Business Function of Shell PLC

TASK 1

P1 Different types and purpose of various forms of organisation

Business environment is a combination of micro and macro factors whcich influence on organisation productivity and proficiency ratio within current marketplace. Under this, there are various types of associations like public, private and voluntary. NHS is considered as public association, SHELL is considered as privately owned business and Oxfam is voluntary. These all organisation direct its business tasks at universal or global level.

Public organisations- In this determinant, the aspect of public sector organisations is mainly concern with those form of organisation in which majority of business operation owned as well as functioned with the support of government in order to give improved way of service to particular community or society in a better manner (Avramenko, 2012). Along with this, it encompasses the division like healthcare, education etc. for enhancing living standard of community in an amended way. In regard of this, NHS has been regarded which is one of the well-known public organisation as well as affiliated with the health and social care in Northern Ireland. It is freely national medicinal services framework and furthermore gives the better human services benefits in everywhere throughout the world. Moreover, it is incorporated in the year of 1948. Moreover, NHS render best training and development program to its manpower which lead them to enhance their potentiality or capability to support and delivery the high- quality patient care as well educating them about maintaining health condition. At universal level, NHS advance the healthcare advertise and create solid connections with the worldwide business, government and medicinal services suppliers which enable them to acquire increased level of proficiency. Some of the Examples are: BBC and Bank of England.

Private organisations- This form of organisation is relate with concept that individual, organization, affiliations who are not freely body and worked for winning the benefit. In regard of private firm, SHELL company has been considered which is a global oil and gas firm who produce or manufacture various oil segments for satisfy the customer. Additionally, it is founded in 1907 and operate it in across the globe. Examples of Private organisations- British Petroleum, Petronas, Chevron (Berg and Kilambi, Siebel Systems 2014).

Voluntary organisations- It alludes to any individual, company, affiliations which are not openly body and worked for procuring the benefit. However, for voluntary, Oxfam firm has been included which mainly concern with reducing best medical facility in order to reduce the ratio of poverty enrich their living standard in a better way. Moreover. It was established in year 1942 in Kenya. Furthermore, Oxfam takes corrective course of action to eradicate inequality and poverty that empower them to serve the society as well as enhance the arket share or size in an impressive way. Examples of other Voluntary organisations- Save the Children and Wellcome Trust.

P2 Size and scope of different types of organisation  

There are various forms of organisation and each of them are different from each other but they all are intended towards accomplishing specified objective or goal in an trenchant and productive manner. Some of the type of organisation are discussed below: 

Public organisations- Under this criteria, NHS has been regarded as it is a well established public organisation within UK marketplace and it is wholly grounded over rendering hygienic and safe  healthcare services to various community of people in an ethical or satisfactory  manner. Along with this, it sever its whole business operation across the globe and also it has wide social connection with international and regional government, health care providers and business. Hence, its main intent or purpose is to provide good and healthy healthcare services and medication to people in an improved way.

Services and Products- NHS deliver its Healthcare services to people like Medical Social Services,  Nursing Care and many more in a better mode. 

Size- In NHS, there are around  1.4 million manpower who are highly dedicated and passionate to give best improved care for patient across the world.

Scope- The scope of NHS is wide as its offer several services to different community of manpower around the worldwide. Moreover, it handle various kinds of business function like  instance dental care, optical care and basic medical facilities (Chi, 2015).

Vision and mission- The foremost vision of NHS to give better and improved healthcare and medication and generate value among society. Furthermore, NHS mission is to render best care services to various group of individuals in worldwide in order to keep them safe and healthy.

Objectives- The primal objective of NHS is to enhance and enrich the standard of living of society. However, for accomplishing the same objective, NHS provide sustainable , fair and optimal utilisation of available resources.

The  main purpose of NHS is to give amended healthcare services and generating  best environment so that they each individual can be able to resist against all harmful disease in a healthy manner.

Legal structure- Some of the legal structure of public organisations are given below:

Central Government: They are those whose functional unit are managed and controlled by the help of central government.

State Government: In this, organisations are directed and functioned by state government.

Local Authorities: Under this, establishment are monitored and governed by local government (Craig and Campbell, 2012).

