Petrobras - Strategic Review
Petrobras: Strategic Review
Table of Contents 1.0 Introduction 2
2.0 Macro Market Analysis 2
2.1 PESTEL
2.2 Porters Five Forces
3.0 Micro Market Analysis 6
3.1 GE McKinley Matrix
3.2 Competitor Analysis
4.0 Recommendations 8
5.0 Conclusions 9
6.0 References 10
List of Figures
Figure 1: Porters 5 Forces Analysis of Petrobras 5
Figure 2: GE Matrix 6
Figure 3: Oil Production and Consumption 7 1.0 Introduction
As the global population increases and developing nations seek to emulate the consumer consumption of their Western counterparts, demand for fossil fuels and alternative energy sources continues to increase apace (Tracey et al, 2011). OPEC (2012) estimate that there over 200 oil and gas production companies around the world, the majority of which are located in the Middle East where natural reserves are some of the highest in the world. Of course, there are other reserves of oil and other natural sources of energy and this report focuses on the firm Petrobras, a Brazilian based oil and gas conglomerate. Petrobras has a pedigree of nearly 60 years and has long been one of the largest companies in Brazil, renowned for their leading-edge research and development in order to remain ahead of the curve in terms of consumer demand for energy supply (Petrobras, 2010; Bloomsberg, 2012).
Petrobras have responded well to shifts in market demand and to this effect they have invested heavily in deep-sea rock salt extraction as they perceive that this will form the basis of a future shift in the energy futures market (Petrobras, 2010). This report will apply a range of management models and techniques in order to critically examine the strategic position of Petrobras and the likely challenges they will face in the market in the immediate and mid term future.
2.0 Macro Market Analysis
In order to assess the market conditions facing the oil and petroleum market in
Table of Contents 1.0 Introduction 2
2.0 Macro Market Analysis 2
2.1 PESTEL
2.2 Porters Five Forces
3.0 Micro Market Analysis 6
3.1 GE McKinley Matrix
3.2 Competitor Analysis
4.0 Recommendations 8
5.0 Conclusions 9
6.0 References 10
List of Figures
Figure 1: Porters 5 Forces Analysis of Petrobras 5
Figure 2: GE Matrix 6
Figure 3: Oil Production and Consumption 7 1.0 Introduction
As the global population increases and developing nations seek to emulate the consumer consumption of their Western counterparts, demand for fossil fuels and alternative energy sources continues to increase apace (Tracey et al, 2011). OPEC (2012) estimate that there over 200 oil and gas production companies around the world, the majority of which are located in the Middle East where natural reserves are some of the highest in the world. Of course, there are other reserves of oil and other natural sources of energy and this report focuses on the firm Petrobras, a Brazilian based oil and gas conglomerate. Petrobras has a pedigree of nearly 60 years and has long been one of the largest companies in Brazil, renowned for their leading-edge research and development in order to remain ahead of the curve in terms of consumer demand for energy supply (Petrobras, 2010; Bloomsberg, 2012).
Petrobras have responded well to shifts in market demand and to this effect they have invested heavily in deep-sea rock salt extraction as they perceive that this will form the basis of a future shift in the energy futures market (Petrobras, 2010). This report will apply a range of management models and techniques in order to critically examine the strategic position of Petrobras and the likely challenges they will face in the market in the immediate and mid term future.
2.0 Macro Market Analysis
In order to assess the market conditions facing the oil and petroleum market in
References: AIW. (2011) 'Brazil 's Petrobas Buys BG Gas Stake in Lula Pilot Project. ' The America 's Intelligence Wire, September 22. Alvesson, M. (2004) Knowledge Work and Knowledge-Intensive Firms. New York, NY: Oxford University Press. Dammel, Joseph A. (2011). "Notes From Underground: Hydraulic Fracturing in the Marcellus Shale". Minnesota Journal of Law, Science and Technology (12(2)). Grant (2010) Contemporary Strategic Analysis (10th Ed) Wiley Hitt, M.A., Ireland, R.D Kennedy, J.L. (2010) 'Brazil Pre-Salt: Pre-Salt Development Gathers Speed. ' World Oil, September. Mellahi, K., Frynas, J.G., Finlay, P. (2005) Global Strategic Management. Oxford University Press Mol, A.P.J Organisation of the Petroleum Exporting Companies (OPEC) (2012) International Export [online] available at http://www.opec.org/opec_web/en/ retrieved 26th Jan 2012 Petrobas Petrobas. (2011) 'Corporate Strategy, 2011-2015 Business Plan. ' Petrobas, [Online] Available at: http://www.petrobras.com.br/en/about-us/corporate-strategy/ retrieved 31st Jan 2012 Porter, M The Economist (9th June 2011) Running Dry [online] available from http://www.economist.com/blogs/dailychart/2011/06/oil-production-and-consumption retrieved 26th Jan 2012 Tracy, B.S., Tordo, S., Arfaa, N World Bank. (2011) 'Data By Country: Brazil. ' The World Bank, [Online] available at http://data.worldbank.org/country/brazil. Retrieved 31st Jan 2012