Shell Case Study

In: Business and Management

Submitted By ilkem
Words 2112
Pages 9
Title:
JOURNEY TO SAKHALIN: ROYAL DUTCH/SHELL IN RUSSIA (A)
CASE STUDY REPORT

Contents Page 1. Executive Summary……………………………………………………………….…………………..3
2. Introduction…………………………………………………………………………….………..……….3 3. Analysis…………………………………………………………………………………..…………….……3 3.1 Foreign Direct Investment…………………..…………………………………….……………...3 3.2. Sakhalin………..……………………………………………………………………………………….…..4 3.3. Production-Sharing Agreement……………………………………………………………..….4 3.4. Approvals-TOEC…………………………………………………………………………………..…….5 3.5. NGO’s and the Environment………………………………………………………………..…...5 3.6. SEIC’s strategic moves……………………………………………………………………..………..6 4. Recommendations……………………………………………………………………………..……..7

1. Executive Summary:
In the following report the case study titled “Journey to Sakhalin: Royal Dutch/Shell in Russia” will be examined. A summary of the main issues that SEIC came across with, is analyzed including issues with the PSA and the political usage of Sakhalin II project, as means to an end. Other issues including late approvals, TOEC acquisition and nongovernmental organizations’ influence to potential buyers and lenders are also mentioned. Conclusively a recommendations section is created for the future of Sakhalin II project, that emphasizes on the PSA matter and the TOEC acquisition. 2. Introduction

In the period of 1997-1999 Russia faced a great economic decline with a massive fall in GDP and the proportion of Russians living under poverty raised from 2% to 50%. But Russia was endowed with enormous oil and gas reserves which dominated Soviet exports (75% of the total exports was gas and oil). Specifically Russia controls the largest concentrated supply in the world, constituting 30% of the world’s total reserves. Those reserves could prove a saving factor for the Russian…...

Similar Documents

Case Studies

...have emailed shoe companies that source leather from Brazil to express their concern for the environment and the climate – sending over 200,000 emails in just seven weeks! It’s obviously brought the importance of the issue home to Nike. Unfortunately, other shoe companies highlighted in our report continue to offer nothing but excuses. Although we sent copies of the report to them all, only Nike has taken the steps necessary to ensure that their supply chain is not contributing to the destruction of the Amazon. This begs the question: When will Adidas, Reebok, Timberland and Clarks follow Nike’s good example, do the right thing, and establish policies of their own to protect the Amazon, and the climate? Source Greenpeace Reebok: case study for Corporate social responsibility Reebok  Ethically unemployed Nov 28th 2002  From The Economist print edition Corporate social irresponsibility  HOW little the dangerous fashion for corporate social responsibility has to do with a truly responsible attitude by businesses is aptly shown by Reebok International. This American sports-goods supplier claims to have pioneered good corporate practice.  Doug Cahn, the company's head of human rights, talks about values, fairness and principles, with all the zeal of an anti-corporate lobbyist. He presents the news that Reebok has just decided to withdraw business from a subcontracted factory in Thailand as a proof of corporate caring. The reason: the 400 or so workers employed......

Words: 11952 - Pages: 48

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Royal Dutch/Shell Case Write Up

...Royal Dutch/Shell case write up Introduction Royal Dutch/Shell Group of Companies was formed through and alliance of Royal Dutch Petroleum company and Shell Transport Trading company in 1907. Even though the two companies remain separate, the matrix structure of Royal Dutch/Shell Group of Companies had helped the company survive the oil price collapse and some other crisis. By 1990, Royal Dutch/Shell’s revenues exceeded the industry leader Exxon’s, making it the largest oil company in the world. However, In the 1990s and early 2000s, the company’s reserve replacement ratio has dropped from above 100 percent to almost below 100 percent, which indicates that the company was having trouble with replacing the oils it produced each year with new reserves. In order to boost up its reserve placement ratio and offset other series of problems, Royal Dutch/Shell Group Companies changed its operating structures. In January 2004, the company announced that it would reduce its estimate of proved oil reserves by 4 billion barrels, or 20 percents. Six months later, by the time the restatement was completed, the company had reduced its reserves for 3 additional times. Royal Dutch/Shell’s reputation was hugely affected as it had been suited by several security boards. Shareholders were outrageous as well. Causations of the reserve restatement Firstly, the complex operating structure of Royal Dutch/Shell had a huge negative impact on Royal Dutch/Shell’s performances and it directly led...

