Question

Based on the Royal Dutch Shell case, select an oil company or oil-dependent country economy and analyze their strategic response to the long-term impact of lower oil prices. Evaluate the firm’s mission statement or nation’s policies as to whether or not their strategic position has a positive shareholder or stakeholder perspective.

Min 500 words

Answer 1

Royal Dutch shell case based answer :

Due to covid impact of decreasing in demand or petrochemical products it affects the price of shares of this multinational corporation. Not only because of pandemic since last some years it's condition is not good. In US, it's parent company is the shell company. It's business is widely spread across more than 90 countries. It's vision statement is to safely market and distribute energy & petrochemical products while offering innovative value added services. It's price is fallen also because they emitted 28.4m gallons of gasoline in the air and breached the rules framed by act and it also become the reason of migration of birds as it effects environment.

US, India, china, etc all the dependent countries in terms of oil. And company which is importing oil is Hindustan petroleum corporation limited (HPCL) . It's mission is to provide productivity, profit oriented, No. 1 in terms of quality and oil industry by taking natural culture heritage by taking care of environment and customers.

Strategic response is very positive. Since, low price of oil for a time it will help the company not only to earn better in terms of prices but also the other like they are able to achieve their quality goals also. Everyone has their own strategy to move better in market and to maintain it's high level in economy. However it will have more positive effect on other industries like -transportation industry in US.

Mission statement is about best innovative products by royal Dutch and mission statement is about best in terms of quality, production, distribution etc. By HPCL. As nation policy is always favourable for exports and only those import which is important. If prices are lower then importing country is ready to give relaxation in terms of export so that they can fulfill their requirement of domestic country even when prices becomes higher for at least sometime. Yes, we can say that HPCL has strategic position and has a positive stakeholder and shareholder prospective. In this time as the prices of oil are low hence company stakeholder getting more benefits in terms of their internal strategies and also get benefits from those companies who are in this field but they are full domestic companies. And if we talk from the other view that is about the stakeholder of Royal Dutch company then presently they face high decline but there may be chances that when economy will recover and also it had slash 22%,value and to boost the market they sold their Norwegian natural gas business. And company will definitely work for it's innovation and if they do well or become successful it will leads to good profit for it's stakeholder in future. So, we can say that it will benefit the other countries as well as the importers . This will also cause a problem for maintaining the balance between monetary policy. And in terms of fiscal budget it becomes very profitable .and About 1.9 million tonnes is the amount of oil which is imported by HPCL from outside countries. Hence it creates a positive shareholder perspective for HPCL not for Royal Dutch shell.