Wednesday, October 9, 2019
Female genital Mutilation in Sudan Essay Example | Topics and Well Written Essays - 3500 words
Female genital Mutilation in Sudan - Essay Example Focus is also drawn on the different ways through which the government of Sudan, different international agencies, local non-governmental organizations, and civil groups are working to stop this oppressive practice. Communities that practice FGM perform it in varying ways. The World Health Organization has developed three major categories of FGM. There is Type 1, Type 2, and Type 3. Type 1 female circumcision is referred to as clitoridectomy. This mainly involves the removal of the tip of the prepuce, with or without excision of part or the entire clitoris. In Type 2, there is the removal of the clitoris together with part or all of the labia minora. Type 3 female circumcision is also called infibulation. This involves the removal of most or all of the female genitalia. In this type, there is also the stitching of the vaginal opening, where only a small opening is allowed for urine and menstrual flow (Islam & Uddin 2001, p. 72). Type 3 is considered the most severe form of FGM. In Su dan, there are different names that are used to refer to each of the three types of female circumcision. Type 1 is referred to as ââ¬Å"Sunna.â⬠This involves the removal of the tip of the prepuce. ... For instance, some of the Muslim Sudanese hold that female circumcision is supported by Islam. On the other hand, the Muslim theologians in Sudan believe that there is no provision for FGM in the Koran (Islam & Uddin 2001, p. 73). Nonetheless, Turshen (2000, p. 145) notes that FGM is linked to Islam, even though not all Muslim countries uphold it. With regard to the prevalence of female circumcision in Sudan, the findings of Sudan Demographic and Health Survey (SDHS) of 1989 -1990 show that 89% of the ever-married women have undergone some form of FGM. The Northern part of Sudan ranks high, with approximately 99% of the ever-married women having undergone circumcision (Landinfo 2008, p. 6). In 2001, Islam and Uddin conducted a study in Sudan to determine the prevalence of female circumcision in the region. Their study focused on Haj-Yousif and Shendi, which are in the North, as well as Juba, in the South. Nonetheless, in this paper, the focus is not on South Sudan. The study of Islam and Uddin (2001, p. 74) revealed that female circumcision is highly prevalent in Sudan. 100% of the respondents in Shendi, and 87% of respondents in Haj-Yousif had undergone circumcision. The most prevalent form of female circumcision was found to be the Pharaonic circumcision, which is the most severe form. In Sudan, the process of female circumcision is performed by lay practitioners. These have little or no knowledge on the female anatomy, or medicine. The conditions under which female circumcision takes place in Sudan are below the hygiene standards. Furthermore, no anaesthesia is performed on the females before circumcision, and there is no sterilizing of the instruments used to perform female circumcision (Landinfo 2008, p. 9). A major reason why
Tuesday, October 8, 2019
Business Ethics in the Globalised Economy Essay
Business Ethics in the Globalised Economy - Essay Example While, The not-for-profit centers, which normally operates as a voluntary or charitable body has totally different form of administrative frame work . And, finally the government run institutions are the other type of systems that are usually fully funded by the government. The differences in the systems of administration are also reflected in their operations and functional outputs. The charitable hospitals have severe constrains on the resource generation and they mostly depends on the philanthropic contributions. Thus they are unable to attract the best talents in the respective fields which affect the quality of delivery. Bureaucratic set up, feeble decision making process, inadequate doctors and other support personal are the major issues affecting the smooth function ofa governmenthospital. But on the other hand a private hospital often tries to attain the premier position as their revenue is dependent on the patient volume alone. Well established management team, efficient doc tors and other par medical staff are the major attractions of the private hospital. But in the event of a economic slow down, the government hospitals are the least effected and the private hospitals often tend get affected at a higher magnitude. Thus unethical practices are said to be more possible and takes strong roots in these circumstances. And hence necessary pragmatic ethical policies need to be in place to ensure a well acceptable medical delivery system (Health Care). Due to these reasons the health care industries are chosen for the detailed analysis on the ethical practices in the business. Backgorund A good performing hospital would consist of a team of efficient doctors coupled with skilled support personnel, along with the well established equipments and diagnostic devices. Often the cost of health care has been experiencing high rate of increase which often makes the quality treatment inaccessible for most of the people. The ethical practices that are prevailing in these places need to be of highest level as it involves a matter of human and health (Health Care). The present situation of turbulent business weather has severe impacts of the operation of this industry too. The loss in jobs and reduced remuneration levels have started forcing people to opt for less costlier options, thus making all the premier health care operators not the prime choice of most of the medical attention seekers. But these situations too are not without solutions. Even during the period of recession and job losses, it is the responsibility of the company to deliver and support the desired level of service to the customers while considering the needs and aspirations of the employees (Wise Geek). Before moving into a deeper introspection of the analysis of various ethical models, it would be very prudent to have an overall assessment of the corporate practices, where business objectives could ride over the ethical rules. Besides evolving a pragmatic means of ethical practices, this sector could also motivate and hence create an attitude to implement a value-based operation in other sectors too (Health Care). Based on the detailed analysis available theories and models following initiatives are proposed for effectively implementing ethical practices during the turbulence experienced in the global economy. Promoting the concept of general well being as the organizational mandate. The
Monday, October 7, 2019
IT Systems Strategy Essay Example | Topics and Well Written Essays - 3000 words