Words: 800 - Pages: 4

Effectiveness of Corporate Social Responsible Practices Handled in the Petroleum Industry in Bangladesh: a Case Study of Shell

...industry in Bangladesh: A case study of Shell By Delwar 2014 Dissertation submitted to Anglia Ruskin University in partial fulfilment of the requirements for the Masters Programme Abstract The research issue is that multinational organisations in the petroleum industry such as Shell and British Petroleum are being pressurised by their stakeholders to take responsibility for their business activities. In view of stakeholder pressure, companies have developed and implemented CSR policies and practices. However, the effectiveness of these CSR policies and practices is questionable as the effects of companies activities have negatively impacted the lives of their stakeholders and continue to do so (Amao, 2013). There is extensive research being carried out on understanding the effectiveness of multinationals CSR practices as there exists a wide gap between what companies are saying and what they are actually doing. Practising CSR makes companies responsible for looking after the needs of their stakeholders, makes companies take steps to protect the environment, improve people's livelihoods, motivates employees and increases organisations' effectiveness and efficiency. Multinational state they are practising CSR. Yet their activities have caused much harm to stakeholders. Shell's activities in Nigeria have caused severe health risk to families’ drinking water containing high levels of carcinogens (BBC, 2011). This study is important as......

Words: 13991 - Pages: 56

Shell Case

...Shell´s Environmental Responsibility in Vila Carioca, Sao Paulo, Brazil [1] by Jose Antonio Puppim de Oliveira Associate Professor Brazilian School of Public and Business Administration - EBAPE Getulio Vargas Foundation - FGV Praia de Botafogo 190, room 507 CEP: 22250-900, Rio de Janeiro - RJ, Brazil phone: (55-21) 2559-5737 fax: (55-21) 2559-5710 e-mail: puppim@fgv.br Introduction: Shell defines its aim as “to meet the energy needs of society, in ways that are economically, socially and environmentally viable, now and in the future.”[2] Shell was one of the pioneers in the movement for Corporate Social Responsibility. The company says it is committed to sustainable development and human rights: “Our core values of honesty, integrity and respect for people define how we work. These values have been embodied for more than 25 years in our Business Principles, which since 1997 have included a commitment to support human rights and to contribute to sustainable development.”[3] The case in Vila Carioca (São Paulo City) below illustrates a tough decision the company must make in order to keep its commitments, especially when the company’s past actions occurred in a different institutional and regulatory environment. Vila Carioca is a neighborhood in the southern part of São Paulo, the largest city in South America.[4] Greenpeace and the Union of Workers in the Mining and Petroleum Sector (Sinpetrol) alleged in the 1990s that the region had......

Words: 4240 - Pages: 17

Case Study

...Case Assignment 1 1. Build the management-research question hierarchy. The management –research question occurs during stage 1 of the research process. The approach for this stage of the research process is to state the dilemma that prompts the research and then develop other questions by progressively breaking down the original question into more specific one (Cooper & Schindler, 2014, p. 77). Our case highlights a multistage communication study undertaken by the research department of Penton Media, a publisher of business trade magazines, to determine the long-term viability of a reader and advertiser service, the reader service card, a post-card-size device used by readers to request additional information from a particular advertiser. Leveraging the scenario described in the case assignment, we will build out the management-research question hierarchy (Cooper & Schindler, 2010). Discover Management Dilemma The process begins at the most general level with the management dilemma. This is usually a symptom of an actual problem (Cooper & Schindler, 2014, p. 77). In our case study, the actual problem or dilemma is a decline in use of Penton Media’s publication reader service cards, a post-card-size device used by readers to request additional information from a particular advertiser. This postcard –sized device features a series of numbers, with one number assigned to each ad appearing in the publication. Readers circle the advertiser’s......

