BUCHAREST UNIVERSITY OF ECONOMIC STUDIES [626563]

BUCHAREST UNIVERSITY OF ECONOMIC STUDIES
FACULTY OF INTERNATIONAL BUSINESS AND ECONOMICS

INTERNATIONAL MANAGEMENT FINAL PROJECT

INTERNATIONALIZATION OF ROYAL DUTCH SHELL
ON THE ROMANIAN MARKET

STUDENTS :
BAHNA SABINA
DASCALESCU ILIE-RADU
BRINZILA VALENTIN
PURCARU SIMONA ANDREEA
POPESCU RUXANDRA
REI, Series D, GROUP 961

TABLE OF CONTENTS

I. General presentation of the company
II. Planning
● Mission
● Strategic goal
● Strategic planning – SWOT analysis, competitors, product
strategy
● Department level analys is of tactical goals, tactical
planning, operational goal, operational planning
III. Organizing
● The organizational structure of the company, before and
after internationalization (chart)
● The identification of the type of organizational structure
and the justifi cation for choosing the respective
organizational structure

IV. Coordinating (Human Resources Policy)
● The General Manager
● The Marketing Manager
● The operational worker
V. Controlling

I. General presentation of the company

In 1833, shopkeeper Marcus Samuel d ecided to expand his London business. He already sold
antiques, but decided to try selling oriental shells, aiming to capitalise on the fashion for using
them in interior design. Such was the demand that Samuel quickly began importing shells from
the Far E ast, laying the foundations for an import -export business that would eventually become
one of the world's leading energy companies.
The market for oil remained confined to lighting and lubricants until, in 1886, the internal
combustion engine and demand fo r petrol (gasoline) arrived with Karl Benz and the first
Mercedes. By now the Samuel business had passed to Marcus Samuel junior and his brother
Sam. They exported British machinery, textiles and tools to newly industrialising Japan and the
Far East and on return imported rice, silk, china and copperware to the Middle East and Europe.
In London, they traded in commodities such as sugar, flour and wheat worldwide.
It was during a trip to Japan that Marcus became interested in the oil exporting business based in
Baku, Azerbaijan, which was then part of Russia. Marcus and Sam commissioned a fleet of
steamers to carry oil in bulk, including the Murex which, in 1892, became the first oil tanker to
pass through the Suez Canal.
The company was formed in 1907 throug h the amalgamation of the Royal Dutch Petroleum
Company of the Netherlands and the "Shell" Transport and Trading Company of the United
Kingdom. Until its unification in 2005 the firm operated as a dual -listed company, whereby the
British and Dutch companie s maintained their legal existence but operated as a single -unit
partnership for business purposes.
Shell's primary business is the management of a vertically integrated oil company. The
development of technical and commercial expertise in all stages of th is vertical integration, from
the initial search for oil (exploration) through its harvesting (production), transportation, refining
and finally trading and marketing established the core competencies on which the company was
founded. Similar competencies were required for natural gas, which has become one of the most

important businesses in which Shell is involved, and which contributes a significant proportion
of the company's profits.
The operations are divided into businesses: Upstream, Integrated Gas and New Energies,
Downstream.
 Projects & Technology organisation manages the delivery of Shell’s major projects and
drives our research and innovation. It is also responsible for providing functional
leadership across Shell in the areas of safety and envi ronment, contracting and
procurement, wells activities and greenhouse gas management.

 Upstream organisation manages the exploration for and extraction of crude oil, natural
gas and natural gas liquids. It also markets and transports oil and gas and operat es the
infrastructure necessary to deliver them to market.

 Integrated Gas organisation manages our liquefied natural gas (LNG) activities and the
production of gas -to-liquids (GTL) fuels and other products. It includes natural gas
exploration and extracti on, when contractually linked to the production and transportation
of LNG, and the operation of the upstream and midstream infrastructure necessary to
deliver gas to market. It markets and trades natural gas, LNG, crude oil, electricity,
carbon -emission ri ghts and sells LNG as a fuel for heavy -duty vehicles and marine
vessels.

 In New Energies , we are investing in opportunities where we believe sufficient
commercial value is available. We focus on new fuels for transport, such as advanced
biofuels, hydrogen and charging for electric vehicles; and power, including from low –
carbon sources such as wind and solar as well as natural gas.

