The following analysis evaluates the challenges faced by the Royal Dutch Shell Oil Company involving the huge investment proposition in their operations in Nigeria. When global companies face extreme criticism like Shell, they are usually tasked with identifying optimal solutions to reverse the negativity. In addition to evaluating the challenges, this analysis provides some potential strategies that can be implemented to solve the problems in this case. Problem Statement The Royal Dutch Shell Oil Company has proposed to make the largest industrial investment ever in Africa. Their proposal was a response to three separate questions. However, there were problems with the proposal. A major problem was that two crucial entities that Shell had proposed to participate in the investment made it clear that it would take 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 due to the following: Shell has also been accused of waging ecological warfare against indigenous people and natural habitat. Additionally, the company has been accused of being responsible for the deaths of indigenous people on the land where 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 the country of Nigeria. In this case, Shell's operations in Nigeria created a very complex situation, thus creating numerous factors for the various components included in the environmental scanning analysis. The economic factor consists… middle of paper… implementation of all three alternatives would represent a complete and comprehensive solution to the problems facing Shell. Of the three alternatives, the most appropriate solution is number three. Shell Oil Company has a responsibility to the Nigerian people to advance this project with people and land in mind. By redefining its strategy, Shell will be able to reposition itself and operate as a socially responsible organization. Shell must create a committee that will oversee public relations activities in Nigeria. The committee is expected to include Shell representatives, government officials, local businesspeople and civilians. This alternative is the best option given the broad scope of redefining their strategy. Through the reengineering process, Shell can effectively incorporate the other two alternatives to complete the reform.