This is case srudy of Shell company. I need a help on the question i have posted.

SUBJECT : STRATEGIC MANAGEMENT.

Shell Oil Company Balancing the needs of all stakeholders is particularly important for large energy companies like Shell Oil Company, one of the world's largest and most profitable multinational companies. The company is a global group of energy and pertrochemical companies. Its aim is to meet the energy needs of society in ways that are economically, soically and environmentally viable, now and in the future. Oil and gas are non-renewable resurces but remain essential for powering the world's needs. Energy use is increasing due to a growing world population and higher standards of living. This means more demand not only for oil and gas but also for other energy sources. Shell is therefore faced with an enormous challenge to help meet the needs of the present and future generations, while creating as little negative impact as possible to the environment. The company aims to provide energy safely and responsibly and serve all its stakeholders, customers and investors effectively. Suppliers are Shell's partners in the chain of production - for example, in bringing petril from the oil well to the petrol pump. Shell works with contractors and other partners in the supply chain who also must demonstrate these values. If they do not Shell will not use them. Shell neds to work with a range of interest groups. These are decision makers and opinion formers. People and organisations in positions of influence make decisions and form opinions that can affect Shell. These include academics, government, media, non-governmental organisations (NGOs), business leaders and the financial community. They interact with Shell in different ways. Shell is committed to respecting human rights and helping communities. The search for oil and gas can take energy companies to places with poor human rights records. Shell uses a variety of toos, often developed with NGOs and think-tank input, to manage risks. If Shell chooses not to operate in these areas, this opens the door for less prencipled competitors to exploit workers in these countries. If it stays then it can become part of the solution. Shell will oly operatre in countries where it is able to follow its business principles. It is not easy to balance the needs of stakeholders. In order to be best achieve this balance Shell recognises five areas of responsbiity: to shareholders, customers, employees, suppliers and society. Ongoing communication and dialogue with all of these groups is essential. In this way it is possible to take account of everyone's needs and expectations in making decisions for today and the future. Shell resolves and minimises conflicts between its activities and its stakeholders through its clear strategies and commitment to corporate values. Through balancing social, economic, and environmental considerations, Shell seeks to make decisions that maximise value. 1. Describe how the external stakeholders of Shell affect its operations. (30 marks) 2. Provide TWO (2) major challenges that Shell need to address in the next decade. Support your answer with relevant examples. [40 marks)