Importance of International Marketing and Management for PETRONAS in South Africa

Running head: INTERNATIONAL MARKETING AND MANAGEMENT
International Marketing and Management
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Executive Summary
The paper intends to highlight the importance of international marketing and management
planning of PETRONAS in South Africa. Effective Marketing and management strategies
which can be employed by PETRONAS Chemicals in order to enter the market in the specific
country have been discussed. Analyzing the market according to the industry type, demography,
economic growth in the specific country help in making progress with requirements and
execution. In the international context, the market scenario change in varying conditions, from
that of the host country and it often tends to get difficult for companies to adapt to such market
conditions and demands. However, it has been discussed how International Marketing and
Management can help an organization in coping up with situations which are unfavorable and
can lead to detrimental outcomes. International Marketing planning can help PETRONAS to
avoid sucat the same time expand the business.

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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Overview of the Company...........................................................................................................4
SWOT Analysis of PETRONAS.................................................................................................6
Pest Analysis................................................................................................................................9
Porter’s Five Forces...................................................................................................................13
Ansoff Matrix............................................................................................................................15
Recommendations..........................................................................................................................17
Conclusion.....................................................................................................................................18
Reference List and Bibliography...................................................................................................19

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Introduction
The opportunities for trade commerce and communication are increasing every day. In
the global context, business expansion and trade between countries have increased to great
extent. Rapid technological advancements and marketing concepts have improved prospects of
business globally. The companies develop strategic planning methods to make the customers
interested and create value for their products which are offered in the market. The strategies are
also used in planning communication, sales and development plans for the business. Planning
strategies and future course of action in order to enhance the affectivity of the company helps in
generating more revenue collection and profit. Any organization which intends to assess internal
and external factors which govern its business conditions in the international market. Every
company needs to evaluate its strengths and weaknesses in order to approach the market and
therefore also attain the desired results. Marketing Planning helps to address the factors which
effect company policies and market scenario.
PETRONAS Chemicals is a company which does its trade mostly related to petroleum
products. The company runs its business across 35 countries and has revenue turnover of
$100.744 billion. It also has subsidiary associations with 19 countries. It is recognized as a
trusted and valued partner for oil and gas products. It is flourishing as a company as it is being
able to meet the demands of the growing industry and market worldwide. The organization has
successfully established itself as one of the companies with the highest of profit in the Asian
continent which is well committed to the development of its core business and focusing on
exporting Malaysian product into another countries. Thus, it also makes upstream investment in
countries which is a key strategy in marketing. It has several joint business ventures with partner

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companies overseas and rapidly became a company with oil exploration globally and currently.
In this paper we would discuss about the need for developing International Marketing plan and
the areas which require evaluation and focus before entering the South African Market.
Discussion
Overview of the Company
PETRONAS Chemicals is one of the leading producers of chemicals, lubricants and
petroleum products in Malaysia. It is one of the largest groups in the South Asian Continent. The
company operates in several world class sites for production. The company, which works for the
government in Malaysia, has the responsibility of adding value to the oil and gas resources
(Hapsari, Stoffers and Gunawan 2017). It is listed among the 500 largest corporations in the
world. It also featured as the most profitable company in the World, whereas the 8th in Asia. The
company has engaged in several activities which involve petroleum trade and operations.
Logo of PETRONAS
(Source: Petronas.com 2019)
The spectrum of activities which the company take part in, include, oil refining, upstream
exploration, distribution, marketing, liquefaction, automotive engineering, petrochemical
manufacturing. It also coordinates downstream operation globally in order to optimize deliver

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and market products to customers. These operations which PETRONAS engage in, also include
trading operations such as property investments, shipping and automotive engineering
(Schniederjans, Schniederjans and Schniederjans 2015). It has an organizational structure which
is centrally functional. The Vice President and Executive Vice President monitor and regulate
performances of the employees. The operations which the organization engage in overseas, are
also controlled by these people alongside partner company operations and joint ventures.
Upstream Exploration of PETRONAS
(Source: Petronas.com 2019)