Week 3 Assignment 233

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Week 3 Assignment

1. How would you characterize, in cultural terms, the nature of Shell when it was a ‘cohabitation’ of

Royal Dutch Petroleum and Shell Transport and Trading?

2. What changes in the culture of Shell are the ‘marriage’ of the two companies expected to bring?

The centralization of a number of activities in the headquarters is helping to reduce

duplication and helping them to operate in a more streamlined and efficient way.

The structural changes are also helping to reinforce our work to simplify and standardize many of their

business processes. In particular, the integration of the oil products and chemicals businesses into one
downstream organization has so far been very successful in creating a more dynamic, responsive and
effective

organization. They have seen particular benefits at sites which contain both refineries and chemicals
manufacturing plants.

By sharing services and integrating their activities they can operate much more efficiently. It also means

they have been able to share and adopt best practice more quickly and so improve operational
performance

3. What were the reasons for the strategic decision to merge the two companies?

Investors hope the combined structure will help prevent any future scandal.

4. How did the reserves crisis precipitate the changes? If necessary, refer to Concept 8.2.

The merger of the two companies after the reserves crisis has somewhat changed the leadership style of
the company.

5. What do you consider to have been the key managerial and cultural factors involved in the merger

process?

The conflict of culture between the two companies can cause great conflicts and consequences, even
the culture conflict of the new manager and the new company.

6. What evidence can you find in the text to suggest the possible emergence of a ‘third culture’ within

the new company?

The third culture that emerged in the merger of the two companies was the culture of neutralization
or conflict between both cultures of the two companies.

The third culture that emerged in the merger of the two companies was the culture of neutralization or
conflict between both cultures of the two companies.

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