Introduction to Management: Shell Gas Station SWOT Analysis Report

This report presents a comprehensive analysis of Shell Gas Station, utilizing a SWOT framework to evaluate its strengths, weaknesses, opportunities, and threats. The analysis delves into customer satisfaction, supplier reliability, and the challenges of diversification. It also examines the external environment through a PESTEL analysis, considering political, economic, social, technological, environmental, and legal factors influencing the business. Furthermore, the report explores strategies for motivating employees and identifies key stakeholders. Finally, it offers recommendations for improving the business venture, emphasizing the importance of skilled labor and training to enhance sales and customer service. The report concludes that while Shell Gas Station is currently profitable, strategic improvements are necessary to maximize its potential.

Running head: INTRODUCTION TO MANAGEMENT 0
INTRODUCTION TO MANAGEMENT
Name of Student
Institution Affiliation
0

INTRODUCTION TO MANAGEMENT 1
SUMMARY
The write-up analyses the strengths, weaknesses, opportunities and threats of Shell Gas
Station. The organization was chosen because it offers both the service and commodities and
hence gives a good scope of items required in the case. It is an important analysis because it
defines the possible prospects and pitfalls that the organization faces in its business environment
(Morcol et al., 2017). Additionally, the write-up also covers the recommendations and controls
that can potentially improve the business venture.
S.W.O.T – FORMULATING STRATEGIES
The management and key stakeholders of any business venture often require a SWOT
analysis of their venture because it is a vital tool for strategic planning and an important source
of information (Elia, Li, and Floudas, 2015). The management of Shell Gas Station therefore will
definitely rely on the SWOT analysis below when making some of the most important decisions
that will ultimately lead to the growth of their organization.
STRENGTHS
First, the organization has a high level of customer satisfaction. Shell Gas Station has
stood out as one of the very best filling station because it ensures that all new and returning
customers get the best service possible and that has led to more than 99 per cent customer
satisfaction rate based on the feedback reviews. The voluntary reviews from the customers is one
of the most reliable ways of gauging the organization's delivery from the clients' perspective
(Kalia, 2017). The clients have consistently lauded Shell Gas Station staff for the exceptional
service they offer.
Shell Gas Station has a group of highly reliable suppliers. In organization's line of work,
supply is very crucial. The motorists are Shell's biggest clientele and they demand a steady

INTRODUCTION TO MANAGEMENT 2
supply of gasoline and other automotive-related petroleum products. The organization is able to
provide these products at any given time due to the highly reliable and efficient suppliers of these
products.
WEAKNESSES
The organization has one notable weakness. The organization has had limited success
outside its core business. Shell Gas Station apart from the gas filling and the sale of car-related
products, also ventured into servicing automobiles as a way of supplementing its income from
the core business. So far, the car serving wing of the business is not yet very vibrant and is not
yet self-sufficient. The management appreciates the need for diversification into more car related
services and products markets but this venture needs time to be profitable.
OPPORTUNITIES
The first major opportunity that has arisen in the business environment surrounding Shell
Gas Station's area of operation is the constant drop in price of petroleum and petroleum products.
The global demand for petroleum has reduced and that has had a positive but indirect effect on
the business (Bhandari, 2018). Globally, many alternatives for petroleum products have sprung
up and that has directly led to a surge in demand of petroleum products (Gu and Willox, 2018).
THREATS
The threat that faces Shell Gas Station is the emergence of many other gas station in close
proximity to Shell’s area of operation. The completion has become very stiff because more and
more entrepreneurs are venturing in the business due to the reduced capital requirement needed
to venture into the business.
ENVIROMENAL CONSTRAINTS

INTRODUCTION TO MANAGEMENT 3
Under the environmental constraints, it is very vital that Shell Gas Station’s specific,
general and global environment be analyzed so as to assess the possible prospective threats of the
organization. In doing so, it then becomes necessary to conduct a PESTEL analysis on the
organization. In the PESTEL analysis, we focus on political, economic, social, technological and
legal aspects that constraint the organization.
POLITICAL
The prices, supply and distribution of crude oil are directly controlled by the
political choices and the general political environment at any given time. In the case of Shell Gas
Station, the political environment at the moment is very stable. Globally, the prices of crude oil
are very stable and every major country that produces oil is stable politically and is feeding the
market with the expected quota (Hulshof, van der Maat and Mulder, 2016). Internally, the supply
is meeting the demand and there are no shortages or surplus. The political environment stills
favors the use of petroleum-based fuels as opposed to other alternatives (Gu and Willox, 2018).
The political environment is very conducive for business and the experts predict that this will go
on. Therefore, political there is no need for concern.
ECONOMIC
Economically, the demand and the supply for petroleum products is at an all-time high.
The average gasoline consumption in the country is about 40 billion liters in 2018. It then
translates to 111 million liters per day (Gu and Willox, 2018). The numbers are a rise from less
than 35 million liters used in each of the last four previous years. The patterns of demand and
supply of gasoline is indirectly controlled by the economy. The increased demand for gasoline
and petroleum products offer a very good environment for Shell Gas Station as a business
venture.

