An Overview of Petroliam Nasional Berhad (PETRONAS)
International Business MBA 6601-10H-5
1. Provide a company overview, and identify the countries in which the corporation operates.
Petroliam Nasional Berhad (PETRONAS) is an oil company based in Malaysia. They provide products throughout the entire line of petroleum products. This includes exploration, procurement, refining and distribution of the product. Petronas operates in more than 20 countries including Argentina, Australia, Canada, India, Indonesia, Iraq, Singapore, South Africa, and Sudan.
Petronas was established in 1974 by the Malaysian government. The main goals of the company were to
"explore, develop and produce crude oil and natural gas locally and abroad; the sale and transportation of liquefied natural gas (LNG), and the sale of natural gas products; the trading of crude oil, natural gas, LNG, petroleum products and petrochemical products and the shipping and logistics required for these products" (corporate profile, 2012).
2. Identify the types of market systems and types of legal systems that exist in the countries where the corporation operates. What effect do these have on the company’s operations?
The text describes the multitude of various legal systems that exist throughout the world. The diversity of Petronas’ involvement in many countries exposes them to each of these types of legal and market systems. For example, their involvement in Canada, Malaysia and Singapore expose them to a free market system in free countries, while at the same time, their business enterprises in Iraq and the central African countries expose them to closed markets and corrupt political systems (Daniels, Radebaugh and Sullivan, 2011).
Each country has a specific way that business is to be conducted. These bureaucratic requirements can cause significant delays in conducting business. For example, when Petronas was purchasing Progress Energy in Canada, they were required to wait for...