Topics For Critical Thinking Essay

<h1>Topics For Critical Thinking Essay</h1><p>When composing a school article, there are numerous subjects for basic reasoning. Basic reasoning isn't something that is found out in school, yet it is a procedure that are designed into our psyche that requires no guidance from the mind. When composing a basic reasoning paper, the key is to ensure that the contemplations and data are genuine and dependent on facts.</p><p></p><p>A part of school papers are composed by understudies who are restless to get into the school or college. Most of these articles will be composed during the first or second year. Much of the time, understudies don't have the foggiest idea how to compose an incredible article. This can be on the grounds that they don't have the opportunity to work on composing a very much explored article, or they don't have the right composing skills.</p><p></p><p>There are numerous themes for basic reasoning that c an be utilized when composing a paper. The principal point is the subject of religion. So as to begin the subject of religion, understudies must research the subject of religion in the zone of their religion. For instance, if the understudy is a Mormon, they should explore subjects of what being Mormon methods and how they identify with the other religions.</p><p></p><p>After investigating the subject of religion, understudies will need to make positive mental pictures for themselves and compose a depiction of what they accept and what their confidence instructs them. The understudy will at that point make a sensible contention to help what they are saying.</p><p></p><p>When composing the paper, understudies will need to set aside the effort to talk about the subject of religion. After they have examined the idea, they will need to clarify how religion integrates with the theory articulation of the exposition. The understudy will at th at point clarify how they accept the ideas they have looked into are valid and how they identify with the subject of religion.</p><p></p><p>Another theme for a decent paper is one that depends on an individual encounter. This could be a tale about an issue that they by and by managed, for example, harassing or getting singled out in school. The understudy will need to ensure that the story they use depends on truth and not on a one-sided story.</p><p></p><p>Finally, the understudy will need to show their composing abilities and clarify how they will have the option to utilize their composing aptitudes to make a quality paper. In the wake of clarifying their aptitudes, the understudy will need to ensure that they can think of thoughts and approaches to help their contention. When they have the entirety of their contentions prepared, they will at that point locate a believed companion to assist them with editing their paper before submit ting it to the editor.</p><p></p><p>With such a significant number of subjects for basic reasoning article accessible to understudies, it is anything but difficult to think of inventive approaches to introduce data. Understudies should ensure that they set aside some effort to look into the subject before starting the way toward composing an essay.</p>

The Essay on Vulnerability and Writer Chronicles

The Essay on Vulnerability and Writer Chronicles Assume you would like to change in price contributes to performance. A bonus program and ideas from the consumers are included. Someone to keep a new status quo. This is the reason why ADP is a good method of making certain that folks are treated as individuals, in a just and equal way. If an excessive society wedding ceremony is happening, odds are high there's a young Russian beauty visiting the altar. Sadly, these folks are almost always seeking to commiserate, not change. It took me years and plenty of hard work to comprehend this, then work to reveal my feelings. It's also important to have the ability to organize your ideas and ideas in an ideal way. Essay on Vulnerability and Writer - Overview The cost for a job is dependent upon how fast it should be done and its degree of difficulty. Probably the costliest price of any home security tool used is the amount of money you will spend, not just on the fire arm itself, but likewise the ammunition too. This created a big situation for numerous groups at the airport. There's a neighborhood watch program that's counted on to support extra observation and early warning. It is an overall concept meaning susceptibility' and it's specific connotation in the conditions of care is in danger for health problems'. The ways that society has formed itself in connection to the known risks related to natural processes has shaped natural disasters. Quantifying risk a part of continuous monitoring strategy. Risk factors will be categorized as follows for clarity. Again, call it wargaming or whatever you will, but it's an efficacious means to have a look at contingencies and resources required to implement far better plans and countermeasures. This inability to react economically can create disastrous results which are socially constructed by the country's dependence on such risky enterprises. Demonstrate a comprehension of the wide applicability of NIMS. Essay on Vulnerability and Writer - Overview So should you need to employ college essay writer online, we're just the people that you want to contact. So in case you have an essay assigned that you will need help with, you can purchase essay online cheap from us. The sort of essay you're looking for will be provided to you within the deadline provided to you. You're able to easily buy unique college essays and don't neglect to tell friends and family about it. If you're interested in the best prices for college essay 2019, we advise you to have a look at our site, where you will find all the needed info on a huge array of discounts we provide to our customers. The images aren't only powerfully colored, but in addition panoramic, kaleidoscopic and tridimensional. Do not try to attack any public sites. For a personalized paper on the aforementioned topic or another topic, place your order now! It's possible to easily depend on us to find essay help as we have a tendency to assist and guide the students with the aid of our professional experts. Many students have a tendency to use such services as a way to receive a premium paper for their studies. Naturally, they are trying to grasp such an opportunity and are searching for companies that provide discounts for essay writing. Today, most college students find it difficult to compose an essay on a specific topic. The argument should supply the points supporting and rejecting the subject of the essay. This way, a reader can quickly create the transition between sections of the guide. I've always enjoyed writing since when I was younger and it's been a passion of mine alongside reading. In addition, the thesis statement is restated at the close of the essay to make sure that the writer stipulates a very clear explanation.