IT Systems Strategy - Essay Example Many organisations continue to invest heavily on information technologies with the aim of increasing the effectiveness of their operations and information systems. However, technology tools alone cannot be used to address discordant organizational information structures. According to Petrides (2004) such technology-focused problem solving strategies may in fact do the opposite, which is to prevent organisations from successfully capitalizing on their use of technology because they tend to overlook organisation-wide symptoms. One major area that the above strategies fail to capture is the information tacitly held by employees that is critical yet rarely documented. Knowledge is universally recognized as the most important strategic asset that an organisation has. The challenge though is that knowledge cannot be managed directly. According to Streatfield and Wilson in Henczel (2000) only the information about the knowledge possessed by people in organisations can be managed. This i s why the need for information auditing becomes critical. Good information management an essential prerequisite to knowledge management. Information audit will therefore be the first step in developing a knowledge management strategy or improving the strategy that Primark Stores Limited may already have to ensure that the organization is managing the knowledge it needs to manage to remain competitive and successful. There is no universally accepted definition of an information audit. According to the Association for Information Management in the UK, an information audit is ââ¬Å"the systematic evaluation of information use, resources and flows, with a verification by reference to both people and existing documents in order to establish the extent to which they are contributing to an organisationââ¬â¢s objectives (Henczel, 2000, p.215)â⬠. With regard to purpose, the information audit process will enable Primark Stores Limited to achieve the following four key functions: (1 ) to identify Primarkââ¬â¢s information needs and assign each of these needs their level of strategic importance; (2) to discover and classify the resources and services currently provided to meet Primarkââ¬â¢s information needs; (3) to map information flows within Primark and between Primark and its suppliers, buyers and rivals; and (4) to analyse inefficiencies, duplications or gaps and areas of over-provision so as to detect where changes need to be made. By fulfilling these functions, an information audit will enable Primark track and identify each resource and service that supports organizational objectives. The audit will also allow Primark to rate each resource according to its strategic significance. In which case, the information audit could be structured to include an examination of IT tools that can aid effective information management. At the corporate or strategic level, the results of an information audit will provide a knowledge base that can be used for making management decisions about information sources, identify strategic information needs via information needs assessment and can be used as the basis for formulating an organisational information policy. The Financial Director of Primark Stores Limited needs to understand that an information audit reflects the organisation in its entirety and how it works. The process is, preferably, conducted by an independent team so as to
Sunday, October 6, 2019
How representative is the House of Commons in terms of gender and Essay
How representative is the House of Commons in terms of gender and ethnicity - Essay Example A conclusion with some recommendations on how the issue can be addressed is also given. Introduction The Great Britain has two houses of legislature; the House of Commons and the House of Lords. The House of Commons is the lower house in the British Parliament. The House comprises elected members of Parliament, who represent the interests of the constituencies they are elected from. The House of Commons wields an immense power on the control of the government, since it is the one responsible for making legislations, while the upper house, the House of Lords, has an oversight role over the House of Commons, without any powers to reject the legislations done by the lower house, but only to delay such actions (History Learning Site, 2013 n.p.). Thus the government with the prime minister is highly dependent on the cooperation with the House of Commons, to execute its mandates (History Learning Site, 2013 n.p.). Despite all the attempts that have been made to have the House of Commons th at is representative of the minority, ethnic and gender balance, the situation has not completely borne fruits. By 2009, the House of Lords was found to be more representative of the social diversity in the British society, having reasonable numbers of women and ethnic minorities, compared to the House of Commons (Philips, 2009 n.p.). The number of ethnic minorities in the British House of Commons by the year 2009 was a meager 15, which is however a notable improvement from the previous periods, where the representation for women and the ethnic minority was significantly less (Philips, 2009 n.p). Therefore, based on this trend, it is prudent to conclude that the House of Commons is not representative of the gender and ethnic minorities. However, there is a great hope that the situation will keep improving with time, to generate a House of Common with a social make-up, which is highly diversified and representative of gender balance and ethnic equality. Because it is not possible tha t each member of the society can voice their needs to the government, democracy supports such modes of representation where the members of the House of Commons act as a bridge between the citizens and the government (History Learning Site, 2013 n.p.). Such members are able to speak on behalf of the people through debates and passing of bills on the floor of the House, to address their concerns and make their voice be heard, through voting for or against the bills. The British law requires that the Parliament represents the interest of the people, both demographically and geographically. While geographic representation refers to the representation of the people based on the designated parliamentary constituencies, the demographic representation focuses on the different social groups. These groups may include the ethnic minorities and the females, which have always got lesser representations in the Parliament (History Learning Site, 2013 n.p.). Nevertheless, considering the fact that the House of Commons comprises 647 members, only 143 women and only 27 members from ethnic minorities were elected to the Parliament in the 2010 general elections (History Learning Site, 2013 n.p.), then, there is no doubt that the House of
Saturday, October 5, 2019
Fishikawa Diagrams Assignment Example | Topics and Well Written Essays - 500 words