 Downstream organisation manages different Oil Products and Chemicals activities as
part of an integrated value chain, includin g trading activities, that turns crude oil and
other feedstocks into a range of products which are moved and marketed around the
world for domestic, industrial and transport use. The products we sell include gasoline,

diesel,heating oil, aviation fuel, mar ine fuel, biofuel, lubricants, bitumen , sulphur and
petrochemicals.
Shell at a glance in 2017:
o 70+ countries we operate in;
o 86,000 employees on average;
o 66 million tonnes of LNG sold during the year;
o 21 refineries we have interests in;
o 3.7 million barrels of oil equivalent we produce per day;

Financial performance in 2017
o Revenue: $305.2 billion;
o Income: $13.4 billion;
o Capital investment: $24 billion;
o Investment in research and development: $922 million
II. Planning

Mission
Shell is an international energ y company that aims to meet the world’s growing need for more
and cleaner energy solutions in ways that are economically, environmentally and socially
responsible . Shell’s purpose is to power progress together with more and cleaner energy
solutions.
We be lieve that rising standards of living for a growing global population are likely to continue
to drive demand for energy, including oil and gas, for years to come. At the same time,
technology changes and the need to tackle climate change means there is a t ransition underway
to a lower -carbon, multisource energy system.

Objectives :
 to provide a world -class investment case. This involves growing free cash flow and
increasing shareholder returns, all built upon a strong financial framework and resilient
portf olio;
 to thrive in the energy transition by responding to society’s desire for more and cleaner,
convenient and competitive energy; and
 to sustain a strong societal licence to operate and contribute to society through a shared
value approach to our activit ies.
Premises :
The majority of our research focuses on the near term , to help our existing businesses to reduce
capital and operating costs, and to enhance customer products and services . This research also
focuses on ways to lower energy consumption. For the long term , we aim to quickly acquire
deeper insights into the science and engineering that underpins new energy technologies that can
help create a lower -carbon future .
We recognize the significance of climate change, along with the role energy plays i n helping
people achieve and maintain a good quality of life. A key role for society – and for Shell – is to
find ways to provide much more energy with less carbon dioxide.
Today, Shell is still primarily an oil and gas company, but with a long tradition o f innovation.
We know that long -term success depends on our ability to anticipate the types of energy and
fuels people will need in the future and remain commercially competitive and environmentally
relevant.
Lines of action :
Our natural gas businesses giv e governments the option to reduce emissions from electricity, by
replacing coal, and we have an interest in a wind business with over 1,000 megawatts of
capacity. We have also invested heavily in the lowest -carbon biofuel, through our Raízen joint
venture with Cosan in Brazil, and we continue to explore second -generation biofuels options. In
2016 we created a New Energies business to further explore investment opportunities in energy
solutions that combine wind and solar power with gas, for example, and ne w ways to connect

customers to energy . Today, natural gas – the cleanest -burning hydrocarbon – makes up more
than half of our production .
Shell has been a technology pioneer for more than a century. Today we are one of the largest
investors in research an d development (R&D) among international oil and gas companies,
spending more than $1 billion each year to turn ideas into commercially viable technologies.
Thousands of employees across the network work on R&D projects that include turning natural
gas into more efficient and cleaner fuels, unlocking oil from rock layers thousands of meters
below the sea surface, and reducing Shell’s net carbon footprint.
Our collaborations range from developing advanced fuels to improving data processing within
the IT indus try. For example, in the USA, we are supporting the Energy Biosciences Institute’s
research into using biochemical processes to store and deliver energy. At the same time, we have
extended our support for Greentown Labs, the largest clean -tech incubator in the USA.
We actively support open innovation through programmes such as Shell GameChanger, Shell
Ventures and Shell TechWorks, to help speed up developments in areas such as natural gas,
biofuels, solar power, water treatment, CO2 management and energy ef ficiency.
Values :
Shell’s core values are honesty, integrity and respect for people. The Shell General Business
Principles, Code of Conduct (clarifies the standards company expect their employees to follow
and the behaviours it expects them to adopt), and Code of Ethics help everyone at Shell act in
line with these values and comply with relevant laws and regulations. The firm also strive to
maintain a diverse and inclusive culture within the company.
Strateg ic goal
Royal Dutch Shell intends to achieve a ma rket share of around 6-7% over the next three years
through annual investments of around 15 million euros (average) in the construction of new
stations and in R &D.

