Multinationals and Global Business essay Example | Topics and Well Written Essays - 1500 words

Multinationals and Global Business - Essay ExampleBefore the merger, these companies had been rivals and the process of bringing them together ensured that both of these companies were able to repose aside their rivalry and cooperate in an international level becoming among the most dominant oil and gas companies in the world. Since its formation, Royal Dutch lambast has continuously grown and evolved according to the different circumstances that it has encountered essentially ensuring its success where many others have failed.According to Jones (2005, p.164), in the twentieth century, firms sought to access acquaintance to develop technology that are distinct from but contemporary to those created by their parent companies. At the period of its formation, the two parts of Royal Dutch caseful were not merged, but were kept separate as a result of nationalist sentiments in both the Netherlands and the United Kingdom. The result is that these two parts of the accompany continued t o be run as separate entities with one based in The Hague and the other in London. The portion based in The Hague took on the certificate of indebtedness of production and manufacture while the one in London took over the transportation and storage of the products. Thus, in order to cater for nationalist sentiments in both countries, Royal Dutch Shell chose not to go ahead with the merger because to do so might have hampered its operations. This strategy can be link to Alfred Chandlers structure follows strategy theory which states that the structure of a company is often determined by its strategy and this is based on the formation of mugwump units that operate under the umbrella of a parent company (Chandler 1990, p.61 Gopalan and Stahl 1998, p.32). Thus, through its headquarters, Royal Dutch Shell was able to continue coordinating the activities of its Dutch and British units without compromising their independent nature.Royal Dutch Shell chose to begin its