SHELL ENGINE OIL & LUBRICANTS

PESTLE ANALYSIS:
Basically, PESTLE is the analysis, or we can say it as a framework that depicts us the factors
which affect the organization or country in external way. This analysis is based on major six
factors, which are macro-environmental. That factors are economic, political, social, legal, and
technological. So, we have been asked to do the analysis of external factors related to the
company Shell (oil & lubricants). There is a huge impact of this sector in the development of the
country, in human health and in environment. So, government always try to regulate these
companies according to their rules and regulations. Thus, political elements have the finest
effect at the overall performance of Shell, observed via way of means of felony elements. (shell
UAE,1998).
Political Elements:
These are basically the measures which are related to the government, and their interventions
and procedures that will consequently affect the productivity or performance of the company.
Moreover, these factors include the government measures in the fields of laws related to
labors, tax policies, the restrictions related to trade and tariffs, laws related to environment and
stability of political condition. In the recent time the international forums imposed the penalties
on the emission of carbon. So, the oil companies have answered in the way of revising their
strategies. The big giants’ companies like Shell has to engage with the government in the form
of alliances for the cause of development and prosperity of country. From the past years Shell is
also engaged itself in the development activities of the UAE and in return the government
provide them incentives like relaxation of measures (rules and regulations).The authorities of
the United States nonetheless increase worries concerning the effect of Shell at the
environment, it has persisted to permit the employer to discover new reserves. However, stress
has been mounting at the want for oil businesses which include shell to lessen reliance of crude
fuels and to make investments extra on biofuels that haven't any dangerous outcomes at the
environment. Despite the political stress, Shell has persisted to depend strongly on crude fuels
and has now no longer proven intentions of transferring to biofuels withinside the future.
(Wikipedia,1997).
Legal Elements:
This factor includes the laws related to health and its safety, the laws related to employment,
the laws related to consumer, the laws related to antitrust and above all the laws related to
discrimination. The government imposed the restriction on the emission of toxic gases like
carbon on all oil and gas companies, including the shell. On the other hand, after the increase in
the global warming and climate disasters the international forums put the pressure on the
governments to overcome this issue by regulating the policies and actions. Shell is on the top of
the pinnacle agencies which might be focused with the aid of using the policies. There also are

1
fitness and employment protection policies which might be enforced on oil and fuelling
agencies.

Technological Elements:
Shell and other organizations that are dealing in the oil and fueling have received greater
advantage due to the advancement in the technological standard from the past few years.
These advancement lead to the more productivity and innovations related to the efficient use
of machines and equipment. But these advancements are too high to implement. Moreover,
shell has diversified its investment in the high advanced technologies and become the leading
extraction company. Like they implement the block chain application at various point where
they extracted the oil and other gas resources.
Economic Elements:
These factors affect the organization in way of prices, supply, rates of exchange, rates of
interest and demand. The prices of oil have increased overall at global level due to higher
production cost. This increase is due to high imposition of taxes by the governments. On the
other hand, the demand for the oil has been increased and expected to be increased around
fifty seven percent by 2030. The prices are rising but there is no available supply of oil to meet
the demand. But the shell is trying to explore new natural resources and reserves to meet the
demand by investing in new areas and projects.
Environmental Elements:
There are various factors that affect the environment and polluted it. The oil type companies
are the major one that emitted the dangerous or toxic gases that affects the environments as
well as health of the society. Despite of many rules and regulations, Shell is included in the top
companies that are exploring new reserves by degrading the environmental factors. They are
on the top to emit the carbon gases that are affecting the UAE and other parts badly.
Social Elements:
Social elements which have impact on a business enterprise encompass age distribution,
populace increase rate, fitness consciousness, emphasis on protection and profession
attributes. Today, purchasers are an increasing number of turning into aware about the
significance of accountable intake and that they had been setting duties on oil corporations to
inspire accountable intake. As well, there was extended social strain on corporations to have
interaction in accountable production. A few years ago, Shell replied through marketing and
marketing itself as an accountable manufacturer of oil merchandise and said that they have
been the usage of wastes to domesticate flora. The commercial helped to expand a fantastic
public photo of the agency. But recent reports showed that Shell in the UAE or at global level
involved in non-environmental elements (emission of toxic gases, harmful waste etc.).

2
CAGE ANALYSIS (Framework):
Cage analysis and framework basically identifies the factors like culture, geographic,
administrative, and economic. Shell is already working in more then 70 countries. So, here I am
going to explain the factors which are considered by the Shell when they think to capture the
country other than UAE:

 Cultural difference (difference in languages, values, religions)

 Administrative difference (No common currency, different legal system etc.,)
 Geographic difference (the company may face the problems of climate, lack of land
boarder, no access to sea etc.)
 Economic difference (Shell may face the differences in the income of consumers, or no
availability of natural resources, lack of infrastructure, no availability of human and
financial capital)
Conclusion:
So, here are some factors or we can say the differences which will be faced by Shell, when they
intend to extend business outside the UAE. The crux is Shell have to consider all these aspects
while moving or extending to other country.

3
Bibliography Entry:
Shell UAE,1998. Shell. (online)
Available at: https://. shell.ae/
Wikipedia,1997. Royal Dutch Shell. (online)
Available at: https://en.wikipedia.org/wiki/Royal_Dutch_Shell