37%
27% 16% 12% 8% MARKET SHARE
OMV PETROM ROMPTEROL LUKOIL MOL OTHERSStrategic planning
Our strategy on the Romanian market is to have a continuous growth in f ree cash flow, to try to
be profitable starting with the second year of activity, to offer quality fuel according to the
market demand, and to try to offer the Romanian customers incentives to change to LPG. Hence,
this can only lead to a diversification s trategy .
The target market of our production represents consumers with medium and large incomes that
use different types of cars, but also those who understand how important fuel and quality
consumables in the life cycle of their vehicle are .
The executio n of our strategy is founded on becoming customer -centric, focused on delivering
higher, more predictable, returns to investors. Our key strengths include the development and

Fig 1. Market share pie chart for the Romanian local market
application of technology, the financial and project management skill s that allow us to deliver
large field development projects, and the management of integrated value chains.
To identify strengths and weaknesses, opportunities and dangers, we used the SWOT analysis
after we identified our main competitors from the Romani an local market : OMV PETROM SA,
MOL Magyar Olaj – és Gázipari Nyrt. , Rompetrol (part of KMG International) , Lukoil Romania

SRL and also a recent entrant on the market State Oil Company of Azerbaijan Republic
(SOCAR ).
SWOT Analysis
Strengths
 Having the la rgest financial capital on the Romanian market, the company can make
moves on the market that other competitors could hardly afford (mass acquisitions,
innovation and superior quality products resulting from massive investments in research
and development along the time);
 With the help of the know -how developed continuously in hundreds of years and the
high-qualified management, we c an ensure the highest productivity in an environment
that promotes honesty, integrity and respect for our employees and our cl ients.
Weaknesses
 Lack of refineries in Romania in the first phase of development which will increase costs
(higher transportation costs) for fuel because we will have to import it from the
Netherlands.
 Lack of flexibility and adaptation due to the way of doing business under the current
CEO of the company which focuses on a more concentrated business model (the
standardized one who succeeded on many other markets ).
Opportunities
 Fuel prices have been kept high due to the gradual increase in the country's economy
coupled with rising oil barrel prices. These in line with the growing number of cars (new
car sales increased by 20% compared to 2017 in the first 11 months of 2018) offer a
favorable environment for development and profit 1.
 Lack of BIG OIL (BP, CHEVRON, SOCAL, EXXONMOBIL) companies in the region
allows us to gain market share easily , gaining power which will lead to maximize d
turnover.

Threats
 In every country, but especially in a more conservative one such as Romania,
governmental regulations can prove to be harmful to the gas and oil industry. High taxes
under the pretext of health and safety requirements in combination with a government
which isn’t always as democratic as it is desired, could lead to big losses for companies
such as Royal Du tch Shell on the Romanian market.
 The majority of oil and gas employees are of the baby boomer generation and are set to
retire within the next ten years, taking with them all their experience and knowledge to
drive oil and gas production. In a market such as Romania, where the population is
decreasing and getting older at the same time as days go by (due to a big number of
emigrants and low fertility rate), this aspect could pose great problems in finding
workforce for Shell.

After the analysis of the fou r factors, we can conclude that the right and market -adapted strategy
(a market that can be penetrated successfully) is the Strengths and Opportunities (Maxi -Maxi)
strategy. We will use all the necessary financial, image and production resources as well as the
opportunities and facilities offered by the business environment to catch up the main
competitors from the Romanian market.
Being one of the largest energy companies in the world, Royal Dutch Shell has important capital
that enables this internationa lization. The company also has the tools and experience to penetrate
the Romanian market.

Product strategy
As far as Porter's strategies are concerned, we will focus on the overall cost leadership strategy,
trying to minimize costs to the point where we c an maintain quality above the market average.
Investing in quality products will provide us with a low cost of long -term maintenance, proven
by the long experience in the other markets we are active in .

Regarding Miles and Snow Strategies, we choose Prospe ctor because we will invest in research
and development and encourage the switch to other less polluting alternatives (such as LPG).
Commercial department

1. Tactical goal: supply of products that outperforms the Romanian market average quality
along with the distribution of oil and gas according to market demand and with an organic
expansion by building from scratch our gas stations.
2. Tactical planning:
Actions to be done:
– Purchasing of land and materials for the construction of 30 new gas stations (in the first year) ;
– Rent land for 15 small LPG only stations;
– Concluding a contract with a company specializ ed in fuel storage (distributing from that place
to all Shell stations in Romania );
– Importing fuel from the Netherlands through our own distrib ution and transport ation network.
Period : 1 year
Resources needed :
 financial: a budget of 700.000 € for each new gas station and 15.000 € (including rental
for 1 year) for each of the LPG only stations. Approximate total cost : 21 mil. € + 225 000
€ = 21.23 mil € ;
 human: Chief Commercial Officer, assistant manager , logistics and sales manager,
speciali zed construction workers and engineers from Netherlands and China will be
relocated to Romania during the works.
Responsible : Chief Commercial Officer (CCO)