Fishikawa Diagrams - Assignment Example Being a manufacturing company running business in the manufacturing industry, the company identified five elements of the cause and effect diagram. Each major component of the Fishikawa diagram had various other root causes enumerated below. First, the team identified materials. In this category, we had the shrinking of materials, poor tensioning of the screens, and applying poor squeeging. The environment comes in as the second of the components on the list. Having ambient heat lets the drier temperatures getting out of control as well as failed organization becoming difficult to spot among the products. The method of executing various processes in the company also entailed issues. The team discovered that the current problem was very clear and everyone knew it is big. The company lacked standard process of addressing any issue because the procedure remained vague with scanty details. Among the known problems, the trying temperatures remained all-time high and excessive pressure coming from the squeeze. Lack of standard process constitutes inadequate details on the procedure, too much concentration on inspection raising questions on its fitness, and having machines in the production sector running at a high speed. Deficiencies emanating from the work force include failing to empower the employees to own the production and the business through motivation, allocation of authority, and other ways of increasing commitment. Additional problems from people are questions of resources, increased tension among staffs to deal with all assigned duties, and insufficient appropriate skills. The last element among major causes is machines. Every major constituent of the cause and effect diagram had various other root causes enumerated below. First, the team identified materials. In this category, we had the shrinking of materials, poor tensioning of the screens, and applying poor squeeging. The temperatures from the driers remain
Friday, October 4, 2019
My Philosophy change is a challenge Essay Example for Free
My Philosophy change is a challenge Essay I. Introduction Man needs philosophy in order to be able to think, act and live accordingly. It is a basic blueprint of a manââ¬â¢s actions from thinking, to interacting with others. The only thing that is constant is change. This saying is indeed true especially in the Philippine Education System. For every change implemented lies challengers on the part of the classroom teachers who portrays varied roles. The rapid changes in the world have made curriculum design even more difficult. to be globally competitive II. Aims of my Philosophy chosen There is a need to revise the curriculum from time to time for us to suit the needs of time. We should go on with the flow of life and we should revise it now because curriculum in the past is not anymore very effective or suited for todayââ¬â¢s generation As pro active individual I consider Change as a challenge and not a threat. Meeting new challenges require the opportunity to take risks and try new ideas. As a learning individual change is inevitable to meet the needs of society. In a fast changing society education is one way to connect oneself to the past and to project into the future and therefore aims in Philosophy should be considered. III. Role of Philosophy chosen to Education Education and philosophy are closely tied together; both are associated with teaching, learning, and discovering. Philosophy is more of an all-encompassing part of life, though; education is a more specific form of it. Due to the contributions of philosophers over the centuries, education has developed into the powerful tool that it is today. Without philosophy, education would essentially not exist. That said importance of philosophy in education is in fact the foundation in which all academic teaching and intellectual learning is built off. IV. Role of Philosophy to the content development 1. It guides everyone to plan collaboratively for school change to meet the learnerââ¬â¢s diverse needs 2. It serves as a vehicle to open new ideas for positive outcomes 3 It strengthens the goals on meeting challenges for a fully functional learner. Language is dynamic as well as the curriculum. We have different curriculum in the past and in the present. We are now in a globally competitive world. A world that also needs competitive teachers and students. So, how will you become competitive if your curriculum is traditional? And is not aware of the new trends of teaching today? Students now are fond of using computers. They will probably choose going to the computer shop than going to school. As a teacher, what will you do? Donââ¬â¢t be a boring teacher! An effective way of solving this kind of phenomena is that the teachers must use technology in teaching. Make it as your partner in delivering a lesson so that the students will not get bored. Make a teaching-learning process lively and meaningful. Teaching and learning give life and meaning to the curriculum because this is the process wherein the teacher and the students interact with each other interchangeably or vice versa. If there is an effective teaching-learning process, itââ¬â¢s really a big help to the curriculum. Itââ¬â¢s a big honor because each complements and supplements each other. The value placed in teaching will reap the same value in learning. Thus, a good curriculum can be judged by the kind if teaching and the quality of learning derived from it. The most important thing to keep in mind about strategic content development is that itââ¬â¢s truly an improvisational process. The reason why you want to identify as many viable options for potentially remarkable content is simple: Youââ¬â¢ll almost certainly need to make adjustments on the process, and itââ¬â¢s easier to do that when youââ¬â¢ve already identified alternatives. So, the final aspect of strategic content development is to constantly evaluate what happened along the way, and why. The most valuable lessons are often found in the things that didnââ¬â¢t work, so treat it all as a learning experience that keeps your content constantly fresh and worth talking about. V. Significant effect of this curriculum development to the current trends in attaining universal truth in Educational Process In 2012 Depedââ¬â¢s K 12 Program goes full blast. Brother Armin Luistro has described the implementation of the universal primary or pre-school education in the Philippines as the ââ¬Å"defining momentâ⬠in the administration of President Aquino as it seeks to implement reforms with deep impact on the welfare of Filipino children and the youth. DepEdââ¬â¢s enhanced curriculum aims to meet the overall objective of preparing children for productive work, either as employees or entrepreneurs, while maintaining its current academic thrust It seems that the President is rushing this program before his term ends. If this program is not implemented well, we might not achieve our real