The Brief History and Background of Petronas

The Brief History and screen posteriorground of PetronasPetronas is an acronym for Petroliam Nasional Berhad. It was realised in 17 August 1974 as the national oil colour colour participation for Malaysia. Petronas which is wholly possess by the government it is the corporation which is vested with the ideal oil and mess up resources in Malaysia and is entrusted with the responsibility of developing and adding value to these resources. Petronas has full-grown from undecomposed being the manager or the regulator of Malaysias upstream welkin into a fully integrated oil and gas w ar. PETRONAS have been class-conscious among the FORTUNE Global 500 the largest corporations in the world. Since it was invested PETRONAS has grown to be an outside(a) oil and gas company with fear interests in 31 countries. As of the end of March 2005, the Petronas theme comprised 103 wholly-owned subsidiaries, 19 partly-owned outfits and 57 associated companies. Together, these companies make the Petronas Group, which is conf utilise in various oil and gas based activities. The Group is meshed in a wide spectrum of petroleum activities, including upstream geographic expedition and convergenceion of oil and gas to downstream oil refining marketing and dissemination of petroleum products trading, gas processing and liquefaction, gas contagious disease pipeline entanglement operations, marketing of liquefied natural gas, petrochemical manufacturing and marketing, shipping, automotive engineering and property investment. PETRONAS is doing its business with the major strategy of integration, adding value and globalization. Their major facets of business integration argon Exploration and employment Oil, Gas, Petrochemicals, Logistics and Maritime, Research and applied science and Corporate Sustainability.The market coordinate of PETRONAS in this context means how PETRONAS fit into the oligopoly market. I leave be discussing the characteristics of an oligopoly mark et and see how PETRONAS match the characteristics. Just to recap oligopoly is the market structure thats has hardly a(prenominal) producers that produce same type of in force(p)s and substitute with each otherwise. Examples of oligopoly are Oil industry which I believe PETRONAS fall under this industry, auto industry and cigarette industry. The market is dominated by a few large producers of a homogenous or differentiated product.CHARACTERISTICS OF OLIGOPOLYPETRONASType of the product is standardized or differentiatedControl over price is trammel by mutual interdependence, or it is consider equal to(p) with collusionConditions of entry has evidential obstaclesNon-price competition is typically a smashing deal with product differentiation.The parry above clearly shows that indeed PETRONAS fit into the oligopoly market structure as it fulfils most of the oligopoly characteristics.THE MAJOR PLAYERS OF PETRONASPetroliam Nasional Berhad(PETRONAS) is 100% owned by Government of M alaysia via government minister of Finance (Inc.).THE CURRENT TRENDS OF PETRONASPetronas have gained unique skill and proficiency in nation building and this, together with their technical and operational competencies have allowed it to be increasingly original as the preferred strategic partner by international companies and the congregation countries where Petronas operate. This really suggests that Petronas is realizing their vision of becoming a spark advance Oil and Gas Multinational of Choice. Petronas has transformed from a domestic-based national oil company into a fully integrated oil and gas transnational corporation and as a corporation it has experienced significant milestones. infra are just nearly of the highlights of the different years.YearAchievements2006Signed a joint concession agreement for the North Sidi Kirir Deep offshore exploration block in the Nile Delta, Egypt.2007Increased its equity holding in the APA Group to become the single largest shareholder in one of Australias biggest energy transmission and Distri unlession Company.2008Signed the main principles towards a new PSC with ExxonMobil Exploration and Production Malaysia Inc and PETRONAS Carigali Sdn Bhd that would allow the two PSC partners to continue their upstream participation in sevensome oil fields offshore Peninsular Malaysia.2009PETRONAS Dagangan Berhad marked its first biodiesel (B5) address to Ministry of Defense (MINDEF) and Dewan Bandaraya Kuala Lumpur (DBKL), an initiative in support of the Malaysian Biofuel Industry bear 2007.PETRONAS Australia Pty Ltd increased its equity holding to 17.23% in the APA Group, making it the single largest shareholder in Australias leading gas transmission and Distribution Company.(Table 1 achievements of Petronas amid 2006 and 2009, source www.petronas.com )What can be concluded from the above table is that PETRONAS is release places its market is growing tremendously and there is no doubt that it is non shrinking. PETRO NAS have expanded its market to over 30 countries around the world. It has been accepted as the strategic partners by those countries that they are developing their petroleum industry.HOW DOES engineering AFFECT PETRONASToday we live in a world that is controlled by technology. Almost everything that is done there should be technology included in the process. Petronas as well is significantly being affected by the proficient changes that are presently happening worldwide. Looking upon the globalization practices that PETRONAS are currently undertaking, technology is affecting this whole process of the organization. When Petronas is producing using technology, production will be more efficient and that will result in add on being increased. That means due to the advance in technology the affix curve for PETRONAS will increase.PriceP 2P 1Q 2Q1Quantity suppliedDiagram 1 how technological changes affect the deliver of PetronasHowever, technology is not the only factor of production existing in the producers plant. There exist more complex interrelationships between these factors to be able to exploit the improved cogency of one. The most crucial of all is disposal human resources. Without proper guidance from the leaders of a firm, production efficiency will not hold because of resistance, de-motivation