Business in Context and its Management Assignment Sample

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Introduction

Get expert guidance on Shell plc’s business strategies with Comprehensive Assignment Help for Better Grades, covering external analysis, management models, and strategic planning.

The business context includes the understanding of elements both internal and external that influence the corporate aspects from several perspectives. This in turn has significant influence on the strategies, decisions, performance and process of the company. McKinsey’s 7S’s model, VRIO Framework, Mintzberg 5P’s Theory etc., are the important analytical tool that helps in defining the organization’s business context. Management practice plays vital role in combating the challenges relevant to the business context. In addition, the chosen organization is Shell plc that is one of leading company within the oil & gas sector. Apart from this, report will highlight the analysis of external environment, operation management, managing change and analysis of stakeholders.

Part 1: Individual Report

( a) External environment analysis

From the poster presentation it has been determined that external environment has significant impact on the overall business operation and efficiency of Shell plc. Economical potential, economic stability and recession are the significant external factors that have impact on the shell plc. Along with this, inflation rate, recession and exchange rate are the significant trends of eternal environment that massive impact on the management and overall efficiency of the business. To assess the impact of external environment the organizations are frame the Red and Blue ocean strategy. The blue ocean strategy of chosen organization is to create the spaces in the new market in order to gain the competitive advantage and define the boundaries of industries (Harvey, 2020).

(b). Managing change

It is crucial for the business to implement the change in order to increase the efficiency and enhance the overall operation of the business. Shell plc also brings the biggest change in the business operations and introduces electrification of demand technology programme to decarbonise the industrial sites with the help of electrification. It is important for the business to manage this change effectively because it allows them to constantly adapt the new requirements, demands and expectations in the market (Hanelt et al. 2021). If shell plc is effectively managing these changes then it equips with essential tools for providing better services to the customers, remain competitive at marketplace and streamline the major tasks. Meanwhile, this positively impacts the overall management and operation. The employees usually resist towards change because they feel unprepared to adapt or execute the new processes because of up skill training, lack of on-boarding and end-user support resources.

Apart from this, Shell plc is implementing the Kurt Lewin change management model to drive effective organizational transformation. Business Assignment Help This three-step model begins with 'unfreezing' the status quo by delivering compelling messages to encourage employees to adopt new approaches (Rosdiana and Aslami, 2022). Next, Shell's leadership focuses on executing change by addressing rumors and involving employees in the process. Finally, they 'refreeze' by embedding these changes into the company culture and establishing systems to ensure long-term sustainability.

(c). Influence of culture on management decisions 

The culture of the business has significant influence on the managerial decisions and it is totally depends on the strong and weak culture. If the culture of the business is positive then it allow the management to make the effective decisions. The business with positive or strong culture allows the entire workforce to participate in the process of decision-making to make potential and effective decisions. The organizational culture of Shell plc is also positive which give its manager more room for authoritative style of leadership. In this the top management are making the decisions and all the levels of employees are obeying their order without questioning. To assess the culture of its business operation, Shell plc is implementing the Charles Handy theory According to this theory the organizational culture is categorized into four types such as power, task culture, person culture and role culture. Adaption of this theory is beneficial for the business because it helps in perceiving how each culture of business drives employee motivation by bringing with its own behaviours, standards and values that require upholding (Abdala, Morais and Rebelatto, 2021).

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(d) Operation Management

It is crucial for the business to manage the operation effectively because it helps in increase the customer satisfaction, reduce waste and enhance the quality of the product which ultimately positively impacts the profitability and productivity of the business. Total quality management (TQM), Six sigma, AGILE, JIT etc., are the significant tools of the operation management. Shell is also using six-sigma and TQM to achieve enhance performance of its operation management. TQM is one of the significant approaches of management that seeks to offer long-term success by offering incomparable customer satisfaction through the continuous delivery of quality IT services. Adaption of this tool of operation management is useful for Shell because it helps in reduce the cost of total quality which positively impacts the quality. Adaption of TQM is beneficial for the chosen business because it facilitates productivity and reduces the redundant activities (Saragih et al. 2020). If the organization is reducing the cost of products then it directly increases the productivity. TQM implements a systematic approach by allocating the teams of quality improvement in order to minimize waste of resources and unnecessary tasks.

