GLobal Business Environment

Topics: Petroleum, Peak oil, Oil reserves Pages: 15 (3167 words) Published: April 20, 2015


ASSIGNMENT FOR THE GLOBAL BUSINESS ENVIRONMENT COURSE 2014-2015

Individual report

By Dzhema Alaverdyan

TABLE OF CONTENTSPAGE

1. Introduction……………………………………………………………………….. 2

2. Strategy……………………………………………………………………………. 2

3. SWOT……………………………………………………………………………... 2

4. Internationalization………………………………………………………………... 3

5. The Politics and Economy of Japan……………………………………………….. 5

6. Social Factors of Japan…………………………………………………………….. 6

7. Technological Factors of Japan…………………………………………………… 6

8. The Politics and Economy of Brazil………………………………………………. 6

9. Social Factors of Brazil……………………………………………………………. 7

10. Technological Factors of Brazil…………………………………………………. 8

11. The politics and Economy of Malaysia……………………………………………8

12. Social Factors of Malaysia……………………………………………………….. 9

13. Conclusion……………………………………………………………………… 10

14. Appendixes……………………………………………………………………… 11

15. References…………………………………………………………………….… 13

Introduction

Rosneft is one of the largest public oil and gas companies in the world and the leader of the Russian oil industry. Rosneft mainly concentrates on exploration and production of gas and oil, production of petrochemicals and petroleum products, and the marketing of these products. Rosneft is one of the largest vertically integrated Russian oil companies and is amongst the ten largest oil companies of the world (Rosneft, 2013).

Strategy
The development strategy of Rosneft until 2030 provides for the modernization of plants, increasing the production of fuel, as well as expanding the network of filling stations. The international expansion of the company in the downstream sector may be limited to existing projects. According to the presentation of the strategy of Rosneft, the modernization of Russian refineries will increase their cost by 21 billion dollars. By 2015, oil production will be at 59 million tons, of which 75% light oil. Meanwhile, the company intends to continue to be selective for processing abroad. Focus will be on the synergy of refining crude oil supply, as well as gaining access to growing markets (Rosneft, 2014).

SWOT:
Opportunities:
1. Continuous development and implementation of advanced technologies; 2. Increase coefficients of oil extraction through the use of new technologies; 3. Financial assistance from the state if necessary

Threats:
1. Reduction in the medium and long term oil and gas reserves; 2. Depletion of explored deposits;
3. Development of alternatives-fuel types;
4. Price risks (price reduction possibility).
Strengths:
1. The quality of the resource base;
2. They have their own trade terminals (for export);
3. Transparency and corporate governance;
4. Continuous development of new deposits;
5. Government support;
6. Production was increased in the Far East, Eastern Siberia, and also on the shelf of the southern seas of Russia; 7. Capacity of oil production at Vankor (Rosneft Info Department, 2012); 8. Expansion and modernization of export for the planned export volumes. 9. Create a new large-scale production centers;

10. Acquirement of land in prospective oil and gas regions; 11. Work to improve the financial and operational flexibility and cost optimization. Weaknesses:
1. High level of investment
2. Control of the government limits the possibility in investment decisions 3. Heavy debt.
1. Sales growth of own production to the final consumer, the operational development of trading system and the development of new projects in order to lower the debt burden; 2. Changes in the structure of capital in favor of private investment. 1. Avoidance of increasing debt burden;

2. Search and development of new fields.

Internationalization

Rosneft, by expanding its activities abroad, tries to gain a foothold in the global oil market as the leading player. Most analysts call this planned...

References: 1. Alan Dowty. (2000). JAPAN AND THE MIDDLE EAST: SIGNS OF CHANGE? . Meria. 4 (4), 67-75.
2. Andreas Nolke (2014). Multinational Corporations from Emerging Markets: State Capitalism 3.0. New York: Palgrave Macmillan. 103-104.
3. Brazil Org. (2014). Brazilian Social Issues. Available: http://www.brazil.org.za/social-issues.html#.VFVYU1OsU00. Last accessed 31 Oct 2014.
4. EIA. (2000-2015). Malaysia. Available: http://www.eia.gov/countries/cab.cfm?fips=JA. Last accessed 1st Nov 2014.
5. EIA. (2014). Japan: Overview. Available: http://www.eia.gov/countries/cab.cfm?fips=JA. Last accessed 25th Oct 2014.
6. Export Government. (2014). Oil and Gas. Available: http://www.export.gov/brazil/static/Chap4_OilandGas%20062839_Latest_eg_br_062839.pdf. Last accessed 30th Oct 2014.
7. FEPC. (2011). Japan’s Energy Supply Situation and Basic Policy.Available: http://www.fepc.or.jp/english/energy_electricity/supply_situation/. Last accessed 30th Oct 2014.
8. Freedom House. (2014). FREEDOM IN THE WORLD: Japan. Available: http://freedomhouse.org/report/freedom-world/2014/japan-0#.VFA3fpOsU01. Last accessed 31st Oct 2014.
9. Freedom House. (2014). Malaysia. Available: http://freedomhouse.org/report/freedom-world/2009/malaysia#.VFVfHlOsU00. Last accessed 31st Oct 2014.
10. Heritage Organization. (2014). 2014 Index of Economic Freedom.Available: http://www.heritage.org/index/country/malaysia. Last accessed 25th Oct 2014.
11. Int 'l Business Publications. (2013). Malaysia Oil and Gas Sector: Strategic Information. Malaysia Mineral, Mining Sector Investment and Business Guide: Strategic Information and Regulations. Volume 1 (1111), p. 42.
12. KPMG. (2013). Taxation of Companies. KPMG Publications. Chapter 3, 11-23.
13. Latin American Newsletters Limited (1990). Latin America Regional Reports: Brazil. London
14
15. Rosneft. (2013). Rosneft at a Glance. Available: http://www.rosneft.com/about/. Last accessed 30th Oct 2014.
16. Rosneft (2014). Development prospects and strategy. Available: http://www.rosneft.com/about/strategy/. Last accessed 29th Oct 2014.
17. Rosneft Information Department. (2012). Vankor’s Millions. Available: http://www.rosneft.com/news/today/21082009.html. Last accessed 20th Oct 2014.
18. Simone Goldberg. (2007). Bolstering Brazil in the global market.Available: Bolstering Brazil in the global market. Last accessed 31 Oct 2014.
19. Transparency International. (2011-2013). CORRUPTION BY COUNTRY / TERRITORY. Available: http://www.transparency.org/country#JPN. Last accessed 25th Oct 2014.
20. The World Bank. (2012). Tax revenue (% of GDP). Available: http://data.worldbank.org/indicator/GC.TAX.TOTL.GD.ZS?order=wbapi_data_value_2000%20wbapi_data_value&sort=asc. Last accessed 25th Oct 2014.
21. U.S. Department of State. (2001). 2000 Country Reports on Economic Policy and Trade Practices. Available: http://www.state.gov/documents/organization/1609.pdf. Last accessed 31 Oct 2014.
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