Decision Making- Tesco Assignment Sample
Introduction
The purpose of the report is to conduct a background analysis of a selected company in the UK. For background analysis, the Royal Dutch Shell company has been selected. The core area to be covered in this report is operations management, which will provide a detailed analysis of the major business activities. Another important theory relates to the problem-solving process, where a situation will be defined along with the specific issues. A solution will be found and the result will be evaluated according to the current scenario. A summary will be provided in the last section.
Main Analysis
The company selected for this report is Royal Dutch Shell. Founded in February 1907, the company is the leading producer of oil and natural gas. Royal Dutch Shell was formed as a result of an amalgamation between two rivalries, that is, Royal Dutch Petroleum and Shell Transport. The merger took place to be competitive at the global level. The three segments of operation are upstream, downstream and corporate. The upstream segment is engaged in extracting crude oil, natural gas, and developing fields (Lawrence 2017). It also liquifies gas through cooling and converts gas into liquid products. The downstream segment refines oil into fuels and lubricants, manages carbon dioxide emissions, develop bio-fuels, and produce petrochemicals. The corporate segment controls the non-operating activities of the business, that is, holdings and treasury departments. The headquarters, central functions and insurance companies belonging to Shell Plc. are also managed under the corporate segment.
The modern practices of operations management include business process redesign (BPR), six sigma, lead manufacturing and reconfigurable manufacturing system. The most popular among these theories is the BPR process. BPR was put into action in 1993 when the businesses started focussing on designing workflow and operational activities (Gillaerts 2019). The ultimate goal of BPR is to restructure the business processes so that the companies can optimise their functions and leverage production costs. Another important approach is six sigma, which emphasises quality. The tools used within six sigma techniques are potential defect calculation, trending charts and standard deviation. A financial target was set at the initial stage.
In the 20th century, Shell supplied fuel to the British Expeditionary Force. In 1919, the company took control of the Mexican Eagle Petroleum Company and marketed products under “Shell” and “Eagle” brands. By the 1920s, the company became the world’s leading brand to produce 11% of the world’s crude oil and own 10% of the tanker tonnage (Hanna & Hurmelinna-Laukkanen 2019). In 1930, Shell’s Mexican assets were seized by the local government and the head office of the company was shifted to Curacao. In the 21st century, Shell Group moved to a single capital structure and the company was renamed Royal Dutch Shell Plc. while getting listed on London Stock Exchange.
One of the issues encountered in the business process of Shell Company is the human resource issue. The company has faced issues like the improper organization of work processes and customer dissatisfaction (Babich & Hilary 2020). During turbulence in the market, the company faces a struggle in maintaining a strong financial base. The threats have increased due to globalisation, commerce ecosystems, market integration and the digital market. The quick remedy to this problem is to improve the flow of resources and information so that the business processes can be reengineered (Pupovac & Moerman 2020). The company has also faced issues relating to the miscommunication of employees. The changing employer behaviour has created ambiguities in the minds of the employees.
Conclusion
From the above report, it can be concluded that Royal Dutch Shell has a prospective future in its operating industry. The historical background conveys its legacy over the year, stating its foundation through the joint efforts of Royal Dutch Petroleum and Shell Transport and trading company. While working in an intensely competitive environment, Shell faces operational issues, such as improper flow of resources and information and customer dissatisfaction. BPR or business process reengineering can be a suitable remedy at this stage, which not only improves the business operations but also helps retain the competitive position of the market.
Recommendations
The most effective solution to the problem is BPR, that is, business process reengineering. The strategy helps in integrating the multiplicity of the business operations keeping a stronghold on customer satisfaction. Through this strategy, the company can spend less time on bureaucratic rules and break barriers between the functional departments (Lohmer & Lasch 2020). The company can gain the ability to move into the consumer market and launch its products according to the needs and demands of the customers. Innovation and sustainability can be achieved by the company.
Reference List
Babich, V & Hilary, G 2020, ‘OM Forum—Distributed ledgers and operations: What operations management researchers should know about blockchain technology,’ Manufacturing & Service Operations Management, vol. 22 no.2, pp.223-240. Retrieved 31 July 2021, <https://pubsonline.informs.org/doi/abs/10.1287/msom.2018.0752>.
Gillaerts, P 2019, ‘Multinational Royal Dutch Shell summoned for insufficient efforts in combatting climate change.’ Retrieved 31 July 2021.
Hanna, K & Hurmelinna-Laukkanen, P 2019, ‘Managing the energy transition in established organizations towards a low-carbon future–case Royal Dutch Shell.’ Retrieved 31 July 2021, <https://core.ac.uk/download/pdf/344906543.pdf>.
Lawrence, A.T 2017, ‘The drivers of stakeholder engagement: Reflections on the case of Royal Dutch/Shell,’ In Unfolding stakeholder thinking (pp. 185-199). Routledge. Retrieved 31 July 2021, <https://www.taylorfrancis.com/chapters/edit/10.4324/9781351281881-10/drivers-stakeholder-engagement-anne-lawrence>.
Lohmer, J & Lasch, R 2020, ‘Blockchain in operations management and manufacturing: Potential and barriers,’ Computers & Industrial Engineering, vol. 149, p.106789. Retrieved 31 July 2021, <https://www.sciencedirect.com/science/article/abs/pii/S0360835220304988>.
Pupovac, S & Moerman, L 2020, ‘Bringing Shell and Friends of the Earth on stage: A one-act spectacle of oil spills in the Niger Delta,’ Critical Perspectives on Accounting, p.102264. Retrieved 31 July 2021, <https://www.sciencedirect.com/science/article/abs/pii/S104523542030112X>.
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