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Strategic Choice and Evaluation Paper

Professor Anthony Barnes

Strategic Choice and Evaluation Strategic Choice The strategic method that an organization chooses to operate determines the success of the organization. A strategy is defined as the direction and scope of an organization over the long term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of market and fulfill stakeholder expectations, (Johnson, unknown year). Most organizations use both the generic and grand strategy as a method of operation. This paper will evaluate alternatives for Shell to consider in order to realize growth. It will identify the best value discipline, generic strategy, and grand strategy for Shell Oil organization. This paper will also discuss the recommended strategy or combination of strategies that Shell could implement. Generic Strategy A generic strategy is defined as a core idea about how a firm can best compete in the marketplace (Pearce, 2011). An organization can use one or both strategies depending on the

organizational need. Shell can use the differentiation strategy to operate. Differentiated services and goods can satisfy the needs of clients or customers through a sustainable competitive advantage. Shells focused is based on providing quality petroleum to its customers at an affordable price. Cost reduction and operating efficiency are a key part of Shells business, to ensure profitability for our shareholders and competitive energy prices for our customers, (Shell.com, 2011). Shell has the ability to offer its customers quality petroleum that is approved by Toptier gas which placed the organization above its competitors.

The Pros and Cons of Generic Strategy

Strategic Choice and Evaluation

Shell has a greater chance of being successful compared to its competitors due to the top quality petroleum that they provide. On another note, differentiation can make it difficult for Shell to determine how to charge its customers. Grand Strategy A grand strategy is defined as a master long-term plan that provides basic direction for major actions directed toward achieving long-term business adjectives (Pearce, 2011). A type of grand strategy that can be applied to Shell is innovation. The organization has developed several methods to reach out to its customers and meet the needs of their customers. Shells three-year strategic plan, outlined a year ago, is building the foundations for profitable growth for shareholders in the future. We are improving near-term competitive performance, and delivering a new wave of production growth, (Shell.com, 2011). Shell has always stayed above its competitors because of the quality petroleum it provides. Rather than face stiffening competition as the basis of profitability shifts from innovation to production or marketing competence, they search for other original or novel ideas (Pearce, 2011). Pros and Cons of Grand Strategy The development of ideas and way for improvement are cons of innovative strategy. The success or profitability of an organization cannot be guaranteed based on the development of new ideas or products. However, the organization can determine the type of strategies to use based on the feedback of the customers and/or clients.

Recommended Strategy

Strategic Choice and Evaluation

The grand strategy of innovation is the recommended strategy that is suggested for Shell Oil Organization. Using innovation strategy can guarantee success and profitability in the industry. Compared to other strategies, this strategy will benefit Shell the most. Conclusion Regardless of the type of strategy an organization decides to use, the most important thing is to have a plan. The above recommendation will best benefit Shell, it allow them stay above their competitors in order to be successful and profitable in the petroleum industry. This paper has explained and evaluated the alternative that Shell must consider in order to realize growth.

Strategic Choice and Evaluation References

Pearce, J. A., II, Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Shell.Com, 2011. Shell on track with strategy to improve performance and growth. Retrieved fromwww.shell.com/home/content/investor/news_and_library/2011_media_releases/2011_str ategy_update_15032011.html Johnson and Sholes, unknown year. Define Strategy. Retrieved from http://tutor2u.net/business/strategy/what_is_strategy.htm

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