Leader ship Assignment Example | Topics and Well Written Essays - 1500 words

Leader ship - Assignment Example In Robins & Judge (2010) for proper discharge of companies’ services to their clients, the management should focus on excellence of their products, ensure their clients are contented with their products and give their employees inducement in order to maximize their productivity. Leadership Theory In any business environment the management should ensure proper coordination of activities right from the organization to the clients. For the management to achieve this level of operation, they should ensure they are focused and be able to control other activities of the organization. According to management theory the leaders of any organization have a task to ensure that all other components in the organization are well coordinated (Robins & Judge, 2010, p.567). On the other hand, relationship theory requires the organization leaders to give their workers stimulus in order to ensure proper coordination of activities within the organization. The managers should ensure that workers a re aware of the organizations objectives in order to pursue them. They should also ensure that all appropriate resources are available for the worker in order to promote efficiency in the organization. ... This streamlines communication within the organization hence enabling the company’s management to effectively make their objectives known to the employees and work with a common interest of achieving the set goals. This will also simplify the problem of delegating tasks to the workers. The management practicing this theory in their organization will be interested with the collective prosperity of the individual’s advancement. Motivation Giving incentives to both workers and consumers plays a magic in the performance of the organization (Gorman, 2004, p.57). The management can give their employees incentives of various forms such as increasing their salaries, offering them an opportunity to advance their careers, or just appreciating them for their good work in the presence of other workers. This enables the workers to identify with the organization and feel encouraged to work and achieve management objectives. Organizational leaders should also encourage the employees b y giving them challenging tasks in the organization and avoid public condemnation even when they have gone wrong. The management should also establish training programs in order to assist the workers to upgrade their skills (Gorman, 2004). This enables the workers to increase their efficiency and confidence of performing their duties hence increasing their output in the organization. The workers will be able to interact with their clients freely and offer them excellent services. Providing products and services to the consumers is of paramount importance to the organization because it will help to create consumer trust on company and their products. When worker provide exemplary services to the customers, the

Marketing Essay Example | Topics and Well Written Essays - 250 words - 22

Marketing - Essay Example Without a doubt, the theme matches the environment. The audience in this advertisement is athletes, young students, and the adult population who take place in leisure activities. In addition, it also appealed to the â€Å"Sunday warriors,† who are engrossed in sports discussions and love to watch motivational TV advertisements to propagate about their sports. Nike does an excellent job of associating the personality with the product. Nike portrays this value of leadership, hard work, dedication, confidence, will power, and strength. In essence, Nike products are known for their quality and providing the best customer satisfaction. The â€Å"personality† of product is dynamic and possesses a very unique personality. As an athlete, the advertisement at once appeals and catches the sensory images of the audience. The advertisement starts out with an â€Å"image† of a fetus, which at once catches the attention. Then, it slowly transitions to a life cycle of both athletes. The advertisement focused more on the training part of both athletes. One of the best clip is when Troy Polamalu is running through the bleachers in snow. In essence, that portrays his determination to train even in the harshest conditions. Yes, as a matter of fact I tend to use Nike products for various reasons. First, Nike itself is a brand name that is unique in its own aspects. I wear the Nike Underarmour shirts during my workout sessions since they are fitted and give me this illusion of being bigger than I am. Moreover, Nike products are high quality and tend to absorb sweat in such a manner that the odor is not too prevalent. Nike products in my opinion are a top brand and allow individuals to express their personality and style with the variety of selection of products. Undoubtedly, Nike advertisements portray the culture and attitude that Nike embraces and displays to its customer

Case Study analysis for Marketing Communications Essay

