4.0 Economic Situation:
Shell has been subject to different economic and financial situations as instability in prices of oil, natural gas, oil products and chemicals are affected by supply and demand. These are heavily affected by the factors such as the weather, political uncertainty, natural disasters, etc. Price instability and changes in currency values and exchange controls have influenced Shell’s investment choices, financial position and operational performance as well as adversely affect Shell’s assets as well.
5.5 Demographic Environment:
The sizes, growth rate, distribution, density, among others are all such factors that make up the demographic environment of a business as these factors determine the demand for the goods and services by consumers. The demand of consumers living in one country or region can vary highly from the demand of consumers in another. Similarly, the demand of people from the rural areas is different than the demand of people living in cities.
Increase in population has made labor cheap and therefore this has encouraged business ventures to use labor extensive methods. Also, accessibility of expert labor in some areas encourages companies to set up their businesses there.
Shell is a global company operating in many countries. Apart from its oil refineries and subsidiary companies, Shell has many branches and sub-offices in the world. This has made it possible for Shell to enter the North American, African and Asian markets. Shell’s range of products not only includes oil, diesel, jet fuel, lubricants, petroleum based products but it has also advanced into a huge network of transporting oil products to new and different destinations. Annual Report Shell (2011)