Stakeholders- They are regarded as those group of individuals who take participation in business managerial or operational function for maximising profit in an effective mode. Some of the stakeholders of NHS are NHS Confederation, Clinical Commissions, Local Government Associations, Association of Directors of Adult Social Services.

(SOURCE: Full details: New NHS England and Improvement structure)

Voluntary organisations- For understanding this type of organisation, Oxfam has been regraded which is a highly reputed non profit  company within UK and incorporated in the yearof 1942. It offer tis services and function all around the world as they mainly dedicated to remove the poverty from community.

Services and Products- The services and products which Oxfam give is the they work towards to enrich living standard of society by offering fair trade, livelihoods, gender equality, justice, natural disasters etc.

Size- Oxfam has a group of the 14 forms who are connected or interconnected with 3000 parters in around 100 countries for finding the solutions to remove poverty and injustice from society ( Hillary, 2017).

Scope- In regard of Oxfam, its serve its managerial function across the globe which shows that its scope is large and wide. Hence, they mainly work towards minimising the poverty and inequality from people and tale corrective action ton save manpower who are suffering from natural disaster in order to enrich living condition of community in an improved way.

Vision and mission- The main Vision of Oxfam is to eradicate poverty and injustice from people. Along with this, its mission is to overcome poverty causes as well as develop long lasting solutions.

Objectives- The objective of Oxfam is to evaluate the personnel personally  directly when the local capacity is inappropriate and enrich the lifestyle of society (Ifinedo, Pyke and Anwar, 2018).

The purpose of Oxfam

Stakeholders- Some of the stakeholders of Oxfam are Trade Union, Trustees and donors, Volunteers.

The key  purpose of Oxfam is to eradicate the  poverty and improve people living standard of people.

(Source: Organisational Structure of Oxfam, 2019)

Private organisations- In order to acquire deeper understanding about private organisation, SHELL has been regraded as it is well established company in oil and gas industry in UK. Moreover, it is founded in the year of 1907  and serve its product or service across the world by maintaining best quality of services in order to place the brand in a competitive position.

Services and Products- SHELL render various types of services like Petroleum, natural gas, LNG, lubricants, petrochemicals with a n intent of maximising  the profit in an existing marketplace.

Size- SHELL contains 82,000 personnel who put their full effort for achieving the defined objective in a stipulated time duration in a innovative and creative way ( Hillary, 2017).

Scope- Due to intense level of competition, SHELL has large scope as it conation enormous opportunities for enlarging its business operations and market share in competing marketplace. Moreover, it has various subsidiaries like SHELL Australia, South Africa, Canada, and so on.

Vision and mission- The main Vision of SHELL is to create the difference with people, a team of devoted professionals, who value customers as well as  deliver best quality of services or products and contribute to sustainable development. Along with this, its mission is to safely market, distribute energy and petrochemical products while offering innovative value added services.

Objectives- The objectives of the Shell Group is to engage efficiently, responsibly and profitably in oil, gas, chemicals as well as in other selected businesses by participating, searching and developing other sources of energy for meeting out the  evolving customer needs and  world's growing demand for energy.

The purpose of Oxfam

Stakeholders- Shell stakeholders are  employees, suppliers, customers, local communities, governments, business community, other related oil companies, the media and some NGOs.

Moreover, the primal aim of SHELL is to acquire the best position within competing industry by providing effective product or services. 

TASK 2

P3 Relationship between different organisational function

In SHELL, it has different kinds of functional unit and work towards to accomplish the desired goal or objective in a stipulated time duration. Along with this, each functional unit are interrelated with each other which lead them to attain sustainable growth and development in existing industry. Some of the interrelationship among SHELL departments are as follows:

HR department  and Marketing department- These two function are considered as important unit of an organisation as it help them to improve its overall performance in an amended manner. However, the main objective of HR department is to hire and recruit highly skilled or potential candidate who can put their best contribution for enlarging company's market share or size in productive style (Janita and Miranda, 2013). Hence, for inviting large pool of candidate towards SHELL vacant position, it requires the support if marketing departments who help them in advertising the job position in current market. Therefore, SHELL marketing function adopts various promotional tool like advertising in social media platform, newspaper, magazine, online marketing and many more. With the help of this, company's HR unit can acquire large number of personnel towards the brand and it lead them to place their brand in an aggressive and competitive position in an innovative and creative style.