Case Study analysis for Marketing Communications - Essay Example Companies in business areas such as beer and cider as well as other beverages benefit from sponsorship of sports personalities, clubs and events as these are opportunities for highlighting the spirit of entertainment and social celebrations, which is one of the intrinsic values of the product. The company is launching its advertising campaign on a rolling regional basis, starting from Southern London England followed by Scotland. However, when entering a market as UK, which is not very large in its size, it may be more effective to plan a national campaign, which will utilize national TV, and Press backed by outdoor advertising. The largest poster may be an effective means of attracting attention but the exposure level of the location is limited to those who are traveling via Heathrow airport to Ireland. The cost effectiveness per exposure may question the effectiveness of this advertising tool. The product positioning currently being conveyed by the campaign focuses on the product’s naturalness, tradition and heritage. Although these aspects appealed to the nationalistic Irish public, it may not be an effective positioning to the British. The company to adopt the â€Å"Pint Over Ice† concept combined with the naturalness aspect of the C&C’s product. The key message should be â€Å"Pint Over Ice† which targets the popularity of serving beverages in draught form in UK. The concept of â€Å"Pint On Ice† should be promoted as an integrated message through TV Ads, Press, Bill Boards as well as on location promotions with serving demonstrations. As the key challenge is to change the image of the cider product in UK public’s mind, the marketing communications focus has to be on above the line TV and press advertising conveying the premium image. The company should extend its advertising activities to pub level with Point of Sales material and promotions to add excitement. By providing branded product premiums such as caps, key tags

Emerging Market Coursework Example | Topics and Well Written Essays - 2000 words

Emerging Market - Coursework Example This has lead innovation in the variety ways of availing resources to the customers through advertisement. In addition, businesses around the world are experiencing changes due to increasing number of emerging markets and there is also stiff competition in those emerging markets. Furthermore, the innovation of new ways of marketing with the use of high-tech machines and information technology (IT) has made the world a global village. This paper will focus on emerging markets in China. China has been considered by most businesses to be hard to achieve the best marketing strategies. This is because companies in China have grown for decades adopting sophisticated ways in their business performance. This has posed challenges to any company wanting to tap or consider starting a business in China. Companies, especially the western companies, have been faced with challenges but sometimes they have got opportunities to tap into emerging markets in China (Czinkota & Ronkainen 2009). China has grown to be the best economic country since inception of marketing reforms in 1978. The marketing reforms moved the country from a central governing style to a market defined economy. Changes have been felt in the country, for example, more that 500 million people have been salvaged out of poverty making the country achieve their targets. China is currently the second biggest economy after the US, and the economy of Chinese is still growing, which is one of the best achievements in the world’s most populated country of 1.3 billion people. Chinese products had high demand during the 2008 financial crisis when most countries in the world were hit by inflation and high prices of goods. The cheaper products from China were demanded by many customers. This was after the country made changes by the implementation of a $586 billion stimulus package which saw increases in leading rates by many institutions to their customers for the improvement of businesses (Dorn 2011). Despite the achievements of the Chinese government, the countries still has a high number of people living below the poverty line. China has a high number of poor people in the world and it ranks in the second position after India. World Bank numbers show that the gross national income per capita in China is $6091, and because of this, average income of persons per day is 1.8 dollars making the country to be ranked at the 90th income per capita position. Despite the high economic growth that China is undergoing, a number of challenges are faced by the country, for example, an increased rate of inequality is experience in the country. China is attributed to be losing a lot due to environmental challenges. According to Zhang (2012), estimation caused by environmental challenges in the economy is 10.51% of the gross national income. This is based on a 2008 review by the World Bank. The main focus in China is to sort the challenges they are facing with more attention on environmental and social ch allenges. The issue the country is facing is addressed in a 5-year plan which is taking place between 2011 and 2015. Characteristics and Challenges of Emerging Marketing in China The characteristics of emerging marketing China are mostly shared by most Asians countries like Japan, South Korea and China. The Asians countries have the same styles of marketing which makes them to be accepted in their continent as compared to emerging markets of Western

Mobile Banking Technology and Innovation Management Essay

