Petronas is a firm that engages in excellent strategic planning, despite being hurt recently by falling oil prices. This exercise will give you practice labeling hypothetical strategies that a firm could pursue. Read the following case and visit the company website for more information.

For each of the strategies listed below, identify a hypothetical strategy that you believe may be good for Petronas to pursue.

1. Forward Integration
2. . Backward Integration
3. . Horizontal Integration
4. . Market Penetration
5. . Market Development
6. . Product Development
7. . Related Diversification
8. . Unrelated Diversification
9. . Retrenchment
10. . Divestiture
11. . Liquidation
    
    

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EXEMPLARY COMPANY SHOWCASED PETRONAS (PGAS.KL) Taking advantage being an inte- grated and its strate- Established in 1974, Petroliam Nasional Berhad (PETRONAS), head- quartered in Kuala Lumpur, Malaysia, is an integrated oil and gas mul- tinational company. Responsible for the national oil and gas resources, PETRONAS explores, develops, and produces these resources and deliv- ers energy to meet the country's growing demands. The only Malaysian company to feature in the Fortune Global 500 list, it operates in over 35 countries and is engaged in a wide spectrum of petroleum activi- ties. Its Upstream business explores, produces, and monetizes oil and gas resources, and its Downstream business focuses on marketing and distribution strategies to enhance the value of resources. Its success- ful management of legal and maintenance activities in 2014 enabled PETRONAS to shift its focus to raising utilization rate by 5 percent in 2015. In 2014, while profit decreased by 27 percent, the group saw a 4 percent growth in revenue, which was driven by higher produc- tion, higher liquefied natural gas (LNG) sales volume, and favorable U.S. Dollar exchange rate movement. Revenue derived from PETRONAS pro- vides roughly 45 percent of the Malaysian government's annual budget. of chain gic location in South East Asia, a region with fast growing chemical consumers, it is focusing on three long-term objec- tives- operational excellence, marketing and sales excellence, and innova- tion excellence. As part of its strategies, PETRONAS is pursuing backward integration by purchasing its ships to transport its oil and gas, especially its LNG. This will provide low cost, direct access to LNG shipping capacity. PETRONAS, operating the world's first floating LNG facility, is also in the process of constructing one of the largest LNG facilities in British Columbia. Source: Based on company documents. EXEMPLARY COMPANY SHOWCASED PETRONAS (PGAS.KL) Taking advantage being an inte- grated and its strate- Established in 1974, Petroliam Nasional Berhad (PETRONAS), head- quartered in Kuala Lumpur, Malaysia, is an integrated oil and gas mul- tinational company. Responsible for the national oil and gas resources, PETRONAS explores, develops, and produces these resources and deliv- ers energy to meet the country's growing demands. The only Malaysian company to feature in the Fortune Global 500 list, it operates in over 35 countries and is engaged in a wide spectrum of petroleum activi- ties. Its Upstream business explores, produces, and monetizes oil and gas resources, and its Downstream business focuses on marketing and distribution strategies to enhance the value of resources. Its success- ful management of legal and maintenance activities in 2014 enabled PETRONAS to shift its focus to raising utilization rate by 5 percent in 2015. In 2014, while profit decreased by 27 percent, the group saw a 4 percent growth in revenue, which was driven by higher produc- tion, higher liquefied natural gas (LNG) sales volume, and favorable U.S. Dollar exchange rate movement. Revenue derived from PETRONAS pro- vides roughly 45 percent of the Malaysian government's annual budget. of chain gic location in South East Asia, a region with fast growing chemical consumers, it is focusing on three long-term objec- tives- operational excellence, marketing and sales excellence, and innova- tion excellence. As part of its strategies, PETRONAS is pursuing backward integration by purchasing its ships to transport its oil and gas, especially its LNG. This will provide low cost, direct access to LNG shipping capacity. PETRONAS, operating the world's first floating LNG facility, is also in the process of constructing one of the largest LNG facilities in British Columbia. Source: Based on company documents.

Answer rating: 100% (QA)

Alternative Strategies for Petronas A strategy is a longterm plan of action aimed at achieving specific goals and objectives It helps decide what business should company operate in and how to compete ... View the full answer