objectives. And all we have done is to disrupt the whole system. Changing programs and implementing new ones is not cheap. Will the next President change the system again? In a survey conducted by SWS from Aug. 24 to 27 last year showed growing acceptability of the key features of the K-12 program compared to survey results in March 2012. About 72 percent of Filipino adults believe that K-12 will give students more sufficient knowledge and preparation for work and college compared to those who finished 10 years of basic education, garnering a net rating of +48, up from +35 last March. The percentage of Filipinos who believe that more students will be encouraged to finish the two-year SHS because it is equivalent to two years of college hit 69 percent, or a 10- point increase from 59 percent in March. The results showed that 68 percent of Filipinos with a net rating of +39 believe that more students will finish SHS even with the additional cost and number of years because K-12 graduate will be better prepared for work, higher education, and business. The results of the survey didââ¬â¢nt even reach 75% which means some are not amenable to the new program. Although the selling point of K to 12 is the assurance that graduates of Senior High School will be able to work immediately, even before or without seeking a college degree Under certain circumstances, it is possible to revise only the high school curriculum. Even in this case, we have to wait until those already in First Year have finished Fourth Year (under the present system). After drawing up a curriculum on paper (including such things as expected competencies, prerequisites, qualifications, learning areas, scope, coverage, and outcomes), curriculum designers have to think about the textbooks and other instructional materials that will have to be created for the new or revised subjects. Although teacher training is a separate process, curriculum designers also have to give pointers on how teachers should be trained to handle the subjects. There also has to be some way to determine if and when the curriculum needs to be revised; this is called program assessment or evaluation. Because of abrupt implementation teachers are really having a hard time coping with the changes not to mention the lack of classrooms, instructional materials and the real physical situation of the learners. If the government can financially sustain the program without adding too much burden on parents, itââ¬â¢s worth giving it a try. However, nowadays, most of the students are the happy-go-lucky types who do not regard education as their priority. Theyââ¬â¢d rather bum around in malls or stay glued to computers. As a result, most graduates are half-baked, who canââ¬â¢t even write or speak good English, unlike the students of yesteryears. Before, a Grade 6 pupils then could already teach. An additional two years to the basic education curriculum could spell two more years of burden to poor parents who could hardly send their children to school. Before full implementation, there usually is a year-long pilot to debug the curriculum, as well as a longer transition period within which some students will be following the old curriculum and some following the new. Curriculum should not only focus on the tools necessary to develop reasoned and logical construction of new knowledge in our various fields of study, but also should aggressively cultivate a culture that nurtures creativity in all of our learners. This point seems particularly important.
Thursday, October 3, 2019
Impact of the Nigerian Business Environment on Shell
Impact of the Nigerian Business Environment on Shell ABSTRACT Since the advent of crude oil production half a century ago in Nigeria, other parts of the productive economy such as agriculture and manufacturing have been neglected by the government and also the countrys poor and shambolic infrastructure has made doing business too costly for investors. There is a major exodus of Manufacturing companies from Nigeria presently as the rising cost of running their business is eating deeply into their profits for example Michelin, closed its operations in Nigeria two years ago citing the high cost of production, while chocolate maker, Cadbury has found it cheaper to move production to neighbouring country (like Ghana) and re-import its goods. Cheaper imports from China have closed a high percentage of factories in Nigerias once-thriving textile industry. Investors who bought equipment with foreign exchange component said they now need more naira to pay for their loans. They linked what is happening to their investment now to the Structural Adjustment Programme (SAP) or pre-SFEM days when importers suddenly had huge accumulated debts resulting from the adjustment of the exchange rate, over dependant on foreign goods, and high level of corrupt within the system. The micro and macro economic factors impacting on the running costs of manufacturing and production companies doing business in Nigeria makes it difficult for continued business activities in Nigeria by expatriate companies unless they are really making profit or they have a business that do not depend largely on the infrastructural amenities in Nigeria or can build a mini city that generates and produces its own power and other resources necessary to run its business such as Royal Dutch Shell. This report looks at the impact of the Nigerian business environment on Shell Plc and analysed the risks involved with macro-environmental factors. The report also analysed the strengths and weakness of shell Plc and strategies employed to take advantage of its strengths and opportunities in dealing with the various challenges they face. CHAPTER ONE INTRODUCTION 1.0 NIGERIA The Federal Republic of Nigeria comprises thirty-six states and one Federal Capital Territory (Abuja). The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in the north. Its coast lies on the Gulf of Guinea, a part of the Atlantic Ocean, in the south. The three largest and most influential ethnic groups in Nigeria are the Hausa, Igbo and Yoruba (see appendix, fig 1). Nigeria has a population of almost 148 million and is the most populous African country and the 9th most populated country in the world. It has about 400 Languages (Hausa, Yoruba and Igbo Etc) and its official Language Is English but its Lingua Franca in the North Is Hausa, Yoruba in the West, Ibo in the East and Pidgin English in the South. The Nigerian currency is Naira and Kobo (see appendix, fig 2). Nigeria has a dual economy with a modern segment dependent on oil earnings, overlaid by a traditional agricultural and trading economy. At independence in 1960, agriculture accounted for well over half of GDP, and was the main source of export earnings and public revenue. The oil sector, which emerged in the 1960s and was firmly established during the 1970s now making Nigeria the 