Mobile Banking Technology and Innovation Management - Essay Example Management has to face several challenges in the overall process of introducing the innovation in the market (Barton and Kraus, 1985). MOBILE BANKING TECHNOLOGY: There has been ongoing process of introduction of new technologies in the market every other day. However, all new technologies are not able to succeed and capture the considerable amount of market share. This requires proper and well thought planning and management. It should be ensured that the new technology which is introduced in the market is according to the needs and requirements of the customers (Souder and Sherman, 1994). Apart from this, the new technology should be user friendly and easy to use. All these factors increase the acceptance of the innovative technology. Mobile banking is one such technology, which have been introduced in order to provide customers with ease and comfort in the process of banking. In the start of banking facility, customers have to be physically present at the bank in order to make any kind of transaction. This requirement of physical presence gradually disappeared with the advent of different new technologies and facilities with passage of time. ... Mobile banking allows the customers to perform important transactions through their mobile phones and there is hardly any need of going to banks or being physically present there for the purpose of making transactions (Stair and Reynolds, 2009). There are several benefits of the mobile banking, not only for customers but also for the bank which is providing this facility. This facility of mobile banking can facilitates banks in reducing the charges associated with transactions, as low level of cost is associated with mobile banking. Along with this, the facility of mobile banking is easy and convenient for the consumers as it enables them to quickly access their bank account at any place and at any time (Krugel, 2007). INNOVATION AND CHANGE MANAGEMENT: The process of implementation of any change or innovation is always associated with several challenges and issue. These challenges and issues should be managed in an effective and efficient manner in order to ensure the successful impl ementation of the innovation. The process of innovation management is a complete change management process. Management has to conduct force field analysis in order to identify important restricting and supporting forces. Next step is to come up with effective strategies and tactics in order to minimize the restricting forces and maximizing the supporting forces (Tidd, 2001). The restricting forces can be both external and internal. Innovation or new technology not only faces resistance on part of the customers but sometime employees are also responsible for the failure of any new technology or innovation. It is important for the management to keep in consideration

How Women Changed During the Civil War Essay Example for Free

How Women Changed During the Civil War Essay The Civil War was a defining moment in American history. It was the event which determined the fate of the nation as the American community was divided into two opposing sides. It was also a time of significant social change. The realm of war previously belonged to the men; it was the male soldiers who fought in the battlefields. However, the Civil War altered the situation. The status of women dramatically changed as they became active participants in the war effort. Indeed, the Civil War opened many opportunities for women and allowed them to be active members of society. This research paper aims to discuss how women changed during the American Civil War, as well as the advantages and disadvantages of the said changes. In the 19th Century America, men dominated society and women were regarded as inferior to them. Women lived under the authority of the opposite sex, either that of the father, husband or another relative (Massey, 1994). They were confined in the domestic sphere; their main concerns were their home and family. Women had no voice in the political arena because only the men had dealt with public affairs. Not only was it objectionable for women to fulfill men’s jobs, it was also disagreeable for them to wear men’s clothes (Eggleston, 2003). When the Civil War began, the social lines were blurred. Women suddenly were presented the chance to go beyond their realm and participate in the world of men. They were given roles and jobs that were not accessible to them before. Both the Union and the Confederacy allowed women to take part in the war effort. For the first time, the government allowed women to become doctors and nurses (Eggleston, 2003). Women also served as messengers and spies. Meanwhile, there are also those women whose contributions were domestic in nature; these include cooking, as well as mending and sewing uniforms for the soldiers (Eggleston, 2003; Silber, 2005). These activities may have been the same as those women were tasked to do in the past; however, there was a significant change. Before, women only did those jobs due to the necessity in the household. During the war, the women did those jobs due to the necessity of the nation. Their domestic activities were no longer performed for private purposes; they had become part of the public affairs. However, women were not merely passive participants. They were also directly involved in the war effort as soldiers. The