Shell’s strategic position in the light of its external and internal environment

Shell’s strategic position in the light of its external and internal environment Shell Strategic Analysis The paper analyses Shells strategic position in the light of its external and internal environment and the key forces and pressures acting on it. The paper takes an overview and then uses PESTLE, SWOT and Value chain analysis to provide a strategic insight of the firm. PESTLE; SWOT; Value Chain Analysis Shell Strategic Analysis Introduction and Company Overview Shell Group provides energy and petrochemical services across the world. With its headquarters in Hague, the Netherlands, and largest subsidiary in the United States, its mission is to position its self as a global leader in the oil and gas sector with a superior competitive advantage in terms of meeting energy demand responsibly. Shell Group belongs to Royal Dutch Shell Plc, based in Wales and England (Shell, 2010 [online]). Its upstream strategy focuses on the exploration of new natural reserves of oil and gas and investing in projects to gauge technological and know-how value-added advantages. As for the downstream strategy, the company selects growth markets to invest in and uses existing assets to acquire consistently high cash returns (Shell, 2010 [online]). Performance focus, growth delivery and new project plans form its strategic framework with strong priority given to competitive performance, profitable growth and sharper delivery. The group operates in more than 90 countri es with over 100,000 employees and 44,000 service stations. Shell has the share of 2% in the global oil market and 3% in the gas sector. In 2009, its earnings were $12.7 billion which fell sharply from 2008s $27 billion figure (Shell, 2010 [online]). The paper will explore how the external and internal environments of the company are affecting its strategy and operations and overall success. Comprehensive PESTEL Analysis Political Forces As declared by EU and UN, carbon emissions are to be charged with penalties and taxes, oil and gas companies have been forced to settle government pressures through partnership agreements and alliances to support their operations by offering an incentive to the government in the form of the betterment of the economy. Oil has been found to gauge economic development of a country (BBC, 2010 [online]). Due to its intense demand, especially in the U.S, government tends to come under the pressure of the leading giants and ease strictness on them, though; they still raise questions regarding the environmental impacts but with the demand pressures from the customers, governments allow Shell and companies alike to find new reserves to meet the demands (The Guardian, 2010 [online]). However, these new means include bio-fuels which do not harm the environment. But Shell has strong reliance on oil and gas reserves and has no intention to venture into bio-fuels in future despite of all social an d political pressures. Shell has been engaged with the Climate Action Partnership with the US, as an attempt to gauge a positive image of the company in terms of a socially responsible business, while it actually uses highly carbon intensive production methods (Foe Europe, 2010 [online]).The partnership is focused towards reducing the amount of greenhouse gas emissions in the atmosphere, but while the government is going in that direction, Shell, using its strategic alliances with the government has lessened the regulatory control over its high carbon emitting fuel products. Shell has been forced to take on such diplomatic measures to ease political and regulatory pressures onto the company, when it faces a decline in the conventional natural oil reserves and has to find new alternative forms of oil reserves to meet the demand, which are more carbon intensive but allow it to stay profitable (Foe Europe, 2010 [online]). In underdeveloped nations such as Nigeria, which craving for basic necessities, welcomes companies like Shell to bring in foreign direct investment and more job opportunities. Thus, despite of social pressures to reduce exploitation of workforce and gas flares that is destroying lives, the government gives ease to the multinationals in order to support the growth of the economy (Foe Europe, 2010 [online]). Free trade agreements among the European and Americas allow Shell to more profitability engage