12th largest producer of petroleum in the world and 8th largest exporter is now of overwhelming importance to the point of over-dependence: it provides 20% of GDP, 95% of foreign exchange earnings, and about 65% of budgetary revenues. Competition between ethnic and regional groups for power and access to the countrys oil wealth has been at the root of politics in Nigeria. The per capita income of Nigeria is $2,300 as at 2008 base on the reports from the World Fact book. Nigeria is governed by a democratic government but not politically stable because Nigeria is a country of extremes. Great wealth and great poverty sit cheek by jowl, and tensions between different communities can boil over into civil strife especially in the delta region. While a few parts of the country remain problematic, the vast majority is as warm and welcoming to visitors as anywhere. The country have an image problem as corruption seems to be the order of the day, also email scams (419) has become known as a lot of innocent yet greedy people have been a prey to this scam. Conducting business in Nigeria is characterized with so many factors and this report will critically analyze the business environmental factors, degree of risk involved and the advantages of operating in such an environment (Nigeria). 1.1 ROYAL DUTCH SHELL PLC The Royal Dutch Shell Plc is a global group of energy and petrochemical companies founded by Alfred Donovan, was formed in February 1907 with the amalgamation of the Royal Dutch Petroleum Company (legal name in Dutch, N.V. Koninklijke, Nederlandsche Petroleum Maatschappij) and the Shell Transport and Trading Company Ltd of the United Kingdom, a move largely driven by the need to compete globally with the then predominant US petroleum company, John D. Rockefellers Standard Oil in the ratio of 60:40. Royal Dutch Shell (Shell) is engaged in oil and gas exploration and production, transportation and marketing of natural gas and electricity, marketing and shipping of oil products and chemicals. The company also has interests in renewable sources of energy such as wind and solar; and hydrogen. The company has extensive operations in more than 140 countries around the world. Its headquartered is in The Hague, the Netherlands and employs more than 300,000 people across the globe. The company recorded revenues of $318,845 million during the fiscal year ended December 2006, an increase of 3.9% over 2005. The operating profit of the company was $45,777 million during fiscal year 2006, an increase of 0.3% over 2005. The net profit was $26,311 million in fiscal year 2006, an increase of 0.2% over 2005. The current supplies earnings for year 2008 were $31.4 billion compared to $27.6 billion for year 2007 with an increase of 13.7%. 1.2 Management The Non executive chairman of Shell is Jorma Ollila, former Chairman and CEO of Nokia, he was appointed on the 1 June 2006. Ollila is the first Shell Chairman to be neither Dutch nor British. Other non-executive directors include Maarten van den Bergh, Wim Kok, Nina Henderson, Lord Kerr, Adelbert van Roxe, and Christine Morin-Postel. Jeroen van der Veer is the present CEO of Shell. 1.3 Shell Plc in Nigeria Shell Petroleum Development Company of Nigeria Ltd (SPDC) started onshore operations in Nigeria since 1958 as part of a consortium led by NNPC (The Nigerian National Petroleum Corporation) with 55 percent and including Shell (30 percent), Elf (10 percent) and Agip (5 percent). SPDCs operations concentrate in the Niger Delta and offshore shallows nearby, where it holds oil mining leases covering an area of 31,000 km2. There, it has installed more than 6,000 km of pipelines and flow lines, 87 flow stations, eight gas plants and more than 1,000 producing wells. In 1997, SPDC produced 899,000 barrels per day from this system (about 40 percent of Nigerias OPEC crude oil quota). The SPDC workforce stands at more than 10,000 people of whom 4,500 are employees; the remainder work for contractors and of total workers, 98 percent are Nigerians (see appendix, fig 3 for Niger delta oil field in Nigeria). Shell also has three other companies which are NLNG (Nigeria Liquefied Natural Gas) a gas company to produce Liquefied Natural gas and natural gas liquids for export. Shell is in joint venture with Nigeria with a 25.6% interest in NLNG (Nigeria Liquefied Natural Gas) together with NNPC (49%) while SNEPCO (Shell Nigeria Exploration and Production Company) and SNG (Shell Nigeria Gas) are both 100% owned by Shell. SNEPCO comprise Shell Plc, Total, Exxon Mobil, and Chevron Corporation. CHAPTER TWO 2.0 SHELL PLC AND OIL INDUSTRY IN NIGERIA 2.1 Oil and Gas The Oil and Gas Industry has played a major role globally. It has always been a central global player in international development and geopolitics and because of the critical importance of hydrocarbon based energy as the engine of rapid industrial growth in modern economy, either capitalist or communist. Due to the intrinsic dependence of this centurys growth model on access to ever-greater reserves, the industry has had to deal with increasing complexity in its relations with developing countries and environments. This in turn has led to increased cost of operations to match the growth models demands (Meadows et al, 1972; Nordhaus, 1973). WCED (1987) agreed that since 1970s, continued hydrocarbon-based Growth model is only justifiable if profits are ploughed into technological advances that would ensure a timely and less painful transition to alternative energy. 2.2 Challenges Faced By Shell Plc in Nigeria Since Shell started producing Oil in Nigeria, it has faced a lot of challenges in dealing with the government, micro and macro economics factors in Nigeria and most especially the communities, as Shell production led to oil spillage, gas leakage and so many more. It has affected the soil and water which is the main source of earnings for people in the Niger delta, as the agriculture and fishing has almost become impossible which is source of living for the people. This has raised a lot of community clashes with Shell so much so that their operations in Nigeria has been globally criticised and has also affected the image of company. In 1995, the company faced two major challenges; firstly, the Greenpeace occupied its Brent Spar platform in the North Sea to prevent its being decommissioned by sinking. Secondly, the Nigerian government executed Ogoni human rights activists: Ken Saro Wiwa, the head of the MOSOP (Movement for the survival of Ogoni people) a campaigning organization representing the ogoni people in their struggle for ethnic and environmental rights and eight others, this problem led to boycotts, public outcry and violence against the company. The crises arose soon after Shell began to review its societal relations, and further catalyzed internal support for transformation. Unfortunately, they occurred at a moment when