Hi, I need help with essay on Shell market position, strengths/weaknesses. Paper must be at least 750 words. Please, no plagiarized work!
Even in 1996, a survey of the world’s top 100 brands placed Shell at 64 and BP at 70 while Exxon failed to get any rankings (Verity, 2006). Their gas and Power Division stretches over 35countries (Gas & Power, 2006). An internal assessment of the strengths and weakness is essential especially an understanding of the business environment to remain competitive.
They were quick to recognize their weakness and transform the strategic management concept into operating strategic planning units within the company (Siembieda, n.d.). These units introduced the widespread use of multiple scenarios rather than a single prediction, forecast or trend. This strengthened its capacity for absorbing information from multiple sources on a continuous basis. This helped it to position itself in the emerging markets. Their strength is also their marketing and developing strategy as they go in for joint ventures with governments or local and international coventurers. Shell is the preferred company because they not only apply leading technology, they also invent it and deliver major projects on schedule (RDS Vision). They believe in continued development in customer-focused business around the Shell brand.
The 2005 results demonstrate a strong operational performance. The net income was 36% higher than in 2004. The production targets were met and cash flow reached a record level of $30.1 billion. In July 2005, the credit rating was as “Aa1”. The groups total debt ratio decreased from 13.8% in 2004 to 11.7% in 2005. It has started paying quarterly dividends and in 2005 it returned $10.6 billion to shareholders in dividends during 2005. They have even paid interim dividend for the second quarter for 2006 (Investor Centre, 2006). Through their Registrars, ABN AMRO Bank NV and Lloyds TSB, Shell has established a dividend reinvestment facility which enables the shareholders to use the dividend payment to purchase fresh shares of the same