Words: 1164 - Pages: 5

Royal Dutch Shell Case Study

...Submitted by: Waqas Ahmed Student ID: M003416757 Module: MGT3201 – Global Business Strategy Module Leader: Dr Qiuping Li Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 1  Royal Dutch Shell ◦ 1907 - Merger of Shell Transport & Trading Company Ltd. and Royal Dutch Petroleum Company (Shell) ◦ 1936 - Shell operations started in Nigeria – Shell D’Arcy (Shell Nigeria) ◦ “Royal Dutch Group of Companies proved more than 50% of Nigeria‟s oil and gas reserves” – (Parboteeah, 2011)  Nigeria ◦ Formed by Britain in 1914 - “…the colony and Protectorate of Nigeria, governed by „indirect rule‟ through local leaders” (BBC News, 2010) ◦ High poverty and deteriorated political and security stance since existence ◦ Worldwide economic importance – Huge oil reserves ◦ 80 % revenues to Nigerian Government through oil reserves Global Business Strategy: Case Study – Royal Dutch Shell in Nigeria: Operating in a Fragile State by Dr. Isaiah A. Litvak 21 March 2011 2  Compliments ◦ Support to Nigerian economy  Criticism ◦ Oil Pollution (Jolly, 2011) ◦ Development of communities ◦ “Shell invests $1bn on Nigerian oilfield” (BBC News, 1999) ◦ “Currently the Delta gets 13 percent with the balance going to the central government and other states” (Ruseckas, 2009) ◦ Employment for Nigerians (Parboteeah, 2011) ◦ Involvement in violence – Ken SaroWiwa (Pilkington,...

Words: 1228 - Pages: 5

Case Study

...Registration No. 250144. It is a matter of discretion for individual employers to recognise any qualification to which this course may lead. Source: * Financial Times ranking 2014 # Financial Times 3 year average rank (2012-14) + Part of 1% of business schools to be awarded tripe accreditation status (AMBA, EQUIS, AACSB) Original Thinking Applied CONTENTS CSR 2014 04 The Trend The rise of CSR in business education 07 Case Study 10 Teaching CSR 14 16 18 Event The green trend in business Advertorial Economy MBAs and social responsibility Industry 08 CSR 2014 Lowdown on courses and events Oil companies and MBAs: a pipeline for corporate social responsibility www.educationpost.com.hk/csr2014 MBS stresses importance of social responsibility Teaching China’s business leaders the importance of CSR PolyU means business when it comes to creating a better world 04 07 08 10 14 16 18 Corporate social responsibility will revitalise the world’s economy CUHK CSR case competition winner will be awarded a Swire internship CSR 2014 is published by Education Post, South China Morning Post Publishers Ltd. All rights reserved. Editorial Editor Assistant Editor Community Editor Reporter Designer Sub Editor Cover photo: iStockphoto Ginn Fung Gary Ng Daisy Fung Sharon Li Candy Lai Paul Wenham Contact Us Editorial editor@educationpost.com.hk Advertising......