in exports of oil. Russia is a hub of oil reserves and Shell took on the opportunity to exploit the reserves in Russia to meet the challenge of its growing demand, and its increasing lack of conventional oil reserves around the world. Russian government, previously had a high export duty on oil imports, has recently reduced it by 2.6%, which is benefiting Shell and other oil companies with their plants in Russia to export the oil products to their home countries and respective countries where they sell the fuels (Shell, 2010 [online]). Environmental Forces Conventional oil reserves are fast declining but Shell since 1995 has been engaged in finding new forms of oil reserves as oil sands in Canada to oil shale, but with the expense of environmental degradation (The Guardian, 2010 [online]). Research has shown that carbon emissions are much higher from the unconventional oil reserves being used in the manufacturing of fuel, and Shell having invested a large amount of capital in projects to extract oil from unconventional reserves has become the worlds most carbon intensive company (Foe Europe, 2010 [online]). Social Forces Oil and gas companies harm not only the environment but to the workforces as well as there are various security and health issues to consider. 20 people were reported to have died due to severe working conditions in 2009 (Shell, 2010 [online]). In Nigeria, Shells operations have been causing gas flares consistently which has caught social attention but the company is reluctant to take action due to its cost reduction strategy (Foe Europe, 2010 [online]). Globally, consumers are engaged in responsible consumption and the companies have been obliged to encourage responsible consumption (Dess, 2009). Shell took on the initiative in 2007 to advertise itself as a manufacturing facility that does not harm the environment but uses its waste (carbon dioxide) to cultivate flower growth (Foe Europe, 2010 [online]). This encouraged consumers to develop a positive image of Shell but later on, news reports on the matter suggested a different story. Only one of the plants in Netherlands was engaged in the flower growth while the rest were heavily involved in carbon emissions (The Guardian, 2010 [online]). This hampered Shells image further as not only was its accused of destroying the environment but also of misleading the consumers. Technological Forces The oil and gas industry has been benefited greatly owing to technological advancements in drilling and extraction of oil and gas. Heavy capital investments are required to acquire the advance technological equipment to extract oil and gas from unconventional reserves. Shells biggest strength is its investment in smart technologies that allow it to make the most out of the oil and gas reserves (Shell, 2010 [online]). Economic Forces Oil prices have increased the world over, which has resulted from heavy taxations from the government due to which costs of production have risen (Shell, 2010 [online]). Using extensive, costly technology which requires heavy investments, further forces the companies to charge high prices for fuels (The Guardian, 2010 [online]). There is a growing demand for energy, which is expected to rise up by 57% in the next 20 years (Shell, 2010 [online]). This becomes a challenge when there are fewer natural reserves of oil and gas left to meet this demand. Shell has used its scenario planning efforts to invest in new projects to extract oil and gas from unconventional reserves to be able to meet the growing demand in future, but this also translates to higher prices for customers (Shell, 2010 [online]). Legal Forces Environmental safety and carbon emission regulations have increased for all oil and gas companies, including Shell (BBC, 2010 [online]). With the growing concerns all over the world over the drastic changes occurring in the environment due to global warming, the government raises strong questions against major companies responsible for global warming, the oil and gas companies. Shell and BP are quite on the main screen when such allegations are put forward. Oil and gas companies are enforced with strict employment safety and health regulations as the manufacturing plants are dangerous for human health. This has a heavy cost potential for companies (Hill, 2009). Comprehensive Porters 5 Forces Analysis Level of Competition There is a high level of competition in the