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International Management Issues Shell In Nigeria

2831 words - 11 pages

Executive SummaryThis report focuses on the issues surrounding Shell operation and ethical practices in Nigeria. After a detailed analysis it's found that the Shell has been involved with issues such as violence, spillover, land invasion which is hampering the company's performance and image. Report also provides evidence that the issue has been lasting for the past number of years and Shell has not been able to resolve issues. Based on all the data available, recommendation are provided which could help the benefit in short term and long term. Some of the short term recommendations are rapid clean up of spill over, compensation etc. Few long term recommendations are Improve pipelines, transparency etc.IntroductionIn a competitive world, Multinational Corporations (MNC) have been involving in tough competition. These corporations are often very large. Such companies have offices and/or factories in different countries. They usually have a centralized head office where they coordinate global management (Hodgetts, Luthans and Doh, 2004). Companies are not only known for their position in the stock exchange, profits, etc. But also for the companies involvement in community development, business ethics practices and culture. These factors also add to the overall outlook of the company. Oil industries have been in focus for a long time. Not just for the fact that the whole world relies on oil, but also for the environmental damages caused in the process of refining oil. This report will focus on Europe's second largest oil company-Shell Group facing ethical, environmental issues surrounding them in Nigeria.ShellShell is a group of energy and petrochemicals companies which are operating in more than 140 countries and territories. Shell is widely known to the public for its service stations and for exploring and producing oil and gas on land and at sea. A part of these, shell also delivers wide variety of energy solutions and petrochemicals such as transporting and trading oil and gas, producing and selling fuel for ships and planes and generating electricity and providing energy efficiency advice. Moreover, it employs more than 112,000 people in more than 140 countries.Shell carries out its operation in different part of the worlds such as Americas, Europe, Africa, Commonwealth of independent states, Middle East and South Asia and Asia Pacific which are shown does invest and collaborate in the development of new technologies that will keep improving its performance. As a part of that, in 1907, the Royal Dutch/Shell Group of companies was created to carry out its operations all over the world. Royal Dutch/Shell Group is commonly known as Shell. 60% of the group is owned by Royal Dutch of Netherland and 40% is owned by the Shell Transport and Trading group of Great Britain. Shell includes many companies like Shell Petroleum of the USA, Shell Nigeria, Shell Argentina, Shell South Africa etc.Royal Dutch/Shell Group is Europe's...

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