Royal Dutch Shell in Nigeria

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Royal Dutch Shell in Nigeria: Operating in a Fragile State Melody McIntosh Dr. Rhonda Polak Global Business Management January 29, 2014 Abstract Stuck in a quagmire of violence and political issues in Nigeria, Royal Dutch Shell's challenge was to establish socially responsible business practices to enable the company to sustain and expand its operations in Nigeria and the Niger Delta in particular. A conflict resolution and public policy consultant was brought in to develop some constructive ideas on how best to address the problems Royal Dutch Shell faced in Nigeria. This case is intended to introduce students to some of the complex issues faced by multinational corporations in developing countries. 1. Analyze the challenges facing the merger of the Royal Dutch Petroleum Company and Shell Transport and Trading, and provide recommendations how these should be confronted. Challenges as a result of the merger of the Royal Dutch Petroleum Company and Shell Transport and Trading include a difference in corporate governance structures. Royal Dutch Shell utilized a "more traditional single -board structure with one chairman and one chief executive" [ (Litvak, 2006) ] rather than the previously used dual board arrangements. In addition, Royal Dutch Shell Group had a recent leadership change, after determining the group had been overstating its oil and natural gas reserves. Furthermore, there was problems and accusations being made in regards to the organizations involvement in the "political quagmire of violence and abuses around Warri in the oil rich Niger Delta" [ (Litvak, 2006) ] In order to confront these challenges, the organization must evaluate its structure and operations. The company must establish best practices within the region, including how to install transparency in its
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