3. Operational goal :
Supplier relationships and contracts office : supply chain management , develo ping strong
relationships with suppliers.
Logistics and maintenance office : finished products distribution, manage daily operations
4. Operational planning :
Supplier relationships and contracts office
Actions to be done : finding and contracting the best offers of suppliers, placing orders and
providing a long -lasting partnership.
Resources:
 financial: approximately 50.000 Euro/year for salaries
 human: 4 commercial back office employees
Period: 1 year
Responsible : the head of the office
Logistics and maintenance office
Actions to be done:
Distributing finished products in a timely manner, to ensure the maintenance of technological
equipment in the gas stations and the sale s process .
Resources:
 financial: approximately 780.000 Euro/year fo r salaries
 human: logistics manager, 3 engineers, 3 employees/station x 30 = 90 operational
workers in the gas stations;
Responsible : the head of the office
Innovation and technology are vital to providing a wider, more sustainable mix of energy
resour ces for the world’s growing population. Thousands of Shell scientists, researchers and

engineers around the globe are working to improve the efficiency of our products, processes and
operations, and to commercialize technologies for the transition to a low -carbon energy future.
Expenditure on research and development from 2010 to 2017 (in million U.S. dollars)

Tactical goal
The projects that we have involve collaborations with public or private entities, including
universities, government laboratories, technology start -ups and incubators. This collaborative
approach to innovation with partners inside and beyond the energy sector helps spark new ideas
and accelerates their development and deployment.
Our collaborations range from developing advanced fuel s to improving data processing within
the IT industry.
Tactical planning
Actions to be done:

– Research on companies, universities, laboratories, start -ups and incubators that might
want to collaborate with us on long term
– Establish meetings with them in or der to set up a partnership
– Follow up on the meetings
– Removing the technological, financial and environmental obstacles to the industrial
development of biomethane.
Period:
– One year for research, cold calling, meetings and contracts signed, from 1st of Feb ruary
2019 to 1st of February 2020
Resources:
– Financial investments of 1000 euros on presentation maps and materials of promotion
– Human resource allocated for this: 20 people
– Final responsible: Manager of the R&D department
GANTT example for September an d October 2019

Operational goal

– Listening & influencing: Maintain and continue to build a deep understanding of our
stakeholders’ needs. This means the entire Shell team must be well connected and nurture
strong relationships with our stakeholders and research partners. This translates to lots of
travel and face -to-face contact, hundreds of phone calls, thousands of emails and ongoing
active participation in social media.
– Delivering results: Investing in great research is only the starting point. We wi ll market
and deliver research outputs via high quality information products and services. These
may be in electronic and hard copy formats and may include events like seminars and
workshops.
– Partnerships & collaboration: All our investments will rely on partnerships with research
providers and other investors to deliver outcomes to rural industries. This Strategic R&D
Plan signals our intention to further strengthen our commitment to partnerships and
collaborations.
– Performance culture: Our performance is dependent on the skills, knowledge and
commitment of its staff and Board. This Strategic R&D Plan commits us to building a
high-performance culture within the organization.
– Efficient business practices: We commit to building efficient business processes. This is
important in ensuring that our partners and stakeholders have a good experience when
they interact with us. It is also important in ensuring that expenditure on R&D is
maximized.

Operational planning

Actions:
– Setting 30 cold calls from each memb er of the team in order to establish meetings with
possible partners
– 20 meetings/week from the 30 cold calls for establishing new partnerships
– 5 contracts signed from the 20 meetings
– Conversion rate 66.67% from calls to meetings
– Conversion rate 25% from me etings to contracts signed
– Allocate a team of 2 -3 people for each member responsible for one operational goal that
can will do cold calling, establish meetings and sign contracts
– Tracking meetings 2 times/week with the final responsible of the department
– 1 department meeting with all the people in the R&D department
– 1 meeting for each of the teams

Period:

– 20 years, from 1st of February 2019 to 1st of February 2039

Resources:
– 40 people on the department starting with 2020
– Materials: presentation maps
– Final responsible: Manager of the R&D department