industry but among few players. Shells major competitor is British Petroleum. British Petroleums strategy has also been focused on acquisitions, partnerships and alliances to build up a larger framework to meet growing demand. Currently BP has acquired contractual agreement with the government of Azerbaijan and Gulf of Mexico, while Shell gauged its success in 2009 in Iraq, Canada, and Australia and also in the Gulf of Mexico (BP, 2010 [online]). The competition among these two companies is intense due to their similar strategy to obtain cost reduction, performance focus and growth. While, BP has invested in solar energy, giving in to the political, social and environmental pressures, Shell is still glued to the oil and gas reserves to stay ahead in the game (Oil and Gas, 2010 [online]). While BP has lowered its stakes by investing in solar energy, Shell is playing a much risky game by perusing new oil reserves through heavy capital investments (BP, 2010 [online]). Threat of Substitutes With the advent of alternative energy sources, the threat of substitute products has risen, such as from bio fuels. Many companies are now investing in bio fuel technologies to respond to social, environmental and political pressures (The Guardian, 2010 [online]). Threat of New Entrants Threat of new entrants is low, as it requires a heavy capital investment to set up plants and use advance technology for extraction domestically and internationally to meet the demands. There are heavy fixed costs involved in the industry which can only be curbed once economies of scale are received (Oil and Gas, 2010 [online]). Bargaining Power of Suppliers Bargaining power of suppliers is low. There are few suppliers in the industry. The industry is focused on low cost production and, thus, alternative energy sources are searched and invested in heavily, the suppliers of which are low, but under the influence of the manufacturers (Oil and Gas, 2010 [online]). Bargaining Power of Customers Bargaining power of customers is low as there are not many fuel companies available in the industry which offers conventional, alternative and bio mass fuels. Detailed SWOT Analysis Strengths Shell has obtained competitive edge in terms of technology. In 2009, it spent over $1.2 billion in research and development activities (Shell, 2010 [online]). Shell has obtained first mover advantages by using unconventional oil reserves which has given its cost benefits (Shell, 2010 [online]). The company has taken a much focused strategy for performance, which has allowed it to reduce costs by $1 billion by 2010 (Shell, 2010 [online]). Shell signed a joint venture with Cosan (S.A) Company to produce and sell ethanol and extract power from sugar cane in Brazil. The company sensed its cost benefits and its prospect to enhance its presence in the ethanol market (Shell, 2010 [online]). Shell has invested $ 1 billion in solar and wind energy which is part of Shell Renewables SBU (Shell, 2010 [online]). Shell has 20% brand preference which is the highest among its competitors (Shell, 2010 [online]). Weaknesses Shell currently has a severe lack of association with bio fuels, which are growing in demand There is also lack of substantial countering of the social pressures and the media exposures on part of Shell (Foe Europe, 2010 [online]). Opportunities Bio-fuel and low-carbon emission fuels sector is growing and is highly encouraged by the government, society and is healthy for the environment (The Guardian, 2010 [online]). Promoting a better health and safe environment in the plants is a good opportunity for Shell using commercials or public relations campaign. Threats Government and interest groups are taken strong actions against heavy carbon emitting fuel companies, like BP and Shell Heavy investments in unconventional gas reserves are full of stakes as these reserves allow for a large amount of carbon emission. This is potentially dangerous for the companys image and acceptance (Oil and Gas, 2010 [online]). Value Chain Analysis Primary Value Chain Activities Inbound Logistics Shell is currently in contract with Cosan, a Brazilian company to supply ethanol. Azherbaijan and Russian suppliers are also used to supply oil and gas reserves (Shell, 2010 [online]). Operations The performance strategy involved restructuring and reorganizing the operations of the company to upstream and downstream where priorities were