Shell Company New Zealand marketing information need linked to
company include internal company information needs, marketing intelligence information needs
and specific market research information needs has deduced by (Rawhouser, Cummings &
Crane, 2015).
Weerawardena and Salunke (2017) added that internal firm’s information should be
analyzed first to expand the organization marketing information needs. The internal company
information is the strength and capability to raise its marketing in the petroleum industry in a
specified period. Hence, marketers of the company are required to have an effective internal
examination of the marketing factors in order to determine where the company stands in the
current market. Marketing intelligence is another aspect of marketing information need required
in the company business environment. Marketing intelligence include the general market
demand, potential market and competitors in the market (Mignot, Ferrari & Mork, 2015). In
addition, Shell Company New Zealand must carry out an effective market research that are
constituted with the internal information and market intelligence will help marketers to know
what customers want. Therefore, a time to time market research and consumers research is
needed to improve the company market within a specified period.
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Shell Company New Zealand Exact Profit Data
Figure 1. Profit Statistics (Jones, Harrison & Felps, 2018)
Statistics indicate the profit of Shell Company New Zealand from 2010 to 2018. In 2016,
the company generated a total profit of around 27 percent per annum U.S dollars. Whereas, 2010
profit made amounted to 19 percent per annum.
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Shell Company New Zealand Sales and Purchases Statistics Data
Figure 2. Sales and Purchases Statistics (Jones, Harrison & Felps, 2018).
Statistics designate sales and purchase of Shell Company New Zealand from 2010 to
2018. In 2016, the company made sales of around 4.3 percent per annum U.S dollars. Whereas,
2010 purchases made in the same year was 0.4 percent. The highest sales and purchase were
made in the year 2016 of 4.5 and 0.8 percent respectively.
D. Analyzed Information in Section A, B and C
By analyzing the key components in the petroleum industry the Shell Company New
Zealand will be able to understand to increase company products circulation by 23 percent in its
current market. Also Pauleau, Collard & Roquilly (2017) has stated that the innovation
techniques of the company will be improved because consumers demand, taste and preferences
on various goods and services are changing in the current market. Examination of the
competition level in the oil and gas industry is a clear indication that the Shell Company New
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Zealand can still make it in the industry by developing various competitive strategies (Pauleau,
Collard & Roquilly, 2017). The critical success factors of the company were examined and it
was realized that the organization is ready to fight back the various challenges by executing the
CSFs effectively and efficiently (Prabhakar, 2017). Information needs and information
requirements were based on the encounters facing the organization and what should be done to
sustain the company.
Metrics; Sales Revenue Metrics to Solve Business Problems
When assessing the sales revenue of Shells New Zealand, various factors affecting sales
results were examined. Factors such as competitive action and marketing trends considered. By
increase revenue the company add to solve the problem by hiring long-term marketers.
Sales Revenue Measuring
According to Pal et al. (2014) is that sales revenue is being calculated by adding up all the
revenues from consumers buying, and then subtract from related costs or from undeliverable
products of the company.
Defending the Alignment
It is justifiable because the critical success factors of the organization or Shell Company
New Zealand and the business problems (Pal et al., 2014). The business information such the
inadequate financial report from suppliers have been catered for by created sales revenue metrics
of the organization.
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References
Haque, J., Ansari, K. R., Srivastava, V., Quraishi, M. A., & Obot, I. B. (2017). Pyrimidine
derivatives as novel acidizing corrosion inhibitors for N80 steel useful for petroleum
industry: A combined experimental and theoretical approach. Journal of Industrial in
Petroleum.
Jones, T. M., Harrison, J. S., & Felps, W. (2018). How Applying Instrumental Stakeholder
Theory Can Provide Sustainable Competitive Advantage. Academy of Management
Review.
Karas, O., (2016.) Benchmarking–the Instrument of Competitive Advantages Development.
Journal of European economy.
Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability: The next big competitive
advantage. Routledge.
Mignot, A., Ferrari, R. and Mork, K.A., (2015). Spring bloom onset in the Nordic Seas.
Biogeosciences Discussions.
Pal, R., Golubchik, L., Psounis, K. and Hui, P., (2014). Will cyber-insurance improve network
security? A market analysis. In INFOCOM, 2014 Proceedings IEEE.
Pauleau, C., Collard, C., & Roquilly, C. (2017). Key Performance Indicators (KPIs): Run Legal
with Business Metrics: Will the Legal of the Future Measure Everything It Does?. In
Liquid Legal. Springer, Cham
Prabhakar, S., 2017. Benchmarking–A Process of Continuous Improvement to Achieve Best in
Class Performance. International Journal of Engineering and Management Research (IJEMR).
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Rawhouser, H., Cummings, M. and Crane, A., (2015). Benefit corporation legislation and the
emergence of a social hybrid category. California Management Review.
Silva, D. C., Silva, A. A., Melo, C. F., & Marques, M. R. C. (2017). Production of oil with
potential energetic use by catalytic co-pyrolysis of oil sludge from offshore petroleum
industry. Journal of Analytical and Applied Pyrolysis.
Suhonen, J. (2017). Collecting and visualizing business metrics in cloud-based applications.
Virtaluoto, J., Sannino, A. and Engeström, Y., (2016). Surviving Outsourcing and Offshoring:
Technical Communication Professionals in Search of a Future. Journal of Business and
Communication.
Weerawardena, J., & Salunke, S. (2017). Resolving the Market Learning-Firm Competitive
Advantage Debate, an Empirical Investigation: An Abstract. In Marketing at the
Confluence between Entertainment and Analytics. Springer, Cham.
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