Royal Dutch Shell Plc: The Competitive Strategies



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Code : COM0092

Year :
2005

Industry : Oil and Natural Gas

Region : Netherlands

Teaching Note:Not Available

Structured Assignment :Not Available

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Royal Dutch/Shell Group: The Formation In 1833 Marcus Samuel started a small-scale business of selling seashells to Victorian natural history enthusiasts in London. He developed it into a successful import-export business. Later in the late 19th century, the descendants of Marcus Samuel tapped the huge potential to export oil for lamps and cooking to Eastern Asia. In 1892, the first oil tanker was commissioned to deliver 4,000 tonnes of Russian kerosene to Singapore and Bangkok under the trademark of 'Shell'. In 1897, 'Shell Transport and Trading Company' was formed. During the same time, the Royal Dutch Petroleum was also formed in the Netherlands to develop oil fields in Asia and by 1896, it had acquired a tanker fleet to competewith the British. In the early 1900s, it was felt that the competing Dutch and British companies would do better by integrating their resources...

Growing Challenges and Competitive Strategies Amajor public protest came in April 1995, when Shell decided to sink BrentSpar, an ageing oil storage buoy in the North Sea, in the Atlantic. On April 30th 1995, activists from the Greenpeace, an environmental organisation, occupied Brent Spar and remained on the buoy for three weeks. The subsequent media coverage antagonised the public against Shell, especially in Europe. Government officials of Belgium, Denmark, Sweden, the Netherlands and Germany asked Shell to postpone its sinking of the Brent Spar and a consumer boycott gathered force, especially in Germany. On June 20th Shell announced that it had abandoned its plan to sink the Brent Spar and would look for alternativemethods to dispose it. On the heels of the Brent Spar incident, the same year, came the human rights issue inNigeria.On November 10th Ken Saro-Wiwa and his eight colleagues were executed in Nigeria. Saro-Wiwa was a leader of the Ogoni people of Nigeria. He was an environmental and human rights activist...

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