the company was casting about for ways to avoid exactly such crises, leading Shell officials to heed those who internally promoted a new approach. CHAPTER THREE 3.0 ANALYSIS OF NIGERIAN BUSINESS ENVIRONMENTS For management of Shell Plc to apply effective Strategy that will work at international level and which will also reflect the Companys Vision, Mission, and Objectives, they need to understand the international business environment (both internal and external environment) of the host country (Niger delta, Nigeria). A good international strategic planner must recognise all relevant factors within the environment before pushing it through the process of analysing, decisions making and actions taking. Putting the relevant factors into consideration and testing them will help to create sustainable competitive advantages over other competitors. After critical analysis of the international business environment by the team of strategic planners for Shell Plc regarding Nigeria Oil Industry, decision needs to be taken to determine the mode of operation that should be employed by the company in order to compete effectively and efficiently within the oil industry of the host country. Decisions are of no use unless they have been implemented (acted on and monitored); Shell Plc needs competent strategists that will utilize the available resources effectively to bring the intended operations and strategies to reality. Shell Plc has been in Oil business since 1886 and operates around the world. The company has been able to maintain good name (goodwill), good customers loyalty, and strong customer database. The company construct meaningful strategic planning for Nigeria business environment before/after operating in the country, while the strategy is monitored and reviewed quarterly to reflect the companys true vision, mission, and objectives. 3.1 SWOT ANALYSIS The Strengths of Royal Dutch in Nigeria includes SPDC (Shell Petroleum Development Company of Nigeria) is the Oldest Oil and Gas industry in Nigeria. It was the first company to begin the production of Oil and Gas in Nigeria as a result, the company was able to monopolise the Oil Sector in Nigeria for a long period and established herself as a for-runner with a higher percentage than any competitors in the market. SPDC has a long standing name as one of the biggest Oil and Gas Company in the world as such it has the necessary equipment and money to invest in exploration of oil in Nigeria. Shell has been in business for over a century and they came to Nigeria with wealth of experience, technology, innovation and machinery. Shell operates autonomy of Shell Companies in a decentralized structure allowing Shell Offices in different countries to deal with the regulations, culture and behaviour of the communities in the best suitable way to meet their needs and concern. The Weaknesses of Shell Plc in Nigeria are: Shell faces the challenges that most companies encountered when they come into other countries as they have to learn the new rules, regulations and behaviours of the country and this can be a weakness from the start. Shell was not prepared for the challenge of dealing with the expense of ameliorating socio-environmental concerns which escalated and caused a lot of criticism internally and damaged the image of the company globally. The Opportunities of Shell Plc in Nigeria are: Nigeria was a virgin ground and shell Plc had the opportunity of being the first oil and gas to start production of oil and since then more and more oil fields were been discovered in Nigeria which has led to continuous production and increased production and business for the company. Shell had the opportunity for developing new business ideas as Nigeria gave them the licence to do that which led to joint venture between Shell Plc and Nigerian government, then the discovery of Natural gas led to LNG (another Joint venture) with Nigerian government and other opportunities opened up and shell now has SNEPCO and SNG, wholly owned. Also, Shell has the financial background to go into deep water exploration that led to new discoveries and new business expansion. The Threats of operating in Nigeria are: Fear of persistent interruption in their operations or damages to their properties and machineries by the militants in the delta region from which they conduct the drilling. Oil Gas extraction will someday reach a limit point but technical improvements in seismic exploration and extraction efficiencies have ensured continuing growth in reserves at the resource frontier. Growth of alternative sources of energy particularly renewable such as biomass and solar might changed their modus operandi. Continuing criticism on their image globally will increase costs spend on company and brand image. The new oil reform bill that would allow the Nigeria to retake acreage that has not yet been explored by their owners. Fear of new players into the oil sector from China and Brazil that will break its dominance in Nigerian oil and gas sector. It may be the target for other competitors. 3.2 PEST ANALYSIS AND RISK ASSESSMENT If organisation is able to know that only one thing that constant in this world is change, it would be able to make plan for emergent situations by understanding its business environment. It is very important for any organisation that intends to operate in Nigeria business environment to conduct environmental analysis before and after starting a business. In fact, continuous process should be applied to all aspects of planning because Nigeria business environment is not predictable despite its attractiveness. The companys strategic planners must be able to identify its marketing environment that is made up of the following: The internal environment is the staff (or internal customers- hired contractors), office technology, finance, wages etc. The microenvironment is the organisational external customers, suppliers, distributors, other competitors etc. Company with strong internal forces can still set up strategies to dictate the mode of its operations. The macro-environment cannot be control but company can set up strategies that will help in adapting to the business environment, which is known as PEST FACTORS- Political Factors (and Legal), Economic Factors, Socio-cultural Factors, and Technological Factors (see appendix, fig 4). 