towards performance focus, competitive growth and new project investments. The overall operational performance has also met with improvement as efficiency rates have rose. The reorganization will allow faster implementation of future growth strategies as well (Shell, 2010 [online]). Outbound Logistics Shell has an extensive global outbound logistics network which allows it to distribute the refined oil in the most cost efficient manner. It uses light transportation (Shell, 2010 [online]). Marketing and Sales Shell markets itself as the largest fuel provider, where its service centers are located in 90 countries worldwide. It adds the image of an innovation and quality-focused company which does not compromise on performance. Although, Shell has previously received an excellent amount of sales revenue, recently, there has been a decline, due to rise in oil prices, rising social exposure of the workforce exploitation and environmental degradation by the company (Shell, 2010 [online]). Service Shell uses its helpline service to address customer complaints and queries. Other than that, there is no extensive or special form of service that Shell offers to customers with regard to complaints and queries. Shell service stations have the direct interaction with the customers and the company makes sure that the employees address to customers appropriately and offer services in the standard way (Shell, 2010 [online]). Support Value Chain Activities Procurements Shell is now engaged in e-procurement, using the help of SAPs support systems to enhance its supply chain activities. SAPs support offers an ERP system that allows procurement to be done online (SAP, 2010 [online]). Technology Development Over $1.2 billion have recently been spent by Shell in research and development of new technologies to gauge the most benefit out of the reserves of oil and gas and find new opportunities for investments (Shell, 2010 [online]). Technological innovation development in extracting energy is a key strength of the company and it is continually engaged in investing in new technologies that would give it an edge over its competitors. Human Resource Management Human resource activities are the most challenging for Shell as it has to face several employment issues starting from health, and work environment to safety issues. These are true for factory workers who work in high danger zones (Shell, 2010 [online]). In Nigeria, a high rate of people dying in the factory has become common. As shell is a global competitive company, it seeks highly talented and experienced people who seek innovation and growth for the company for its management. Shell offers learning and development opportunities for its diverse workforce. It offers monetary and non-monetary forms of incentives to employees (Shell, 2010 [online]). The human resource management uses online application system for interested candidates and uses simulation based testing tools for hiring appropriate employees for middle management and senior management posts. Firm Infrastructure Shells infrastructure is heavily reliant on technological support, by means of ERP, data management, research and development, marketing, procurement, human resource management, extraction and production operations (SAP, 2010 [online]). This allows a strong network of coordination and communication to be maintained globally. Conclusion Shell Group with industry leadership in terms of cost, quality and technology, is faced with immense social, political, economic and legal challenges. Its strategy to focus on performance, new ventures to exploit unconventional oil and gas reserves and achieve profitable growth in return has met success, but the pace has slowed due to economic influences. for big oil giant like Shell, keeping diplomatic alliance with the governments of many countries has become common but this not something to rely on and to put heavy capital investments at stake like Shell is doing right now, by continuously investing in new plants for oil and gas extraction from unconventional reserves such oil sands and oil shale. Such attempts are increasingly causing environmental degradation and the government may go strictly against them in future once more drastic environmental changes become dominant. Clever strategy is to continue ethanol and solar and wind energy production and invest in more bio fuel ener gies to tap new opportunities.

