Strategic Plan for MB Petroleum

The strategic issues in the business of MB Petroleum can be summarized as dealing with competitors by implementing new and innovative technologies, focusing on environmental sustainability, investing in renewable energy sources, and considering laws and regulations imposed by governments. To deal with these strategic issues, MB Petroleum should focus on implementing new and innovative technologies to stay competitive, develop more renewable energy products to cater to customer demand for environmentally friendly options, and comply with laws and regulations imposed by governments.

Running Head: Strategy 1
Strategic Management of MB Petroleum services

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Contents
Introduction......................................................................................................................................3
Mission statement........................................................................................................................3
Vision statement...........................................................................................................................3
Strategic Challenges and issues.......................................................................................................4
Reserve replacement....................................................................................................................4
Strong competition in industry.....................................................................................................4
Lack of fund.................................................................................................................................5
Commoditizing technology..........................................................................................................5
Logistics and supply chain challenges.........................................................................................6
Strategic solution.............................................................................................................................6
Market analysis............................................................................................................................7
Brand recognition.........................................................................................................................7
External analysis..............................................................................................................................8
Macro environment analysis........................................................................................................8
Micro Environmental analysis.....................................................................................................9
Strengths...................................................................................................................................9
Weakness..................................................................................................................................9
Opportunities............................................................................................................................9
Threats......................................................................................................................................9
Internal analysis.............................................................................................................................10
Competitive advantage...............................................................................................................10
Value chain................................................................................................................................10
Primary activities....................................................................................................................10
Secondary activities................................................................................................................11
Porter generic strategies.............................................................................................................11
Cost leadership.......................................................................................................................11
Product differentiation............................................................................................................12
Focus strategy.........................................................................................................................12
Diversification............................................................................................................................12

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Strategic choice..............................................................................................................................13
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
Appendix........................................................................................................................................16
PESTLE analysis...........................................................................................................................16
Political factor............................................................................................................................16
Economical Factor.....................................................................................................................17
Social factor...............................................................................................................................17
Technological Factor..................................................................................................................17
Environmental factor..................................................................................................................17
Legal factor................................................................................................................................17

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Introduction
The key objective of this study is to provide the strategic solution for a strategic issue
facing by an organization. The analysis is done based on the strategic challenge or issue facing
by a petroleum service company named MB Petroleum services. In order to solve the strategic
issues, the report provides new strategic directions to stay viable, competitive and profitable in
future. For the analysis and discussion, famous petroleum company MB Petroleum service is
selected. MB Petroleum service is the multinational corporation which provide cost-effective
quality drilling and integrated services in all over the world (Analoui & Karami, 2009). Along
with the assurance of quality and reliability, the company is providing values to its stakeholders.
MB Petroleum service is the subsidiary of MB Holding company which is the most successful
and largest oilfield service provider company in all over Middle East region. The company
started its operations in 1982 and within few years, MB Petroleum started to grow and became
the largest oilfield service company in the Middle East. In current time, the company is operating
in 15 countries including Oman, Germany, Australia, New Zealand, India, Hungary, China,
Qatar, Russia and Saudi Arabia (MB Petroleum Services LLC, 2011).
Mission statement
Mission statement of MB Petroleum service is to provide best value services along with
safer and smarter process to its clients in mutually respectful commercial framework.
Vision statement
For MB Petroleum service, vision statements of the company are as follows:
 For the employees of MB Petroleum service, company is aim to work with the safety and
security,
 For the suppliers, company wants to provide efficient, safe, profitable and innovative
services to target the regional markets,
 Company wants to be preferred as a well service company for the working in the regional
market.

