Using Published Reports

8/18/2019 Using Published Reports

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Using published reports, select two CEO’s who have recently made publicstatements regarding a major change in their firm’s strategy. Discuss how thesuccessful implementation of such strategies reuires changes in the firm’sprimary and support activities.

!ay!al

Originally founded in 1998, Confinity Inc. — creators of PayPal — was based around a

service that allowed the transfer of funds between two Palm Pilots. he idea was sim!leand elegant" with millions of !eo!le carrying both P#$s and wallets, PayPal would

combine the !ur!oses of the two items in a way that allowed consumers to !ay their

bills and ma%e !urchases digitally via their P#$s. $t the time, online money transfers

constituted a secondary, less viable stream of revenue for the com!any.

he transition wasn&t effortless, and the com!any, at various !oints in time, deliberated

the merits of the staying the course or changing business models. 'ut ultimately, their

fle(ibility !roved to be a ma)or asset. #es!ite being founded in 1998, PayPal was swiftenough to change course in time to go !ublic in *++* and later get bought out by e'ay

for 1.- billion.

'y *++1, with over 1 million users, PayPal had gone !ublic on the $/#$0, and in

*++*, the com!any was !urchased by e'ay for 1.- billion.

PayPal officially began trading as a standalone com!any on the asda. In the lead2u!

to its detachment from e'ay, PayPal C3O #an /chulman divulged some of thecom!any4s biggest strategic !riorities going forward in e'ay4s 0* *+1- earnings call.

PayPal is focused on mobile commerce because it4s the fastest growing channel. 5obile

commerce gross sales volume 67/ rose :8;


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deice "hen the consumer is on the go or in a physical retail store. #t "ants the end$

consumer to opt for PayPal no matter the scenario. To do so, PayPal aims to build anagnostic platform that "ill allo" retailers or soft"are deelopers to leerage PayPal’snet"ork programmes and hard"are to create applicable products to capture these on$

the$go payments. PayPal enisions consumers using a PayPal$enabled "allet for all

payment transactions, regardless of if they occur through its popular online platform, ia a mobile deice or in a merchant’s bricks$and$mortar store.

/'O D-)-$"& *"&&E$ $O O-&E *"&&E$ $O (O *"&&E$

%or PayPal, it is not &ust about the shift from the leather "allet to the digital "allet on amobile phone. #n many cases, it is about no "allet at all.

'E0-")-(ED CO(#UE' #+O!!-() E1!E'-E(CE

Part of PayPal’s biggest bet is on creating an in$store e'perience in "hich frictionless

payments become the cornerstone. PayPal hopes this e'perience "ill be a ma&or sellingpoint for consumers "ho are still on the fence about e'ecuting payments through thesene" channels

PayPal’s head of global communications "ent so far as in autumn 2012 to ask the medianot to refer to PayPal as a (mobile payments or mobile "allet company, but &ust PayPal.)PayPal "ants simply to be kno"n as a commerce company.

Shell

*an +eurden, "ho became the ne" -! of oyal /utch hell plc (hell) on 1 3anuary

2014, said hell’s strategy oerall is sound. The company has a high uality portfolio andkey strengths in technology and pro&ect deliery. hell "ill continue to inest in ne" pro&ects that delier more energy to customers, and create alue for shareholders. Thestrategy is designed to delier through$cycle gro"th in cash flo", to drie competitiereturns and a gro"ing diidend.

*an +eurden said (!ur ambitious gro"th drie in recent years has yielded a stepchange in hell’s portfolio and options, "ith more gro"th to come, but at the same time "e hae lost some momentum in operational deliery, and "e can sharpen up in anumber of areas.)

(!ur oerall strategy remains robust, but 2014 "ill be a year "here "e are changingemphasis, to improe our returns and cash flo" performance), he continued,highlighting three priorities


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#mproed financial performance, including restructuring in some areas of the company

-nhancing capital efficiency, "ith hard choices on ne" pro&ects, reduced gro"thinestment, and more asset sales

ontinued strong deliery of ne" pro&ects, and integration of recent acuisitions.

The landscape the company had e'pected has changed. %actors such as the "orseningsecurity situation in 7igeria in 2018, and delays to non$operated pro&ects in seeralother countries, hae altered the outlook. !il prices remain high globally, but 7orth 9merica natural gas prices and associated crude markers remain lo", and industry refining margins are under pressure. estructuring and improing profitability in 7orth 9merica :pstream resources plays, and !il Products "orld$"ide, is a particular focusfor the company.

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Using Published Reports