Republic of the Philippines

BILIRAN PROVINCE STATE UNIVERSITY

ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

Develop a
comparative analysis of the host country and the country where the business is operating.
HOST COUNTRY OPERATING
London Singapore
CULTURAL
DIFFERENCES

Communication Styles: The UK tends to have a more Communication in Singapore

how do people in both direct communication style, is generally more indirect,
countries communicate in though still relatively polite and reflecting its blend of Asian
business (direct vs. indirect
diplomatic. In business, cultural influences, especially
communication, formality
level?) communication is typically formal from China, Malaysia, and
but can become informal India. Politeness and saving
depending on the situation or face are important, and
familiarity. People value clarity business communication
and precision, and tend to say tends to be formal and
what they mean, though they respectful. People may avoid
might still soften criticism. saying "no" directly to prevent
confrontation, and hints or
implied meanings are more
common.

Consumer Behavior: How UK consumers prioritize quality Singaporean consumers are

do customer preferences and value for money. Brand also brand-conscious, but
differ? For example, how loyalty can be important, but they often emphasize status,
does McDonald’s tailor its
there is also a growing emphasis luxury, and innovation. The
menu in India vs. US?
on ethical consumption, demand for high-tech, trendy,
sustainability, and eco-friendly and prestigious goods is
products. For example, UK strong, especially with
consumers tend to seek brands younger consumers.
that are transparent about their However, there is also a
environmental impact. rising interest in eco-friendly
and healthy options due to
increased awareness of
health and sustainability.
For example, companies like
McDonald’s adapt their
menus to local tastes,
offering items like rice-based
dishes and spicy variants to
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

cater to the local palate in
Singapore.
Workplace Culture: How Singaporean workplaces are
do cultural norms impact more influenced by
management styles, Workplace culture in the UK collectivism and
teamwork, and decision-
typically values individualism hierarchical respect.
making?
and meritocracy, where Teamwork is highly valued,
employees are encouraged to and there is great emphasis
express their ideas and contribute on harmony and group
independently. Management is consensus. Management
usually based on clear often makes decisions top-
hierarchies but is open to down, but input from the
feedback and collaboration. team is encouraged in an
Decision-making tends to be indirect way. There is also a
pragmatic and goal-oriented, with strong respect for authority
respect for diversity in the and seniority, making the
workplace. workplace more formal and
hierarchical compared to the
UK.
London Singapore
ECONOMIC FACTORS

Market Size: How big is The UK has a large and Singapore’s market size is
the market in each country? developed market. As of 2023, smaller compared to the
What is the GDP per the GDP per capita is around UK's, but it punches above
capital, income levels, or
$51,070, indicating a high its weight due to its status as
purchasing power of
consumers? standard of living and purchasing a regional business hub. The
power. As a global financial hub, GDP per capita was around
London offers a substantial market $88,447 in 2023, reflecting
for multinational companies like very high income levels and
Shell, with significant demand for strong purchasing power.
energy, financial services, and Though Singapore is a small
corporate operations. Consumers city-state, its market is highly
have high disposable incomes competitive and influential in
and demand quality goods and Southeast Asia, making it a
services. strategic location for
multinational corporations.

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

Economic Growth: Is the The UK’s economy has faced Singapore continues to
company growing, stagnation in recent years, experience steady
stagnating, or declining? economic growth, even
particularly after Brexit and the
How does this influence the
COVID-19 pandemic. The energy though global conditions
company’s strategy?
sector, including companies like have slowed somewhat. The
Shell, has also been impacted by energy demand remains
the push for green energy strong, and Shell benefits
transitions. Shell's focus in its from Singapore's role as a
home country is increasingly on strategic refining and trading
renewable energy and hub. In Singapore, Shell is
sustainability as the demand for growing in its natural gas
cleaner energy sources grows. and petrochemical sectors,
This shift is part of Shell's aligning with the country’s
strategy to transition from fossil focus on maintaining energy
fuels to more sustainable energy security and supporting
options, like wind and solar, while industrial growth. Shell’s
maintaining its core oil and gas strategy in Singapore is to
operations. balance its traditional energy
operations with innovations in
clean energy solutions,
such as hydrogen and
biofuels, while also
expanding in Asia-Pacific
markets.
Competition: Who are the In the UK, Shell faces competition In Singapore, the energy
major local competitors, and from major global energy sector is dominated by global
how does the company companies such as BP, players like ExxonMobil and
adapt to the competitive
TotalEnergies, and ExxonMobil, Chevron, in addition to
landscape?
as well as emerging green energy regional competitors such as
firms. To adapt to the competitive Petronas (Malaysia) and
landscape, Shell is investing Pavilion Energy. To stay
heavily in renewable energy competitive, Shell leverages
technologies, electric vehicle Singapore's strategic location
charging infrastructure, and to optimize its refining,
carbon reduction initiatives, trading, and chemical
aligning with government policies production operations. It also
aimed at reducing carbon invests in liquefied natural
emissions and promoting gas (LNG) and cleaner fuels
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES to

sustainable energy solutions. remain competitive in

Singapore’s increasingly
greener energy market.
Shell is also adapting by
enhancing its research and
development of energy
efficiency solutions and
exploring new technologies in
clean energy.