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Strategic Challenges and issues
Reserve replacement
There are various strategic challenges faced by the Petroleum Company while operating
with the effective business strategies. The key challenge for MB Petroleum service in the
industry is reserve replacement. There is small faction of oil resources available for exploitation
by MB Petroleum and their production is in the mature region. As MB Petroleum is most
competent in terms of managing large scale production projects and that is the reason, company
is getting locked out in these aspects and reducing its competitiveness in the industry. Based on
study of Jonathan Stern of Oxford Institute for energy studies, key value proposition of MB
Petroleum is its capacity to handle large projects, technological capabilities and large financial
resources. but this value proposition of the company is called to question today as there are
various companies in the industry that are technological capable and have sufficient financial
resources to complete the projects at big level. So, the main challenge for MB Petroleum is in
reserves. MB Petroleum has a mature reserve portfolio that is declining and the company is not
able to add new reserves. Along with this, there is the problem in the supply chain process with
accessing the resources for the exploration and development (Braun & Latham, 2014).
Strong competition in industry
It is observed that various national oil companies are also the part of challenge to the
future business prospect of MB Petroleum service. The business newspaper Financial Times
argues that the emergence of new class petroleum companies is dominating the industry and this
is the big challenge for MB Petroleum in the operation areas. All the companies are not same in
terms of resources and capabilities. In fact, some companies are unable to operate without the
support of another established company. So, they need to do partnership with other companies in
the industry. In such condition, there are no opportunities for MB Petroleum to do partnership
with other companies. Along with this, other petroleum service companies are restricting the
opportunities for MB Petroleum in the home countries. Further, they push oil services higher and
create geopolitical barriers and challenges for MB Petroleum. These situations create barriers for
the company MB Petroleum to operate in the industry in the effective manner (Liu, 2013).
Apart from this, new entrants are entering in the industry with innovative managerial and
technological expertise in the exploration area. The company MB Petroleum has to face the issue

Strategy 6
related to the lack of new technical and managerial expertise as this is an old company in this
industry. There is the requirement of high degree of managerial and technical expertise which are
partly available in the company.
Lack of fund
There are various factors that affect the performance of MB Petroleum service in the
business operations. As this report focuses on the strategic actions to deal with the issues and
challenges in the company. So, it is important to understand about different variables affecting
the business of MB Petroleum in the industry. The oil prices basically do not impact on the
performance of the company as it is an external factor. The oil prices, as an external factor,
hardly have direct impact on the performance of the company. The performance of the company
can be measured based on the value created by the company in the operating market (Bingham &
Eisenhardt, 2011). The valuation of the company MB Petroleum can be measured at the
shareholder returns for short-term basis. But for the long-term profitability of the company, there
is the need of re-investment in the business by capital expenditure on the R&D activities and
renewable energy development.
Commoditizing technology
It is well known that the petroleum and oil industry is a technical complex industry and
the level technology in the company can be the source of competitive advantage in the industry.
In the oil industry, technology is becoming important factor for the growth and development of
the company. In the past, MB Petroleum has benefited from being sole entities which is capable
in terms of technology to extract oil and the countries rely on the expertise of the company to
develop natural resources. Today, it is observed that MB Petroleum no longer have monopoly in
terms of technology, and the technology has become commoditized so significant competitive
advantage cannot be achieved for long term (Shakhshir, 2014). There are two trends which are
playing a major part in this process. The first trend is that competitors in the industry are more
capable, prominent and competitive in the business. Along with this, second trend is that oil
companies are closing the technology gap and now becoming more capable in performing
various tasks like MB Petroleum. As the result of these trends, MB Petroleum today does not
have competitive advantage derived from technological capabilities in the extraction of
petroleum oil because new technologies are needed for this process.

Strategy 7
Logistics and supply chain challenges
Sometimes MB Petroleum service has to deal with the issue of supply chain process and
logistics services. The logistics network in the petroleum industry is highly flexible which
depends upon the production capabilities of crude oil suppliers, limitations of modes of
transportations, and long transportations lead time. At every point if the supply chain network,
there are some major challenges which have to face by the company MB Petroleum. Company is
operating in many countries and long distance between supply chain partners and slow modes of
transportation are the cause of high transportation costs and inventory. So, MB Petroleum
Company has to deal with these unnecessary costs. There are transitions in the transportation
modes in this industry. Because of inflexibility involved in the industry, company has to
maintain service-levels which are the major challenge in the industry (Naspetti et al, 2011).
Strategic solution
To operate in the competitive market at the global level, it is crucial for the company to
understand the concept of strategy in the business activities. By the implementation of effective
business strategies, the company MB Petroleum will be able to deal with above discussed
strategic issues. Having a clear and focused strategy is actually important for the growth and
success of any company at the global level. Without a well-defined strategy, company will not be
able to compete with the competitors in the operating market. MB Petroleum has to adopt
strategic operations so that business can be more productive, focused and more profitable. It is
observed that in the petroleum industry, MB Petroleum has to face more than one challenge.
After analyzing the strategic issues, it is important for the company to address these issues as
soon as possible. This report provides the strategic solutions for the company MB Petroleum so
that it can deal with these issues and make the business profitable in the market. Report provides
strategic plan for MB Petroleum to deal with the strategic issues in the business (Hoskisson,
2009).
Based on the discussion of strategic issues in the company, it is clear that MB Petroleum
is an established company in the petroleum industry. Now, company has to deal with some
challenges due to strong competition and emergence of new technology. It is not necessary that
the strategies used by the company in the local market would be effective in the global market. In
such manner, MB Petroleum need to take some strategic initiatives to build strong brand

