The following analysis assesses the challenges faced by the Royal Dutch Shell Oil Company regarding its monumental investment project in its Nigerian operations. When global companies, like Shell, face extreme criticism, they are usually tasked with identifying optimal solutions to reverse the negative trend. In addition to assessing the challenges, this analysis provides some potential strategies that can be implemented to resolve the issues in this case. Problem StatementThe Royal Dutch Shell Oil Company has proposed to execute the largest industrial investment ever made in Africa. Their proposal was a response to three distinct problems. However, this proposal posed problems. A major problem was that two critical entities that Shell proposed to share in the investment had made it clear that it would be some time before they could even consider Shell's proposal. Other major problems included political and social instability in the regions where Shell operated. Shell has acquired a very negative public image, mainly because of the following reasons: Shell had also been accused of waging an ecological war against the natives and their natural habitat. Additionally, the company was accused of being responsible for the deaths of indigenous people on the lands from which Shell sourced its oil. Situation Analysis Shell Oil is one of the world's largest oil traders. With extensive international operations, their largest African operation existed in Nigeria. In this case, Shell's operations in Nigeria created a very complex situation, thereby creating many factors for the different components included in the environmental analysis. The economic factor consists of...... middle of paper ...... implementation of all three alternatives would constitute a comprehensive and well-balanced solution to the problems Shell faces. Among the three alternatives, the most appropriate solution is the third. Shell Oil Company has a responsibility to the Nigerian people to move forward with this project only with the people and the land in mind. By redefining its strategy, Shell will be able to reposition itself and operate as a socially responsible organization. Shell is to establish a committee that will oversee public relations activities in Nigeria. The committee is expected to include Shell representatives, government officials, local businessmen and civilians. This alternative is the best option due to the magnitude of their strategy redefinition. Thanks to the reengineering process, Shell can truly integrate the other two alternatives to carry out its reform...