Words: 5446 - Pages: 22

Case Studys

...Recovery of Trust: Case studies of organisational failures and trust repair BY GRAHAM DIETZ AND NICOLE GILLESPIE Published by the Institute of Business Ethics Occasional Paper 5 Authors Dr Graham Dietz is a Senior Lecturer in Human Resource Management and Organisational Behaviour at Durham University, UK. His research focuses on trust repair after organisational failures, as well as trust-building across cultures. Together with his co-author on this report, his most recent co-edited book is Organizational Trust: A cultural perspective (Cambridge University Press). Dr Nicole Gillespie is a Senior Lecturer in Management at the University of Queensland, Australia. Her research focuses on building, repairing and measuring trust in organisations and across cultural and professional boundaries. In addition, Nicole researches in the areas of leadership, teams and employee engagement. Acknowledgements The authors would like to thank the contact persons in the featured organisations for their comments on an earlier draft of this Paper. The IBE is particularly grateful to Severn Trent and BAE Systems for their support of this project. All rights reserved. To reproduce or transmit this book in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, please obtain prior permission in writing from the publisher. The Recovery of Trust: Case studies of organisational......

Words: 16669 - Pages: 67

Case: Shell V. R.W. Sturge Ltd.

...Legal Aspects of Decision Making- Mgt 625 Case: Shell v. R.W. Sturge Ltd. Facts: The council, society and the cooperation of Lloyd’s is not regarded as an insurance company. It is regarded instead as a market place, wherein certain individual members gather to underwrite a particular type of business. In light of this, the defendants filed a motion to dismiss for improper venue under Rule 12(b) (3) of the Federal Rule of Civil Procedure which the court granted the motion to dismiss. The plaintiffs’ next course of action was to now appeal arguing that the forum selection clauses deprive them of their rights and the Ohio securities laws and Ohio public policy outweigh the policies served by enforcing the forum selection clauses. Procedure: The case was withdrawn from the Hamilton County of Commons, and was moved to the United States Magistrate Judge for deliberation. The Magistrate Judge upon hearing all the motions, verbal debates and numerous protests, ruled in favour of the defendants and dismissed the motion, stating that both parties had an agreement that involved the enforceable forum for selection provision. Issues: The principal issue in this case is: Did the forum selection clauses used by the defendants, in any way deprive the plaintiffs of their rights or expose them to unfair treatments? And do the Ohio securities laws and public policy truly override the......

Words: 398 - Pages: 2

Case Study

...________________________________________________________________________________________________________________ HBS Professor V. Kasturi Rangan and Sunru Yong prepared this case solely as a basis for class discussion and not as an endorsement, a source of primary data, or an illustration of effective or ineffective management. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental. There are occasional references to actual companies in the narration. Copyright © 2009 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. V. KASTURI RANGAN SUNRU YONG TruEarth Healthy Foods: Market Research for a New Product Introduction Isabel Eckstein strode toward her office, inhaling the aroma from the test kitchen where the product development team was trying new recipes for TruEarth, maker of gourmet pastas, sauces, and meals. Her team had been working hard for the past year on a fresh whole grain pizza. The final market research results had arrived, and it was time to make a decision on launching the product. In 2006, Eckstein, a brand manager, had led the introduction of Cucina Fresca, a fresh......

Words: 5624 - Pages: 23

Case Study

...ICARE program of Karnataka government  Expected to provide more than 4000 services to citizens Social Justice Bench constituted on social issue  Constituted by Supreme Court on 3 December 2014  Started operation on 12 December 2014  The brainchild of Chief Justice of India H L Dattu  Two-judge bench to be headed by Justice Madan B Lokur  The other member is Justice U U Lalit 627 names of Indians holding black money abroad submitted to SC  Includes details of treaties India signed with France and other nations  Half of the 627 names are Non-Resident Indians (NRIs)  Most of them have accounts with HSBC Bank, Geneva  SIT headed by Justice M B Shah is probing black money case Union government unveiled new counter-Naxal doctrine  Proposes four-pronged approach to deal with Naxals  These are Security, Development, Rights and Entitlement and Public Perception Management  Focus on security interventions in worst LWE-affected areas  In moderately-affected areas, security and development initiatives will be focus  In less affected areas, development interventions will take precedence 3 Swachh Bharat Mission launched  Launched on occasion of 145th birth anniversary of Mahatma Gandhi  Aims at making India clean by 2019  The year 2019 will be 150th anniversary of Mahatma Gandhi  Nine people nominated to inspire people to......

