Functions of Management at Shell Oil How External Factors Affect the Four Functions of Management at Shell Oil

There are many external factors influencing or affecting the four functions of management at Shell Oil. The intent of this analysis is to evaluate each of the four functions of management, explaining what external factors most influence their operations and performance. As Shell Oil is a process goods producer that transforms raw materials into finished goods, the factors most affecting the four functions of management are supply chain focused.

Planning

Shell Oil relies heavily on the Supply Chain Operations Reference (SCOR) model as a means to mitigate sourcing oil, gas and raw materials needed for creating their finished goods (Razmi, Jolai, Hezarkhani, 2008). Strategic planning at Shell is highly dependent on how well integrated the company is with suppliers...

Process innovation in the oil and gas industry is a major source of differentiation, and as a result, Shell makes this area a priority in their strategic planning efforts (Miles, 2007). .
Organizing

As the oil and gas industry has continually gone through turbulent economic re-structuring and entire nations look to either enter or exit OPEC based on political unrest. The need for creating a very high level of collaboration across the supply chain of Shell and allowing for contingency planning is critical for managing the company to profitability. These external factors of rapid shifts in oil prices, the continual political unrest in the Middle East, and the threat of price wars with OPEC all force Shell into a position of having to create as many contingency-based supply chain…