Human Resources Department

1. Tactical goal
Concerning HR, the main, tactical goal has to be employment of qualified, efficient and dynamic
personnel, for a good management of Shell’s activities in Romania. A lso, employee training is
incorporated in the main goal, since this is the only way that leads to the attainment of general
tactical goals, such as the consolidation of the leader position in the Romanian market and the
delivery of value to consumers.
2. Tactical planning
The actions to be taken for implementing the above -mentioned tactical goal of the HR
department are as follows: creating job descriptions and organizing selection interviews and
contests; recruiting only qualified people, with high experienc e in the field and qualities that fold
onto Shell’s organizational culture; organizing well -equipped training programs; drawing up
contracts and additional paperwork necessary for employment.
3. Operational goal
One operational goal that is crucial for the HR department and is incorporated into recruitment
office’s responsibilities is the passing of each candidate through all for steps of employment:
recruiting, selecting, training and motivating, since all of them are very important and thus
impossible to be skipped if a good personnel environment is wished for.

4. Operational planning
All four steps above mentioned have to be well organized according to each employee category.
The recruitment has to be done either externally (headhunting for the CEO) or internal ly, through
websites. CVs will be asked for and interviews and tests will be put together for the Selection
step. Training is yet again vital, for making sure all employees are well prepared for the job, thus
training programs are quite necessary. Finally, last but not least, motivating the employees has to
be an ongoing process that assures the well -being of the work environment per total.
For all this, some resources need to be employed, such as pieces of technology (especially for the
training programs), standard documents such as questionnaires and personality tests (for the
selection process), financial resources (for motivating employees – advantageous wages and
other benefits), and human resources to deal with and organize all the above activities. Th e main
responsible person will be the Manager of the Human Resources department.
Marketing department

1. Tactical goal
Brand recognition and brand awareness are the most important tactical goals while entering a
new market like Romania. Getting the Shell n ame in front of the national buying public has long
been a priority for us.
2. Tactical planning
In terms of tactical planning we will implement a marketing strategy to promote the brand as a
whole and to highlight the quality of our products. Moreover, we w ill build strong CSR
campaigns. Our mail topics will be pollution -related initiatives, poverty alleviation and health
improvements.
The responsible for thill will be the marketing manager. In order to achieve this tactical goal, we
will need 2 years.
3. Operational goal

The operational goal for Royal Dutch Shell` s marketing department is to create strong marketing
campaigns in order to promote the company on the local market. By the end of the current year
we want to increase the Brand Recall with 30% an d Brand Recognition by 60%.
4. Operational planning
In terms of promoting the brand we will use both innovative and award -winning advertising.
Moreover, we will introduce Drives Consumer Loyalty Rewards program which will provides
both instant rewards to the consumer and marketing message to drive future business. Additional
to this we will allow wholesalers to create additional marketing and advertising programs to meet
specific market needs, while also reducing out -of-pocket advertising and promotion costs.
On the other hand, speaking of R&D we want to conduct market surveys to find out the
preferences and needs of our consumers. Moreover , we want to expand the company in Romania
by 30 % by the end of our second year of activity.
For both init iatives the ma rketing department will be in charge. The target time to achieve these
objectives in two years.
Financial Department
Tactical Goal: Main tactical goal for Financial Department of Shell Romania is to analyze
project’s feasibility, profitability, NPV’s, IRR , cost -effectiveness indicators, as well as
concluding if a possible project could add actual value to the company. Financial Department
will prepare all legal financial reports for Shell Romania in Romanian legal form, but also in
English standards in ord er to offer them to the Royal Dutch Shell mother -company. Also,
financial department’s goal is to actually integrate all departments payments and receivables in
order to ensure a constant & big cashflow, but also will prioritize payments and projects by th eir
importance & possible benefits they will bring to the company. The main and most important
goal is actually spreading resources in the most effective way in order to ensure company’s big
pace growth in Romania, but also coordinating the resources among departments. Finding
sources of capital at the minimum costs in order to implement planned project is an another
Tactical Goal that Shell Romania’s Financial Department has to do.

