Shell Case.pptx
Transcript of Shell Case.pptx
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Introduction to Brent Spar
Brent Spar Case
Disposal Proposal
Green Peace
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WarwickBusinessSchool
BrentSpar
BrentSparco-ownedbyShellUKandEsso(50:50)LoadingandstoragebuoyforcrudeoilintheNorthSea,200kmnortheastoftheShetlandIslands(Britishwaters)463feethigh,andweightingabout14,500tonsServedfrom1979until1991,readyfordisposal
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FoundedinVancouverin1971,Greenpeacehasgrownintotheworldslargestenvironmentalgroup,withitsbiggestsectioninGermanywhereitenjoyshighacceptanceandpopularity.GreenpeacewasinformedaboutpotentialdeepwaterdisposalofBrentSparandstartedstuntprotesting.ShellUKabandonedtheplanfordeepwaterdisposalunderthepressurefromthepublic.LaterstudyconfirmedthattheoriginalproposalbyShellUKwastherightdecisionintermsofenvironmentalimplication.
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Timeline
MadewithOfficeTimeline2010
Jan1991
SepMay1992
Jan1993
SepMay1994
Jan1995
SepMay1996
Jan1997
Sep
Shellannouncesre-useasNorwegianferryquay29/1/98
AbandonmentPlansubmittedtoUKGovernment1/12/94
IndependentAberdeenUniversityStudy1/2/94
CeasesOperating9/91
Decommissioningstudies
30/4/95 - 23/5/9514/6/95 - 20/6/95
GreenpeaceactivistsonSparGermanpublicprotests
Shellanalysesalternativeproposals 30/6/95 - 29/1/98
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Timeline(01/05/9518/10/95)
MadewithOfficeTimeline2010 www.officetimeline.com
May1995
Jun Jul Aug Sep Oct
Greenpeaceadmitsinaccurateclaims5/9/95
UKscientistsreiteratesupport11/9/95
IndependentauditresultsendorseShell
competence
18/10/95
20/6/95
UKscientificdebatesupportsShell30/6/95
Norwaygrantsstoragepermission7/7/95
ShellUK
commissionsindependantNorwegianaudit
12/7/95
Spartowedtodisposalsite11/6/95
ChancellorKohlprotestsatG715/6/95
NorthenEuropeangovernmentsindicateopposition
GermanMinistryoftheEnvironmentprotests
9/5/95
IndependentUKscientistsstatesupport
13/5/95
UKGovernmentannouncesapprovalandcontacts12nations1/5/95
UKGovernmentgrantsdisposallicence5/5/95
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BrentSparStakeholders
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BrentSparStakeholders
UKGovernment ProtectenvironmentPublicsentiment
GermanGovernment Publicsentiment
UKUniversities Researchdisposal
methods
Shell
DecommissioningoptionisviableComplieswithregulationsSupportedwithresearch
GeneralPublic
TrustinGreenpeaceEnvironmentally
conscious
Antioilcompanymoral
Greenpeace
EnvironmentalprotectionLookforhighprofile,highlyvisibletargetsMediaattentionPublicsupportIncreaseindonations
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Opportunities(External)1.Explorenewoilfields
2.ExploreSustainableenergysource
3.Establishpartnershipwith
stakeholders
Threats(External)1.Industryregulations
2.Interestgroupadvocating
environmentalissues
3.Increasednegativepublicopinion
Strengths(Internal)1.LeaderinGlobalOilIndustry
2.Politicalalignment3.Integratedupstreamand
downstreamprocesses
4.Brandimage
5.Strongassetbase
Weaknesses(Internal)1.Operatinginunstableenvironment
2.Uncoordinated,decentralisedstructure
SWOTAnalysis
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StrategicFitEnvironment
IncreasedconsciousnessforenvironmentalissuesbythediversifiedstakeholdersGrowingimpressionofmajoroilcompaniesasmonopolist,andhigh-profitseekers
GrowingdemandforenergyStrategy
SustainablelongtermprofitabilityRenewable
energy
sourcesSafety&environmentalconsciousness
Social&CommunityresponsibilityCoreCompetence
Innovation
Technology
ExpertsinoilrigsandhighlydevelopedoperationsOrganization
DecentralisedorganisationstructureHighlyskilledemployees
WidegeographicallocationsStrongcompanyvalues
Wellstructuredrecruitmentanddevelopmentprocessandlearningorganisation10
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RiskCriteria
S
W
O
RiskIdentification(RiskChart) RiskAssessment&RankingRiskReductionStrategies
CrisisPreventionSimulationsT
CrisisManagementEnvironmentalImpact
FinancialImpactHealth&Safety
EngineeringComplexityStakeholderinvolvement
RiskAssessmentChartCriteria
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WarwickBusinessSchool
ScenarioPlanningScenarioPlanningseeksnottopredictthefuturebuttoenvisagethealternateviewsofthefutureintheformsofdistinctconfigurationsofkeyenvironmentalvariables(Schoemaker,1993)
ThestepsinvolvedintheScenario: Elaboratethescenarios-pickingoutelements,likelihoodorplausibility,
constructingcoherentscenariosfrom theelements Analysingtheconsequences-Ifthiscomestrue,whathappenstous? Analysingtheimplicationsnow -Whatshouldwedoknowtoprepareforthis?
StrategicDecisionsKeyDecisionFactors
ScenarioLogics
CrisisScenarios
EnvironmentalForces
Decision
Implications
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Uncertainty
Low
Branddamageorpublicoutrage
High
Technologybreakthrough
Brentdecommissioninglocation Regulationchange
Low
Control
CombiningoutcomesintoscenariosHigh
GovernmentRegulationondecommissioningatSea
Unable toswaypublicopinion
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Costto
organization
CrisisIdentification
Begins
Time
Phases
Anticipation Uncontrolled Controlled ReputationRestorationAnticipation
ThreatoftheactivistsLackofunderstandingofactivist
perspective
Decommissioningplanwasdecentralisedandnotcommunicatedtotherelevant
Identification
Focusedontechnicalissueslosingsightoftheimportantissuepublicopinion&globalbrandprotection
FlawedcommunicationstrategyMixedcommunication
Post-Crisis
IncreaseStakeholderinvolvementImprovemedia&
Communicationsstrategy Amendedcorporatevaluesto
includethelearning Sparwasusedtobuildaquay
CrisisManagementUnanticipatedCrisisAnticipatedCrisis
Continuing
Reputational
Impact