Oil Energy by Aharoni
Royal Dutch Shell
Description by Aharonis criteria
International company
According to Aharoni (1971), Royal Dutch Shell can be operationally described as MNC with the help of three categories. These are:
Performance definitions – indicate the extent of the commitment of corporate resources to foreign operations and the amount of rewards from that commitment

Structural definitions – indicate number of countries in which the firm does business and the citizenship of corporate owners and top managers
Behavioural definitions – indicate somewhat abstract measure of multinationalisation and it refers mostly to the behavioural characteristics of top management

Performance definitions
Number of subsidiaries:
Company has about 44.000 service stations in more than 70 countries and more than 100 years experience in fuel development. In the manufacturing field Shell has interests in more than 30 refineries worldwide with the capacity to process approximately 3.4 million barrels of crude oil per day. Approximately 40% of their refining capacity is in Europe and Africa, 35% in the Americas and 25% in Asia-Pacific. As for supply and distribution, the company has more than 1,500 storage tanks and approximately 150 distribution facilities in approximately 25 countries, their infrastructure is well positioned for making deliveries throughout the world.

Sales:
Shell has managed to create an income in 2012 of around $27 billion and announced dividends of more than $11 billion for shareholders. The company generated $46 billion of cash flow from operating activities. This cash was used to fund capital investment and research and development programme which was about $1.3 billion.

Foreign income:
Revenue by geographical region indicates that Shell sells 39% in Europe, 34% in Asia, Oceania and Africa combined, 20% in USA and 7% in other Americas.

Foreign joint ventures:
Shell has many joint-venture partners in the USA (Shell

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Royal Dutch Shell And International Company. (June 12, 2021). Retrieved from https://www.freeessays.education/royal-dutch-shell-and-international-company-essay/