battlefield was reserved for males, but the females eventually found themselves fighting the same war. Women became soldiers by concealing their real identities (Eggleston, 2003). There were many reasons why women opted to disguise themselves as male soldiers. There were those who fought in the war to either escape from their betrothal or to be with their loved ones. Some saw the war as an adventure and craved its excitement. There were others who saw fighting for its financial benefits and the opportunity to better provide for their families. Meanwhile, there were women who took part in the Civil War for more noble reasons; they went to war because they were compelled by duty and patriotism (Eggleston, 2003). Women had to resort to extreme measures to appear like male soldiers. There were women who were immediately discharged because the way they acted revealed their real identities (Eggleston, 2003). Meanwhile, there were women who dramatically changed their actions and behavior before enlistment to successfully disguise themselves. They modified the color of their complexion and learned how to chew tobacco. They used vests with pads to conceal their breasts; the pads also made them seem more bulky and masculine (Eggleston, 2003). Having women disguised as men in war had its share of difficulties. The problems arose from the different toilet habits as well as other personal routines (Eggleston, 2003). Nonetheless, the recruitment of young men in the army proved to be advantageous for the female soldiers. The army consisted mostly of boys, who were still shy and reserved around each other. Most of them were hesitant to relieve themselves in the company of other soldiers; to attend their toilet needs, they had to hide in the woods or others areas which offered privacy. The meek nature of young men was beneficial for the female soldiers because it allowed them to seek privacy without appearing unusual. In addition, the young men of the army have not yet started shaving, so it did not appear unusual for the females if they did not shave (Eggleston, 2003). It is remarkable that women have finally reached the public realm during the Civil War, even if they had to pretend as men to do so. However, that kind of participation had disadvantages. Women who had successfully kept their real identities hidden as part of the army suffered all the difficulties which came with war (Eggleston, 2003). Female soldiers were held captive by their opponents, brought to prison camps and killed in the battlefields. There were those who perished and buried without their real identities discovered. Because women soldiers were not supposed to be fighting in the war, their participation in the war was previously not acknowledged. There were even those who denied the direct involvement of women as soldiers (Blanton, n. d. ). The non-recognition of women fighters in the Civil War prevented the discovery of the total number of female soldiers who offered their services. The numbers available on record are merely estimates. This situation posited a real problem, as it undermined and ignored the contributions of women in the battlefield. During the American Civil War, women changed because they went beyond the roles that were initialed assigned to them. The war effort presented them to enter the public realm of men and participate in it. Women had indeed changed during that time, as they progressed from housewives to participants in war. Women even came in disguise to become soldiers. While it is a great thing that women became active members of the community, some of their contributions were not recognized or accurately recorded because of their secret identities. Nonetheless, this does not diminish that fact that women were a significant part of the American Civil War. References Blanton, D. (n. d. ). Women soldiers and nurses of the American civil war. American Civil War Website. Retrieved March 13, 2009, from http://americancivilwar. com/women/index. html Eggleston, L. G. (2003). Women in the Civil War: Extraordinary Stories of Soldiers, Spies, Nurses, Doctors, Crusaders and Others. North Carolina: McFarland. Massey, M. E. (1994). Women in the Civil War. Nebraska: University of Nebraska Press. Siber, N. (2005). Daughters of the Union: Northern Women Fight the Civil War. Cambridge, Massachusetts: Harvard University Press.

Petroleum As The Core Business Of PETRONAS

Petroleum As The Core Business Of PETRONAS The company of my choice is PETRONAS, the petroleum Multinational Corporation based in Malaysia. The paper will outline the background of the company followed by identification of the actual and potential impacts of globalisation on the company. Recommendation of strategies which the company might use to respond to the impacts is covered in the last part of the paper. 1.0 Overview of PETRONAS Multinational enterprise is defined as a large company with substantial resources that perform various business activities through a network of subsidiaries and affiliated located in multiple countries. (Cavusgil, Knight Riesenberger, p.13). PETRONAS, the acronym for Petroliam Nasional Berhad is a petroleum multinational corporation headquartered in Kuala Lumpur, Malaysia which was incorporated on 17 August 1974 under the Companies Act, 1965. It is national oil company of Malaysia, vested with the entire ownership and control of the petroleum resources in the country (PETRONAS, 2010). Under the leadership of Tan Sri Hassan Marican, PETRONAS is transformed rapidly into a global company with oil explorations and business joint ventures with overseas partners. Over the years of effort, it has become a fully-integrated oil and gas corporation with operations in more than 30 countries worldwide and ranked among FORTUNE Global 500 ® largest corporations in the world (PETRONAS, 2010). 