Royal Dutch Shell is a global, publically traded Public Limited Company, whose main focus is on the energy and petrochemicals business. Royal Dutch/Shell officially formed in 1907, with the merger of a London based Transportation Company called Samuel Shell transport and trading company ltd., and a recently formed oil company from the Netherlands, the Royal Dutch Petroleum Company. This merger facilitated the transportation of oil throughout the world, giving Royal Dutch Shell a global presence in the then emerging market of oil. Until 2005, Royal Dutch and Shell were two entities, with a 60/40 profit sharing mix, Royal Dutch and Shell respectively. The two companies officially merged into one entity, eliminating the slash after Royal Dutch. They have a principal listing in the London Stock exchange and their official headquarters are located in The Hague in The Netherlands. Shell as it is notably abbreviated as, began with the vision of Continue reading
Business Analysis Case
Case Study: Nissan’s Successful Turnaround Under Carlos Ghosn
Nissan is a famous automobile manufacturing company which was founded in 1933. After the Second World War, Nissan expanded its operations globally. Nissan was very well known for its advanced engineering and technology, plant productivity and quality management. However, during the previous decade, Nissan management has emphasized on short-term market share growth, instead of profitability or long-term strategic success. Nissan’s designs had not reflected customer opinion. In addition, Nissan managers tended to put retained earnings into keiretsu investing (equity of suppliers), rather than reinvesting in new product designs as other competitors did. These inappropriate strategies combining with the Asian crisis influence on a devaluation of the yen led Nissan to the edge of bankruptcy. Nissan was in need of a strategic partner that could lend both financing and new management ideas to foster a turnaround. Furthermore, Nissan sought to expand into other regions where it had less presence. In order Continue reading
Case Study of Bajaj Auto: Establishment of New Brand Identity
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group flagship company, Bajaj Auto, is ranked as the world’s fourth largest two- and three wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia. Founded in 1926, at the height of India’s movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This Continue reading
Case Study of Rolls Royce: Innovating for the Future
Rolls Royce is a market leader in propulsion and distributed energy systems for both the defense and civil aerospace markets. Their commercial markets cover nuclear, gas turbine, and diesel technologies to power everything from small planes and trains to entire cities. The aerospace applications for innovation are where Rolls Royce has made significant investments and reaped interesting rewards. On the defense side of their business, they have over 16,000 engines in service. In the civil aerospace side of their business, they provide engines to airlines, private business and engines for helicopters. Major Changes in Industry The nature of the aerospace industry has relatively high barriers to entry as the cost for entry is high and requires specific skills and expertise. Nonetheless, the industry has been experiencing growth as the demand for flights increases resulting in the rise of aircraft manufacturing. Several factors have contributed to uncertainty in the aerospace industry Continue reading
Case Study: Southwest Airlines Competitive Advantages
For most of the last fifteen years, the U.S. airline industry has been one of the least attractive to be in. Following the 1978 deregulation of the industry, twenty-nine new airlines entered the industry between 1978 and 1993- This rapid increase in air line carrying capacity led to a situation of overcapacity. As more and more airlines chased passengers, fares were driven down to levels barely sufficient to maintain the prof itability of U.S. airlines. Indeed, twice since 1978 the indus try has been engulfed in an intense price war–first in the1981-1983 period and then again in the 1990-1993 period. So intense did the com petition become during these two periods that in 1982 the whole industry lost $700 million, while in the 1990-1992 period the industry lost a staggering $7.1 billion, more than had been made during the previous fifty-year history of the industry. Despite the obviously hostile nature Continue reading
Ansoff Matrix Analysis of Toyota
Toyota is the most leading Japanese automobile company. By creating more innovative car design and spending billions dollars in advertisement a year, Toyota has appeared in the eyes of many auto consumers worldwide. By producing high quality vehicles at affordable prices, Toyota has built its reputation globally. Toyota has reduced their prices as compared to other automobile makers. Toyota believes that the role of purchasing should be long term at the lowest price and no compromise on the production of quality products. Normally, companies do not want to cut their targeted return and they follow the strategy which is formulated in to the cost + profit = selling price. But Toyota takes a slightly different strategy which is formulated in to the price-cost=profit. Strategic management has a direct impact on its business in all organizations. That’s why Toyota has become leading company in auto industry because of the attractive strategic Continue reading