问题：公司内部的弱点是什么 – 例如。公司治理
Question: Which Merger &Acquisition (M&A) deals would have devastating effects on the selected company?
Merger and acquisition is a form of strategic management and is applied by business organisation with an aim to grow rapidly in an effective manner. This is the type of restructuring process in which an entity is reorganised to provide a better growth condition to a company and develop competitive advantage for the long term survival of a business organisation. In this type of situation, the resources of a business organisation are concentrated and managed positively. In this line, BP strategically managed to merge with the Royal Dutch Shell, the parent company of Shell Oil Company. This is a radical tie-up and an estimate of about $ 9bn (£5.3bn) tie up has been decided. It has been said as per the condition of the oil industry that mega-merger of Shell Oil Company has resulted in the reshape of the industry (Marlow, 2014).
It has been given by various economists that such merger and acquisition related with oil industry will help in managing the cost of oil and acquire the largest share of the market. The merging activities include the purchasing of small oil and gas companies by the large oil companies to exploit the assets of business to gain more profit and increase the productivity. In the same line to earn more profitability, Shell sold its oil field of Nigeria and also Hess
Corporation of the US has sold its assets to gain more profitability (Scheck and Raice, 2015).
Question: What are the company internal weakness-eg. Corporate governance
The major weakness of the company is that company has witnessed decline in the production of hydrocarbon. This decline has resulted in the decrease in the volume of the production of hydrocarbon and decrease in the price of the product. Legal allegation has also resulted in a loss of the total revenue.