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Shell versus PETRONAS

Corporate Management and Sustainability
by

Artini Subramaniam

on 17 May 2013

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Transcript of Shell versus PETRONAS

Shell versus PETRONAS Presentation By:
Artini Subramaniam (4225309)
Gunaselan Anbumuthu (4224035)
Cliff Jude Zehnder (4225201)
Muhammad Adib Abdullah (4226127)
Nithiyan Subramaniam (4223659) Outline Background Artini Subramaniam Background &
Environmental Factors Gunaselan Anbumuthu Sustainability Cliff Jude Zehnder Ethical Issues &
Social Responsibility Muhammad Adib Abdullah SWOT Analysis &
Porter's Five Forces Nithiyan Subramaniam Challenges of Planning and Managerial Decision & Conclusion Petroliam National Berhad (PETRONAS) Environmental Factors External Environmental Factors (PEST Analysis) Political Factors Shell Petronas Economical Factors Social Factors Shell PETRONAS Shell PETRONAS Technological Factor Internal Environmental Factors Shell PETRONAS Policies of 'Low Carbon Cities Framework & Assessment System by Malaysian Prime Minister Some of Shell's initiative:
Reduced usage of fuel for combustion
Reduce process equipment leaks
Lessen venting and flaring Fully owned by Malaysian government Petroleum Development Act 1974:
PETRONAS was granted with ownership and special rights over the Malaysia's petroleum resources 'Project Hijau'


New diesel processing unit constructed Improves Shell's margin through increment in diesel production
&
Cater various options of feedstocks Oil price to increase due to scarcity of oil production

Stimulated the Malaysian government to establish PETRONAS to ensure continuous supply of oil and control oil prices 1973 oil crisis
Initiated the importance of PETRONAS to diversify energy resources (expansion of gas production)

Contributed to increase of the exports and revenue of the government Sponsorship for higher education Raise awareness of HIV/AIDS in the community Road safety awareness Stake holders i.e; local communities living nearby the area where PETRONAS runs its business Their social welfare is taken care by PETRONAS e.g: Gas Pipeline Project Operation of world class plants to invent new products or develop the existing ones In 1999, PETROSAINS, the Malaysian pioneer petroleum discovery centre was established Royal Dutch Shell plc. Sustainability Means the capability of an organisation to keep up its standard of operation.
PETRONAS:
Sustainability means carrying out business in a socially responsible and holistic manner to ensure continued growth and success for the benefit of present and future generations whenever they operate. Sustainability Shell
Sustainable development means balancing short- and long-term interests in a way that allows us to integrate economic, environmental and social considerations into the business decisions they make Health and Safety
Climate Change
Environment
Community Sustainability Issues Health and Safety
In refinery stations
Employee exhaustion and low strength to carry out task.
Unsuitable physical and mental health of staffs with level of work carried out.
Danger of working at height, Marine offshore services and excavation.
Ineffective accident analysis system.
On roads
Lack of safety awareness among tanker drivers.
Climate Change
Greenhouse gasses emission PETRONAS Environment
Oil spill.
Odour and noise in the domestic operations.
Activities that contaminates land and groundwater.
Community
Provide monthly food aid for poor families.
Provide education, health and computer training.
Provide scholarship. Health and Safety
In refinery stations
Flaring of natural gas.
Ageing oil and gas producing facilities.
Lack of practices among staffs on emergency response actions.
On roads.
Speeding oil tanker driver.
Major leakage when filling up an oil tanker.
Climate Change
Greenhouse gases emission. Shell Environment
Oil spills.
Process of overcoming environmental challenges for projects commencement.
Community
Create job and business opportunity for society.
Identify the impacts on society
Hire and buy services and products locally. Strength
Weaknesses
Opportunity
Threats SWOT Analysis Strength Weaknesses Opportunity Threats Bargaining Power of Suppliers Shell and Petronas have their own digging site
Control line of supplies
Bargaining power is not affected Oil prices depends on availability of crude oil
Prices differ from each countries
Taxes imposed and subsidies given
Customers have no power on prices Bargaining power of customers In the form of new companies – selling new and better product
There have been no new oil and gas company
No threat of new entrants existed Threat of new entrants Automobile industries will use petroleum for next decade
Possibilities of substitution is biofuels
Not famously and widely use
No threat at the moment and in the future Threat of substitutes Monopolizing the market
Consumers prefer Shell and Petronas better
No actual rivalry
Petronas in Malaysia while Shell globally
Rival with each other Current Rivalry Challenges of Planning and
Managerial Decisions UNSTRUCTURED PROBLEMS
Exaggeration of annual revenue

Misled advertisement of renewable energy STRUCTURED PROBLEMS
Pollution of Niger Delta
Water contamination in New Jersey
Not meeting the standards of HSSE in Mexico Royal Dutch Shell PETRONAS Organization's Right Decision PETRONAS
Oil spill preparedness
Environmental complaints management
Integrated Environmental Site Management PETRONAS
Planned multi-billion dollar petrochemical refinery complexes Royal Dutch Shell
Overstated oil reserve
Misled advertisement on Alberta’s tar sand project Organization’s Wrong Decision Have excellent managing skills
Can be examples and role models
Manage to overcome problems to achieve organizational goals
Excellent problem solving techniques and decision making styles CONCLUSION Royal Dutch Shell
Implementation of safety and health rules
Provide medical counseling to employees
Creation of system like Global Warming Potential (GWP)
Recycle used catalyst in the treating operation STRUCTURED PROBLEMS
Huge fire accident in Labuan
Separate fire accidents – in three PETRONAS site UNSTRUCTURED PROBLEMS
Lawsuit made against PETRONAS
Mass demonstration held against proposed multi-billion dollar petrochemical refinery complexes Royal Dutch Shell and PETRONAS: Ethical Issues Petroliam National Berhad (PETRONAS) Social Responsibilities New resources of oil and gas are accurately located using airborne and satellite based geophysical data Royal Dutch Shell plc.
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