Beneath the Smooth Skin of America Essay -- Scott R. Sanders Literatur

Beneath the Smooth Skin of America Change is something you are probably familiar with. In â€Å"Beneath the Smooth Skin of America,† Scott R. Sanders talks about many changes in his life. The author starts the story looking throw the eyes of himself as a child. As a child he remembers that all that was in his sight was all he could see. The author’s best example of this is he says, †Neighbors often appeared†¦where they came from I could not imagine† (27). As the author begins to see more by leaving the area he was around so often he starts to see more and more things. He started moving around to different places and started seeing the things that he had not see before. The author points out many things that he began to see like the stores around the town and the different colors of places. The smell of the certain area over the one smell he was used to. In his travels to the south he noticed the bathrooms signs in the south read, â€Å"Colored† and â€Å"White.† All these d ifferent changes made his world seen bigger and bigger. As the author got out more the more world started to irritate him. The author’s relatives, who lived in the southern states, helped the author to think of himself as, â€Å"A Northerner†(p.28). After leaving for college in Rhode Island he explains that in his college days he thought of himself as a â€Å"Midwesterner.† The other students of his college, using the stereotype, made fun of him and the way he acted. â€Å"I was square, my new friends assured me† (p.28). This ...

Machiavellis the Prince: By Any Means Necessary :: essays research papers

Machiavelli's "The Prince": By Any Means Necessary Part 15 of Machiavelli's The Prince, entitled Of the Things for Which Men, and Especially Princes, Are Praised or Blamed, states that, in order for a man to maintain control of a government and better that territory, he must engage in certain actions that may be deemed immoral by the public he serves. Machiavelli argues a valid point, that the nature of man is twofold, encompassing good and evil, right and wrong. The effectiveness of his argument, however, relies on the fact that the person reading his essay is an objective observer of human nature. Not leaving this to chance, Machiavelli plays a psychological game with the reader in order to convince them of his argument. Machiavelli prefaces his thesis with commentary that attempts to place the reader in a subordinate state-of-mind. He confesses to the reader that he fears sounding presumptuous for writing about a subject covered many times before by others and differing from their opinion in the matter. This statement places the author at the mercy of the reader and prepares them to hear an idea that may not be popular. Having been asked forgiveness for the pride of the author, the reader drops barriers that he may have against arguments driven by ego and opens his mind to Machiavelli on a personal, sincere level. By placing himself at the feet of the reader, Machiavelli puts himself and his argument in a position of power. He wastes no time in using this power to gain more control over the reader. In the next sentence he states that his intention is to create an outline for behavior in public office â€Å" of use to those who understand†. This statement compels the reader to agree with the points that the trustworthy, forthright Machiavelli argues, or be relegated the ranks of those ignorant dullards that do not understand. Machiavelli then presents his thesis, that a ruler must use both good and evil in order to maintain his power over the state. The reader has almost no choice but to accept this idea before any proof has been given. With the reader in the palm of his hand, Machiavelli needs only to make a very general argument of his point to convince the reader of its validity. The author states that there are actions for which a prince is either praised or blamed. He lists many examples of good qualities and their opposing attitudes. Instead of labeling them good and evil, however, Machiavelli titles them imaginary and real. By calling the good traits and the leader who possesses

Free Essays - Ernest Hemingways A Farewell to Arms :: Farewell Arms Essays

A FAREWELL TO ARMS Do you agree that Farewell to Arms is as successful in the portrayal of fear and suffering as when he writes of courage and comradeship?   The four themes of fear, suffering, courage and comradeship are prominent issues which are raised in the novel Farewell to Arms. The protagonist, Frederick Henry faces fear when he is injured where he admits his own fear. He shows courage without second thought when he helps injured men coming from the front. Individual suffering is shown through the eyes of Frederick Henry having to face the death of his wife and child. Physical suffering is obviously shown by the men that get injured in the war. This physical suffering provides the context in which courage can take place. Comradery, surprisingly, doesn't seem to be as obvious in the novel as the other themes; it is mainly shown by the nurses' commitment to one another and the 'male bonding' at the mess. There also seems to be more of an individual comradery within friendships and with individuals rather than a whole group. In fact, there doesn't seem to be a sense of people working together for a common cause. These four themes contribute to the many decisions that Frederick Henry has to make. That is in regards to the war and his relationship with Catherine, he has an inner conflict with himself with external forces pulling him in opposite directions which the protagonist must sort out which is more important to follow. Frederick Henry is an American who serves as a lieutenant in the Italian army to a group of ambulance drivers, whom is portrayed by Hemmingway as a 'lost man' searching for order and value in his life. The fear and suffering the Frederick Henry has in his life which he experiences by the war, shows him how pointless the war is, he disagrees with the war because it is too chaotic and immoral for him to rationalize its cause. However, he fights anyway, in order to achieve the discipline which the army forces into his life.  Ã‚   The courage he has in the war and comradeship or the individual comradeship he has with various people such as Catherine and the priest gives him a sense of order and value in his life that the war does not give him. Frederick Henry befriends the priest because he admires the fact that the priest lives his life by a set of values that give him an orderly lifestyle.