3.2.1 POLITICAL/ LEGAL FACTORS political/legal factors influences the environmental regulations which participants in the oil industry must comply with. As with many factors in the general environment, changes that benefit one industry may damage others. For example, on the political front, government legislation can affect oil production by increasing the leasing charges on oilfield and then charge taxes per barrel produced. In a broader view, the following constitutes the numerous political and legal issues to be considered in any business environment: Political stability Risk of military invasion Legal framework for air pollution Intellectual property protection Industrial safety regulations Anti-trust laws Pricing regulation Taxation and incentives Wages legislation Hours work per week Mandatory employee benefits RISK ASSESSMENT ON POLITICAL/LEGAL FACTORS Nigerian political/legal history was characterised by military intervention, civil war, ethnic sentiments, and marginalisation. The country has a bad record in democratic set up and abuse of human right practices. The high level of corruption and political instability did not allow the rule of law to reflect in the society and also, the problem of instability in government policy due to lack of continuity in governance. Shell Plc assessed Nigerian business environment and capitalised on the corruption practices of the people. The company involvement in the execution of environmental activist (Ken Saro-wiwa) and eight Ogoni people that protested against the company reckless operations on their farm lands (in Niger Delta) cannot be dismissed. The political/legal factors do not possess any risk to Shell Plc if it knows is way. It is not necessary also for the company to follow all the legislations laid down for the Oil Industry. Legislations on industrial safety, air pollution control, wages, maximum hours work, mandatory employee benefits etc were not observed by the company. 3.2.2 ECONOMIC FACTORS the economy has an impact in all industries, from suppliers of raw materials to manufacturers of finished goods and services as well as all organisation in the service, wholesale, retail, government and non-profit sectors of economies. Key economic indicators include the following: Interest rates Unemployment rate Type of economic system in countries of operation Government intervention in the free market Comparative advantages of host country Exchange rates and stability of host country currency Efficiency of financial markets Workforce and labour cost Business cycle stage (e.g. prosperity, recession and recovery) RISK ASSESSMENT ON ECONOMIC FACTORS Nigeria operates mixed economy system which helps Shell Plc to manipulate the system because of government intervention in the economy. The interest rate does not pose any threat to Shell Plc because it did not take loans from any Nigerian banks. The companys bankers (the foreign banks) finance and support all their financial activities which favour Shell Plc because of devaluation in Nigerian currency. The major economic risk assessment to Shell Plc operating in Nigeria is increase in unemployment rate (especially in Niger Delta) due to exploitation of crude oil in that area that leads to job lost. The effect of this action has turned thousand of youths into militant groups that kidnapped foreign workers employed the company in exchange for money while some stole extracted oil from Shell. Despite the problem encountered from the militants, the company still operate in Nigeria because of prosperity attached to Oil Industry in Nigeria. 3.2.3 SOCIO-CULTURAL FACTORS -socio-cultural forces influence the values, believes, and lifestyles of a society. Examples include a higher percentage of women in civil service and more men engineering related jobs, holidaymaker, dual-income families, night out orientation, increases in the number of temporary workers, greater concern for healthy diets and physical fitness, greater interest in the environment, and postponement of having children. Some of these factors affect Oil Industry in Nigeria. RISK ASSESSMENT ON SOCIAL-CULTURAL FACTORS The risks that associate with Social-Cultural factors are many especial to the indigene of Niger Delta where eighty percent of the population are illiterate and have strong believed in their local tradition. Most of the indigene want to work for Shell Plc as a security officer or domestic assistant but their level of literacy does not matched the companys requirement. Shell Plc has employed some of the indigene on temporary basis and gives them opportunity to integrate within the system. The company give out scholarship to the indigene of Niger Delta to increase their level of literacy and give them sound orientations that meet the companys standard in order to tackle some of the problems associated with these factors. 3.2.4 TECHNOLOGICAL ANALYSIS development in technology leads to new products and services and improve how they are produced and delivered to the customers. Innovations can create entire new industries and alter boundaries of existing industries. Issues to be considered in technological analysis include the following: Recent technological development Technologys impact on product offering Impact on cost of production Impact on value chain structure Rate of technological diffusion RISK ASSESSMENT ON TECHNOLOGICAL FACTORS The only major risk on technological factors is problem of electricity power supply which can hinder technological advancement. This problem has been taken care for by using Power Generator to support the power system but add to the cost of production. There are no standard infrastructural facilities in place when Shell Plc moved to Nigeria but the government is now committed to modern technological development. Shell Plc imports most of its equipment with foreign expertise that operate it and then arranged with the expertise to train home workers. This process improves technological adoption and diffusion which also reduce the cost of production in long run. The company have used different methods to attract young talented graduates (in all disciplines but priority to engineering students) and trained them to become an expert. The number of Macro- environmental factors is virtually unlimited. In practice, the oil producers must prioritise and monitor those factors that influence the industry. It may be difficult to forecast future trends of any international business environment base on the macro-environmental factors with an accurate level of acceptability because of its complexity. 