Finance department  and Marketing department- These two units plays a significant role in an establishment s it help them to enhance its sales performance in a productive style. However, the main aim of marketing function is to promote the products or service in order to gain competitive advantage among competitors. Hence, for obtaining the same, SHELL marketing division needs enough amount of money which they can acquire from finance department so that they can easily advertise the product within existing industry. Thus, SHELL  marketing function analyse the current market condition and calculate a estimate idea regarding the experience and inform the same to finance division. By doing this, SHELL finance unit render enough amount of funds and money to marketing unit that lead them to advertise their product in various online platforms. Moreover, it also assist them to utilise other promotional strategies such as public relation, sales promotion and so on. Henceforth, SHELL can reach large number of customer in a effective way and also can attain sustainable profitability ratio in competing industry.

Organisational structure - The aspect of organisation is relate with those concept in which it encompasses various activities such as supervision, allocation and coordination ans well as direct each business function towards attaining organisational aim. In addition to this, it influence over organisational action and provide basic foundation through which firm can operate its managerial function in an impressive way. In context of SHELL, it follows flat organisational structure as it signifies that  there has limited manageable level among front- line staff and administrative level. Furthermore, its main intent is to follow this structure so that they can provide proper motivation and encouragement for inviting personnel to implement best decision making. Moreover, it help them to decrease bureaucrat as well as enable manpower to enhance their skill or ability by making use of available resources in an impressive and creative manner (Palepu and Healy, 2013). 

However, these various business functions of SHELL are marketing, human resource, operations, finance etc. are interconnected with each other that empower them to enlarge its market share or size in an amended mode. Additionally, each of them are working for attain common outcomes and follow organisational structure effectively. 

TASK 3

P4 PESTLE Analysis

In today's scenario of marketplace, there is an extreme level of competitions or challenges among companies which influence firms capability to cope up with all sort of threat in a improved manner. However, for handling and managing external factors (such as competitors, government, customers ) in an efficacious way, PESTLE analysis play a vital role in company for attaining the same dilemma. Hence, PESTLE analysis is a strategic business tool which enable organisation to determine its external macro component and also lead them to take corrective course of action in order to gain competitive advantage among competitors within prescribed time limit. However, Shell, a leading private company makes an effort to imply PESTLE in its business operation which is discussed below:   

Political: This factor comprises government regulation, policies, procedures, rules, political stability of country and many more which effect organisation proficiency ratio. In relation to SHELL, recently the governing bodies of international and regional countries made a decision regarding imposing penalties for carbon emissions as well as there was a huge pressure from government over SHELL in terms of avoiding the usage of crude fuel and adopts bio fuel for protecting the environment from pollution. Therefore, such kind of pressure influence negatively over SHELL to maintain its brand value among existing industry. Hence, SHELL make an effort to tackle this negative impact by making a decision of engaging in alliances and partnership with government in which they provide several incentive for economical enhancement and in return company acquire support from government for processing their business operation in a better way. Moreover, SHELL involved in Climate Action Partnership which help them to gain positive response from public and also to provide enormous employment opportunity within community which enrich organisation brand value (Palo and Tähtinen, 2013). 

Economic: In this, it involves economic growth, interest rate, inflation or deflation, GD or GNP ratio and etc. that effect establishment to maintain its overall performance among competitors. In context of SHELL, UK government has been raised the amount of taxation which effect SHELL by increasing its cost of production that directly influence consumer buying behaviour and attitude towards company. Moreover, another issue which SHELL is being going through is that to satisfy the increasing demand of customer. This is because, from the recent study, it has been analysed that there are only few natural reserves of crude oil which challenged SHELL to place its brand in a competitive position in existing market. However, for overcoming such challenges, SHELL take an initiative in investing in new project which is concern with exploration and extraction of oil and gas from natural reserves that lead them to acquire best position among competitors in an impressive manner.  