1.1 Integrated business of PETRONAS PETRONAS is fully integrated across the value chain from the upstream exploration, development, production, processing, and transportation and gas transmission to the marketing of liquefied natural gas and other petroleum products as shown in Figure 1.0. PETRONAS also involved in domestic refining, petrochemical manufacturing and marketing business, while managing a globally coordinated downstream operation designed to optimize product delivery to its customers through its marketing and trading operation (PETRONAS Capital, 2009). PETRONAS also engage in shipping, automotive engineering and property investment. Figure Integrated Business of PETRONAS Source: PETRONAS Annual Report 2010 1.2 Petroleum as the Core Business of PETRONAS Petroleum is the core business of PETRONAS because refined petroleum products account for 37% of the company total revenue amounting to RM80.7 billion (PETRONAS, 2010). Exports and domestic operation contributed 35% and 19.7% of PETRONASs total revenue respectively which bring positive balance of payments to Malaysia (PETRONAS, 2010). Thailand, Japan, Korea and Singapore has been the main crude oil export countries of Malaysia which account for 87% whereas over 40% of gas was exported to markets in Japan, Korea and Taiwan, most of the remainder used domestically for electricity generation (Malaysia Green Technology Corporation, 2010). Figure PETRONAS Composition Revenue 2010 Source: PETRONAS Annual Report 2010 The international operations are as important to PETRONAS which generated 45.3% (RM98.1 billion) of the company total revenue. PETRONASs production are mainly comes from Indonesia, Thailand, Myanmar, Vietnam, Chad, Egypt, Sudan, Mauritania, Iran, Pakistan and Turkmenistan. Africa remains to be the companys prominent operation region which contributed 57.7% of the company international production followed by South East Asia (25.1%) Oceania and Middle East Asia (17.2%). 1.3 Organisational Structure of PETRONAS Figure Organization structure of PETRONAS Source: PETRONAS Annual Report 2010 PETRONAS adopted a centralized functional organisation structure which the executive vice president (EVC) and vice presidents (VC) have to constantly report their performance to the CEO. Each VC or EVP from respective function are responsible to monitor and controlling the overseas operation with the aids of overseas joint venture companies or partners 2.0 External Analysis of PETRONAS 2.1 Political PETRONASS oil exploration often takes place in high political risk countries such as Sudan and Iraq with abundant resources of oil and natural gas. Sudan has been in political instability and having war for more than three-quarters of its existence due to the independence, protracted conflict rooted in deep cultural and religious differences which has slowed down country economical and political development (U.S. State Department, 2010). Recently, Sudans internal war evolved from the issue of exploring more oil region outside the territory because of depletion of the existing oil reserves. Despite political instability of Sudan could disrupt PETRONAS in oil exploration, the company had strengthened its politics affiliation through Malaysian Government to mitigate the effect. For example, PETRONAS is welcome by Sudan Government to pursue exploration and development works in its, Melut and Muglad Basins which has expanded in both the upstream and downstream sectors of the countrys oil and gas industry (PETRONAS, 2010). Besides, liberalize of countries trade policy is prominent to guarantee the profitability of PETRONASs overseas operation. In Malaysian, fewer tariffs are imposed on petroleum and gas product. PETRONAS is assigned to regulate the upstream activities in oil and gas as well as controlling the foreign investment of upstream petroleum and gas industry through the form of production-sharing contracts (PSCs), between foreign investors and PETRONAS. Likewise, South Africas government also developed their national oil and natural gas company, Petroleum Oil and Gas Corporation of South Africa (PetroSA) on managing and promoting the licensing of oil and gas exploration includes onshore and offshore exploration of the country. Thus, PETRONAS set its own oil refining and marketing presence in Africa through its 80% owned subsidiary, Engen Petroleum Limited ENGEN, a leading South African refining and marketing company. 2.2 Social Islam remain as the important role in shaping Malaysias position on many international issues especially those related to the Muslim world of which the Middle East is a part (Ruhanas Harun, 2009). Middle East and North Africa account for 60.4% of the world oil reserve which are the important for PETRONASs exploration and production. Thus, Malaysian government has been proactive to build up religious affiliation by developing membership of a worldwide Islam brotherhood. The action is paid off when Malaysia oil reserves have dwindled and few domestic opportunities exist to drill for new reserves, PETRONAS has successfully to expand its operations to Iraq and Sudan which are Islamic oriented developing countries. 