The role of the new age manager

The job of the new age supervisor Chiefs work in a powerful situation and must foresee and adjust to difficulties. With respect to the above proclamation, talk about the job of the new-age chief by taking a case of any Indian association. Various difficulties of an administrators:- Its impractical to put time in something that is not on your radar. A significant radar upgrade is required. Arrangement of the difficulties for administrator is Systematically . When youre far enough alongside your present elective attempt to pick another great elective that fits the upgraded you and the necessities of the then present reality. Rehash a circle like the first. this assistance to administrator they dont invest a ton of energy in one work. Over booked and botched assets: Venture groups frequently grumble that they don't have precise or forward-thinking data about their assets and what they are really going after. Many venture groups have more interest for ventures than they have colleagues to execute the undertakings. In the event that asset distribution is an issue, at that point a not too bad mid-market or top of the line arrangement might be the main choices. 3 Supply Chain Management: In gracefully chain the executives administrator confronted a great deal of issue which incorporate strike of politic gatherings , just as With the expansion in re-appropriating and globalization, dealing with the progression of provisions and crude materials, just as completed items, would now be able to stretch out across a large number of miles, many time zones and various language obstructions. 4 Human Capital Management One of the other test of chief is human capital administration . Since a companys tasks would now be able to exist across different nations and geographic regions. At the point when mind channel happen around then how director deal with these sort of laborer. Model: by what means can the requirements of laborers in China be addressed as adequately as the necessities of laborers in Los Angeles or Minnesota. Further more, what is the most ideal approach to address the issues of these representatives and furthermore best use their abilities and gifts to keep the business working easily. Making sense of these difficulties is a steady battle looked by numerous organizations, and one that won't almost certainly leave sooner rather than later. one of the model which is happening in Canada , both in light of, and fully expecting environmental change sway. Adjustment activities have been attempted at scales extending from people and local gatherings to industry and governments. Quite a bit of this adjustment has been accomplished through casual activities or methodologies because of explicit occasions or conditions, and where the ability to make a move existed. There are likewise a few instances of strategy activities that give an increasingly organized way to deal with adjustment, for example, the New Brunswick Coastal Areas Protection Policy and British Columbia Future Forests Ecosystem Initiative. On-screen character Model People . Northerners are all the more regularly utilizing bug anti-agents, bug nets and window screens to manage the expanded multiplication of creepy crawlies. . Occupants of remote beach front networks are more ready for deficiencies (i.e., power, food, transportation) because of late involvement in nasty climate conditions.â Industry Thermosyphons have been utilized in the development of a few significant framework extends in the North to actuate fake cooling of permafrost under warming conditions. .Farming makers buy crop protection to balance misfortunes brought about by harsh climate. Hydro Quã ©bec has altered its conjectures of power requests dependent on new atmosphere situations. Governments The district of Sept-Iles has directed new private development along the shoreline to forestall harms because of shoreline erosion.â Water meters have been introduced in the Southeast Kelowna Irrigation District and a few Canadian urban areas (for example Kelowna, BC; Sudbury, ON; and Moncton, NB) to decrease water utilization. Newfoundland is attempted a careful audit of crisis the executives practices and reaction systems. This is the factor which happen Several adjustment activities address current dangers and consider the possible effects of future environmental change. These incorporate most major new framework advancement in northern Canada, for example, mine locales, pipelines and enormous structures, where versatile arrangements incorporate the utilization of Thermosyphons to initiate counterfeit cooling of permafrost under warming conditions. The job of the new-age administrator by taking a case of any Indian association. ICA represents The foundation of PC bookkeeper. Mr. Ashok Tekriwal he is the branch chief of the establishment. C:UsersAPicturesicalogo.jpg About ICA: ICA start with Account Training and finishes with a Guaranteed activity. The association was shaped by a gathering of experts with significant work involvement with the field of records and tax collection. The excursion began in 1999 and following ten years the foundation was spread up its wings to more than 300+centres with 3 zonal workplaces and 30+placement workplaces across India with Head office at Kolkata. The ICA family incorporates more than 3000+competent staff individuals and more than 2,00,000students. Address: Primary street Ranchi, Inverse huge bazaar, Close over extension, Ranchi. Contact no :0651-2332103. Job of supervisor: * To have contact: One of the essential job of ICA administrator is to build up and keep up a contacts with numerous individuals both inside and outside the business. The people with whom he includes standard contacts inside the association incorporate his subordinates, individual directors, etc. Government authorities , staff , that incorporate showcasing staff , arrangement staff and so on. * To have accomplish Target: One of the fundamental job of ICA Managers is work under tension more often than not as they have focuses to accomplish. This is especially obvious on account of admition of understudy ,Placement of the understudy just as great help for the understudy. * To go about as a Leader: One of the essential job of ICA chief is he generally stand every single individual before any difficulties or issue. He needs to set a guide to his subordinates. He should be genuine , fair and focused on his work. At exactly that point, he will have the option to direct and inspire the subordinates under him. * To guarantee the correct utilization of assets: one of the essential job of ICA chief to guarantee the correct utilization of asset which is legitimately identified with the understudy just as for the establishment, for example, men, machines, materials and cash are ideally used. * To determine the Conflict: One of the fundamental job of ICA director to Whenever there are clashes between the workers over certain hierarchical issues, the supervisor is relied upon to determine every single such clash and show up at an agreeable arrangement. * To deal with Situation: One of the essential job of ICA administrator is additionally expected to deal with emergency that may emerge in the association, .for example, compensation not paid of specialist ,some issue between the laborer and so forth. In such a circumstance the administrator needs to act quickly and carefully and discover cure. Question. Approach any little size organization in your city, contact the HR supervisor and get the subtleties of the association structure with names. At that point chalk out the fundamental elements of the top administration, center administration and administrative administration with deference to that organization and examine their jobs and obligations. Answer New Image About us anand rathi. Anand Rathi is a main full assistance venture bank established in 1994 contribution a wide scope of budgetary administrations and riches the executives answers for foundations, organizations, high-total assets people and families. The firm has quickly extended its impression to more than 350 areas across India with global nearness in Hong Kong, Dubai London. Established by Mr. Anand Rathi and Mr. Pradeep Gupta, the gathering today utilizes more than 2,500 experts all through India and its worldwide workplaces. Anand Rathi has been named The Best Domestic Private Bank in India by Asia cash in their Fifth Annual Private Banking Poll 2009. The firm has developed a victor over every single key fragment in Asia cash biggest overview of high total assets people in India. Top level administration. * Board of Director. MR. Anand Rathi. Originator Chairman Preceding setting up his own organization, Mr. Rathi headed Indian Rayon Industries, as Senior President. In his 40 years of being in the corporate world, Mr. Rathi has held a few key situations on different administrative and expert sheets, including, President, Bombay Stock Exchange (BSE), and Member, Central Council of Institute of Chartered Accountants (ICAI). As President of BSE, Mr. Rathi assumed a key job in the extension plan of BOLT, the web based exchanging arrangement of the Exchange and setting up of the Trade Guarantee Fund. He was the moving power behind setting up of the Central Depository Services (India) Ltd. He is a gold medalist Chartered Accountant. Mr.Pradeep Gupta. Fellow benefactor Vice director. With more than twenty years involvement with the protections advertise. Prime supporter and key driver of the Retail and Institutional Equities business of the gathering. Mr. Amit Rathi. Overseeing Director A position holder Chartered Accountant and a MBA from Leonard N. Harsh School of Business, New York University joined the gathering in 1998.Calling him a money related master, the Times of India gathering, recorded Amit rathi in 2008 among the best 51 youthful Marwaris in India (younger than 40). Mr. V. Srikanth. Executive Mr. Srikanth relationship with the gathering of has been of simply over year now. Already Senior Vice President with HSBC Wealth Management. With more than 12 years of experience he has worked with associations like Citibank and Zã ¼rich AMC. A PGDBA (Finance Marketing) and a Diploma in Business Finance (ICFAI Hyderabad). Center level Management. Under the executive. There is thirteen territorial executive. Territorial executive is chief of all sell. Provincial chief is immediate answering to the Director. Territorial supervisor give all the criticism of all the branch. *Branch Manager. *Franchise. *C