London Singapore
POLITICAL AND LEGAL
ENVIRONMENT

Regulations: What laws or Shell operates under strict In Singapore, Shell must
regulations (e.g., labor laws, regulations concerning navigate various regulatory
trade policies, taxes) must environmental protection, labor frameworks:
the company navigate in the
laws, and corporate governance. Environmental
foreign market?
Key regulations include: Regulations: Singapore has
its own environmental laws,
Environmental Regulations:
such as the Environmental
The UK has stringent laws aimed
Protection and Management
at reducing carbon emissions and
Act, which governs emissions
promoting renewable energy.
and waste management. The
Shell must comply with the UK’s
government encourages
Net Zero Strategy, which sets
sustainable practices and
targets for emissions reduction.
green technology
Labor Laws: The UK has investments.
comprehensive labor regulations, Labor Laws: Singapore’s
including minimum wage laws, labor laws are generally more
anti-discrimination laws, and flexible, with fewer
health and safety standards that restrictions compared to the
Shell must follow. UK. However, Shell must
comply with laws regarding
Corporate Taxation: The
foreign worker employment,
corporate tax rate is currently
work permits, and workplace
around 25%, which Shell must
safety standards.
account for in its financial
Taxation: Singapore offers a
planning.
favorable tax environment
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES with

a
corporate tax rate of 17%,
making it an attractive
location for multinational
companies. Incentives are
available for companies
investing in innovation and
sustainability.
Political Stability: Is the The UK is considered politically Singapore is known for its
foreign market politically stable, though recent events, high political stability and
stable, and how does this such as Brexit and political effective governance. The
affect business operations?
changes, have led to some government is pro-business
uncertainty. The stability of the and supports foreign
UK government can impact investment, making it a
Shell’s operations, particularly favorable environment for
regarding trade agreements and companies like Shell. Political
energy policies. Shell must stability allows Shell to plan
remain adaptable to any shifts in long-term investments and
government priorities, especially strategies in the region with
concerning climate policy and confidence.
energy transition.
Trade Policies: Are there Following Brexit, the UK has Singapore has a free trade
tariffs, restrictions, or other developed its own trade policies policy and is known for its
trade barriers separate from the EU. There are open economy. There are
that impact the company’s
tariffs and trade barriers on generally no tariffs on imports
operations?
certain goods, and Shell must and exports, making it a
navigate new regulations conducive environment for
concerning imports and exports. Shell’s operations. The
The UK is working on country is a member of
establishing trade agreements several trade agreements,
globally, which can affect the such as the Comprehensive
ease of conducting business and and Progressive
the cost of imports, particularly in Agreement for Trans-
the energy sector. Pacific Partnership
(CPTPP), which further
enhances its trade position
and access to markets. Shell
benefits from Singapore’s
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

status as a logistics and
trading hub for energy
products.
London Singapore
LOCALIZATION
STRATEGIES

Product or Service In the UK, Shell primarily offers its In Singapore, Shell tailors its
Adaptation: How does the traditional products like petrol, products to meet local
company adjust its products diesel, and lubricants. While the preferences and regulatory
or services to fit local
core offerings remain similar, standards:
preferences (e.g., flavors,
pricing)? Shell has adapted its services by: Innovation in Fuels: Shell
offers specialized fuels like
Promoting Sustainable Shell V-Power Racing and
Options: There is an increasing other high-performance fuels
demand for low-carbon fuels and tailored to local vehicle
renewable energy sources. Shell preferences and
has launched initiatives like Shell environmental regulations.
V-Power and alternative fuels to Sustainable Energy Products:
cater to environmentally Shell focuses on offering
conscious consumers. renewable energy solutions,
Pricing Strategy: Shell adjusts its such as solar energy services
pricing based on local market and electric vehicle (EV)
competition and consumer charging stations, in
purchasing power. Pricing response to the growing
promotions may be offered to demand for clean energy in
attract budget-conscious Singapore.
customers.
Marketing: How do Marketing strategies in the UK In Singapore, marketing
advertising and branding emphasize brand loyalty and strategies are adapted to
change in the foreign market trust, highlighting Shell’s resonate with local cultural
to align with local culture
commitment to sustainability and norms and consumer
and norms?
innovation: behavior:
Advertising Campaigns: Shell Cultural Relevance: Shell’s
often runs campaigns that focus branding emphasizes themes
on its sustainability efforts, of innovation and
emphasizing its investment in sustainability. Campaigns
renewable energy and efforts to may highlight local
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