Bookmaster

Bookmaster Case Case Study Questions MGMT357 Professor Janet Steinke March 10, 2013 Background The case bookmaster explains how Drew went to bookmaster to buy a book he wanted to enjoy reading. When Drew arrived at the bookstore and explained to the CRA what book he wanted. The CRA informed Drew that the book was instock and that there were actually two copies of the book on the shelf. However, when Drew and the CRA went to the shelf to get the book there were no copies available.Drew would have to drive to another store that was 15 miles away to get the book. The CRA then suggested to Drew to buy the ebook which was almost $20 cheaper. Drew would have to download the ebook on his computer since the Kindle and iPad’s were too costly for him at the time. Kindle an Ipad both have many restrictions on their work and try to prevent piracy to maximize profits. Case Questions 1. Each player in the above value chain makes money by creating value for the stakeholders. 2. 3.The ebook h as many advantages and disadvantages. the first advantage is the development, marketing, and decreasing costs for eReaders. The second advantage is its easy accessible and can be read on any device if it’s an apple because they are linked together. The third advantage is that marketing the product is easier on line than in a book store. The first disadvantage is that the sale price is lower so the profit margin is relatively the same. The second disadvantage is that piracy is more common and the content is easier to duplicate.The third disadvantage is that competition is very high in the digital industry. The hard copy book also has many advantages. The first is that hardcopy books are easier to stay focused on because the web-surfing variable is eliminated. The second advantage is that you can jot down your thoughts while reading. The third advantage is hardcopy books are not subject to the failure of technology. Some disadvantages to hard copy books are as follows; The cost to make the books are high.Books are harder to carry around if you have more than a few with you. The third disadvantage is the costs of books are high. 4. The role of operations in the hardcopy value chain is to print books. The role of operations in ebooks is to produce digital content and to store the content. 5. The other issues that are important on critiquing both of these is the future. Where are books headed in the future? It is important to try and forecast whether ebooks or hardcopy books will be a thing of the past.

Not Everything That Is Learned Is Contained in Books

Learning is a good way to improve intelligence of human being. There are a lot of sources which people can learn from, such as books, works, social environment, reading and so on. Among these sources, learning from book is an efficient way to get a lot of knowledge. However, not all things are included in books and it is just a source for knowledge. It is probable that books are an enormous source of knowledge for the people to study. There are different types of books, for example novels, journals, scientific books, sociology books, news, reports and so on. When the basic education or specific field of interest is needed to study, learning from books is an effective way to be efficient in it. Some books give people the experience of the writers. These books are valuable for the people because although they did meet with this experience, they will easily know about these experiences. Therefore, books are a good source of knowledge for the people. On the other, reading books is not a perfect way of studying since not everything that is learned is contained in books. There are unlimited amount of knowledge and experience that we have to learn in our real lives, and it is called life experience. Life experience can only be found in the real life and learning from books will only be knowledge. For example, if a person gets a serious disease, only this person will know how serious it is and others people will know only as knowledge. This person may also improve the maturity by thinking how life is impermanent. Therefore, not everything that is learned is contained in books. In conclusion, studying form books is only a part of learning. The perfect way of learning is to learn from books and from real life as well.