2.3 Economic PETRONAS is the biggest contributor to the Malaysian government budget, accounting for 39.3% of the federal governments revenues in 2008, up from 36.4% in 2007 (CIA, 2010). According to Bank Negara, 26% of inward FDI of Malaysia was channelled into manufacturing oil and gas in 2008. With the financial support of PETRONAS, Malaysian Government has been subsidizing the local fuel prices since 2004 which is different from many countries whose followed the exact fuel prices regulated by global market price of gasoline (Bernama, 2010). The fuel price subsidies is intended to protect the local welfare of middle income household but it causes 5.0 to 44% of Malaysias fiscal deficit (JATRO). The activities of the state-owned PETRONAS influence the aggregate patterns, resulting in substantial investments in exploration and extraction in the oil and gas industry which is more towards the US, Canada and Australia as the recent rapid development of unconventional gas resources. 2.4 Technology Environment In Malaysia, domestic reservoirs are maturing due to the fact that Malaysian production is depleting since oils has been produced for hundred years. PETRONAS has been expanding overseas exploration and production of resources such as South Africa, Egypt and so on. Just like many other oil companies offshore rig has caused ecological imbalances such health and reproductive problems for surrounding marine life, destroys kelp beds, reefs and coastal wetlands, and exposes the wildlife to threats of oil spills (Greening Forward, 2008-2010). In such way, PETRONASs image is harm through the directly linkages to environments pollution. Company has been focusing on green technologies and developing in-house greening solutions. In particularly, the company has an ongoing research for strengthening PETRONAS ECOPLUSà ¢Ã¢â‚¬Å¾Ã‚ ¢ environmentally friendly, degradable polymer series (PETRONAS Annual Report). 3.0 Overview of Globalization According to Business Dictionary, globalisation implies opening out beyond local and nationalistic perspectives to a broader outlook of an interconnected and inter-dependent world with free transfer of capital, goods and services across national frontiers. As world economy globalizes the national economies integrate into the international through trade; foreign direct investment; short-term capital flows; international movement of workers and people in general and flows of technology (Najam, A., Runnalls, D. Halle, M). This has created opportunity to the rise of multinational like PETRONAS in developing country venturing to the petroleum industry that used to be the exclusivity of companies from developed countries such as Royal Dutch Shell from United Kingdom and Exxon Mobil from United States. With the globalisation effect, PETRONAS has been growing organically and through strategic partnerships, via joint ventures, mergers acquisitions and so on as catalysts for escalated performance (Dato Shamsul Azhar Abbas, 2010). PETRONAS is gaining more freedom either on exporting petroleum products or setting up oil refineries in worldwide. This enable the company to continue dominant its position in the international business environment by penetrating larger capital market that has lesser regulations on foreign direct investment. For instance, PETRONAS is included in The New Seven Sister ranking by Financial Times which considered as one of the most influential international oil and gas companies which controlled about one third of the of the worlds oil and gas production and reserves (Nicholas Vardys The Global Guru, 2010). However, globalisation is not a bonus giving for all companies but imposes certain opportunity cost to the companies operations. PETRONAS may enjoy of possessing diversified revenue base which generated from its overseas operations and marketing. At the same time, the company has the opportunity cost of facing unexpected problems of like changing economic, regulatory and political environments globally and regionally which would create a serious impact to the companys growth. The actual globalisation impact on PETRONAS will be political risk, global competition and global technology transfer. 3.10 Actual Globalisation Impact on PETRONAS 3.11 Political risk Political risks of operating countries remain as the fundamental globalisation impact of PETRONAS because 42.1% of the companys revenue derives from international operation in countries such as Iran, Myanmar, Cuba and Sudan in the fiscal years ended in 2009. PETRONAS strategy was to pick strongest partner in operating countries to minimise these risk. For instance, the company is in partnership with China National Oil Corp. and Sudans National Oil Company, Sudapet, while in Iran it has a tie-up with Frances TotalFinaElf, which has a strong relationship with the country (Leslie Lopez, 2003). 