Strategy 8
recognition in the international market. First of all, it is important for the company to understand
the market where the company is operating. To accomplish organizational goals and objectives,
the market analysis for strategic initiatives is described below (Biggadike, 2010).
Market analysis
Oil extraction companies always impact on the economy of each country. Oil and gas
industry is massive industry and there are various operations performed by the petroleum service
providing companies under the ground to meet the demands of the clients in the industry. it is
expected that the demand of petroleum oil will grow in upcoming year. Petroleum is sold as the
fuel oil and liquefied petroleum gas. The demand for petroleum is basically driven by auto and
truck use along with home heating. Customers in the oil industry are needed as the business
drivers. The behaviors of the customers affect the convenience and prices of the oil in the
industry. It is obvious that the customers are demanding for fuels which affect the prices of the
oils. With the hike in the price, there are customers who will fill their cars when the prices of
petroleum fuels are less. There is the evidence that the prices of petroleum hiked at an average
rate of 11% per year till 2016 but in 2017, overall average dropped to 8%. So demand of petrol
and other oils are increasing with the low prices.
Brand recognition
MB Petroleum Company is seeking for the business expansion in all over the world with
the aim of string brand image in the market. Because of some strategic issues in the business,
company is not able to operate the business effectively. Objective of the company is to provide
effective petroleum services to the clients in various countries. This strategic plan or strategic
initiatives would be helpful for the company to achieve the business goals and objectives with
the effective manner. Under the strategic initiatives, MB Petroleum would focus on dealing with
the competitors by implementing new and innovative technologies in the business. Along with
this, company would focus on minimizing the unnecessary cost incurred in the business
operations. For the effective distribution of the petroleum fuels, MB Petroleum has to focus on
effective supply chain management activities (Schnaars, 2010).

Strategy 9
External analysis
After setting the strategic initiatives, it is crucial for MB Petroleum to analyze the market
environment in which it is operating. MB Petroleum is operating in 15 countries and taking the
projects related to extraction of petroleum fuel. For this report, Oman is considered as the
operating country of MB Petroleum. In terms of suitability of strategic initiatives, the strategic
initiatives, it is important to understand the market environment and opportunities on the
country. The analysis of market can be done by the environmental analysis of Oman. The
environmental analysis of Oman market can be done in two parts i.e. Macro analysis and Micro
analysis (Ghoshal, 2009).
Macro environment analysis
It is well known that petroleum industry impact on the growth and development of the
economy of every country. There are fields of political, ecological, economic, social,
technological and legal which are important for the growth of petroleum Service Company.
Oman is considered as the most profitable place in the world along with the strongest powers.
The legal system of the country is improving continuously and there are many companies of oil
extraction expanding the business in Oman because of low-cost of labor, market size and its
growth potential (Jansson, 2011).
It can be analyzed by the macro-environmental analysis that the external market
conditions of the country are ideal for the organization. It can be analyzed from the appendix that
Oman is supportive for the oil and gas industry. The government of the country is supportive for
the oil industry as the growth of the economy of Oman depends upon this industry. Further,
economic conditions of the country are good and GDP rate in the country is on its highest level.
People in the country are using petroleum and other oil products at very high rate. Along with
this, income level of people in Oman is very high and they consume the energy products on daily
basis which is beneficial for the company (Marcer, 2012).
Next, technological infrastructure is developed in the country. Because of the oil and gas
industry, profitability and gross income of the country is very high. Government of Oman has
invested huge amount in the technological infrastructure which is also very beneficial for MB
Petroleum in the industry. Due to large presence of the oil extraction companies, infrastructure of

