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ACR301 Pestle Analysis Of SHEL


Present study is based on Shel company which is oil firm, operating its business globally. Current study will discuss PESTLE analyses model with respect to Shel company. It will explain ethical issues of the business.

a) Key lesson learnt about the Model in Component 

PESTLE analysis the effective model which will help to take certain important decision. But originally designed as enterprises businesses environment scan, the PEST or PESTLE which means the evaluation of external macro environment in which an enterprise of the external macro environment in which business operates. It stands for PESTLE (Political, Economical, Social, Technological, Legal and environment. Therefore, it is a business measuring techniques, looking at factors external to the firms (Cheng, Wu and Yeh, 2016).

  1. Application of the model

PESTLE of SHEL company which is an oil and gas sector firms have various factor to analysis to determine in such manner:


It is the most important factor which can be impact on the business management. It is important factors which plays a significant role to find out the factors which can be impacted royal Dutch Shell plc large way profitable in a certain nation or geographical areas. The organisation is operating in larger way integrated oil and gas in more than a dozen nation and exposes itself to various kinds of political environment and political system risks. To get success in such a dynamic major integrated oil and gas industry across different nation is to diversify the systematic risks of political environment (Ibrahim and Imrana, 2016). Shell which can be closely analyse the various ethical factors in which the government stability and significance of major integrated oil and gas sector in the nation. The hazardous of defence invasion and the level of unethical practices in terms of especial level of regulation in basic material industry. The Administration and interface in large oil and gas industry by government. Legislation framework for contract enforcement. Intellectual property protection.


The macro environment factors in terms of inflation rate, saving rates, interest rate, foreign exchange rate and economy cycle to find out the average of demand and average of funds have been invested in an economy (Makos, 2015). Kinds of economic system in the nation of operation what kinds of economic system there is and how it goings to be affect to the Shel organisations. The political intervention in the free market and related basic material as well efficiency of monetary geographical areas and the organisation required to increase the capital in local market. Infrastructure quality in major integrated oil and gas industry.


These can be another factors which will be affected to the organisations in terms culture of a firm in an environment. Shared values and attitude of the crowd game an important role in various market. Demographic and Abilities stages of the population. Level of hierarchy and pressure in the society (Barba and et.al, 2016).


Technological is the rapid disrupting in different sectors around the board. Transportation industry is good case to example this point. Over the last 5 years the sectors have been transforming really rapid fast which is not even providing chance to established games to cope with the modification. Taxi sectors is nowadays is now dominated by player likely Uber and Lyft.


Various geographical areas have other norms and environmental standard which can be impact the profitability of a firm in those geographical market. The whether is the most important factors the climate modification changes and legislation environment environmental condition and air and water pollution in huge manner integrated oil and gas sector.


In a huge of nation the legislation framework and institution is not robust enough to protect the intellectual property rights of a firm. An organisation must be aware evaluated before entering various market as it can be lead to theft of firms secret sauce therefore the overall rivalry concern (Derbyshire and Wright, 2017). few of the legislation. The anti legislation in various integrated oil and gas industry and overall in the nations. Discrimination Legislation and copyright and other IP legislation require to considered. So it is important for the organisation which have to focus as per the legal procedure. The law which can be affect to the firm it employment legislations.

b. Benefits and challenges of team working

Team work is the effective tool that helps person in completing the allotted work effectively. Advantage of working as team are described as below:

  • Better solution: If employees of Shel firm are working as team as it will help them in sharing their views and finding the best solution for any problems It is the way through which people can raise their performance level and can contribute well in accomplishing goal of cited firm (Cheng, Wu and Yeh, 2016).
  • Productivity: Team working is the technique that assist in enhancing productivity of the firm, by this way all people work together and manage their work well. It motivates employees and they become more productive in organization. Strength of each person plays significant role for other and encourage others to perform well. As all people share information that supports in becoming more profitable for the Shel (The Advantages & Disadvantages of Teams in the Workplace, 2018).

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there are some drawback of team working, these are explained as below:

  • Communication issues: As all employees are belonged from different culture thus, the main issues face by them is coordination. That is why they fail to discuss their issues in the team and fail to interact with them. This some times create confusion and impact on overall productivity (Makos, 2015).
  • Conflict: If one person gets promotion or opportunity then it creates negativity in other's mind. That create conflict situation in the workplace of the persons are working as team in Shel company (Derbyshire and Wright, 2017).


From the above report it can be concluded that PESTLE analyses is the effective model that assist the firm in analysing its external environments. By this way entity can identify the issues and can make strategies to sustain into market for longer duration.


  • Barba, F. C. and et.al., 2016. A technical evaluation, performance analysis and risk assessment of multiple novel oxy-turbine power cycles with complete CO2 capture. Journal of cleaner production. 133. pp.971-985.
  • Cheng, Y. S., Wu, J. H. and Yeh, L. H., 2016. Utilization of Calophyllum inophyllum shell and kernel oil cake for reducing sugar production. Bioresource technology. 212. pp.338-341.
  • Derbyshire, J. and Wright, G., 2017. Augmenting the intuitive logics scenario planning method for a more comprehensive analysis of causation. International Journal of Forecasting. 33(1). pp.254-266.
  • Ibrahim, M. D. and Imrana, G., 2016. Biogas Production From Lignocellulosics Materials: Co-Digestion Of Corn Cobs, Groundnut Shell And Sheep Dung. Imperial Journal of Interdisciplinary Research. 2(6).
  • Makos, J., 2015. What is pest analysis and why it's useful. PESTLE Analysis.
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