Advantages Of Standard Costing Accounting Essay

Focal points Of Standard Costing Accounting Essay Notwithstanding the points of interest simply noted for certain uses of standard costing, there are generously more circumstances where it's anything but a practical costing framework. Here are some difficult territories: Cost-in addition to contracts. In the event that you have an agreement with a client under which the client pays you for your expenses brought about, in addition to a benefit (known as an expense in addition to contract), at that point you should utilize real expenses, according to the details of the agreement. Standard costing isn't permitted. Drives wrong exercises. Some of the changes detailed under a standard costing framework will drive the executives to take mistaken activities to make great differences. For instance, they may purchase crude materials in bigger amounts so as to improve the price tag difference, despite the fact that this expands the interest in stock. Also, the executives may plan longer creation runs so as to improve the work effectiveness change, despite the fact that it is smarter to deliver in littler amounts and acknowledge less work proficiency in return. Quick paced condition. A standard costing framework expect that expenses don't change much in the close to term, with the goal that you can depend on principles for various months or even a year, prior to refreshing the expenses. Nonetheless, in a situation where item lives are short or constant improvement is driving down costs, a standard expense may get outdated inside a month or two. Slow input. A mind boggling arrangement of difference computations are a fundamental piece of a standard costing framework, which the bookkeeping staff finishes toward the finish of each detailing period. In the event that the creation division is centered around quick input of issues for moment amendment, the announcing of these changes is excessively late to be valuable. Unit-level data. The fluctuation counts that regularly go with a standard costing report are collected in total for a companys whole creation office, as can't give data about disparities at a lower level, for example, the individual work cell, cluster, or unit. The prior rundown shows that there are a huge number of circumstances happen where standard costing isn't valuable, and may even bring about mistaken administration activities. In any case, as long as you know about these issues, it is typically conceivable to beneficially adjust standard costing into certain parts of a companys tasks. Focal points of Standard Costing Despite the fact that most organizations don't utilize standard costing in its unique use of ascertaining the expense of completion stock, it is as yet valuable for various different applications. Much of the time, clients are most likely not even mindful that they are utilizing standard costing, just that they are utilizing a rough approximation of genuine expenses. Here are some potential employments: Stock costing. It is incredibly simple to print a report indicating the period-end stock adjusts (on the off chance that you are utilizing aâ perpetual inventoryâ system), duplicate it by the standard expense of every thing, and immediately create a finish stock valuation. The outcome doesn't actually coordinate the genuine expense of stock, however it is close. Be that as it may, it might be important to refresh standard expenses much of the time, if real expenses are persistently evolving. It is simplest to refresh costs for the most elevated dollar components of stock on a regular premise, and leave lower-esteem things for discontinuous cost audits. Overhead application. On the off chance that it takes too long to even think about aggregating genuine expenses into cost pools for allotment to stock, at that point you may utilize a standard overhead application rate rather, and change this rate at regular intervals to keep it near real expenses. creation costs at various volume levels, since this may require the utilization of longer creation runs that are more affordable. Planning. A financial plan is constantly made out of standard expenses, since it is difficult to remember for it the specific genuine expense of a thing on the day the spending plan is finished. Likewise, since a key use of the spending plan is to contrast it with genuine outcomes in resulting periods, the norms utilized inside it keep on showing up in monetary reports through the spending time frame. Value definition. In the event that an organization manages custom items, at that point it utilizes standard expenses to aggregate the anticipated expense of a clients prerequisites, after which it includes an edge. This might be a serious complex framework, where the business division utilizes a database of part costs that change contingent on the unit amount that the client needs to arrange. This framework may likewise represent changes in the companys Almost all organizations have spending plans and many utilize standard cost estimations to infer item costs, so it is evident that standard costing will discover a few uses for a long time to come. Specifically, standard costing gives a benchmark against which the board can look at genuine execution. Finishing all the mathematics of fluctuations I have pin pointed purposes behind the Material Price Variance, Material Usage Variance, Labor Efficiency Variance, and Labor Rate Variance. Material Price Variance happens an inability to buy the standard quality, in this manner bringing about a distinction cost paid. This will lead into terrible buying, in which is very discomforting the companys premium, for example, a surge buy for an uneconomical markets, and furthermore pushes an acquisition of a substitute material because of non-accessibility of the material determined by the organization. This all are identified with the reliance at differences when it results an occasion favorably affects one fluctuation yet an unfriendly effect on another change. For instance, the acquisition of sub-par quality materials may represent an ideal cost fluctuation however it might likewise negatively affect the material use work productivity change because of the quality causing an expansion in use. The unfriendly may likewise be influenced by expansion and general increment in the market cost. In such conditions the selling cost ought to be adjusted to refract the present market. Material Usage Variances might be influenced by a mess of reasons, for example, thoughtlessness in the utilization of material additionally influence the explanation of material use in coming about exorbitant utilization. Which carries us to the utilization of deficient or unacceptable material that will make deterioration the material. Different reasons, for example, an adjustment in t plant and hardware who additionally results to exorbitant utilization of material. The antagonistic on the differences is because of abundance issues. Directors should check the stock are safely bolted away that solitary the standard amount is given every day. What's more, its not only that, There are a couple of all the more, for example, : Broken workmanship Broken material handling Pilferage of materials Utilization of material blend, as opposed to standard blend Work Efficiency Variance is influenced as a result of the real hours utilized is more noteworthy than the standard hours, and it antagonistic is because of the utilization of an improper standard that ought to be changed. On the other hand, there may have been idletime, ten working time ought to be synchronized. Bridget, C. (2012). Standard Costing. Available: http://www.accountingtools.com/standard-costing. Last got to 28th Oct 2012.

Buy a College Paper - How to Find the Best One Online

<h1>Buy a College Paper - How to Find the Best One Online</h1><p>Whether you are in school or not, in the event that you need to purchase a school paper you should realize the various approaches to do as such. This should be possible through the Internet or through the paper stores. The Internet offers a greater amount of the points of interest and this is the place you can locate the best costs for the best quality papers.</p><p></p><p>You need to take a gander at the cost and afterward begin taking a gander at the kinds of paper that are advertised. In the event that you are purchasing a school paper from the paper, the print media are going to offer you numerous alternatives. In the paper there are either the sort of papers offered or you should purchase papers that are from a specific brand. Another bit of leeway is that you will be ready to see the most recent news on the paper before you buy it. This is useful in light of the fact that the vast majority will peruse a paper before they really purchase something.</p><p></p><p>The paper obviously is continually going to offer you the least expensive costs and the best paper. One thing to search for in your paper is if the paper will be in the opposition. With that you will have the option to purchase a school paper from your rival and analyze the cost. This will permit you to get the least expensive one.</p><p></p><p>When buying a paper, another great alternative is to discover a paper store. There are a lot of these organizations on the Internet so you ought to have no issue discovering one. The preferences here are that you will be ready to get an entire assortment of paper and with that you will have the alternative of getting a good deal on paper or getting a spic and span printer that costs more.</p><p></p><p>There are likewise paper merchants who offer the best paper costs. They offer a few unique brands and won't just give you the data about the cost yet they will offer different points of interest of the paper. These will incorporate the day's paper and the highlights that are offered in the paper. This permits you to locate the best one for the price.</p><p></p><p>When purchasing a school paper, you should keep all the costs that you can discover. With that you can utilize that to think about the various alternatives and discover which one is going to cost minimal measure of cash. It is imperative to analyze the costs between the various papers. The explanation behind this is each paper is going to offer you various administrations and costs for them are going to vary.</p><p></p><p>There are a ton of points of interest when you purchase a school paper. On the off chance that you are searching at the best costs and different favorable circumstances, at that point you will have the option to locate the best one to set a side you cash on the expenses of the paper.</p>