Words: 5441 - Pages: 22

Case Study

...CONFIRMING PAGES CASE 1-1 Starbucks—Going Global Fast The Starbucks coffee shop on Sixth Avenue and Pine Street in downtown Seattle sits serene and orderly, as unremarkable as any other in the chain bought years ago by entrepreneur Howard Schultz. A few years ago however, the quiet storefront made front pages around the world. During the World Trade Organization talks in November 1999, protesters flooded Seattle’s streets, and among their targets was Starbucks, a symbol, to them, of free-market capitalism run amok, another multinational out to blanket the earth. Amid the crowds of protesters and riot police were blackmasked anarchists who trashed the store, leaving its windows smashed and its tasteful green-and-white decor smelling of tear gas instead of espresso. Says an angry Schultz: “It’s hurtful. I think people are ill-informed. It’s very difficult to protest against a can of Coke, a bottle of Pepsi, or a can of Folgers. Starbucks is both this ubiquitous brand and a place where you can go and break a window. You can’t break a can of Coke.” The store was quickly repaired, and the protesters scattered to other cities. Yet cup by cup, Starbucks really is caffeinating the world, its green-and-white emblem beckoning to consumers on three continents. In 1999, Starbucks Corp. had 281 stores abroad. Today, it has about 7,000—and it’s still in the early stages of a plan to colonize the globe. If the protesters were wrong in their tactics, they weren’t wrong...

Words: 3684 - Pages: 15

Case Study

...In Customer Loyalty Programs Why Companies Introduce Customer Loyalty Programs The Leaky Bucket Theory versus Polygamous Loyalty Linking Customer Rewards to Loyalty Programs The Claimed Benefits of Loyalty Programs Designing a Frequent-Buyer Loyalty Program Conclusions References and Endnotes Centre for Corporate Change Centre for Corporate Change Do Customer Loyalty Programs Really Work? Abstract In a bid to strengthen relationships with their customers marketers are showing renewed interest in customer loyalty programs. But how effective are these programs? Surprisingly—given their current popularity—the evidence is equivocal. Research on “normal” patterns of loyalty in established competitive markets suggests that in many cases it is hard to obtain exceptional advantages through the launch of a loyalty program. Also, competitive forces tend quickly to erode any differential gains. Before introducing a loyalty program, managers would be wise to fully cost it (including development, marketing and on-going costs), and compare these costs with a realistic assessment of the benefits of the program—an assessment that goes beyond the rhetoric of relationship marketing. Here we argue that to stand the best chance of success under tough market conditions, a loyalty program must enhance the overall value-proposition of the product or service. This in turn will help to motivate buyers to make the next purchase of a product, and therefore support other aspects of the......

Words: 8956 - Pages: 36

Case Study Shell

...In the first case we observe company which is the main producer of drinks in the world and which has huge investment portfolio and real power in corporate social responsibility. In other word it is highly aimed to follow «best practices» of corporate social responsibility initiatives and sustainable development measures. Corporate social initiatives slightly vary as companies operate in different industries. Introduction of the Royal Dutch Shell Corporation. According to the words of CEO Peter Voser who introduce sustainability report of 2010 year the aim of the business is to heel meet the energy needs of society in ways that are economically environmentally and socially responsible. These goals are directly projected to all plans and affiliates which are scattered in 90 countries with 93000 employees. The structure of the Shell group is divided by three main branches: 1. Upstream, 2. Downstream, 3. Projects and technology. Upstream consists of two companies: Upstream International and Upstream American which are responsible for searching and discovering new oil and gas, extracting oil from oil sands for conversion into synthetic crudes. Wind power is part of activities of Upstream. Upstream International coordinates sustainable development policies and social performance across the company. Downstream manufactures, supplies and markets oil products and chemicals worldwide. Supply and manufacturing business consists of refineries, supply and......

Words: 3013 - Pages: 13