Article at a glance:

Refining Shell’s position in Europe

In the mid-1990s the Royal Dutch/Shell Group had to face some hard facts about its European distribution, commercial, and retail operations, which were failing to meet not only Shell's profitability goals but also the customers' expectations. The corporation's leaders decided on a massive reorganization to create three functional units out of 28 national operating companies. The goal: to make a profitable business by achieving scale and critical mass at the European level while retaining strong local-customer relations.

The take-away

Convenience retailing has led the way to a successful turnaround. A refocused business model—less capital-intensive than its predecessor—has delivered steady growth in revenues, profits, and margins.