The Importance of Academic Interests Essay Samples

<h1>The Importance of Academic Interests Essay Samples</h1><p>Academic interests expositions ought to be utilized to get ready for tests, yet additionally to construct a character. There are a few factors that are imperative to know before composing your articles. It can assist with comprehending what kind of scholarly intrigue you have, and afterward to make sense of how you will utilize this enthusiasm to help you in school and throughout everyday life. This is basic, in light of the fact that the exact opposite thing you need is to give an exhausting, unoriginal sentiment on your subject!</p><p></p><p>We all realize what scholarly interests are, however there are a few unique sorts that can make your paper stand apart from the rest. On the off chance that you are taking secondary school English or an AP Calculus test, you may need to investigate those subjects first. You can generally blend and match the different scholarly interests on th e off chance that you find that one interests you more than the others.</p><p></p><p>Academic interests ought to likewise be joined with a comical inclination. You would prefer not to adhere to only one branch of knowledge, and make it exhausting. Rather, make the subject clever and interesting!</p><p></p><p>This should be possible by blending various components into your scholastic advantages exposition tests. For instance, you could consider expounding on something from your preferred games group. Another approach to join scholastic interests with humor is to expound on something that you appreciate doing, for example, gathering stamps or playing on the web poker.</p><p></p><p>Some different components that you should remember for your scholarly advantages article tests incorporate games, music, and motion pictures. These points may be general subjects, or they may identify with the particular vocation way you are seeking after. For instance, you may find that your preferred game is angling, and your family prefers to watch sports, so consolidating these components can show the contrasts between your past and future.</p><p></p><p>These scholastic interests exposition tests should assist you with beginning when creating your own paper. They are substantially more than simply recording your contemplations, and they can really affect your evaluations. Be that as it may, you ought to consistently ensure that you complete your assignment, and that your subject will be applicable to your test or tests. Few out of every odd subject will necessitate that your exposition be as explicit as it can be.</p><p></p><p>To change up your scholarly advantages paper tests, search for understudy exercise manuals that contain test scholastic papers. These are ideal for taking a gander at how you can adjust your inclinations to your particular subject.</p>

Why Your College Research Paper Needs Help From College Research Paper Writing Help

<h1>Why Your College Research Paper Needs Help From College Research Paper Writing Help</h1><p>Students may have a wide scope of composing styles and types, however the understudy well on the way to require help with their school look into paper composing help is the person who doesn't have the opportunity or the chance to learn. The word on the road is that the correct sort of school inquire about paper composing help can without much of a stretch be discovered online requiring little to no effort. Be that as it may, is this valid? In what capacity can an understudy be so off-base about such a significant piece of the training process?</p><p></p><p>Well, we should consider why understudies should utilize online school explore paper composing help, and why they probably won't need it. Indeed, there are numerous elements to consider when choosing whether you ought to depend on online assistance or the assistance of a school guide or professor. </p><p></p><p>If you need to improve your school examine paper composing, the principal thing you have to do is figure out what sort of help you need. Is your composing style going to come to fruition more in a report than a customary paper? Do you have to compose for publication?</p><p></p><p>A brisk inquiry of the web will uncover an enormous number of schools and colleges that offer school look into paper composing help for each assortment of composing style. There are various sites offering tips, and even a few teachers offering free exhortation also. Also, obviously, you will discover the individuals who state that they are going to give you the educational cost cash to compose a decent school examine paper.</p><p></p><p>Finding a good suggestion is significant, in light of the fact that it will permit you to discover what works for you. This will empower you to locate the best arrangement of composing guid elines that works best for you.</p><p></p><p>Of course, you can't hope to get proficient assistance for all the examination paper composing that you need. Some school inquire about paper composing help will most likely be offered at no expense; while others will require payment.</p><p></p><p>Writing guidelines can be elusive on the off chance that you don't have a clue where to look. Luckily, there are sites that offer tips and replies to every one of your inquiries. A significant number of these sites permit understudies to download reports to rehearse with before they begin.</p><p></p><p>College look into paper composing help can be discovered online at a cost. While the nature of the composing is most likely of the best, a few understudies are eager to pay a tad to get a prevalent item. These sites ought to be taken as simply that: magnificent wellsprings of data, yet it is ideal to utilize your own judgment. </p>

