INTERNATIONAL BUSINESS STRATEGY

International Business Strategy

[Name of the Institute]International Business Strategy

Assignment

Task 1

Strategies of Shell 'Resources Capabilities Framework'

Shell can be considered as one of the most successful and globally renowned oil producing companies operating on the global platform in the contemporary era. The reason for the success and the substantial global network of the company has been based on the strategic management of its resources and the adequate development of the human resource. The management of the company has always treated the primary function of extracting oil for the global resources, as its primary objective and the long term sustainability objective. It is due to this reason that the company has invested heavily in the research and development process, and implement the latest technologies in its oil extraction procedures. This ability of the company helped the operational expansion of the company in various regions of the world. Even though the company is primarily headquartered in the developed global region, the supply of oil is present in various diverse regions of the world.

SWOT Analysis: Shells Environmental Analysis

The company is currently operating in highly volatile and demanding global business environment, where there is a significant number of competitive brands available. In this regard the management at Shell has to focus on developing technologies and initiatives which would help the company differentiate itself from the rest of the competition and attain significant part of the global consumer market. The most important factor to consider regarding the demand for the products offered by the company is that regardless of the vast global market of the brand, the demand for the oil related products are relatively in elastic in nature. Oil based products will always have a substantial demand in the context of the global consumer market; however the sales of the products are negatively impacted by the actions of the regulatory authorities. In the short term perspective the management of the company has to focus on the role of the various regulatory authorities on their revenue based objectives.

The strength of the company relates to the already established global brand image of the company, which has allowed it to have a substantial share of the consumer market. Another strength of the company is the economies of scale factor, provided by the vast organizational infrastructure. This allows the company to invest adequate resources in the R&D factors and attain breakthroughs in efficient and more effective technologies and innovations. The opportunity for the company is to capitalize on the environmentally responsible trend in the current business environment, and use its vast marketing and R&D facilities to capture this opportunity. The weakness of the company in the current business environment is the high level of competitive forces present in the industry, which has caused issues for the brand to maintain its consumer market. The threat for the company is the diminishing nature of the global oil reserves; which can cause serious challenges for the multinational organizational entity. In this perspective the company has to seek the opportunity to ...