British Land Company and Shell Petroleum Development Company: Companies Comparison

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Comparisons

The comparison of the common features between the stakeholders of BLC and SPDVC could be seen in terms of the following:

Employee base

Both companies have large and heterogeneous employee base, whose work contribution is critical for the success of both these companies. The output and motivation levels of employees at every level are important for the successful running of both these companies.

Suppliers

Both these companies share good rapport and understanding with their vendors and suppliers and practice excellent vendor support and streamlined payment practices.

Community welfare

Since the growth and prosperity of both these companies are linked with working harmononiously with the local populace and taking care of their needs and aspirations, both these companies have invested heavily in local community welfare and employment generation schemes.

Governments

In both these companies, respective governments play a crucial role in their supervision of the businesses. In the case of BLC, it is the British Government who needs to protect the company’s interests, since BLC is the second largest property owners in UK, and in case of SPDC, it is the Nigerian Government which holds oil extraction rights in Nigeria, and therefore, SPDC needs to seek permission from this Government before staring exploration of oil or gas in the country.

Competitive interests

Both the companies have struck excellent understanding with their competitors and strive to operate within ethical and legal jurisdiction.

In the case of SPDC, the controls exercised by Oil Producing and Exporting Countries (OPEC) render control and regulatory aspects in the conduct of business.

Contrasts

The contrasting factors between the two companies could be envisaged as follows:

Principle shareholders

In the case of BLC, the major shares are held by Groups, or individual shareholders. However, SPDC is a subsidiary company of Royal Dutch and Shell Group. The latter also happens to be the main shareholder of Royal Dutch, so, by default, SPDC, becomes a subsidiary of Shell Group also.

Community interests

BLC being a local company, has robust community settings and offer deeper commitments to local community health and welfare schemes, as compared to SPDC, whose community record needs to be improved.

Environmental matters

SPDC being in the energy sector, the aspects of pollution and disposal of industrial wastes are major concerns, however, with a good ecological management system in place, this is not a major concern in BLC.

“Construction is rigorously managed to achieve efficient and quick completion with the highest health and safety standards.” (Developments: We Commit to Projects on the Basis of Pre Lets or Anticipated Market Demand, Creating Quality Assets for the Portfolio. 2008).

Employees

At BLC, employee compensation is regulated and monitored by Steering committees and are maintained at industry levels; however in recent years, SPDC have witnessed criminal activities, law and order problems and terrorism, causing slump in salary levels.

“In areas where armed crime and lawlessness are prevalent, appropriate policing is provided by government, in line with its legal obligation.“ (Security in Nigeria).

However, this has caused detriment to motivation and productivity levels of employees, it is, therefore, essential that Company takes necessary steps to redress the situation and hold employee attrition to the minimum.

Competitive interests of the companies

BLC operates in a competitive and open market with its rivals belonging to the constructions, property management and land estate dealing business. However, global oil industry, including SPDC, comes within the jurisdiction of, firstly the Nigerian government in terms of oil exploration and extraction, and secondly, the OPEC cartel, in terms of sale and distribution of oil and gas in the international markets.

Bibliography

Developments: We Commit to Projects on the Basis of Pre Lets or Anticipated Market Demand, Creating Quality Assets for the Portfolio. (2008). [online]. British Land.
Security in Nigeria. Shell Nigeria. [online].

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