Apart from this, Shell is also using six-sigma in order to achieved improved performance of the operational management. It is regard as one of the significant method of quality management that used by the companies to improve current goods, processes and services by discovering and avoiding the defects which ultimately positively impacts the overall operation (Yang et al. 2020). This method helps the chosen business to increase the customer satisfaction by reducing the potential challenges and avoiding the unwanted specifications from the process. It is a data-driven approach for minimizing the unnecessary actors from the process and eliminating the deviation and variation from the procedures. This method also helps Shell to motivate its employees by ensuring they can use accessible technology for time-saving and enhanced ease of work.

(e) Stakeholder Analysis

It is crucial for all the business to analysis its stakeholders because it helps in gaining more resources and support and share the right level of information with the stakeholders. The process of stakeholder mapping includes define the purpose and stakeholders, identify the interest and power of stakeholders as well as develop an engagement plan (Bendtsen, Clausen and Hansen, 2021). The stakeholders of Shell plc include human rights companies such as Pax Charisti International and Amnesty International who are influence in on-going discourse with business. Along with this, customers, government, shareholders and employees are also recognized as one of the main stakeholders of the firm. In addition, to analyse and manage the stakeholders properly, Shell plc is using one of the significant mapping tools that are stakeholder power-interest relationship. This mapping tool is utilized to map the stakeholders onto four quadrants which are relied on their level of influence and power as well as their interest level (Colvin, Witt and Lacey, 2020).

The four quadrants of this stakeholder’s mapping tool are high and low power as well as interest. With the help of this mapping tool Shell plc can easily determine the power and interest of its shareholders. The stakeholders who have high power and interest then they are satisfied and happy. In the context of Shell Plc, shareholders significantly influence company’s decision making and thereby overall operations. Moreover, shareholders return is based on company’s performance and profitability generated during the concerned period. On the other hand, the stakeholders with high power and low interest are satisfied but haven’t represented their interest in the work). Accordingly, government has power to take strict actions if company does not comply with laws and sustainability related aspects. Employees fall under the category of low power and high interest are capable to maintain interest. Moreover, growth opportunities of the employees in terms of salary, incentive, promotion etc are highly dependent on the company’s performance. It has been determined that the stakeholders of Shell plc have high power and interest.

Figure 1: Power-interest grid or matrix

(f). Summarize

It has been summarized that the external factors have significant impact on the overall operation of Shell plc and to assess the impact it is suing blue and red ocean strategy. Shell plc is bringing the change of technological development and it implements this change successfully with the help of Kurt Lewin change management model. The culture also has significant impact on the management decisions and to evaluate the culture of business operation Shell plc adapt Charles Handy theory. Total quality management and six-sigma are used by Shell plc to improve the operation management.

 PART 2: CLIENT REPORT

At the time of formulating any strategy it is vital for the business to have the effective strategic planning. Strategic planning is beneficial for the companies because it helps in enhancing the communication among employers and employees as well as increase the sustainability and durability (Vinayavekhin and Phaal, 2020). Shell plc is also making strategic planning in order to formulate strategy of generating shareholder value successfully because it helps in enhancing the satisfaction and retention of the staff, create sense of direction, empowers employees and increase the profitability. Shell plc is adapting PCDA cycle model to produce objectives, plan and future strategy that helps the management to perform the tasks and manage the performance of employees over the extended period. PCDA is one of the significant constant circles of planning, doing, checking and acting (Isniah, Purba and Debora, 2020). Implementation of this strategic planning model is beneficial for the business because it helps in manage the change and solve the problems.