Strategy 10
Oman has been developed. So, MB Petroleum can perform its actions in the efficient manner in
the industry.
Micro Environmental analysis
For the micro environmental analysis of MB Petroleum, SWOT analysis framework is
used. SWOT analysis is basically helpful to evaluating the internal strengths and weakness and
external opportunities and threats of MB Petroleum service.
Strengths
The strength of MB Petroleum is that the company has leading position in the oil industry
of Oman. Because of the strategic choices, company is getting benefit to lead the local as well as
international market including export markets. The oil refinery has largest production capacities
including refining around 10 million tons of crude oil every year. MB Petroleum is basically
associated with the downstream oil activities and offering services to its clients based on the
international standards (Seshadri, 2009).
Weakness
The key weakness of MB Petroleum is that there is decrement in the financial position of
the company. The income of MB Petroleum Company is decreasing continuously at the global
level. Despite of such losses, the company is not taking initiatives to reduce this challenge.
Along with this, the strong competition in the market and competitors are reducing the profit
level of the company.
Opportunities
The company MB Petroleum has opportunity to invest more in the business in order to
expand its business in more countries. Along with this, MB Petroleum also has an opportunity to
enhance its position in the new energy market. Company has opportunity to improve its
efficiency in terms of refinery of diesel and fuel yields (Gruca & Rego, 2009).
Threats
Key threat for MB Petroleum is decreasing demand of the oil products in the market.
Since last few years, because of the increased environmental awareness and clean energy
sources, the demand of the fuel and other oils is decreasing. Along with this, high level of
operational cost in the refining sector is also a big threat for MB Petroleum. Competitors are

Strategy 11
using innovative strategies to enhance the productivity and profit in the business. Low profit
margin is one of the major threats for the Company MB Petroleum.
Internal analysis
Internal business environment can be controlled by the company. The internal
environment analysis is focused on the development of effective business strategies so that long-
term business growth of the company can be ensured. The internal environment analysis of the
company MB Petroleum is described below:
Competitive advantage
The sustainable competitive advantage of the company focuses on the assets, abilities and
attributes which is not easy to exceed or duplicate. Competitive advantage is helpful for the
company to achieve an effective long-term position in the competitive market. Along with this, it
is helpful in dealing with the competitors in the market. In case of MB Petroleum, the company
is providing quality and unique services to its customers. Major rival of the company are Oman
Oil Company and Shell Oil Company but MB Petroleum Company has large number of market
share in the industry. Because of the large market share, the company has strong brand
recognition in the market. Company is already focusing on the quality services to retain the
clients for long term business. The sustainable competitive advantage of MB Petroleum includes
production and distribution team which is helpful for the company to maintain the business
operations (Dess & Lumpkin, 2009).
Value chain
It is well known that oil and gas industry is very complex industry. For the growth of
economy, oil is becoming important product and essential for all the energy requirements.
Petroleum oil is in high demand in the retail, commerce, and domestic purpose. The value chain
analysis of MB Petroleum is divided into two parts i.e. primary activities and secondary
activities.
Primary activities
For MB Petroleum Company, primary activities of the company are its core business
activities. In the inbound activities, there are activities related to distribution and storage of oil
products. MB Petroleum Company exports the petroleum oil in various countries. These

Strategy 12
activities are helpful for the company in the production of oil. The company is focused on
turning the raw material into finished products. In the primary activities, MB Petroleum
Company refines the oil by various production processes. Further, outbound logistics activities of
the company include providing final products to the end users. By the supply chain management
and distribution network, company is able to manage the outbound logistics. Along with this, in
the process of marketing and selling the oil, company is providing low cost products to the
customers. Company is also focusing on building loyalty of customers by providing high level of
customer services. MB Petroleum is providing quality services to the customers so that the
existing customers can be retained for long term growth (Drummond, Ensor & Ashford, 2012).
Secondary activities
These activities are also called support activities including the infrastructure of business
i.e. management, legal and finance etc. MB Petroleum company is well established in the oil
industry including effective production process. In this manner, company is focused on providing
quality services and effective infrastructure to the employees. In the HR services, the workforce
of the company is committed towards the success and growth of the business in the market. HR
department of the company is focused on providing effective training to the employees for the
retention of the employees. MB Petroleum Company need to make the employees aware for new
technology not only for production purpose but also for effective customer services. In the
procurement process, company is extracting oil by the refinery process. Basically, support
activities of the company are outsourced to the foreign company (Jeannet & Hennessey, 2010).
Porter generic strategies
Every business organization has different market segments. Based on those segments,
strategies for the business operations are developed. Porter generic strategies for the Company
MB Petroleum are as follows:
Cost leadership
In the cost leadership strategy, company provides low cost products to the potential
customers. MB Petroleum has large scale of business and large production base, and then this
strategy is helpful in increasing market share. Under this strategy, MB Petroleum provides fuel
oils at the low cost to the clients so that the customers can be retained for the long term. In case