Tactical Planning:
 Actions to be done:
o Preparing semi -annual financial r eports according to Romanian Legislative Form
and also for English Legislative Form in order to send them to mother company &
Preparing annual financial reports at the end of the financial year also in
Romanian and English legal form in order to be submitt ed at the annual meeting
of the CFO’s in Haga’s Headquarter.
o Preparing quarter report about project’s profitability and efficiency indicators in
order to be sent to the mother company for elaborating the strategy for next 6
months.
 Period: 3 Financial Ye ars; (6 periods of 2 semiannual financial year for the submitted
financial reports)
 Resources:
o Financial resources: in order to pay the Financial Department’s employees, who
will elaborate the company’s financial reports.
o Human resources: 1 CFO – main p erson in charge, 10 financial analysts, & 10
accountants.
Operational Goal:
o Financial Analysis Office – The office is in charge for making monthly analysis of the
financial situation of the company in Romanian legal form in RON; and in English legal
form in Euros; The office is also in charge for elaborating and submitting obligatory
quarterly projects to the mother company in English Form in Euros; The office is also in
charge in submitting mandatory legal Financial Statements to Romania’s state authoriti es
in Romanian form & language in RON.
Operational Planning:

o Monthly – Financial Situation of the company & efficiency & profitability indicators of
all ongoing projects.
o Quarterly – Elaborating and submitting quarterly financial analysis of the company and
its project , sent to the mother company’s headquarter
o Annually – Elaborating and submitting annually financial analysis of the company and its
project , sent to the mother company’s headquarter; & also elaborating legal mandatory
financial statements like Income Statement & Balance Sheet & Cashflow Statement to
the Romania’s State Autorities.
III. ORGANIZING

The organizational structure of the company, before and after internationalization (chart)

Fig 4.The organizational structure of the compan y before internationalization

Fig 5. The organizational structure of the company after internationalization

The identification of the type of organizational structure and the justification for
choosing the respective organizational structure
For expan ding Shell company in a new market, in this case Romania, we are using the same
structure that we have approached on other markets, the geographical organizational structure.
We have one CEO and five departments each one with its well-defined role. This st ructure brings
workers together in geographical divisions. Each division operates as if it is a company in itself,
complete with the personnel to carry out various functions related to the department that they are
representing.
Under the global geographic structure, we are organizing our global operations on the basis of
geographic regions, as you could see in the previous pictures. We chose this because Royal
Dutch Shell is a mature business with a narrow product line. Moreover, it allows the independent

heads of various geographical subsidiaries to focus on the local market requirements, monitor
environmental changes, and respond quickly and effectively to them. So it helps us to be able to
understand demand, and also how to market what we are selling.
The corporate headquarter is responsible for transferring excess resources from one country to
another, as and when required. The corporate human resource division also coordinates and
provides synergy to achieve company’s overall strategic goals between v arious subsidiaries
based in different countries. The geographical grouping focuses all worker efforts solely on the
objectives of their own division, increasing results. However, we are considering this structure a
suitable one because the product lines are not too diverse, and resources can be shared to one
country from another.
On the other hand the geographical organizational structure comes also with a few
disadvantages. First of all, geographical divisions duplicate both activities and infrastructure .
This uses resources while sacrificing economies of scale. We are trying to reduce some of our
costs by renting instead of buying some of the spaces. Moreover, we are planning a gradual
extension based on the market demand.
IV . COORDINA TING (Human Resources
Policy)

Shell will enter Romania through Foreign Direct Investment, by establishing a new subsidiary,
most likely in Bucharest. Thus, the personnel recruiting process will be adapted to Romanian
norms, as well as for the selection, training and motivating processes. Integrating Romanian
ways and culture in the most important aspects of the company is the surest way of achieving
success in this market. As a result, for the general manager, the head of the department of
Marketing, and the operatio nal worker, the employment process will go as follows.
1. The General Manager
Recruiting

The main basis of recruitment for the CEO is naturally the expertise of the candidates, and their
abilities to focus orient the company towards innovation and positive r esults. The Manager will
be chosen necessarily from Romania, since experience has taught us that a manager who knows
the local country is always better than any equally -skilled alternative. As for the process of
recruitment itself, a headhunting agency wou ld be the most suited for the job. We will find out
with are the best ones in Bucharest and employ one to find our General Manager.
Selection
The selection process deals with finding the right candidate for the job, one that has all the
capabilities and th e knowledge necessary, as well as the qualities and values suited for the Shell
culture. The selection is based on several principles, such as: equal opportunities for each
candidate, lack of gender -based, racial, or religious discrimination. The selectio n process is
transparent, objective and efficient.
Some criteria need to be met for the candidates, apart from experience in the field. The chosen
General Manager must have: • The ability to deal with complex situations requiring the
assessment of prioriti es under pressure. • Excellent interpersonal and team working skills. •
Strong written and verbal communication skills and the ability to interact with people at all
levels both internally and outside the business. • Excellent delegation skills and the abi lity to
create a work climate where peop le are empowered to take action.
Training
The training period is of great importance because it is the first time when the Manager actually
comes into contact with Shell’s organizational culture. It will be focused o n him/her gaining the
technical abilities that aren’t as common in Romania and it will be set in the company’s
headquarters in The Netherlands. For a period of three months, the manager will be trained in
several areas: finance and accounting, human resour ces, IT, marketing, global awareness, and,
probably the most important, he will be taught Shell’s culture, mission and vision.
Motivating
Since motivation of an employee can be looked at from the perspective of a mathematical
multiplication between expec tations, effort, and value of the reward, and since motivation is

