The company of my choice is PETRONAS, the petroleum Multinational Corporation based in Malaysia. The paper will outlined 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).