INTRODUCTION TO MANAGEMENT 4
SOCIAL
Socially, there has been an influx of people in the area surrounding the region that Shell
Gas Station serves. Therefore, the demand for gasoline has gone up in the last three years. On the
other hand, Shell Gas Station has also made its business very vibrant because of the efforts it
makes in engaging customers and prospects on social media and locally through corporate reach-
out events. The increased engagement and the robust targeted involvement with the people
makes the social environment that the gas station operates very ideal.
TECHNOLOGICAL
In today’s business environment, it has become almost impossible for a business to
survive without the use of technology (Gu and Willox, 2018). In the gas station business, the
pumps are now computerized so as to ensure proper measurement of quantities of gasoline used,
the station has to keep track of the vehicles that are fueled for security and record purposes too.
Additionally, the staff in charge of the gasoline tanks use computerized sensors to take care of
the storage tanks. The computerization and the ability to use computers saves the organization a
lot in monetary terms.
ENVIROMENTAL
In terms of the environment, the four seasons have difference effects on the gas station
business. The colder seasons see increase in the demand for fuel because most people don’t
travel out to the area a lot and they also require more fuel to keep their car air conditioning
running. As winter becomes more intense there is an increasing demand for fuel.
LEGAL
There are a myriad of legal issues that surround the gas station business. The government
is always concerned about safety, gasoline quality and the quality of car care products. Therefore

INTRODUCTION TO MANAGEMENT 5
the business is now grappling with the new set of laws that have been put forward in a bid to
control the gasoline retail (Liu, et al, 2018). The laws are very specific about the quality, the
storage and the sale of the products (Liu, et al, 2018). The laws are very progressive and are very
ideal in bringing control and stability but they have increased the cost doing business because of
the high capital intensive equipment that have to be acquired (Gellatly and Richards, 2018).
MOTIVATING EMPLOYEES
The very first strategy in motivating the employees of Shell Gas Station is by making the
workplace very pleasant. The gas station should have a very pleasant and functional and a
physically comfortable environment. The sitting area should be well kept and very well
accessorized so that the employees look forward to coming to work every morning. It does not
have to be expensive but it should be very targeted and done according to the taste and
preferences of the group.
The other important way of motivating them is by introducing a rewards system. The
rewards must be attractive so that each employees works towards a target. The reward must be
ideal and motivational enough for the employees.
STAKEHOLDERS
In Shell Gas Station the stakeholders include, the customers, employees, suppliers, and
the director.

INTRODUCTION TO MANAGEMENT 6
ORGANIZATIONAL STRUCTURE AND DESIGN
FOUNDATIONS OF CONTROL AND RECOMMEDATIONS
Shell Gas Station is functioning very well as a business enterprise and is profitable. The
sales are increasing and the customer satisfaction is optimal. However, more needs to be done to
make the business venture even more lucrative. The organization will need more highly skilled
laborers. The laborers need to be taken through compulsory training needed in handling the
petroleum-based end products such as gasoline, lubricants, oils, and more (Binajjaj et al, 2018).
The prerequisite training will be in diagnosing cars, administering car products and offering the
necessary advice to all the clients in need at the Gas Station will be very important in boosting
sales. The preparedness will make Shell Gas Station one of the busiest and reliable station in the
area of operation.

INTRODUCTION TO MANAGEMENT 7
REFERENCES
Bhandari, N. (2018). Hike in prices of petrol and its impact on demand and
supply. International Journal for Advance Research and Development, 3(8), 33-37.
Binajjaj, A., Sheltami, T., Aliyu, F., & Kaosar, M. (2018). Design and implementation of
a wearable gas sensor network for oil and gas industry workers. Journal of Computers, 13(3),
300-309.
Elia, J. A., Li, J., & Floudas, C. A. (2015). Strategic planning optimization for natural gas
to liquid transportation fuel (GTL) systems. Computers & Chemical Engineering, 72, 109-125.
Gellatly, G., & Richards, E. (2018). Recent Developments in the Canadian Economy:
Spring 2018. Statistics Canada.
Hulshof, D., van der Maat, J. P., & Mulder, M. (2016). Market fundamentals, competition
and natural-gas prices. Energy Policy, 94, 480-491.
Kalia, P. (2017). Service quality scales in online retail: methodological
issues. International Journal of Operations & Production Management, 37(5), 630-663.
Liu, L., Huang, C. Z., Huang, G., Baetz, B., & Pittendrigh, S. M. (2018). How a carbon
tax will affect an emission-intensive economy: A case study of the Province of Saskatchewan,
Canada. Energy, 159, 817-826.
Morcol, G., Hoyt, L., Meek, J. W., & Zimmermann, U. (Eds.). (2017). Business
improvement districts: Research, theories, and controversies. Routledge.
Moshiri, S., & Aliyev, K. (2017). Rebound effect of efficiency improvement in passenger
cars on gasoline consumption in Canada. Ecological Economics, 131, 330-341.
Gu, W., & Willox, M. (2018). Productivity Growth in Canada and the United States,
Recent Trends and Determinants.

INTRODUCTION TO MANAGEMENT 8