one’s option of doing an activity which will be rewarded in one way of another, we will motivate
our General Manager through: wage – 50 000 euro per year, benefits, such as paid vacations, a nd
the option to become a stakeholder in the company. All these aspects are agreed upon beforehand
and are found in the employment contract.
2. The Marketing Manager
Recruiting
The Marketing Director of Shell will be responsible for developing and implementi ng marketing
strategies that lead to the attainment of the company’s sales objectives. The recruitment source
will be external ones, such as specialized websites where possible candidates can apply, after an
announcement is posted.
Selection
The selectio n process will consist of two steps. The first one will be an interview in which the
knowledge about the company as well as compatibility between the candidate and Shell’s culture
are being tested. The second round will consist of a contest in which every candidate has to come
up with an idea to promote Shell’s image on the Romanian market according to the company’s
goal. The best idea will win and that’s how our Marketing Manager will be chosen.
Apart from the two tests, every candidate must meet some cri teria: they must have 10 years of
progressively more responsible positions in marketing, preferably in a similar industry in two
different firms, Bachelor's Degree in Marketing or a related field , be a strong, effective
communicator, have h ighly developed, demonstrated teamwork skills , and the a bility to
coordinate the efforts of a large team of diverse creative employees.
Training
As for the General Manager, training for th e Marketing Director is just as crucial, so, for a
month, the new manager has to learn about the values of the brand, mission and vision of the
company, the marketing strategies used by Shell in the other countries in which we operate and
how they can be b est adapted to the Romanian market.
Motivating

For the Marketing Manager, the annual salary will be 40 000 euro per year, and, as the General
Manager, he/she will be granted with benefits according to performance, such as paid vacations,
the opportunity t o become a stakeholder of the company and a lot of promotion opportunities.
3. The operational worker
Recruiting
Since for the operational worker the stakes are a bit lower, due to his little responsibility in the
company, the recruitment process can be simpl y based on a job’s website such as www.ejobs.ro
where the candidates can apply, and their CVs can be later on analyzed.
Selection
As mentioned above, the selection process will be CV and interview – based, after whic h the best
candida tes for the job will be chosen. The candidates must have superior education, a good
command of English, and work well in a stressful environment. Younger workers are also
preferred.
Training
Due to their few responsibilities, the training period mustn’t be prolonged too much. Two weeks
will be allocated for those lacking experience to learn how to best do their job according to
Shell’s standards.
Motivating
Even though an operational worker’s role is not as crucial, he must still be kept m otivated,
through a long -term contract, fixed, advantageous wage, percentage of sales (10%), a car if
necessary, and promotion opportunities. These factors will definitely keep him working hard
while at the same time enjoying his time at the job.
V . Contr olling
Shell Romania is a promising international project, with a huge potential and it represents quite an
expensive and risky investment for Royal Dutch Shell. That’s why, in order to ensure that the subsidiary

will face its objectives and performance le vels in all departments, the company will need a well –
established and organized system of controlling the performance level. In this way, we’re considering
different types of control, that we’ll be using in Shell Romania. They are:
 Direct control – By dir ect controlling we assume the implication of the managers straightly into
the process of decision taking on some aspects, and also the implication of mother company, in
our case Royal Dutch Shell, in the subsidiary company, Shell Romania, in taking some st rategical
decisions and actions. Many international companies use direct control when we’re speaking
about monthly meetings with subsidiary representatives, or by directly involving in decision
making process of Shell Romania by a video call, or something similar. Also, there are other
instruments that use direct control, for example sending top managers to the subsidiary company
by Royal Dutch Shell, on key positions in order to ensure that mother company’s policy is
followed rigorously. This type of cont rol is more expensive, but it ensures more efficiency and
transparency in decision making process.
 Indirect Control – By indirect controlling we assume the process of letting the subsidiary, or a
employee to take actions without taking advices or decisions from manages, or mother company,
but to send them reports with results. This type of decision -making process is less expensive and
time consuming, but it can neglect some serious concerns that can be observed by superiors too
late.
 Preventive Control – Preventive control is mainly used as an insurance, because its aim is to
plan the process in order to eliminate the risk, or at least to minimize it. Usually we use
preventive control more regarding the production process, when we analyze the raw materials in
order to have the highest quality on the market, also the refining process and the final products
are very well tested before being exposed in the market.
 Current Control – Is the control type in which the management is implied directly in solving
some problems, in order to not let them deviate from the planned route. This type of control is
more used during the critical moments, or very main projects, when it’s very important for the
company’s objective attendance.
 Verification Control – It’s the type of control which implies the verification of the results in
order to ensure their performance. This type of control is vital for all departments in order to
ensure their efficiency and profitability. This type of control is very important for financial
department, because the financial results can be evaluated & and afterward controlled just after
the end of the financial year.

