These changes were necessary for the Shell international since they had suffered a lot of internal as well as external problems such as Brent Spar issue, Nigerian human rights, and Shareholder campaigns. The resistance of Greenpeace to the disposal of Brent Spar at sea attained media coverage which reduced the company’s reputation among the public. The Shell also faced a consumer boycott which caused the decline of their sales volume to a large extent. Similarly “Shell’s return on average capital employed (ROACE), a common measure of performance in the petroleum industry, showed that the company lagged behind many of its competitors” (Lawrence, 2000, p.533). In addition to this the Shell executives had to compete with discount retailers at retail level which led them to reduce their efficiency in business operations. At the earlier stages the company had followed a matrix form of organization which resulted in red tapism and delayed decision making.
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