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With the shears in your hand, stand next to a sheep and right click. You will shear the sheep. To retrieve the wool, simply walk over it.  You will get from 1 to 3 blocks of wool from each sheep you shear. Be careful in Minecraft Pocket Edition. If you're not careful, you can kill the sheep. To shear one properly, touch and hold down on the screen, in the way you'd break a block. Otherwise shearing the sheep can hurt the sheep and will kill it after 8 hits. With the shears in your hands, left click on the plant. Note that some plants can be harvested without shears but some plants are better harvested using shears, such as ferns, tall grass, vines, leaves and dead bushes. Use the shears to remove cobwebs almost instantly. Left click to begin the action. You'll get a piece of string for your efforts. Right click and the effect will be to produce red mushrooms and restores the mushroom to a cow. If you have misplaced the wool, you may need to destroy it. Without shears, doing this can take some time. To destroy, place the shears in your hands and left click. The shears will not be damaged by destroying wool blocks.
Shear a sheep. Harvest plants. Destroy a cobweb. Use shears on a mushroom. Destroy wool faster.