Petronas As An Oligopolistic Firm

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Introduction The type of firm we are going to investigate in this assignment is an oligopolistic firm. The essence of an oligopolistic market is that here are only a few sellers. As a result, the actions of any one seller in the market can have a large impact on the profits of all the other sellers. Oligopolistic firms are interdependent in a way that competitive firms are not. The company we chose to study is Petronas. Content 1. Introduction 2. Profile of Petronas 3. Characteristics of Oligopolistic firm – Petronas 4. Advantages to Malaysian Economy from Petronas 5. Disadvantages to Malaysian Economy from Petronas Profile of Petronas Ranked among the FORTUNE Global 500® largest corporations in the world, Petroliam Nasional Berhad, most commonly known as PETRONAS, is a Malaysian state-owned oil and gas company which ventures into a wide range of petroleum activities. Established in the year 1974, PETRONAS was incorporated alongside the enforcement of the Petroleum Development Act 1974 (Malaysian Explorer, 2012). Today, being owned entirely by the Malaysian government under the Ministry of Finance, PETRONAS is entrusted with the responsibility to manage the entire nation’s hydrocarbon resources (Rig Zone, 2013) and to ensure the sustainability and orderliness of the country’s oil and gas industry is prolonged. Vision, Mission & Shared Values Vision and Mission These statements define PETRONAS as an organisation, guiding our corporate activities and policies, setting our course for the future. Vision Statement To be a Leading Oil and Gas Multinational of Choice Mission Statement • We are a business entity • Petroleum is our core business • Our primary responsibility is to develop and add value to this nation... ... middle of paper ... ...iews (2010) Petroliam Nasional Berhad (PETRONAS): Products/Services. Available from: http://www.energy-business-review.com/companies/petroliam_nasional_berhad_petronas/products [Accessed 17 February 2014] Malaysian Explorer (2012) Petronas. Available from: http://www.malaysian-explorer.com/petronas.html [Accessed 17 February 2014]. RIGZONE (2013) Malaysian Oil, Gas Service Firms Focus Overseas. Available from: http://dayagroup.com.my/wp-content/uploads/2013/08/Rigzone.com_250713.pdf [Accessed 23 October 2013]. Petroleum Economist (2013) Petronas: The Modal of a Modern National Oil Company. Available from: http://www.petroleum-economist.com/Article/3247199/Petronas-The-model-of-a-modern-national-oil-company.html [Accessed 23 October 2013]. The Free Dictionary (2013) Oligopoly. Available from: http://www.thefreedictionary.com/oligopoly [Accessed 17 February 2014].

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