Petron

Only available on StudyMode
  • Download(s) : 64
  • Published : September 17, 2012
Open Document
Text Preview
Petronas Business Analysis
|
-------------------------------------------------
Top of FormBottom of Form
Length: 1564 words (4.5 double-spaced pages)
Rating: Red (FREE)      
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -“The moral issues of distributive justice are unlikely to be realised if biophysical limits to  growth are ignored” - Philip A. Lawn, 2001. 

Introduction 

This paper evaluates the likely impact on the competitive position of PETRONAS if it were to  strengthen its business strategy based on Sustainable Development. 

PETRONAS, acronym for Petroliam Nasional Berhad, is a Malaysian owned oil and gas  company that was founded on 17 August 1974. Wholly owned by the Government, the  corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with  the responsibility of developing and adding value to these resources. PETRONAS is ranked  among Fortune Global 500’s largest corporations in the world. In 2007, its revenue was in  excess of US$51 billion. 

Source: Wikipedia and Fortune Global 500 

Since its incorporation it has grown to be an integrated international oil and gas company with  business interests in 31 countries. As of the end of March 2005, the Petronas Group  comprised 103 wholly owned subsidiaries, 19 partly-owned outfits and 57 associated  companies. Together, these companies make the Petronas Group, which is involved in various  oil and gas based activities. The Financial Times has identified PETRONAS as one of the  “new seven sisters”: the most influential and mainly state-owned national oil and gas  companies from countries outside the OECD. 

Source: FT.com, 11 March 2007 

The Group is engaged in a wide spectrum of petroleum activities, including upstream  exploration and production of oil and gas to downstream oil refining; marketing and  distribution of petroleum products; trading; gas processing and liquefaction; gas transmission  pipeline network operations; marketing of liquefied natural gas; petrochemical  manufacturing and marketing; shipping; automotive engineering; and property investment.  PETRONAS built the Petronas Twin Towers (opened 1998), the tallest twin towers and once  the world’s tallest buildings, as its headquarters. 

Source: PETRONAS 

The Reality 

The looming growth of globalisation and continuous development have resulted in a negative  impact on the environment, which will be detriment to the survival of mankind and other  living things on this planet if we do not take the necessary steps to reduce this impact. As for  our planet, it has all the time in the world to regenerate itself, but we don’t. 

The threat to our survival has become more apparent with the increasing number of  environmental catastrophe such as earthquakes, flooding, drought, water shortage, depleting  natural resources and ultimately the increase in Greenhouse Gases fueled by rapid  development to meet the current population demands, which contributes to Global Warming. 

Global warming is the result of the constant increase in the level of carbon dioxide (CO2) in  the atmosphere measured in parts per million (PPM). Scientists has revealed that if this  measure reaches 450PPM, the world will be at the tipping point of its own survival, and this  number is climbing fast. 

Source: The 11th Hour, 16 June 2008 & InterGovernment Panel for Climate Change. 

However, this can be mitigated through increasing awareness of how real the problem is, by  the adoption of Environmental and Ecological Economics, alongside mainstream/neo-  classical economics which takes into account the environmental impacts that economic  growth promotes as well. One way of addressing this issue is through Sustainable  Development (“SD”). 

According to The Brundtland Report (1987), Sustainable Development is the development  that meets the needs of the present without compromising the ability of future generations to  meet their economic...
tracking img