Strategy 13
of MB Petroleum, cost-leadership strategy is crucial as the profitability of the company is
declining continuously (Glowik & Smyczek, 2011).
Product differentiation
This strategy basically focuses on providing various products and services having unique
characteristics as per the need of the customers. These types of the services are provided by the
company while customers are not so much price sensitive and the company has effective
resources and capabilities related to the target market. Differentiation strategy is key of achieving
profitability in the industry while the added price of the products are more important than the
added expenses to get the product and services (Luffman & Kenny, 2009).
Focus strategy
This strategy is also considered as niche strategy. This strategy can be implemented based
on the combination of above strategies. Under this segment, company focuses on providing low-
cost products and services to the potential customers. This type of strategy is adopted by the
company while it is focusing on few target market (Tanwar, 2013).
In case of MB Petroleum Company, it should follow the product differentiation strategy.
The company should solely focused on providing quality of the products. So, the company has to
focus on high quality oil extraction process for the retention of the customers (Kaplan & Norton,
2006).
Diversification
This is very helpful strategy in creating competitive advantage of the business by
diversifying the product portfolio. With the help of diversification, the companies can create new
revenue streams, new capabilities and new solutions. In the Company MB Petroleum, the
outsourcing process can also reduce the overall profitability of the organization. It is important in
responding to new challenges and opportunities. Along with this, supply chain processes are also
an issue for the company MB Petroleum as there are the issues of transportation services. In the
oil and gas industry, Company MB Petroleum can reduce the risk and cost by focusing on the
production process of the diversified approach and efficient work practices. The oil and gas
commissioning, carbon capture and storage, offshore wind, nuclear decommissioning, energy
storage, thermal generation is some of the diversification approaches of the oil and gas industry.
Company MB Petroleum can invest in the outsourcing decisions and can reduce the unnecessary

Strategy 14
cost of the business operations. Along with this, MB Petroleum can also invest in various areas
also like profitability enhancement and risk diversification.
Strategic choice
For MB Petroleum Service can adopt SAF criteria in order to operate the business
effectively. SAF criteria include suitability, accessibility and feasibility for the strategic
development. The strategic options adopted by MB Petroleum are evaluated by the SAF criteria.
The most suitable strategy for MB Petroleum can be investing in many other areas to reduce the
unnecessary cost of the business. By this, company will be able to enhance its profit ratio in the
business. Further, this is an accessible strategy because there are many companies in the market
which are taking outsourcing and extraction projects. Along with this, they are also capable in
completing them in the small time period. Along with this, the strategy is feasible also because it
has capability to diversify the business operations of the company and will enhance the
profitability of the company in the market (Lee, 2009).
Conclusion
Strategic management is the important concept to operate the business in the global
market. From the above discussion in the report, it is observed that Company MB Petroleum
service has good position in the international market. Further, there are some strategic issues
faced by the company while operating in the oil and gas industry. It is observed that in the
petroleum industry, MB Petroleum has to face more than one challenge. After analyzing the
strategic issues, it is important for the company to address these issues as soon as possible. For
this manner, report provides strategic plan for MB Petroleum to deal with the strategic issues in
the business. In terms of strategic initiatives, MB Petroleum would focus on dealing with the
competitors by implementing new and innovative technologies in the business. Based on the
strategic analysis of MB Petroleum, it is observed that MB Petroleum has to focus on dealing
with the competitors by implementing new and innovative technologies in the business. Along
with this, company will use SAF criteria to analyze the strategic initiatives taken by the
company. In conclusion, company needs to invest in new technologies to deal with the above
discussed strategic issues and to deal with the competitors in the oil and gas industry.

