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Critical Analysis of an International Oil Company

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CRITICAL ANALYSIS OF AN INTERNATIONAL OIL COMPANY

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Contents Introduction 3 Background of Shell Global 3 Evaluation of Strengths, Weaknesses, Opportunities and Threats at Shell 4 Strengths 4 Brand image and market leadership 4 Strategic business model 4 Environmental and social responsibility 5 Technology and innovativeness 6 Weaknesses 7 Decline in hydrocarbon production 7 Misconduct leading to legal intervention 7 Opportunities 7 Investments and acquisitions 7 Increasing demand for liquefied gas 8 Threats 9 Changes in laws and regulations 9 Hostile operating environments and political instability 9 Competitive forces 9 Fluctuation in financial market conditions 10 Conclusion 11 References 12

Introduction
The oil industry is one of the most lucrative industries globally, with demand in energy expected to rise with about 1.5% annually, up to a point of 60% in the year 2030. The increase in demand will due by rise in incomes in low and medium economies and increase in world wide oil reserves, (Finley, 2012). The industry impacts all and sundry with products such as fuels for transportation, heating, electricity, lubricants, propane, and clothing amongst others. The industry impact both global security and politics, (Inkpen & Moffet, 2011). In addition to the financial benefits derived from this industry, the industry further benefits economies in terms of employment to individuals across the globe. In the US alone, the Oil and Gas industry contributed either directly and indirectly to about 7.8 million full time and part time jobs in the year 2007 with a further 1.4 million jobs generated from capital investments into the industry, (PWC, 2009). There is however need to understand the various factors that interplay in the global oil and gas industry so as to make sound investment decisions.
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