Case Analysis
International Business
April 22, 2013
The History Royal Dutch Shell is a global company. It has about 93,000 employees and is located in more than 90 countries. It is an energy and petrochemicals business. In the US it was founded in 1912 by the American Gasoline Company to sell gasoline along the Pacific Coast, and Roxanna Petroleum to buy oil product properties in Oklahoma (according to Shell.US website). However, it was founded in 1907 in Europe when Royal Dutch Petroleum Company and the Shell Transport and Trading Company Ltd merged. This was done to help the company compete globally. It has done several mergers and buyouts in its hundred plus years of business. Throughout the years Shell has made changes in their business to better compete in the market from becoming a global business to investing in research and development in the newest and latest energy technologies. Today it is in the top six of oil and gas companies. It produces around 3.1 million barrels of oil equivalent per day.
The Problem The Guardian News has run an article reporting on the inconsistencies of what the Royal Dutch Shell has committed to and the reality of the situation. Two hospitals that we built in the Ogoni region of Nigeria are diametrically opposite of each other in health standards and overall aesthetics. The company has reported that it is committed to the social well-being of the area, but the reality is completely different.
The Situation
The situation is that we have as part of the 1996 “Ogani Reconciliation” plan committed to the social and economic well-being of the local communities. There has been millions of dollars sent to the country allocated to the areas of hospitals and medical care as well as to other needs. Though resources have been sent to build hospitals for the region, the reality is that any of the improvements that was said to be done are seriously subpar to any health standard of any