Petrobras - Strategic Review

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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…show more content…
This strategic decision has been taken in order to diversify the knowledge held within Petrobras and insure them against anticipated future market shocks 9petrobras, 2010; 2011). | Environmental | From a social perspective there is far less reticence about adverse environmental impact in Brazil as opposed to the UK for example, and as such Brazil and Petrobras have taken steps to reduce and control adverse effects of their exploration efforts (Petrobras, 2011). The Salt Institute (SI, 2012) indicate that mining for Rock salt does cause known environmental stresses such as fragmentation and also indicates that transportation of the salt can have adverse environmental impact. The SI strongly advocates the use of permits in order to regulate the industry, a view shared by Mol (2010). | Legal | Legal impacts on oil and natural energy extraction and production are determined at a local level and thus the main issues which arise typically relate to cross-border transactions and the legal issues of transportation (SMI, 2010). International legal issues in the industry are constrained to safety considerations such as decommissioning given the highly hazardous nature of the raw materials and production process. This in part explains the high infrastructure investment costs as Petrobras must ensure the safety of any new exploration and extraction venture. | 2.2 Porter’s Five Forces The

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