We consider the 3 main performances that are vital to be controlled, using above named instruments, in
Shell subsidiary in Romani a. They are:
 The Financial Resources – Being a big investment project for Royal Dutch Shell, Shell
Romania’s financial indicators are very important in order to convince the shareholders of its
efficiency and profitability. In this way, starting from the profitability indicator, balance
sheets, income statements, and other financial reports, the company’s success will be
controlled directly by the annual meeting of the subsidiary’s CFO at Haga, Netherlands with
mother company’s financial department’s repre sentatives in order to make the report
regarding the company’s results at the end of the financial year. This means that the
company’s financial performance will be controlled Directly and by Verification once a year.
Also, the subsidiary will be verified indirectly by sending semi -annual reports to the mother –
company, and also reports at the end of each major project in order to verify its Internal Rate
of Return, Profitability Rate and also the company will be preventively controlled by sending
a Major P rojects report before its beginning, which will include its Net Present Value, in
order for the mother company to verify if it’s worth implementing it or not. Also, during the
major projects, like the construction of the refining plant, the process will be directly
controlled from financial point of view by the CFO or his managers, in order to ensure the
projects expenses are not expanding beyond predetermined limits. By controlling financial
performances in these way, mother -company will ensure that the su bsidiary will be as
profitable as possible during the first 3 years, in order to return the investment made, and
afterwards the control method will be changed on a more relaxed system of financial control.

 The Quality Resources – Royal Dutch Shell is wor ldwide recognized by the high -quality
standards of oil products they offer, that’s why the quality performance of the Romanian
Subsidiary is very important to be correctly and straightly controlled. The production process
will be directly and currently co ntrolled by the production sub -department, which will make
weekly reports that will be sent monthly to the mother company’s quality control department.
Each product exposed to the market will be verified and certified by the quality department.
Also, for t he production department, we will use preventive control, first of all of the raw
materials imported, and also verification control of the finished good, in order to prevent
some discrepancies between the stated quality and the products actual one. By prev entive

analysis of the raw materials before entering the production process, and of the verification
control of the finished goods before being sold, Shell Romania will ensure its highest quality
products reputation, and will eliminate possible issues. Mot her Company will directly control
the quality performance by making yearly inspections in the subsidiary company, and also
indirectly by receiving the reports of quality monthly.

 Human Resources – The company’s real performance is driven by its employees , so it’s
vital for Shell Romania to hire top qualified personnel in order to attain its high objectives. In
this way, Royal Dutch Shell will directly control the hiring of the subsidiary’s CEO, CFO,
COO & top managers, from mother company, in this way ens uring that the initial process will
be in the hands of already well -trained professionals that will successfully lead Romanian’s
subsidiary on the mother -company’s path. Human Resources performance will be under
preventive and direct control, when hiring a person, in this way Shell Romania will hire just
those people who are suitable for the position they’re opting for. HR department will make
semi -annual reports about hiring, that will be transferred to mother company, in this way HR
of Shell Romania will be indirectly controlled by Royal Dutch Shell. Also, during the hiring
process the employees will get the performance level they need to maintain during the year in
order not to get penalized but also, the performance level needed to be attained in order t o get
bonuses. In Shell Romania, there will be a lot of incentives regarding group targets, in this
way it is very important to control the performance of each employee. That’s why Shell
Romania will use direct and current control i n HR performance, meaning that each Manager
will quarterly fulfill a database of his subordinate’s performance level achieved during those
3 months, that will be eventually sent to the mother company. In this way Romania’s
subsidiary HR performance is indi rectly controlled by verification of the results.