Pygmalion: the Play and Higgins Essay

Pygmalion is a primarily Shavian reworking of Ovid’s Metamorphoses with undertones of Cinderella. Romance and satire dominate both the play’s plot as well as style. Shaw takes a strong central situation–the transformation of a common flower girl into a lady–and surrounds it with superficial trimmings. There is technical innovation in the plot structure since Shaw, under the influence of Ibsen, replaces the stock Victorian formula of exposition, situation and unraveling with exposition, situation and discussion. The plot thus has three distinct stages of development. In the first stage Professor Henry Higgins, who is an expert in phonetics, transforms a common flower girl into an artificial replica of a lady by teaching her how to speak correctly. Prior to this Eliza’s life has been miserable. As a poor flower girl she coaxes money out of prospective customers and is thrilled when she suddenly receives a handful of coins that Higgins throws into her basket. She lacks the capacity to express her feelings articulately and an indiscriminate sound of vowels â€Å"Ah – ah – ow – ow – oo† serves to connote a multitude of emotions ranging from pain, wonder, and fear to delight. However she is not entirely depraved and is at least self-reliant enough to earn her own livelihood by selling flowers. In Act Two Eliza arrives at Higgins’ laboratory at Wimpole Street and haughtily demands that Higgins teach her to speak correctly so that she can become a lady in a flower shop. This desire for financial security and social respectability constitutes a step forward in her larger quest for self- realization. For Higgins Eliza is simply a phonetic experiment, a view that dehumanizes her and results in the creation of an artificial automaton-like replica of a lady. In the second stage of the play the audience encounters an Eliza who has become an artificial duchess. She is no longer a flower girl but is not quite a lady. During Mrs. Higgins’ at-home she proceeds to deliver Lisson Grove gossip with an upper class accent. She is nothing more than a live doll and there is an element of crudity in her parrot-like conversation. The mask of gentility that she wears only partially hides her low class background. Shaw demonstrates here that having fine clothes and the right accent are not enough to make a lady. The fact that the Eynsford-Hills fail to see through her facade implies that they too do not possess true gentility. By the time that Eliza returns after her triumphant society appearance at the Ambassador’s ball, she no longer exhibits this element of crudity. She has benefited from Higgins’s lessons in achieving social poise and has acquired the ability to articulate her thoughts and feelings. She has begun to think for herself and is capable of manipulating any situation to her advantage. The play enters into the third phase of development in Act Four. Eliza now encounters the great moment of truth and reality of her situation. Her education has created in her an intense dissatisfaction with the old way of life and she is not exactly pleased about the avenues open to her as a lady. She realizes that her social acquisitions do not enable her to fulfill her aspirations or even earn a living. She becomes aware of the wide disparity between her desires and the inadequacy of the means for fulfilling them. She repudiates Higgins’ suggestion that she could marry a wealthy husband and wryly comments that earlier â€Å"I sold flowers, I didn’t sell myself† while now that she has been made a lady she isn’t fit to sell anything. She has thrown away her mask and reveals a newfound maturity. She throws Higgins’ slippers at him and thereby breaks free from a life of subjugation and dependence. Critics feel that at this point the play enters into a period of calm and the main impetus of the action dissipates. Eliza’s society appearance has been a tremendous success and after the climatic encounter between Higgins and Eliza in Act Four the dramatic tension disappears. Eliza runs away to Mrs. Higgins and the only issue left is the resolution of her relationship with Higgins. The readers have to agree that the main impetus of the action has disappeared since all the preceding acts had been gearing up for the crucial moment of Eliza’s test. Now Alfred Doolittle’s strategic second appearance performs a resuscitating act for the play in its dying stage. Doolittle’s transformation from a dustman to a gentleman also provides an ironic comment on Eliza’s metamorphosis. After this brief spirit of energy the action returns to the issue at hand – the relationship between Eliza and Higgins. Eliza has developed into a self-sufficient woman and has become a perfect match for Higgins. She has garnered the requisite strength of character and maturity of thought to face life courageously. Gentility has become an integral aspect of her personality. No longer afraid of Higgins, she treats him as an equal. She negates his role in her transformation and insists that it was the Colonel’s generosity and courteous behavior, which truly made her a lady. She rejects Higgins’ proposal that he, she and Pickering live together like old bachelor friends and astounds him by announcing that she will marry Freddy instead and support him by offering herself as an assistant to Nepommuck. Higgins, although hurt at Eliza’s suggestion of assisting the detestable Nepommuck, is nevertheless happy that Eliza is no longer a whining helpless creature but a tower of strength and a woman at last. The play concludes on an uncertain note and the readers do not know whether she might indeed marry Higgins. This reflects Shaw’s inherent distaste for finality. In the majority of his plays the issues and conflicts they deal with are never quite resolved and the audience is left wondering about what will happen after the curtain falls. However Shaw realizing the importance of an ending does provide a resolution in the epilogue. The dramalies neither in the conflict, nor in the discussion or the exposition. The conflict itself arises over the issue of the resolution of the problem. Unless there is a resolution, there is no drama, for the action remains incomplete. Action always has to be completed either comically or tragically. Hence in the epilogue, Shaw resolves the issue by making Eliza marry Freddy Hill. It was typical of Shaw to have provided such an anti-romantic conclusion to the play. Many commentators accuse Shaw of deliberately twisting the natural end of Pygmalion merely to make the play unromantic. But critics would do well to remember that the actual point of ending is not the issue of Eliza’s marriage but her achievement of liberty. While throughout the play Higgins boasts of having transformed a common flower girl into a duchess, after Eliza’s climactic assertion of independence from his domination he remarks, â€Å"I said I’d make a woman of you; and I have. † In this perspective the original ambiguous ending seems preferable to the neat resolution given in the epilogue.