reduce carbon emissions. community projects or
Local Engagement: Shell collaborations with the
engages with local communities government in promoting
through sponsorships and green energy.
partnerships, reinforcing its brand Language and Imagery:
presence and commitment to Marketing materials often
social responsibility. incorporate local languages
and culturally relevant
imagery to appeal to a
diverse population, reflecting
Singapore’s multicultural
society.
Operational Adjustments: Operational adjustments in the In Singapore, Shell makes
Are there differences in UK include: significant operational
supply chains, staffing, or adjustments:
customer service Supply Chain Management:
approaches? Shell has a well-established Local Supply Chain: Shell
supply chain for its traditional sources some of its products
products, focusing on efficiency and services locally to
and sustainability in its comply with regulations and
operations. reduce carbon footprints.
Staff Training: Employees are This may involve
trained on environmental partnerships with local
regulations and customer service, suppliers for renewable
aligning with local expectations energy products.
for quality and compliance. Diverse Staffing: Shell’s
workforce reflects
Singapore's multicultural
society, ensuring a diverse
team that can effectively
engage with local customers.
Customer service
approaches may vary to meet
the expectations of different
cultural groups.
Customer Service: Shell
focuses on providing superior
customer service, including
Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

convenience and
accessibility, such as offering
mobile apps for fuel
payments and locating
charging stations for electric
vehicles.

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

Using graphs, charts, cultural symbols, etc., create a visual representation of your comparative analysis and
answer the following questions:

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

1. How SCHOOL OF ARTS AND SCIENCES do

cultural, economic, political and legal differences between the home country and operating
country affect the business?

 Cultural differences, such as communication styles and workplace norms, impact how
Shell engages with employees, customers, and local governments. In the UK, Shell can
rely on direct communication, whereas in Singapore, it must adopt a more indirect
approach. Economic factors like market size, income levels, and purchasing power
affect product pricing, investment levels, and growth strategies. Politically, the UK and
Singapore both offer stability, but they differ in regulatory environments. For example,
Shell must adhere to stricter environmental laws in the UK while navigating Singapore’s
favorable tax policies. Legal differences, including labor laws and trade policies, dictate
operational adjustments like hiring practices and supply chain management.

2. What specific strategies has the company used to adapt to these differences?

 Shell has employed various strategies to adapt to these differences:

 Product Adaptation: In the UK, Shell promotes sustainable energy options to meet local
environmental demands, while in Singapore, it offers high-performance fuels and
renewable energy solutions to align with local regulations and consumer preferences.
 Marketing Localization: Shell tailors its branding and advertising to match the cultural
context, emphasizing sustainability in the UK and innovation in Singapore.
 Operational Adjustments: Shell localizes supply chains, sourcing products locally in
Singapore to reduce environmental impact. It also customizes its staffing strategies to
reflect the diverse cultural environment in Singapore, focusing on compliance with local
labor laws.

3. Which challenges do you think are the most difficult for the company to overcome and why?

 The most difficult challenge for Shell is likely the transition to sustainable energy in both
markets, but particularly in the UK, where regulations around reducing carbon emissions
are becoming stricter. This requires significant investment and innovation, while
balancing the need to maintain profitability from traditional energy sources. Navigating
the complexities of cultural differences, such as indirect communication and hierarchy in
Singapore, also poses challenges in decision-making and management practices.

4. What were the most surprising differences between countries?

 One surprising difference is the contrast in communication styles. The UK, known for its
direct and relatively informal business interactions, contrasts sharply with Singapore’s
more indirect and formal approach, where maintaining harmony and avoiding
confrontation is highly valued. Another key difference is the economic environment—
Singapore, despite being smaller in size, offers higher purchasing power and a more

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

favorable tax environment compared to the UK.

5. What could go wrong if a company doesn’t consider these cultural, economic, or legal
factors?

If a company like Shell fails to consider these factors, several issues could arise:

 Cultural misunderstandings could lead to poor communication, ineffective teamwork,

or customer dissatisfaction, particularly in markets like Singapore where indirect
communication is the norm.
 Economic misalignment could result in inappropriate pricing strategies or missed
growth opportunities, especially in regions where income levels and purchasing power
vary greatly.
 Legal non-compliance could lead to fines, reputational damage, or even shutdowns if
the company does not adhere to labor laws, environmental regulations, or trade policies
in each market.

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU
 Republic of the Philippines
BILIRAN PROVINCE STATE UNIVERSITY
ISO 9001: 2015 CERTIFIED

SCHOOL OF ARTS AND SCIENCES

SHELL COMPANY

GROUP 1
FLORES, SHEILA MA
MEJARITO, ANGELICA
FERANDEZ, CHELSEA
POLOYAPOY, JULIUS
DADOR, ERIKA MARIE
HIBE, SHERYL

Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Philippines 6560
Tel. (053) 507-0014 Telefax. (053) 507-0014
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph Email: [email protected] | Facebook:
www.facebook.com/iambipsusas

WoWBiPSU