Social: In this, it covers demographic factors like age, gender, population income, customer taste and preference and so on which influence business decision making process. Thus, in relation to SHELL, there was a huge demand among population regarding implication of responsible consumption by companies in its managerial or operation function. Due to such rising demand, it  negatively impact SHELL in terms of improving its sales performance and also to enhance their profit margin. Therefore, SHELL took this negative effect as an opportunity and took an initiative to make use of their product waste for cultivating flowers in order to prevent the planet from tingeing destroyed. Hence, with the help of such action, SHELL was able to enrich its volume of sales and also empower them to create a impressive brand value among wide range of consumers in an improved way.  

Technological: This factor encompasses innovation and advancement in technologies for enlarging the market share of firm in current competitive industry. However, in regard of SHELL , it faced a extreme demand from consumers in terms of adopting innovative tools or equipments into their functional unit that challenged company's productivity ratio. Therefore, SHELL make an attempt to acquire advanced and modern technologies or equipments for drilling and extracting oil and gas. Due to which, SHELL has enhanced its proficiency and productivity ratio in an innovative or productive style among competitors (Shell PESTLE Analysis , 2019).  

Legal: Under this, it encompasses government legislation, laws, regulation and etc. which impact firm to enlarge its overall profit margin rate. IN context of SHELL, government are highly imposing pressure on companies in regard of reducing carbon emission for preventing planet from global warming. Due to which, SHELL is facing huge difficulty in complying with the same for generating positive response from consumers and competitors. So, if company adhere to that, it assist them to enhance its brand image among competitors in a amended manner (Shenkar, Luo and Chi, 2014). 

Environmental:   It is encompasses with measures related to environmental protection, eco friendly product or services that influence organisation to attain sustainable growth in competing marketplace. However, in case of SHELL, they took an initiative to invest  on various projects in order to prevent the Earth from harmful gases and also to render good environment to consumer that help them to improve their sustainable growth and development. 

NHS

Political: Under this component, it encompasses the aspect of government measures, interventions, influences, policies and etc. that impact company's productivity ratio. However, with the introduction of Brexit within UK, it  negatively influence  NHS in terms of modifying or altering its existing policies or regulation. Hence, NHS make an effort to cope up with their negative impact by adopting an implementing new policies, regulation or rules within its business function that enable them to improve its overall performance and profit margin in a aggressive and competitive way. Moreover, NHS were benefited by political stability of UK that help them to imply all changes in a efficacious manner.  

Economic: This factor involves product price and demand, exchange rates, economic growth, inflation rate and so on which effect organisation to enrich its brand value in a better mode. However, NHS undergoes with a severe recession period in UK as it effect them in regard of delivering services to community. However, NHS overcome this negative influence by acquiring affordable price for rendering its service that lead them to enrich living standard of community and also to run their process in an impressive style.

Social: Under this, it involves age, gender, health consciousness, emphasis on safety ad career attributes and many more which influence establishment decision making process. In regard of NHS, they are able to provide improve degree of satisfaction to community or society as they work towards to give better health facility and hygiene environment to people so that they can stay healthy and fit as well as can easily resist against  all sort of spreading diseases in a better manner (Schaltegger, Lüdeke-Freund and Hansen, 2012).

Technological: In this, it comprises advanced technology, automation, innovative technology, novel ideas and so on that impact establishment productivity ratio. In relation to NHS, it adopts innovative or modern techniques and technologies into its functional unit that help firm to gain competitive advantage in an innovative and creative style among competitors. 

Legal: Under this, it comprises government legislation, laws, regulation, rules which effect company to obtain its profit maximisation. In relation to NHS, it makes an effort to follow all regulation, laws imposed by government which enable them to place their brand in a aggressive and competitive position in a better manner.   

Environmental: In this, NHS take an effort to cerate various awareness program related to protecting environment as well as uses eco friendly products which enable them to capture the attention of large numbers of population and also lead them to enhance their overall productivity.  

Henceforth, PESTEL analysis assist SHELL and NHS to examine external factors and also to implement corrective course of actions that aid them to  improve its overall productivity and profitability in an trenchant and expeditious way. 

