
The Emerging Markets business is based in Dubai and covers 12 countries spread across the Middle East, Transcaucasia, Central and Southern Asia," explains James Ashworth,General Manager, Commercial Sales, Emerging Markets, MESA [Middle East and South Asia].
"The business primarily focuses on the sale and marketing of Shell's full range of lubricants for cars, buses, trucks, railways and industry, as well as related services.
"This is a vast geographical area with just one country, Kazakhstan, for example, being 50 per cent bigger than India. The area has a highly diverse range of people, languages and cultures.
"Another major challenge, of course, is the very different business cultures that exist in these countries - and having to work as a virtual team across such a vast area, with just 10 Shell staff and five local agents who between them manage a network of 14 distributors.
"Following the break-up of the Soviet Union and the emergence of the many independent republics in the early 90s, Shell established representative offices in each capital and it is through these offices that we, as the Emerging Markets business, operate.
"As the markets develop and economic conditions become more favourable, there is a natural tendency to give such a market an individual focus and set up a dedicated Shell operation. An example of this would be in Iran, which used to be in the Emerging Markets portfolio and which now has its own independent operating unit working out of Tehran called Pars and Shell JSC.
"Perversely, the self-destruction of my business unit will be the measure of its success, because as we develop business in countries and they establish their own operating companies, my department's portfolio will get smaller and smaller. However, we understand that, and happily accept the challenges.
"So what are the challenges? With such a portfolio, political instability, or the potential for political instability, is always very high. And in any given year one part of the portfolio may be doing well and another may be suffering for reasons beyond our control.
"Another challenge is that we are a long way from our supply sources, which are in Oman and Singapore, and good management of the supply chain is absolutely key to success.
"Generally, we have seen measurable improvements in people's standards of living in the region and increasing eagerness to buy high quality products. Probably the best example of this is in Kazakhstan, where the the country averaged 12 per cent economic growth over the past 10 quarters, with the mighty oil reserves providing only 15 per cent of GDP and 25 per cent of budget revenues.
"So a lot of work is being carried out to position ourselves correctly. One example of this is the appointment of Murphy Shipping as an authorised distributor for Shell lubricants in Georgia, Azerbaijan and Turkmenistan. Murphy Shipping is a UK-based company which specialises in transporting oilfield related equipment to the region. The company is highly respected in the industry and we were extremely pleased to sign this contract. It is a good example of two strong brands with complementary endeavours forging a relationship for the benefit of customers.
Click here to read more.
"The competition is not unaware of the general developments by Shell in the region and this keeps us on our toes. Flying the Shell flag is also very important and a high level of visibility is essential to developing the markets.
"For example, we were pleased to be able to support our colleagues in E&P and other Shell businesses at a recent oil conference and exhibition in Baku in Azerbaijan in June. And at an earlier exhibition in May in Tashkent in Uzbekistan, the Shell stand was powered by Shell solar panels located outside the auditorium. This is a fine example of an integrated Shell approach to business and working together.
"The Emerging Markets team has been fully integrated into the latest development initiatives, such as the SCF [Sales Competency Framework] and has been included in the Sales Ladder which is now in place across Shell Oil Products East Zone.
"So," concludes James, "this allows us to develop people to levels of world-leading sales excellence, using common frameworks which will undoubtedly support our market leadership position well into the future."