Petroleum Free Essays

UNIVERSITI PUTRA MALAYSIA A CASE STUDY ON PETRONAS GLOBALIZATION A STRATEGIC MANAGEMENT DECISION AHMAD HUSSAIN GSM 1999 6 [ 1 i §l : AL – FATHIHAH IN THE NAME OF ALLAH, THE COMPASSIONATE, THE MERCIFUL. PRAISE IS ONLY FOR ALLAH, THE LORD OF THE UNIVERSE. THE ALL-COMPASSIONATE, THE ALL-MERCIFUL. We will write a custom essay sample on Petroleum or any similar topic only for you Order Now THE MASTER OF THE DAY OF JUDGEMENT. THEE ALONE WE WORSIDP AND TO THEE ALONE WE PRAY FOR HELP. SHOW US THE STRAIGHT WAY, THE WAY OF THOSE WHOM THOU HAST BLESSED; WHO HAVE NOT INCURRED THY WRATH, NOR GONE ASTRAY. t 1 UNIVERSITI PUTRA MALAYSIA A CASE STUDY ON PETRONAS GLOBALIZATION A STRATEGIC MANAGEMENT DECISION BY AHMAD HUSSAIN MATRIC NO : GS01390 TIDS CASE DISSERTATION IS PRESENTED TO THE FACULTY OF ECONOMICS AND MANAGEMENT UNIVERSITY PUTRA MALAYSIA AS PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) SEPTEMBER 1999 PENGESAHAN KEASLIAN LAPORAN Dengan ini, saya AHMAD HUSSAIN ( No Matrik GS01390), pelajar Master of Business Administration (MBA) mengaku bahawa kajian kes untuk kursus ini adalah hasil asal saya sendiri. Names and events happened in this publication has been disguised and any similarity found is mere coincidence. Information found in this publication must be treated as HIGHL Y CONFIDENTIAL and shall be for the purpose of fulfillment of this MBA program. No references and reproduction of any parts of this publication shall be made without prior knowledge and approval from the author. Views expressed in this publication are solely those of the author’s opinion and not to be construed as the views of PETRONAS, nor PETRONAS in any way responsible for the content thereof. AHMAD HUSSAIN No Matrik : OS01390 16 September, 1999 ACKNOWLEDGEMENT I t is both my pleasure and obligation to acknowledge generous people who have provided me with the guidance and inspired me to make this happen. Special thanks to the lecturers who have thought me during the night classes and member of my family for their continuos support. Without their support and courage, completing this MBA program would have been difficult, if not impossible. I wish to express my gratitude to the following people for their kind assistance in this MBA p rogram and the case dissertation. Although much of my appreciation has been expressed, I wish to express my sincere thanks to Tuan Hj. Yaakob Ibrahim, the MBA coordinator for making this a reality to me. I want to acknowledge my special appreciation to Associate Professor Dr. Zainal Abidin Mohamed, who is my project case supervisor, for his continuos support in completing this case dissertation. It is truly impossible to express my feeling of gratitude in mere words. My friends and fellow colleagues in the MBA program, thank you for being a good teammates and shared my problems throughout this study. Your assistance, ideas and criticism are treasured in my heart. Never can I forget my family for being instrumental, cherish, motivating and more importantly for their patience throughout this course. To them I remain grateful and nor can I ignore them from my memory. I would never have been able to complete this MBA program and the case dissertation when I did if ever at all. II DEDICATED TO My Wife Norfishah bt Ab Wahab My Children Mohammad Fakhri Mohammad Fakhrullah Mohammad Fakhrusysyakirin Fathin My Parent Tuan Hj. Hussain Tamysa Hajjah Rokiah Bt Harun III Abstract PETRONAS vision was â€Å"To be A Leading Oil and Gas Multinational Company of Choice† and it stated the globalization effort in 1994. PETRONAS global operation had extended to Africa countries, Confederate Independence of Soviet Union (CIS), Middle East and Asia Pacific countries. Some of the Africa countries included Sudan, South Africa (downstream Engen), Libya and Algeria. The investments in CIS were Turkmenistan and Kazarkstan. The investment in Middle East countries included Iran, Syria and Iraq. In the Asia Pacific, the oversea portfolios extended to Vietnam, Mynmar, China and Australia (both Upstream and downstream). The oversea upstream activities were undertaken by its subsidiary PETRONAS Carigali Sdn Bhd (PCSB) through its oversea subsidiary companies. When PETRONAS started its globalization efforts, the environmental factors were very much favorable. However, in 1 997 and 1998 there were adverse changed in these environmental factors and had affected PETRONAS globalization efforts. Some of these factors were the regional and world economic turmoil, regional financial and currency devaluation, slower economic growth, low demand of oil and gas, lower oil and gas price and lower prospectivity and commerciality of the oil and gas projects. This case study evaluated PETRONAS strategic position and the impact on the international portfolios and made recommendation relating to these strategic issues. This case study analyzed the environmental factors influencing the company future direction through the used of the SWOT analysis and determined the strategic thrust to comprehend the SWOT analysis. This study assessed analytically, through the used of SPACE, the future company direction and evaluated the oversea portfolios to determine the portfolios growth opportunities and provide the decision as to whether these portfolios should be retained, partnered or divested. IV Abstrak Visi PETRONAS adalah â€Å"Menjadi Syarikat Minyak dan Gas Antarabangsa Yang Terulung dan Terpilih† dan ia telah memulakan usaha globalisasi pada tahun 1994. Usahanya ke arah globalisasi telah menjangkau ke negara-negara di Afrika, Confederate Independence of Soviet Union (CIS), Asia Tengah dan Asia Pasifik. Negara-negara di Afrika adalah termasuk Sudan, Afrika Selatan (operasi hiliran Engen), Libya and Algeria. merangkumi negara-negara seperti Turkmenistan and Kazarkstan. Pelaburan di CIS Manakala pelaburan di Asia Tengah menjangkau ke negara-negara Iran, Syria and Irak. Oi Asia Pasifik, pelaburan antarabangsanya termasuk Vietnam, Mynmar, China dan Australia (huluan dan hiliran) Operasi huluan dikendalikan oleh anak syarikatnya iaitu PETRONAS Carigali Sdn Bhd (PCSB) melalui anak-anak syarikatnya yang lain. Pada ketika PETRONAS memulakan usaha globalisasi, faktor-faktor sekeliling adalah begitu mengalakan. Walau bagaimanapun, dalam tahun 1997 dan 1998, terdapat perubahan ketara pada faktor-faktor sekeliling ini sehingga mencengkam usaha globalisasi PETRONAS. Antara faktor-faktor yang mengalami perubahan ketara adalah kejatuhan ecomomi serantau dan dunia. istem kewangan yang lemah, susut nilai matawang serantau, pertumbuhan ekonomi yang lembab, penurunan kadar permintaan minyak dan gas, kejatuhan harga minyak dan gas dan tahap prospek dan keupayaan niaga projek yang rendah. Kes in; menganalisa strategi PETRONAS dan implikasi keatas potfolio antarabangsanya dan seterusnya memberi cadangan untuk menyelesaikan isu-isu tersebut. faktor-faktor sekeliling ya ng mempengaruhi arah tuju masa Kes ini menganalisa depan syarikat dengan menggunakan analisa SWOT dan SPACE bagi menetapkan tunjak strategik dan membuat analisa potfolio antarabangsanya semaada untuk enjualnya. v terus memegangnya, berkongsi atau TABLE OF CONTENT PAGE I PENGESAHAN KEASLIAN LAPORAN II ACKNOWLEDGEMENTS III DEDICATIONS IV ABSTRACT 1. 0 PETRONAS GLOBALISATION AND THE DILEMMA . . . . . . . . . . . . . .. 1 2. 0 COMPANY BACKGROUND †¦.. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦.. .. †¦. 2 3. 0 PETRONAS VISION, MISSION AND OBJECTIVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6 3. 1 ViSiON †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6 3. 2 MiSSiON †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 3. 3 OBJECTiVES †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 3. 4 PETRONAS VALUES SYSTEM †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 . . . . .. . 10 PCSB ORGANIZATION STRUCTURE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦. 11 4. 2 FINANCIAL †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ . 13 4. 3 MARKETING †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 15 4. 