TASK 4

P5 SWOT Analysis

SWOT analysis is regarded as one of the powerful determinant within an organisation as it help them to determine their internal capabilities or potentiality as well as empower them to implement best strategic decision in order to enhance the market share or size in an effective way. Therefore, the SWOT analysis of SHELL is explained below:  

Strength

• It has its presence in all aspects of oil and gas as it offer wide range of products like gasoline, upstream and downstream segments. Due to which, they are called as a key players within Oil and Gas industry among competitors.
• The another strength which make SHELL to acquire best position within competing marketplace is that it maintain their core values i.e. honesty, integrity, respect  while providing its products or service to consumers that empower them to build long lasting relationship with them in a impressive way (SWOT analysis of Royal Dutch Shell, 2018).  

Weakness

• The foremost weakness which SHELL undergoes is that it find difficulty in attaining sustainability in competing marketplace. This is because government increased taxation amount and also the technology related to manufacturing oil and gas are extremely costly. Due to which, it face issue to place its brand in a aggressive position (Tynan, C., McKechnie and Hartley, 2014).

Opportunity

• In relation to SHELL, it make an initiative to invest a good portion of amount in future sustainable transportation system, smart cities and green fuels. With the help of such action, it assist them to improve its brand image among competitors in an innovative manner. 

Threat 

• The industry where SHELL operates its business function is highly competitive and challenging which impose huge threat over company's potentiality in gaining competitive advantage. Some of its competitors are British Petroleum, Petronas, Chevron and etc. 

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NHS

Strength

• The primal strength which NHS contains is that it deliver its service in a very better and hygienic manner as it contains high quality staff who provide good care and treatments to each patient. With the help of this, NHS is able to attain sustainable profitability within existing industry.

Weakness

• The weakness of NHS is that there is a lack of accountability and consistency throughout NHS and affiliates which directly impact over brand value among competitors for obtaining profit maximisation in a better manner.

Opportunity

• There is an opportunity for NHS to develop a consistent guidelines for NHS and Affiliates that help them to attain sustainable growth  and development in an improved mode. 

Threat

• The primal threat which NHS undergoes is that a lack of community support which challenge them to maintain a good reputation among competitors.

P6 Interrelate strength and weakness with external macro factors

IN relation to SHELL, interrelationship of of  strength and weakness with external macro factors are as follows:

Political factor

Strength

This factor is related to government rules and regulation for accomplishing the desired objective in a better way. Hence, in relation to SHELL, they make an effort to develop a partnership with government alliances i.e. Climate Action Partnership which lead them to create  positive impact among consumers and competitors.

Weakness

If SHELL denies to adhere with government regulation, it deceases its brand value and productivity among other rivalries (Vitale, 2012).

Economic Factor

Strength

Under this component, SHELL make an attempt to invest in new projects that is related to exploration and extraction of oil and gas from natural reserves which improves its overall profit margin ratio.   

Weakness

If SHELL fails to implement corrective course of action into its functional areas, it reduces its sales performance and also create negative impact among targeted population.

Social Factor

Strength

In relation to SHELL, it take an initiative to cultivate flowers with the utilisation of waste which enable them to enrich their volume of sales and profit margin within competitory industry.

Weakness

At the same time, if SHELL avoids to satisfy the needs and demand of consumers it impact negatively over them by reducing their brand value among competitors.

Technological Factor

Strength

In such factor, SHELL impose innovative technologies and advance machinery for their manufacturing process that lead them to gain comparative advantage and also to enhance its market share or size.

Weakness

On the contrary, if SHELL fails to adopts innovation and automation within their functional unit, that impact over their proficiency ratio in  negative manner (Wheelen and et. al., 2017). 

Environmental Factor

Strength

In this, SHELL make an effort to produce eco friendly products within its production procedure which assist them to expand their productivity and profit margin ratio in an impressive mode. 

Weakness

On the other hand, if they fails to implement a best strategic decision related to environment protection then it negative impact on its brand value and goodwill in current industry.          

CONCLUSION

It has been recapitulated  from above discussed report that business environment is a combination of internal and external factors which impact on organisational performance and growth rate. The three different organisations such as public, private and voluntary has been discussed here. There has been detailed explanation about the different companies with their background, vision, mission, stakeholders etc. PESTLE analysis has been conducted to determine the external factors which impact on the organisational productivity and decision- making. There has been studied about the SWOT analysis because it helps in analyse internal factors affecting decision-making and business operations.

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