Royal Dutch Shell

4112 words 17 pages
Table of Contents
EXECUTIVE SUMMARY 2
1. PROBLEM CAUSE IDENTIFICATION 3
1.1 STRUCTURAL STRATEGY 4
1.1.1 Strategic Management and Direction 4
1.1.2 Organisation Structure 5
1.1.3 Absence of Programme Management 5
1.2 BEHAVIOURAL STRATEGY 6
1.2.1 Absence of Total Quality Management 6
1.2.2 Poor Communication 6
1.2.3 Poor leadership 7
1.2.4 Unethical Behaviour 7
1.3 OPERATIONS STRATEGY 8
1.3.1 Poor HR functioning 8
1.3.2 Lack of Policies and Procedures 8
1.3.3 Absence of Risk Management 8
2 SOLUTION RECOMMENDATION 9
2.1 STRATEGIC MANAGEMENT 9
2.1.1 Using the Balanced Score Card (BSC) 9
2.2 INTRODUCING THE CHIEF PROGRAMME OFFICE 11
2.3 PORTFOLIO OF STRATEGIC TRANSFORMATION 12
2.4 BECOME A LEARNING ORGANISATION. 13
2.5 IMPROVING LEADERSHIP 14
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With this type of structure it is difficult to maintain control and enforce policies. There is also not much visibility on the activities or rather “hidden” agendas that seem to be taking place.
An effective strategy will ensure that any organisation gain and retain a competitive advantage over its competitors. In the case of Royal Dutch/Shell, there was no monitoring, feedback and improvement plans in place for the continued growth of the company. From the case it is evident that the organisations growth was impeded due the fact that it did not have trading shares hence not much available capital for investments. They also failed to expand by means of mergers or buyouts, something the major competitors leaped into.
To further stifle their growth perspectives, the organisation failed to spend sufficient funds for exploration of mineral resources.
The organisation clearly lacks vision and is unable to set goals for achieving objectives of strategic importance, based on its critical success factors. This benefit can be achieved by introducing the Balanced Scorecard Programme Management (BSPM) system, as proposed by Steyn (2009:online). This system enables an integrated and coordinated management of the organisation’s value chain processes from suppliers to external customers, including implementation of project-portfolios that enhance the effectiveness and efficiency of the value chain.
A lack of strategic direction in an

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