3.12 Global Competition Globalization makes it increasingly difficult for PETRONAS to rely only on national regulation to protect its local positions in oil and gas industry. PETRONAS is deemed to face intense competitions of its oil and gas and refining industries in both domestically and internationally. For instance, PETRONASs retail subsidiary company, PETRONAS Dagangan Sdn Bhd used to compete with its main competitor Royal Dutch Shell but now competing with other retail competitors like ESSO (Exxon Mobile subsidiary), Caltex and BHP (Boustead Petroleum Marketing Sdn Bhd). On the other hand, globalisation of liberalization enables oil firms to set up oil refinery in other countries which lead PETRONAS in a competition of oil exploration and production operations in Sudan. 3.13 Risk and Benefit of Technology Transfer As economies open up, more people become involved in the processes of knowledge integration and the deepening of non-market connections, including flows of information, culture, ideology and technology. New technologies move across boundaries quicker, by connecting workers and citizens across boundaries and oceans (e.g., the rise of global social movements as well as of outsourcing), but they can also threaten social and economic networks at the local level (Najam, A., Runnalls, D. Halle, M). Under the effect of globalization, technology transfer is performed from MNC home country to host countries. PETRONAS presence in Sudan has transferred its exploratory and production technology to expand upstream and downstream sectors of Sudanese oil and gas industry. This could have harmed PETRONAS in a sense that transferring its competitive advantage to Sudan because the nation can explore the countrys oil reserved through skills learned from PETRONAS. Nevertheless, PETRONAS also learn special technology skill through its overseas joint venture partners. PETRONAS learned appropriate petrochemical technology through its joint venture partners include The Dow Chemical Company (Dow Chemical), BASF Netherlands B.V. (BASF), BP Chemicals, Idemitsu Petrochemical Co. Ltd, Mitsubishi Corporation, and Sasol Polymers International Investments (Pty) Ltd, (Sasol Polymers) which possess financing capability, marketing and distribution expertise (PETRONAS Capital). 3.20 Potential Globalisation Impact on PETRONAS 3.21 Depletions of Natural Resources The rapid acceleration in global economic activity and our dramatically increased demands for critical, finite natural resources undermine our pursuit of continued economic prosperity (Najam, A., Runnalls, D. Halle, M.). Under the globalisation process, firms gain free access to exploit natural resources of one country to another without any restriction. Non renewable resources like petroleum and gas sooner will be depleted over the years through uncontrollable exploration and productions. These impose serious environmental cost as well as the influencing the future direction of oil and gas industry. Sustainability of PETRONAS and other petroleum companies is deemed to be affected as petroleum product is source of revenue of the industry. Therefore, finding replacement of these depleted resources through invention of new technology is crucial to sustain the companies the industry. 3.22 Changes in foreign environmental laws and regulation In order to protect the environments, some countries might enact additional environmental legislation and regulation regarding exploration and production of oil and gas, petroleum, petrochemical products and other activities. Environmental law and regulation would limit or prohibit the company on drilling activities within protected areas and certain other areas; and impose penalties for pollution resulting from oil, natural gas and petrochemical operations, including criminal and civil liabilities for serious pollution ( Green Forward, 2008-2010). These would incur significant unforeseen expenditures for PETRONAS to comply with such requirements, which could adversely affect on PETRONAS business, financial condition and results of operations in overseas. Therefore, PETRONAS is in disadvantage because of taking longer time to response the changes in foreign environment laws and regulation attributes to its centralised management structure which connected globally 3.23 Risk of Brain Drain During the year under review, the shortage of critical skills faced by the oil and gas industry represented the key people related challenge faced by PETRONAS (PETRONAS, 2010). With the globalisation effect, PETRONAS could have enjoyed the benefit of penetrating and extracting talents in different countries by setting up overseas operations. However, it put the company at risk of brain drain in worldwide operation. Brain drain is referring to the net loss of a countrys highly trained and skilled manpower through migration (WebFinance, 2010). This is because globalisation process improves the mobility of skilled labour to move around the world freely. This means workers are becoming active information seekers and concern about their benefits in the organisations. Conveniences of knowledge sharing like pay standards and job opportunity via Internet able to influence the workers decision on staying in the same organisations. If PETRONAS Malaysia unable to offered attractive incentive to motivate skilled workers, the company is likely to find very difficult to retain the higher skilled workers who attracted better remuneration and benefits from companies in developed countries such as UK, Middle East, and so on. 4.0 Recommendation Figure Ansoffs Matrix Strategy Source: