Royal Dutch Shell -Strategic Analysis

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Royal Dutch Shell – Strategic analysis 1.0 Introduction Royal Dutch Shell Company was formed in 1907 through a merger of two rival companies, Royal Dutch Petroleum and Shell Transport and Trading Company. Although the two were rivals, they saw value in merging together and fighting the near monopoly of the oil industry that was enjoyed by the Standard Oil Company. From that time on, the company has grown into one of the world’s most valuable brands and is constantly listed in Fortune 500 companies. While the company is headquartered in the Netherlands, it is also incorporated in the United Kingdom (UK), and its shareholding is 60% Dutch and 40% British. 2.0 Historical data of the company To assess the company success or lack of it, reference can be made to its latest performance financially in the past couple of years. The following financial data is derived from its financial statement for the last three years: | |2012 |2013 |2014 | |Revenue |$467.153B |$451.235B |$421.105B | |Earnings before interest and tax |26.712B |16.3710B |14.874B | |Free cashflow |13564B |295B |13,190B | Table 1: Financial data The extract from the financial statements of the company point to a company that is not only profitable but also maintains a positive cashflow. In using figures from both the cashflow and income statement the idea is to ensure that the company is not just judged on profitability, which according to (Cheng, et al., 2013)

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