4 OPERATION MANAGEMENT †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. †¦. †¦. 17 4. 5 5. 0 PETRONAS ORGANIZATION ENVIRONMENT †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4. 1 4. 0 MANAGEMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 . .. . †¦Ã¢â‚¬ ¦. †¦ †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. .. †¦ †¦. 20 5. 1 LEGAL POLITICAL .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ †¦ †¦.. .. 20 5. 2 ECONOMiCAL †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 20 5 . 3 SOCIAL CULTURAL . †¦Ã¢â‚¬ ¦.. †¦. . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 21 5. 4 TECHNOLOGiCAL †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 22 5. 5 SUPPLIER †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ .. . 22 5. 6 SUBSTITUTE . 22 . . . . ENVIRONMENTAL FACTORS . . . . . . . . †¦ . . . . . . . .. .. †¦Ã¢â‚¬ ¦.. . .. †¦ . . .. VI . †¦ . †¦.. . .. .. .. . †¦Ã¢â‚¬ ¦. .. .. †¦. .. 5. 7 23 PETRONAS UPSTREAM GLOBAL VENTURES .. . . . .. . . †¦Ã¢â‚¬ ¦.. 24 ViETNAM †¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4 6 . 2 SyRIA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 6. 3 SUDAN †¦. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 26 6. 4 IRAN †¦Ã¢â‚¬ ¦.. †¦.. .. . .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ 27 6. 5 TURMENISTAN †¦. †¦.. †¦Ã¢â‚¬ ¦.. †¦ †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. . 29 6. 6 ALGERIA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 30 COUNTRY ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦. †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ .. †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 31 7. 1 VIETNAM . †¦. . †¦.. †¦ .. . †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. †¦. .. †¦. .. †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 31 7. 2 SYRIA . †¦ †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ .. †¦. †¦.. †¦ †¦Ã¢â‚¬ ¦ .. ,. 32 7. 3 S UDAN .. . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 33 7. 4 IRAN †¦ †¦ †¦. .. .. .. . †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. †¦ †¦Ã¢â‚¬ ¦ †¦. 33 7. 5 TURMENISTAN †¦.. †¦. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦ †¦.. . †¦ †¦. †¦.. †¦ †¦ †¦ †¦. 34 7. 6 8. 0 CUSTOMER . .. .. †¦.. †¦.. .. .. †¦ †¦Ã¢â‚¬ ¦ .. †¦ †¦Ã¢â‚¬ ¦ †¦. †¦.. †¦Ã¢â‚¬ ¦ †¦.. 6. 1 7. 0 23 5. 8 6. 0 COMPETITOR †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ .. †¦.. †¦. .. .. .. .. †¦ .. †¦ †¦ .. ALGERIA †¦.. †¦.. †¦. †¦. †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. †¦ †¦ . †¦ †¦ †¦ †¦.. 35 THE PETRONAS E DILEMMA †¦. †¦ †¦Ã¢â‚¬ ¦. .. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 36 . . . . . . .. . . . . . . . .. . . .. . .. . . . . . . . . . . . .. . . .. . . . . . . PART II: CASE ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 38 †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ †¦.. †¦ †¦Ã¢â‚¬ ¦.. 40 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. .. †¦ †¦.. †¦ .. †¦.. 42 ORGANIZATIONAL ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ †¦ †¦ .. .. .. †¦ †¦.. .. 42 12. 1 ORGANIZATION STRUCTURE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 42 12. 2 FINANCIAL STATUS †¦.. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ . .. .. †¦ †¦Ã¢â‚¬ ¦ †¦ †¦ .. .. 43 12. 3 MARKETING 9. 0 INTRODUCTION 10. 0 SITUATION ANALYSIS 11. 0 PROBLEM STATEMENT 12. 0 . . . . . . . . . . . . . . . . . . 44 VII 12. 4 OPERATION MANAGEMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 45 12. 5 MANAGEMENT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 45 ENVIRONMENTAL ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. 47 13. 1 LEGAL POLITICAL ENVIRONMENT .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦ 47 13. 2 ECONOMICAL ENVIRONMENT †¦Ã¢â‚¬ ¦.. .. . †¦ .. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 48 13. 3 SOCIAL CULTURAL ENVIRONMENT †¦ . .. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ 49 13. 4 TECHNOLOGICAL ENVIRONMENT †¦.. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 49 13. 5 SUPPLIER †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦ . †¦. †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 49 13. 6 SUBSTITUTE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 50 13. 7 C OMPETITOR †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 50 13. 8 CUSTOMER †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 51 14. 0 SWOT ANALYSIS . †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 53 15. 0 SPACE ANALYSIS †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 55 16. 0 PORTFOLIO ANALYS IS †¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 58 16. 1 BCG GROWTH SHARE MATRIX †¦Ã¢â‚¬ ¦ †¦. †¦. †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 58 16. 2 PORTFOLIO ATTRACTIVENESS †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦. . †¦ 59 13. 0 . . .. . .. . . .. .. . . . . . . . . . . . . . . . . 17. 0 DECISION AND PLANNING †¦Ã¢â‚¬ ¦. .. †¦ †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦ †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. .. †¦ 62 18. 0 IMPLEMENTATION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 64 18. 1 WORK PROGRAM AND SCHEDULE †¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 64 18. 2 BUSINESS PROCESS REENGINEERING †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 66 18. 3 VALUE CHAIN †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 68 . . . .. . List o f Table List of Figures List o f Appendices VIII .. . †¦ LIST OF TABLE PAGE TABLE1 : ORGANIZATIONAL ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 46 TABLE 2 : ENVIRONMENTAL ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 51 TABLE3 : SWOT SUMMARY 53 . . .. . .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. TABLE4 : SWOT MATRIX †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 54 TABLE 5 : SPACE MATRIX COMPONENTS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 56 TABLE6 : SPACE MATRIX CALCULATION TABLE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 57 TABLE7 : PETRONAS BCG-GROWTH SHARE MATRIX †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 59 TABLE 8 : PETRONAS OVERSEA PORTFOLIO ANALYSIS †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 61 IX PAGE LIST OF FIGURES FIGURE 1 : PETRONAS EVOLUTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦. FIGURE 2 : ORGANIZATION STRUCTURE OF PETRONAS . †¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ FIGURE 3 : PETRONAS CARIGALI ORGANIZATION STRUCTURE . FIGURE 4 : PETRONAS TURNOVER . †¦.. . . .. . . . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ FIGURE 5 : PETRONAS PROFIT AFTER TAX FIGURE 6 : PETRONAS TOTAL ASSET †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦ .. FIGURE 7 : SPACE MATRIX ANALYSIS . .. . .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ FIGURE 8 : PETRONAS BCG – GROWTH SHARE MATRIX .. . †¦ 5 12 1 4 1 4 15 57 58 . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 61 . †¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦. 65 †¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦. FIGURE 1 0 : WORK PROGRAM AND SCHEDULE .. . .. . .. .. †¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ FIGURE9 : PETRONAS OVERSEA PORTFOLIO ANALYSIS . . 4 FIGURE 1 1 : PETRONAS REENGINEERING : NEW BUSINESS DEVELOPMENT DIVISION .. . . . . .. . . .. . †¦ . . . †¦. . †¦Ã¢â‚¬ ¦.. ‘† x †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. ,. 67 LIST OF APPENDICES PAGE †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 68 APPENDIX 2 : COUNTRY PERFORMANCE: SYRIA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 70 APPENDIX 3 : COUNTRY PERFORMANCE: SUDAN †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 72 APPENDIX 4 : COUNTRY PERFORMANCE: IRAN .. 74 APPENDIX 1 : COUNTRY PERFORMANCE : VIETNAM .. †¦.. . †¦. . †¦Ã¢â‚¬ ¦ . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 75 . †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦ . . 78 APPENDIX 5 : COUNTRY PERFORMANCE : TURKMENISTAN APPENDIX 6 : COUNTRY PER FORMANCE : ALGERIA †¦. . †¦Ã¢â‚¬ ¦. . . APPENDIX7 : PETRONAS ORGANIZATIONAL ENVIRONMENTAL FACTOR 80 †¢ †¦.. 