3.3 STRATEGIES EMPLOYED BY SHELL PLC FOR DEALING WITH CHALLENGES Shell Plc used corporate alliance strategy to shed off threats from competitors and to maintain its dominant position. The company operates joint venture with Nigerian government (NNPC) and also in partnership with Total, Chevron Corporation, and Exxon Mobil Corporation to form Shell Nigeria Exploration and Production Company (SNEPCO). The company was also in partnership with Globacom (a Nigerian telecommunication company) to create employment impact that will enhance the companys operations (Shell Plc) in Nigeria. Their strategy involved helping communities to leverage income and improve their quality of life in conventional ways, such as creating jobs and assisting to defray costs of social overheads such as roads, schools and hospitals. The company set up a committee that look into complain by the farmer(s). The committee assessed complains and compensate appropriate to their loss. The company also support the government initiative on amnesty by giving support to militants that submit their gun(s). The company want to support training or education of militants that surrendered their ammunition for to better life (see appendix, fig 6 for the images of militants surrendered their guns). The company is using Corporate Social Responsibility (CSR) to build its image locally and globally to show more concern on corporate governance and sustainable development. The CSR campaign by Shell Plc is to accelerate developmental and employment-generating opportunities across the Nation but especial Niger delta. Two special partnerships have been entered into by the company with USAID (United States Agency for International Development)- a 5 year worth $20 million agreement to develop Nigerian capacity in agriculture, health and business enterprise; and with Africare- a 3 year worth $4.5 million partnership that focus on reducing deaths from malaria. Security strategy was used to crush the militants through cooperation between Shell and State Security Forces but proved ultimately counterproductive as youth militancy increased and the security deteriorated across the wider Delta. The militants target (kidnap) the foreign workers and key officers in Shell Plc in exchange for money (compensation) which nearly put an end to Shell operations in that region (see appendix, fig 5 for images of workers kidnapped). The company outlined a new approach of CSR and community engagement which aimed to build a security-development nexus in partnership with local people. This approach has worked well for the company but now it has led to uncivil tensions along gendered and ethnic lines which undermine the prospect of a long term solution. 3.4 NIGERIAN COMPETITIVE ADVANTAGE- Porters Diamond Model SWOT analysis was used to determine the advantages, the level of attractiveness and risk involved in Nigerian business environment in line with the macro environmental factors for Shell Plc to operate in Nigeria (especially in Oil Gas Sector). Despite the problems and criticism encountered by Shell Plc, the company still operate and increase investment in Nigerian Oil and Gas Sector, and also extend partnership across the sector because of Nigerian comparative advantage. The Nigerian business environment possesses most of the qualities and characteristics that determine national competitive advantage as stated by Michael Porter in his theory (see appendix, fig 7 for porters diamond model). He identifies four sets of conditions that are essential in determining country competitive advantage: Factor conditions- human, knowledge, physical, technological and capital resources. Demand conditions- quality and quantity of home demand, demand that internationalised the domestic market will stimulate innovation faster in the domestic market. Related and supporting industries- availability of aid to trade (banking, insurance, transportation, warehouse and telecommunication). Firm strategy, structure and rivalry- local rivals and strategy that works with business environment. There are two other factors that can play an important role for any company to fully enjoy competitive advantage of any nation: chance (war, politics, financial movement and serendipity) and government (government policies, subsidies, training/education, and effective capital market). We have discussed most of these factors in our SWOT analysis and PEST analysis on Shell Plc. CHAPTER FOUR CONCLUSION What is Shell Plc comparative advantage in economic reform, competitiveness and economic governance when viewed in the light of activities initiated by other bilateral and multilateral donors, NGOs, and the Government of Nigeria? Shell Plcs broad comparative advantages are in government institutional strengthening and promoting private sector-led growth. Shell Plc has the most impact when it targets its activities in these areas at operational levels, where they can have sustainable effects, rather than at broad consensus-building (except in public awareness activities). In a vast bureaucratic environment like Nigerias, support must be highly selective, focusing on agencies and institutions in key leverage positions. These activities will complement the comparative advantages of other donors (who are operating at different sector but in partnership with Shell plc like Globacom and USAID). Globacom will continue to focus on telecommunication, and its technical and operational activities in the technology area can coordinate with Shell Plc. The USAIDs comparative advantage is in developing and implementing programs that actually address agriculture, health and business development. Shell Plcs CSR campaigns and partnership with international body (like Africare and USAID) will go a long way to redeem the image of the company internationally and also help to maximise their competitive advantage over others (like BP- British Petroleum). Their support to Nigerian government amnesty to educate and employ militants that surrendered their guns will reduce the number of youth that join militant group to survive. It is very important to be realistic about the strengths and weaknesses of any organisation when using SWOT analysis; it is of most important to identify the organisational current strengths and weaknesses then future chances. The macro environmental factors need to be mirrored with the organisational competitive advantage. Continuing evaluation of organisation strategy will help to check how effective they are in practice and then helps to inform of future environmental challenges. References Best, M. (1990) the New Competition: Institutions of Industrial Restructuring. Harvard University Press, Cambridge Dabbs and Bateson (1998), corporate impact of addressing social issues in projects of the developing world, Pro-Natural. Lima, Peru Davis, J (1998), a Commitment to Sustainable Development, WBCSD, London. Elkington, J (1998) Contributing to Society, a personal view. In Shell International, Ltd. Profits and Principles: does there have to be a choice? London. pp. 46-47. Environmental Resources Management (ERM), 1996, Camisea: Increasing Social Capital. London, May Faulds, E, F. Morrison and A. Wilkinson Shell, UK (1998) Engineering in a Show Me Frynas, Jedzrej George Oil in Nigeria: conflict and Litigation between Oil Companies and Village Communities Hamburg Lit 2000 Hastings, M, Corporate Incentives and environmental decision making: A case study and workshop report Centre for Global Studies, September 1999 Marketing Teacher (2008), Analysing the Environment- Five Forces Analysis retrieved on 08, December 2009 www.marketingteacher.com The World Fact Book (2009), Country with top per capita income retrieved on 03, December 2009 Wade, B.N
Subscribe to:
Comments (Atom)