or just a orbit technological ignorance. Technology is not 100% automated and human hitch as well as errors is inevitable. Moreover, technology may likewise be intended for a specific segment of the industry, say, large corporations. As such, meld supply may not necessarily increase because small entrepreneurs who cannot fall in to buy the technology cannot contribute in increasing supply.PETRONAS ADVERTISING STRATERGIESPETRONAS just like any company it fates to draw its business to its probable customers so as such there are certain publicizing ways that they use to reach out to its customers and the country as a whole. The advertising strategy tha t PETRONAS has used is a heart strings commercials, (which of fall is advertising using the television as the type of media), this means that PETRONAS has used commercials that often create an emotional ambience that draws you to the advertisement and makes you feel great and or so sad. Normally people are more attracted by products that make them feel good or even sad in some cases. PETRONAS has used one of its commercial the PETRONAS Advertisement Raya 2006 that has touched so many and the video was uploaded on you tube. Even people who watch a view of PETRONAS advertisements have said that they enjoy watching them and they are ever so eager for the new advertisements. Petronas withal make commercials for every festival that are always happening in Malaysia example could be of the 49thMerdekaDay. The other way that PETRONAS use to advertise is through with(predicate) billboards and newspapers. For billboards as you drive on the road you will find huge boards advertising PETR ONAS and by such somebody can come to know more or less PETRONAS through this way.COLLABORATIONS WITH separate MARKETSPetronas is collaborating with some markets and this makes PETRONAS more popular among other markets that they are interacting with.EDUCATIONPETRONAS cut the value of study and it believes that it can develop human capability through education. As such Petronas is collaborating with the education sector in the form of present give awayship loans to local and international students. The Petronas unit that is responsible for handling education matters is called the bringing up Sponsorship Unit. The sponsorship is in the form of convertible loan. Based on the academic results, co-curricular activities, the family back ground and the assessment of the students personality PETRONAS just dont give out sponsorship but it has criteria that students should meet. PETRONAS has 6 human and capital development programs in Malaysia and abroad. These programs areeducational Training Institutions In this program Petronas provide world-class educational and educational activity services to people and the nation through the various institutions they have established such as University Technology PETRONAS (UTP), Academy Laut Malaysia, (ALAM )PETRONAS Management Sdn Bhd (PERMATA) and Institute Technology Petroleum PETRONAS (INSTEP).Education Sponsorship Unit This is the unit that is responsible for handling education matters.PETRONAS e-learning control the latest information and communication technology (ICT) to provide online rearing and development programs for Petronas employees. It also offers a wide range of online learning materials, online courses as well as services including eLearning courseware and portal development, designed for professionals.Petrosains This interactive science Discovery Centre that encourages the Malaysian public to learn more about science, and explore the infinite possibilities it offers.Schools Outreach this is a program where PETRONAS outreach for certain schools and invests a hefty effort and resources into education-based outreach activities to inspire and develop the community.Industrial Training this is the program in which PETRONAS grant students opportunities to partake structured Industrial training.Students that have awarded the sponsorship after they nail their tertiary studies have their convertible loans converted into full scholarship. These students have a binding contract with Petronas that after they finish school they work for the company for two years and for every year they are sponsored.MOTORSPORTPetronas was one of the main sponsors of the BMW Sauber formula one team and it provides fuel and lubricant to the team. Lately finale year it was confirmed that it was moving from BMW to the newly-formed Mercedes Grand Prix. Also it is the main sponsor of the Malaysian Grand Prix and the co-sponsors of the Chinese Grand Prix. As part of its merged social responsibility program, Petr onas also brings underprivileged children to watch the race. mop up AND RECOMMENDATIONSCONCLUSIONPETRONAS is a company which falls under the oligopoly type of market structures. on the whole owned by the government, PETRONAS is the countrys one of the company that provide petroleum and gas for the country. PETRONAS from its previous years it has been growing nationwide and worldwide as it has some of its products being used in other countries even outside Asia and as far as Egypt in Africa. It is making a whole lot of profits from its products and as such the country benefits a lot from it. PETRONAS does not only care for the production of petroleum and gas but also collaborate with other markets such as education and provide sponsorship loans to those students which need them. PETRONAS also have established various institutions as their main organise is to enrich the nation with quality education. PETRONAS also participate in someways entertainment market as it is one of the main sponsors of the newly-formed Mercedes Grand Prix and also main sponsor of the Malaysian Grand Prix.RECOMMENDATIONSAs PETRONAS is wholly owned by the government and it has been the company that the government has been focusing on, I commend that it merge with other energy company which is Tenaga Nasional Berhad. If the government for the next ten dollar bill focuses on Biomass, PETRONAS should merge with companies such as Sime Derby which was recognized as the biomass champion, as I believe this effort coupled with reengineering technology, will draw and quarter a sustainable company that will have a good impact for both energy and food sector in Malaysia.