Strategy 15
References
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74, UK: Thomson learning.
Biggadike, E. R. (2010). The contributions of marketing to strategic management: Academy of
Management Review. 6. 621-632
Bingham, C. B. & Eisenhardt, K. M. (2011). Rational heuristics: the ‘simple rules’ that
strategists learn from process experience: Strategic Management Journal. 32. pp. 1437–
1464
Braun, M. & Latham, S. (2014). Mastering Strategy. Santa Barbara: ABC-CLIO.
Dess, G. & Lumpkin, G. (2009). Strategic Management: Creating Competitive Advantages. (6th).
London: McGraw-Hill Education.
Drummond, G., Ensor, J. & Ashford, R. (2012). Strategic Marketing: Planning and Control.
(4th). London: Palgrave Macmillan.
Ghoshal, S. (2009). Global strategy: An organising framework: Strategic Management Journal.
8. 425-440
Glowik, M. & Smyczek, S. (2011). International Marketing Management: Strategies, Concepts
and Cases in Europe. Pp. 301. (4th). NY: Physica-Verlag.
Gruca, T. S. & Rego, L. L. (2009). Customer Satisfaction, Cash Flow and Shareholder Value:
Journal of Marketing. 69. 115–30
Hoskisson, R. (2009). Business strategy: theory and cases. (6th). UK: John Murray
Jansson, H. (2011). International Business Strategy in Emerging Country Markets. (5th). London:
Routledge.
Jeannet, J. P. & Hennessey, H. D. (2010). Global Marketing Strategies. (6th). USA: Houghton
Mifflin.
Kaplan, R., & Norton, D. (2006). How to implement a new strategy without disrupting your
organization: Harvard Business Review. 100-109.
Lee, G. K. (2009). Relevance of organizational capabilities and its dynamics: What to learn from
entrants’ product portfolios about the determinants of entry timing: Strategic
Management Journal. 29. 1257–1280
Liu, Y. (2013). Sustainable competitive advantage in turbulent business environments.
International Journal of Production Research, 51(10), 2821-2841.

Strategy 16
Luffman, G. & Kenny, B. (2009). Strategic Management: An Analytical Introduction. (6th).
Oxford: Blackwell Publishing.
Marcer, D. (2012). Marketing strategy: the challenge of the external environment. (5th). London:
Sage Publications.
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http://www.mbpetroleum.com/about_mb_profile.shtml
Naspetti, S., Lampkin, N., Nicolas, P., Stolze, M. & Zanoli, R. (2011). Organic supply chain
collaboration: a case study in eight EU countries: Journal of Food Products Marketing.
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15(1), 11-17.

Strategy 17
Appendix
PESTLE analysis
For the environmental analysis of MB Petroleum, PESTLE framework can be used. This
framework focuses on external environment, threats and factors which can impact on business
and its performance (Anton, 2015).
Political factor
The political environment of Oman is in the stable condition. The political parties of the
country have long-term business relationship with other countries. Policies made by government
also provide effective support in terms of investment and business to various companies. This is
helpful for MB Petroleum Company to expand its business at global level. This is also helpful in
maintain its significant growth in the industry. Along with this, Oman has convivial business
relations with other companies (Payne & Holt, 2008).

Strategy 18
Economical Factor
In terms of economic factors, the economics conditions of the national and international
markets are considered. Various types of taxes are imposed by the government of Oman on the
oil and gas sector. Apart from that, there is the demand and supply gap affecting the product.
There are some economic policies related to currency which affect on the business operations of
the company. So, the economic factors are in suitable for MB Petroleum in Oman. The
investment and business of country are beneficial for the company. But it is also observed that
demand of the oil in international market is continuously decreasing.
Social factor
The social factor includes the demographic factors in the society i.e. age, income level,
education, culture and living style of the customers. Because of high level of awareness related
to the environmental sustainability, customers are seeking for clean energy based products so
that negative impact of oil products would be less on the environment. It can also create a
negative impact on Oman Oil Company and MB Petroleum has to focus on the practices of
environmental sustainability.
Technological Factor
In case of the Company MB Petroleum, it is important to invest in the new technologies
to compete in the market. Along with this, there are few technological changes which appear in
the oil and gas industry and that is the reason, MB Petroleum has to face challenges and
competition from new entrants. So, there is the need to invest in new technologies so that clean
and green environment can be developed for the customers.
Environmental factor
Because of use of oil products in excess, the environment has started getting polluted.
MB Petroleum Company is mainly operating the business in exportation of oil products. But it is
observed that people are seeking for renewable energy due to environmental awareness. So the
company needs to develop more renewable energy products so they can smoothly run its
business operations (Schuetz and Schrefl, 2017).
Legal factor
In each country there are various rules, laws and regulations imposed by government. In
the international market, various rules and regulations are imposed on the oil and gas natural

Strategy 19
industry. So, it is analyzed that there is the needs to consider such laws and regulations by MB
Petroleum Company. It would be helpful for the company to make business operations more
successful and effective.