81 APPENDIX9 : PORTFOLIO ANALYSIS : VIETNAM .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 82 APPENDIX 10 : PORTFOLIO ANALYSIS : SYRIA .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 83 APPENDIX 1 1 : PORTFOLIO ANALYSIS: SUDAN 84 APPENDIX 8 : PETRONAS EXTERNAL ENVIRONMENTAL FACTOR APPENDIX 1 2 : PORTFOLIO ANALYSIS : IRAN .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ .. . . †¦.. . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. . APPENDIX 13 : PORTFOLIO ANALYSIS : TURKMENISTAN †¦ . †¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦.. . APPENDIX 1 4 : PORTFOLIO ANALYSIS : ALGERIA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ XI 85 86 87 1. 0 PETRONAS GLOBALISATION AND THE DILEMMA Tan Sri Hassan Marican, president of PETRONAS, the national oil company of Malays ia, was on his way back after a week long business meeting with his new partners in Sudan, China National Petroleum Corporation (CNPC), State Petroleum and Sudapet, the Sudan National oil company. Accompanying him on his privately hired jet plane, were other vice presidents, they were Dato’ Mohamad Idris Mansor, senior vice president of Exploration and Production Business Unit and Mr. Muri Mohammad, the vice president of Gas Business Unit. They were having serious discussions on the prospectivity of the new joint venture and the resources invested in Sudan. There were about 23 8 PETRONAS employees working in Sudan, and PETRONAS has invested US$1 30 million to date. At one juncture, Tan Sri Hassan posed a question to Dato’ Idris, â€Å"Dato’ Idris, PETRONAS has interest in many different countries around the world, with a total investment of US$6 billion. So far, we have been receiving revenues from Sirri projects in Iran, Dai Hung and Ruby projects in Vietnam. Dai Hung has been a disastrous venture to us, millions of dollars were lost due to lower oil reserves than expected. We may have to relinquish the field and return back to the Vietnamese Government. I wonder how are our other project stands? With the adverse changed in the environmental factors and current uncertainties in the global economy, how are our oversea portfolios doing and do we need to strategies our future direction? â€Å". There was a long sighed and Dato Idris later replied with cautious, â€Å"We have been able to grab the oversea projects because we made a thorough analysis and feasibility study. However, in the exploration and production business, the risk is very high. Base on our limited data and information then, it was the best decision. However, I agreed that there is a need to reassess our projects and to decide whether to retain the projects or divest in some. We will reevaluate the project feasibility and carry out the portfolio analyses to determine which are the portfolios that can be retained and those that need to be divested. We will advise the board for the next course of action. † The tense and dilemma were immensed on Dato Mohd Idris Mansor. He needed to know what were the situations, what adverse environmental changed occurred and the surrounding forces governing these assets. Was the political in the country, in which PETRONAS had invested, permitted a good investment climate? What impact did the global economy have on the projects’ prospectivity. What would the future scenarios be? Could the vision, mission and objective of the company be met? Should PETRONAS continue to aggressively expand the international operations, what should be done to the existing international portfolios and what should PETRONAS future direction be? His contract with PETRONAS valid for another three months. He knew that he needed to impress and make the Management Committee convince based on solid factual data and analyses, what are best for these international portfolios. He needed provide with proper recommendations and direction for PETRONAS to adopt. to His contract extension could be in jeopardy if he failed to provide the right decision and direction. 2. 0 COMPANY BACKGROUND PETRONAS was a Malaysian national oil and gas company, which was incorporated on August 17, 1974 under the Malaysian Company Act 1965. The Malaysian Petroleum Development Act (PDA), 1974 was passed by the Parliament on October 1, 1974. It placed petroleum development under the portfolio of the Prime Minister. Under the PDA, PETRONAS was vested with the ownership of petroleum resources, and had exclusive rights, power, liberties and privileges of exploring and developing petroleum resources. 2 In return for the ownership and rights, PETRONAS paid royalties to the Federal and State Governments. PETRONAS was given the right to carry out? processing, refining of petroleum and manufacturing of petrochemicals. This act had given PETRONAS the sole right to regulate the petroleum resources in Malaysia and was entrusted to manage the resources for the benefit of the nation. Towards the end of 1976, the first production sharing contracts were signed with three different major oil companies i. e. Sabah Shell, Sarawak Shell and Esso. During the initial years, PETRONAS roles mainly focus on managing and regulating the exploration activities of their contractors to ensure the upstream activities were being well administered and properly managed. Since PETRONAS emergent in 1974, it had developed itself from merely management of petroleum resources to project management and later established itself as the operator in the upstream activities before diversifying its activities and went international. PETRONAS evolution is shown in Figure 1. I n 1984, with the establishment of PETRONAS CARIGALI Sdn Bhd, it became the operating arm in the upstream activities. Later, several strategic studies were carried out by PETRONAS that led to diversification of its activities into oil refining, gas processing and utilization and petrochemical manufacturing and international marketing. To optimize the value and maximize synergy of the natural resources, it had integrated the upstream and downstream activities and transformed PETRONAS into an integrated oil and gas company. In 1994, PETRONAS started to diversify its activities oversea through its operating arm PETRONAS Carigali Sdn Bhd. In 1998, it had expanded the global activities into 15 different countries in the upstream and downstream. PETRONAS global operation had extended to Africa countries, Confederate Independence of Soviet Union (CIS), Middle East and Asia Pacific countries. Some of the Africa countries included Sudan, South Africa (downstream Engen), Libya and Algeria. The investments in CIS were Turkmenistan and Kazakhstan. The investment in Middle East countries included Iran, Syria and Iraq (still in negotiation). In the Asia Pacific, 3 the oversea portfolios included Vietnam, Myanmar, China and Australia (both Upstream and downstream). In line with the globalization, PETRONAS had developed a new vision and mission in accordance to its core activities and the company aspiration of becoming a global company of choice. FIGURE 1: PETRONAS EVOLUTION †¢ ‘† Project Manager /’ . Operator + Project Manager I I ‘+ I Operator I I I I I I ‘+ Integrated Oil Cpmpany _ Petroleum was PETRONAS core business right from finding hydrocarbon up to processing and refining, petrochemical industries, manufacturing and transportation. The organization structure of PETRONAS is shown in Figure 2. Exploration and Production activities encompassed 4 exploration, development and production of petroleum refining resources. Refining activity focussed on the crude oil. Marketing was responsible in marketing, trading and retailing of petroleum products. Gas business was responsible in gas processing and transmission, gas liquefaction and gas utilization such as gas district cooling. The Petrochemical business was responsible for the petrochemical manufacturing and marketing the product. Maritime and logistic business included marine transportation, port management and terminaling and finally the logistic activities. FIGURE 2 ORGANISATIONAL STRUCTURE OF PETRONAS . †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ BOARD AUDIT r. ()MMITT †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦. M ANAGEMENT r. ()MMITT MARKETING BUSINESS CORPORATE PLANNING DEVELOPMENT nlVI? lnN EDUCATION DIVISION FINANCE DIVISION 5 PETROCHEMICAL BUSINESS HUMAN RESOURCE DIVISION TECHNOLOGY MANAGEMENT nlVI? lnN 3. 