In plan, Shell plc is considering an opportunity and make a plan for generating the shareholder value by taking feedback from them. In the context of do, chosen business is implement the methods of taking the feedback such as interviews, survey etc. In check, the companies are reviewing the feedbacks, assess the outcomes and determine the learning results. In act, the business is taking corrective actions on the basis of responses in the feedback. Adaption of this strategic planning model is valuable for Shell plc because it helps in maintaining the continuous improvement; mitigate risks, increase efficiency and productivity. 

 Apart from this, it has been recommended that, to generate the value of shareholders the chosen organization need to increase the profitability and optimizing the use of assets. To maximize the profits and increase the revenues the organization needs to use the current assets effective rather than investing in additional ones. Implementation of this strategy is beneficial for the business to generate the value of stakeholders because it helps in increase the capability of the business to create profits and returns for the investors.

The future strategy of Shell plc will be become net zero emission business. To become a sustainable business the chosen business will need to put emphasis on the assessing carbon, define scientifically based goals; create carbon roadmap and mitigation of value chain. With the help of PCDA model this organization can implement the future strategy effectively.

 CONCLUSION

From the industry trend and client report it has been concluded that exchange rate, recession and inflation rates are key trends that have massive impact on the operation of business. To assess the external environment the Shell plc frame blue and red ocean strategy. To manage the change the chosen organization is executing the using Kurt Lewin change management model. To assess the culture of business Shell plc is using Charles Handy theory. six-sigma and TQM are regard as significant tools of quality management that are implement by the business to manage the operation. To analysis the stakeholder’s the chosen organization is using power-interest matrix. Strategic planning is beneficial for the organization and to make the proper planning the chosen business is use PCDA cycle model. For post pandemic and long term the organization need to increase profits for generating shareholders value and create a carbon roadmap to become net zero emission business. 

References

Books and Journals

• Abdala, E.C., Morais, G.G. and Rebelatto, D.N., 2021. Remuneration Strategies related to Charles Handy’s cultural typology: A case study in a small digital market business in pandemic times. Brazilian Journal of Operations & Production Management, 18(2), pp.1-13.
• Bendtsen, E.B., Clausen, L.P.W. and Hansen, S.F., 2021. A review of the state-of-the-art for stakeholder analysis with regard to environmental management and regulation. Journal of environmental management, 279, p.111773.
• Colvin, R.M., Witt, G.B. and Lacey, J., 2020. Power, perspective, and privilege: the challenge of translating stakeholder theory from business management to environmental and natural resource management. Journal of Environmental Management, 271, p.110974.
• Hanelt, A., Bohnsack, R., Marz, D. and Antunes Marante, C., 2021. A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of Management Studies, 58(5), pp.1159-1197.
• Isniah, S., Purba, H.H. and Debora, F., 2020. Plan do check action (PDCA) method: literature review and research issues. Jurnal Sistem dan Manajemen Industri, 4(1), pp.72-81.
• Rosdiana, N. and Aslami, N., 2022. The Main Models of Change Management in Kurt Lewin's Thinking. Jurnal Akuntansi, Manajemen dan Bisnis Digital, 1(2), pp.251-256.
• Saragih, J., Tarigan, A., Pratama, I., Wardati, J. and Silalahi, E.F., 2020. The impact of total quality management, supply chain management practices and operations capability on firm performance. Polish Journal of Management Studies, 21(2), pp.384-397.
• Vinayavekhin, S. and Phaal, R., 2020. Improving synergy in strategic planning: Enablers and synchronization assessment framework (SAF). International Journal of Innovation and Technology Management, 17(02), p.2050009.
• Yang, H., Rao, P., Simpson, T., Lu, Y., Witherell, P., Nassar, A.R., Reutzel, E. and Kumara, S., 2020. Six-sigma quality management of additive manufacturing. Proceedings of the IEEE, 109(4), pp.347-376.