http://www.franteractive.net/resources/Ansoff-Matrix.GIF 4.10 Diversify to innovative green technology In order to overcome the potential impact, PETRONAS should not over dependence on natural resource like oil and gas to sustain the company future. PETRONAS is recommended to acquire new market with new product line through diversification. The company could focus on developing green technology as the environment preservation is key concern of around the world. Thus, PETRONAS is recommended to develop alternative fuels such as converting plastic waste to fuels, wastewater to fuels and so on which are considered economical to consumers yet reducing the pollution and damages to environment. In Malaysia, PETRONAS should emphasize on recycle energy supply technology by turning garbage into energy because Malaysian produced 23000 tonnes of garbage each day. With this technology, PETRONAS could form partnership with local electricity producer, Tenaga Nasional Berhad (TNB) as a way to increase its competitive advantage of diversification in energy industry over other oils and gas competitors as well as improving the environment status in Malaysia. 4.20 Reposition PETRONASs image By addressing the environmental problem causing by exploration and production activities, PETRONAS has been investing on its corporate social responsibility (CSR) centred on enhancing the education and community programme in Malaysia and abroad. In Vietnam, PETRONAS contribution to the nations development through education was recognised through the Certificate of Merit in Education by the President and Deputy Prime Minister of Vietnam in 2010 (PETRONAS, 2010). But still there is a limitation of the companys CSR direction which should be refocuses on preserving the environments. Therefore, it is important for PETRONAS to reposition its image to be responsible and environmental concern oil and gas corporation. The company has to be alert of the changes foreign environmental laws and regulation as well as filling Environmental Assessment (EIA) before setting up exploration, production, refining and chemical projects in overseas. The company should increase investment on its research an d development by reducing the air emission and discharges resulting from the operation of natural gas processing plant, chemical plants, refineries, pipeline system. 4.30 Retain talents with attractive incentives program and growth PETRONAS believe staff is selflessly built, nurtured and grown under the corporation share value of loyalty, integrity, professionalism and cohesiveness. PETRONAS should continue its CSR on providing quality education in each country as a way to recruit talents from amongst the local and overseas graduates. However, retaining the existing high quality staffs of PETRONAS is a prominent factor to sustain the future of the corporation. Therefore, PETRONAS should increase the human empowerments by offering occupational mobility along both the technical or managerial tracks and ample opportunities for learning and growing. PETRONAS should also launches special incentive program to motivate staff through giving bonuses, company trips and other staff benefits. In this way, staffs would find themselves appreciated and more willing to serve the company with loyalty. 5.0 Conclusion From time to time, the most distinct globalisation impact on PETRONAS is the politics instability of oil exploration and production countries followed by the global competition of building market share as well as the oil and gas resources. The trend of technology transfer under globalisation, on the other hand, has benefited PETRONAS of capturing technical skills from overseas partners but it also leads PETRONAS losses its competitive advantage through transferring patented technologies while exploring other countries. Potential impact of globalisation would be the depletion of resources, changing environmental law and regulation and loss of human capital which are needed to take account by PETRONAS of sustaining its global presence in the coming future. In order to mitigate the actual globalisation impacts, PETRONAS has to strengthen its politics and religious affiliation with oil production countries for the future benefit. As for resolving the potential impact, PETRONAS is recommended to perform diversification in innovative green technology as the world is stressing on environment preservation. In addition, the company needs to reposition its global image not only by means of its current corporate social responsibility that solely focus on regional education but it should be more focus on environment preservation. Next, PETRONASs re-evaluate their incentives plan to avoid brain drain problem which high skilled workers are poached by competitors in developed countries. As a conclusion, it is important for MNC to join hand with government to mitigate the globalisation impact. PETRONAS strategy of growth through joint venture and partnership in the global is a brilliant way of reducing business risk. But without the effort of Malaysia Government of being proactive in developing politics and religious affiliation with Middle East countries, PETRONAS can never gain the opportunity to explore in these countries. Therefore, PETRONAS has to maintain its current competitive advantage as well as keep an eye on the unknown impact of globalisation. 2897 words