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“Shell is world leader in oil and gas with technological advancement and project management skills and operations in 37 countries and majority interest in 40 refineries worldwide. The company is ranked third in 2008 Fortune Global 500 ranking”.

(City Business Library DATAMONITOR)

Weaknesses

“Hydrocarbon production has shown a decline in recent years due to the fields decline. Furthermore, natural gas production was also affected by declining fields in Malaysia, US, UK and Canada. This would adversely affect Shell’s revenue.

In 2008, Shell paid $120 million to settle a class action lawsuit led by the Pennsylvania State Employees' Retirement Board due to the overstating oil and natural gas reserves and inflating stock prices from April 1999 to March 2004”.

(City Business Library DATAMONITOR)

Opportunities

“In order to cope up with worlds demand for energy, Shell is expanding business particularly in Asia. In 2008, Shell signed joint venture with Qatar and China, which would build an oil refinery and petrochemical products manufacturing complex in China”.

(City Business Library DATAMONITOR)

“Shell is the latest company to invest in Australia’s coal bed methane industry to develop projects in Australia and internationally”.

(ft.com, June 2 2008)

Threats

“Worlds energy demands on the rise, by 2015 easily accessible oil supplies of oil and gas will no longer keep up with demand”.

(www.express.co.uk, 26 January 2008)

“Disruption in Nigeria has badly affected Shell’s business. Nigeria is the world's eighth-biggest oil exporter; however, the violence in the country affected the industry with the output cut by a fifth since early 2006, thus increasing the oil prices above $100 per barrel in 2008. In Nigeria, Shell’ pipelines were attacked by the residents”.

(bbc.com, 20-06-2008)

IV. Conclusion:

Shell is having a strong growth in its business throughout the world between 2006&2008 and this continues in 2009 as well. This growth is attributed to number of factors including high revenue generation, more investments and thus rising profits particularly in last one year. Moreover, Shell’s ability to expansion in different continents of the world with 42% in Europe, 25% in Asia, Africa and Australia, 25% in America and 8% in other America is also a main factor in its growth.

Shell’s sales revenue has gone up by nearly 11.6% in 2007 and 28.8% in 2008.In 1st six month of 2009 its sales revenue has affected due to world economic slowdown and reduced to 49.7% compared to 1st six months of 2008. Shell’s profits are also high in last three years but reduced 56% increase in six months of 2009 that is due to the reduction in oil price resulting by world economic downturn.

Return on Average Capital Employed (ROACE) also showed a rise of 1% from 2006 to 2007本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。