Using published reports, select two CEOs who have recently made public

statements regarding a major change in their firms strategy. Discuss how the
successful implementation of such strategies requires changes in the firms
primary and support activities.
PayPal
Originally founded in 1998, Confinity Inc. creators of PayPal was based around a
service that allowed the transfer of funds between two Palm Pilots. The idea was simple
and elegant: with millions of people carrying both PDAs and wallets, PayPal would
combine the purposes of the two items in a way that allowed consumers to pay their
bills and make purchases digitally via their PDAs. At the time, online money transfers
constituted a secondary, less viable stream of revenue for the company.
The transition wasnt effortless, and the company, at various points in time, deliberated
the merits of the staying the course or changing business models. But ultimately, their
flexibility proved to be a major asset. Despite being founded in 1998, PayPal was swift
enough to change course in time to go public in 2002 and later get bought out by eBay
for $1.5 billion.
By 2001, with over 1 million users, PayPal had gone public on the NASDAQ, and in
2002, the company was purchased by eBay for $1.5 billion.
PayPal officially began trading as a standalone company on the Nasdaq. In the lead-up
to its detachment from eBay, PayPal CEO Dan Schulman divulged some of the
company's biggest strategic priorities going forward in eBay's Q2 2015 earnings call.
PayPal is focused on mobile commerce because it's the fastest growing channel. Mobile
commerce gross sales volume (GSV) rose 48% YoY in Q2 2014 three times faster
than the growth in desktop-based e-commerce.
The core component of PayPals strategy today still hinges on this online platform that
dates back to its roots. Today, the online platform enables its 150 million registered
users to send money in 26 different currencies to over 200 countries and territories.
Over time, PayPal has also moved into other aspects of financial services, including
consumer credit, mobile card acceptance and even card issuance.
ASPECTS TO PAYPALS CURRENT GROWTH STRATEGY

BRIDGING DIGITAL AND PHYSICAL COMMERCE

PayPal aspires to be at the centre of virtually every payment transaction, whether it

unfolds online when the consumer is sitting in front a computer screen, via a mobile

device when the consumer is on the go or in a physical retail store. It wants the endconsumer to opt for PayPal no matter the scenario. To do so, PayPal aims to build an
agnostic platform that will allow retailers or software developers to leverage PayPals
network programmes and hardware to create applicable products to capture these onthe-go payments. PayPal envisions consumers using a PayPal-enabled wallet for all
payment transactions, regardless of if they occur through its popular online platform,
via a mobile device or in a merchants bricks-and-mortar store.
FROM DIGITAL WALLET TO MOBILE WALLET TO NO WALLET

For PayPal, it is not just about the shift from the leather wallet to the digital wallet on a
mobile phone. In many cases, it is about no wallet at all.
RE-IMAGINED CONSUMER SHOPPING EXPERIENCE

Part of PayPals biggest bet is on creating an in-store experience in which frictionless

payments become the cornerstone. PayPal hopes this experience will be a major selling
point for consumers who are still on the fence about executing payments through these
new channels
PayPals head of global communications went so far as in autumn 2012 to ask the media
not to refer to PayPal as a mobile payments or mobile wallet company, but just PayPal.
PayPal wants simply to be known as a commerce company.
Shell
Van Beurden, who became the new CEO of Royal Dutch Shell plc (Shell) on 1 January
2014, said Shells strategy overall is sound. The company has a high quality portfolio and
key strengths in technology and project delivery. Shell will continue to invest in new
projects that deliver more energy to customers, and create value for shareholders. The
strategy is designed to deliver through-cycle growth in cash flow, to drive competitive
returns and a growing dividend.
Van Beurden said: Our ambitious growth drive in recent years has yielded a step
change in Shells portfolio and options, with more growth to come, but at the same time
we have lost some momentum in operational delivery, and we can sharpen up in a
number of areas.
Our overall strategy remains robust, but 2014 will be a year where we are changing
emphasis, to improve our returns and cash flow performance, he continued,
highlighting three priorities:

Improved financial performance, including restructuring in some areas of the company

Enhancing capital efficiency, with hard choices on new projects, reduced growth
investment, and more asset sales
Continued strong delivery of new projects, and integration of recent acquisitions.
The landscape the company had expected has changed. Factors such as the worsening
security situation in Nigeria in 2013, and delays to non-operated projects in several
other countries, have altered the outlook. Oil prices remain high globally, but North
America natural gas prices and associated crude markers remain low, and industry
refining margins are under pressure. Restructuring and improving profitability in North
America Upstream resources plays, and Oil Products world-wide, is a particular focus
for the company.