0 PETRONAS’s VISION, MISSION AND OBJECTIVES Mission and vision statement is very important to illustrate the organization reason for existence and the direction towards achieving the objectives and goals in the short and long term. PETRONAS had long developed the mission and vision statement. However, in 1995, after its globalization effort, PETRONAS changed its vision statement to incorporate the vision of being a multinational company of choice. Below are discussion on the three elements of PETRONAS undamental principle of its existence and the values system that it adored. 3 . 1 VISION PETRONAS vision was â€Å"To be A Leading Oil and Gas Multinational Company of Choice†. This defined that oil and gas as the core business and emphasized on significance of integrated upstream and downstream activities in adding values to the primary resource. In line with the industry trend in the downstream and the relevancy in the value chain, PETRONAS wanted to increase weighting towards gas and petrochemical. It expressed desired to leverage on the core businesses and out-sourced the non-strategic activities and units. PETRONAS has developed strategies where it emphasized on certain business segments, focused on certain geographical locations and leveraged its competitiveness in a certain market segment. In 1994, PETRONAS started its globalization effort to become a global multinational company. Thus a significant proportion of its operations were outside Malaysia and across several countries. Like other multinational company, PETRONAS had to deal and manage with multinationals and multicultural not only in Malaysia but other countries that it was operating. The vision stated that it wanted to be a world class organization, as 6 uch in 1996, the management has undertook business process reengineering to make PETRONAS more competitive internationally. The vision also stressed on being a company of choice and keenly preferred by all stakeholders, consumers and partners. 3. 2 MISSION The PETRONAS mission statement was developed to explain the reasons for its existence, strengthen the vision and articu late the corporate direction in achieving the vision. PETRONAS described its mission statements as follows; â€Å"WE ARE A BUSINESS ENTITY† â€Å"PETROLEUM IS OUR CORE BUSINESS† â€Å"OUR PRIMARY RESPONSIBILITY IS TO DEVELOP AND ADD VALUE TO THIS NATIONAL RESOURCE† OUR OBJECTIVE IS TO CONTRIBUTE TO THE WELL-BEING OF THE PEOPLE AND THE NATION† The mission statement stated that petroleum, which constitute of oil and gas, as being the core business. Petroleum as a natural resource, had to be explored, developed, produced, processed and transformed to consumer products, e. g. gasoline, ethane as feedstock to petrochemical plant and gas for power plant. In this way, PETRONAS could maximized the value chain of this natural resource through synchronizing the upstream activities with the downstream activities. The upstream activities involved exploring and roducing the petroleum whereas the downstream activities involved processing and transformation of the natura l resource into other utilities and feedstock to the petrochemical plants. The mission also mentioned that the objective was to contribute 7 toward the well being of the people and the nation. PETRONAS believed that since it was entrusted with the responsibility to develop the natural resources and given the exclusive rights under the PDA, it has the responsibility to protect the well being of the people and the nation whom, it believed, owned the wealth of the natural resources of the country. 3. 3 OBJECTIVES Taking the vision and mission as the foundation of the company direction, PETRONAS Exploration and Production (EP) business unit has developed their specific objectives in order to achieve the Corporate’s vision and mission. The specific objectives are discussed below. 1. Increase the share or revenues from international operation by 3 0% in year 2005. 2. Creating value to the company at RM 58 billion by year 2005. 3. To acquire 1billion of oil equivalent b y year 2000. 4. Be a leading upstream gas company in South Asia. S. Overall Total Corporate Return (TCR) of top quartile in International EP industry. In achieving the PETRONAS EP objectives some of these strategies were integrated across businesses to synergies and create value chain to the company. In its effort to maximize value creation to the company, PETRONAS had acquired service company alliance to minimize cost of development and strategic partnerships with other companies in its oversea ventures to share the risk. 8 3. 4 PETRONAS’s VALVES SYSTEM PETRONAS value system was developed to explain the values that the organization advocated and the expectation that the organization has on its employee. There were four values system adopted by PETRONAS. LOYALTY† â€Å"PROFESSIONALISM† â€Å"INTEGRITY† â€Å"COHESIVENESS† The word loyalty referred to the staff loyalty to the nation and corporation. A loyal staff maintained high corporate image and would not’ make derogatory comments about the company and country. The staff would at all time provide constructive criticism within in-house foru m, support and participate in ensuring the company’s mission, roles, objectives in his or her activities either in-house, outside seminar, talks and social activities. Professionalism in PETRONAS terminology means committed, innovative and proactive an d always striving f or excellence. The staff would maintain correctness and high dignity of behavior in delivering his duty and firm in decision making based on objective assessment of situations in conducting affairs of the company. Integrity means honest and upright. It referred to staff trustworthiness in maintaining all confidentiality of company’s affairs and business and put company’s interest above personal interest and gains. 9 Cohesiveness means united in purpose and fellowship. Able to work in a team and contribute positively towards a common goal in conducting company’s affairs and business with genuine concerns and respect to the people. . 0 PETRONAS ORGANIZATIONAL ENVIRONMENT Some of the factors that impact the development of an organization include the financial, marketing, operation and management factors. Based on Fortune 500, August 98, in the Petroleum Industry category, PETRONAS has been listed has number 1 in term of return on revenues and return on assets with 28. 4 % and 1 3 . 9% respectively. Its had investment in 53 wholly owned companies with 2 1 located overseas and 32 locally, 27 partly owned with one in oversea and 30 associated companies with 1 1 located oversea. The mode of decision making was made centralized with specific business units had their own business committee chaired by the respective vise president. The organization decision-makings and guiding policies were made through Management Committee meeting and Board meeting. Members represented the Management Committee were mainly from the various heads of business units. The Board Members comprised of member from the senior management and Government representatives. The Exploration and Production (E P) business unit was responsible of the upstream activities. Petroleum Management Unit, which was part of the holding company, was responsible of managing the domestic petroleum operation and supervising the implementation of Production Sharing Contracts signed between PETRONAS and the contractors. 10 PETRONAS Carigali Sdn. Bhd. (PCSB) under the EP business units was the subsidiary of PETRONAS and was the operating arm of PETRONAS in the upstream sector. It has domestic assets as well as international assets. The international assets were being managed by wholly owned international subsidiaries headed by the country managers. How to cite Petroleum, Essay examples