Applied Principle for Responsible Business Practice - PETRONAS

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PETRONAS
Applied Principle for Responsible business practice

Applied principle for responsible business practice 1
Executive Summary
PETRONAS was built in 1974, is Malaysia fully united oil and gas multinational among
the largest corporation. They investigate, produce, and supply energy to meet humanity’s
developing needs. The emerging demand reinforces their purpose to consistently drive and
push limitations towards an economical energy future. They apply advanced approaches to
technology which encourages energy sources from remote environments. It is held
responsible to maintain and manage the supply of oil in Malaysia to sustain the profit in the
company. In the following an effort has been made to address the issues in the context of
supply chain and human resource, give implication, and recommendation to improve the
business.

Applied principle for responsible business practice 2
Introduction
PETRONAS is termed, as Petroliam Nasional Berhad (National Petroleum, Limited), is a
Malaysian oil company that was established on 17 August 1974. It was entirely controlled by
the administration of Malaysia; the business is conferred with the whole oil resources and is
endowed with the accountability of creating and accumulating assessment to these resources.
It is positioned amongst Fortune Global 500’s major companies in the world. In the following
report, an effort has been made to discuss the issues of human resource management &
supply chain management and provide a recommendation on how to improve its approach
(Alazzani & Wan-Hussin, 2013).
Supply chain management issues
 Diminishing domestic manufacturers due to high deterioration Rates-Oil well
generally produces at its maximum rate; the production rate ultimately declines to a
point at which it never again creates profitable amounts. Wells in water-drive and gas-
cap drive supplies frequently deliver at a near constant rate until the point when the
infringing water or extending gas cap achieves the well, causing a sudden
deterioration in oil production.
 Over-stretching of the supplied framework has led to supply interruptions due to
condensed Reliabilities-This highly dependency on non-renewable energy sources
combined with the diminishing domestic petroleum product assets constraint will
drive Malaysia to import additional non-renewable energy source at a high market
value where the energy price is unpredictable if fuel mix divergence is not considered.
Therefore, the declining of domestic gas production and overstretching of supply
framework has directed to numerous supply disruptions in the power group industry.
 Expensive supplied gas imports due to trading countries’ declining Production-Their
oil imports peaked in 2005 and usually declined up until 2015. This trend was the
aftereffect of many factors, incorporating, a decline in utilization, expanded use of
domestic biofuels, and increasing domestic generation of crude oil and hydrocarbon
gas fluids (Saad, Mohamed Udin & Hasnan, 2014).