Based on the Royal Dutch Shell case analyze NORWAY OIL COMPANY (EQUINOR ASA) strategic response to the long-term impact of lower prices. Evaluate the firm's mission statement or NORWAY policies as to whether or not their strategic position has a positive shareholder or stakeholder perspective.

ECONOMIC PERSPECTIVES Royal Dutch Shell-A "Shell" in the Oil Industry Recently (as also noted later in the chapter) the price beyond-taking a relatively "wait and see" approach of oil/gasoline has fallen from former all-time high to macroeconomic events. The upshot of all this is prices of over $100 per barrel. Many small oil com- that Shell remains a rather safe company in a very panies, especially those with considerable financial volatile and risky area of international business. leverage/borrowing have gone or are going bankrupt. In this turmoil, however, the Royal Dutch Shell oil company has continued to remain strong-a veritable "shell" for oil and other investors. Shell's strength has come from various sources. First, the company has maintained a very strong balance sheet with net debt to total capital of only about 11 percent-that represents quite low financial leverage/borrowings. Second, Shell's business operations are relatively quite diversified. It has, for example, a large oil refin- ing business that actually (unlike the company's oil exploration operations) benefits from lower oil prices. The company also has a large petrochemicals busi- ness, which further diversifies its operations. Finally, Sources: Helen Thomas, "A Shell for Fearful Oil Investors in 2015," Wall Street Journal, www.wsj.com, January 4, 2015; Investor, unlike other oil companies, Shell has deferred any Royal Dutch Shell Corporation/Shell Global, www.shell.com, last major new projects mostly until the year 2017 and accessed February 12, 2015. EXHIBIT 9.1 SHAREHOLDERS' MODEL OF STRATEGY FORMULATION