BUSINESS ENVIRONMENT

Business Environment

Business Environment

Introduction

Business environment and company's strategies

In today's fast pace of competition, the companies are facing various challenges in their external environment. The challenges that are faced by the companies in the external environment have direct and significant impact upon the internal environment of the company. The increased globalization is one of the factors that are bringing rapid changes in the business environment of the industries (Craig S. F., Babette E. B., 2007, pp. 114). The companies that shape their business and management processes according to the changing business environment are found to be more successful and competitive among the competitors in the industries (John L. T., 2001, pp. 46).

The shaping and the development of the business require the company to carry out careful analysis of the both internal and external business environment so that the company can detect the areas that require the strategic change implementation. There are some models that have been developed so as to assist the companies to reshape and reorganize their businesses according to the variations that are occurred in the business environments. The research studies regarding the business environment have shown that not only the speed of business environment changes has increased but also different types of strategic environments are emerging in which the companies must operate their businesses so as to maintain its business in the industry and to attain the competitive advantage among the competitors in the industries.

Introduction to Shell Oil Company

The Shell oil company is a leading brand name in the oil industry. Shell is an American based company that is operating world worldwide in around 140 countries and divisions. The company is having other consolidated companies all across the world. It is the mission of the Shell Company to meet the increasing demands of the energy in an economic, social and in responsible way. Considering its mission, the company has established its leading position and standards in the industry by responding to challenges and needs in the market.

Most of the operations of the company are carried out within the United States, but the company carries out oil extraction and the natural gas production activities outside the country with the collaboration of the joint ventures and partners. The leading oil company, Shell, has five major areas of businesses. These involve exploration and production of oil and natural gas, gasoline marketing, petrochemical manufacturing, gas and power, refining and natural gas marketing and trading and shipping. In all these five business areas, the company is implementing its strategic business approaches and processes so as to maintain its leading position in the global industry. The company is having highest level of market share in the industry and is enjoying greater level of profitability margins.

Like other giant companies, the Shell Oil Company also faces great challenges in the external business market. The competitors in the industries set challenges and they in collaboration, leads to the changes in the overall environment. Although the Shell Oil Company is using various effective ...