Strategic Business Development in Malaysia’s Oil & Gas Sector

Running head: RESEARCH PAPER
Topic: To Review and Propose Strategic Business Development in Malaysia for the Oil &
Gas Sector
Name of the Student:
Name of the University:
Author note:

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Acknowledgement
I would like to express my gratitude towards all the people, who have helped me in conducting
my research study on the importance of strategic business development in the oil and gas
industry of Malaysia, in the context of the multinational company, Palfinger Asia Pacific Pte Ltd.
They have helped me in every possible manner to explore my potential and strength and utilize it
in the best manner for conducting the research paper. I also thank my supervisor, who has guided
me through the entire time of the research by providing excellent guidance and monitoring. I also
express my gratitude towards my friends and family who have supported and encouraged me
throughout the research work so that I could complete the study in proper time.

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Abstract
This research paper explores the importance of strategic business development in the oil and gas
industry of Malaysia, in the context of Palfinger Asia Pacific Pte Ltd. Oil and gas industry is one
of the most important sectors in Malaysia. It contributes a significant amount of revenue in the
country’s economy. Palfinger Asia Pacific Pte Ltd is a heavy lifting crane and other equipment
supply company that has global business. It is one of the most trusted companies in terms of the
supply of crane and other hydraulic solutions to various industries in the country. In this study,
the researcher collected primary data through structured and unstructured interviews and
secondary data from the annual report of the company. Qualitative and quantitative methods for
financial ratio analysis were applied on the data and it was found that the company is in good
financial health and strategic business development is necessary for expanding its business in the
oil and gas sector of Malaysia.

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Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................6
1.1 Introduction............................................................................................................................6
1.2 Company overview................................................................................................................7
1.3 Research aim..........................................................................................................................8
1.4 Research objectives...............................................................................................................8
1.5 Research questions.................................................................................................................9
1.6 Research rationale..................................................................................................................9
CHAPTER 2: LITERATURE REVIEW.......................................................................................11
2.1 Strategic business development...........................................................................................11
2.3 Review of Business Portfolio and Financial Turnover of Local agent with that of
Palfinger’s Standard...................................................................................................................16
2.4 Strengths, weaknesses and opportunities of the oil and gas industry of Malaysia..............16
2.5 Assess and Compare local competitors on their approach and business strategy to the Oil
and Gas Sector...........................................................................................................................18
2.6 Possibilities for Direct Business in Companies or Business to Business Distribution model
via Local Agent..........................................................................................................................19
CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY..................................................21
3.1 Research philosophy............................................................................................................21
3.2 Research purpose.................................................................................................................22

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3.3 Research approach...............................................................................................................22
3.4 Research design...................................................................................................................23
3.5 Data collection process........................................................................................................23
3.6 Sampling technique.............................................................................................................24
3.7 Data analysis process...........................................................................................................25
3.8 Ethical considerations..........................................................................................................25
CHAPTER 4: DATA ANALYSIS AND FINDINGS...................................................................27
4.1 Data analysis and findings...................................................................................................27
4.1.1 Financial ratio analysis for Palfinger Asia Pacific Pte Ltd...........................................27
4.1.2 Qualitative analysis.......................................................................................................33
4.2 Market analysis....................................................................................................................38
4.3 Summary of findings...........................................................................................................41
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................44
5.1 Linking to the research objectives.......................................................................................44
5.1.1 Linking to the first objective.........................................................................................44
5.1.2 Linking to the second objective....................................................................................45
5.1.3 Linking to the third objective.......................................................................................46
5.1.4 Linking to the fourth objective.....................................................................................47
5.1.5 Linking to the fifth objective........................................................................................47
5.2 Recommendations................................................................................................................48

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5.3 Future scope of the study.....................................................................................................50
References......................................................................................................................................51
Appendix........................................................................................................................................57

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CHAPTER 1: INTRODUCTION
1.1 Introduction
The oil and gas industry of Malaysia started its operations almost a century ago. Over the
years, the industry has flourished to be one of the most dynamic industries in the country dealing
with the natural reserves of oil and gas. It has also become one of the biggest producers of the
liquefied natural gas (LNG). There are almost more than 3500 oil and gas companies in Malaysia
that includes both the national and international companies. The oil and gas industry of Malaysia
contributes around 20% -30% in the Gross Domestic Product (GDP) (Nikhalat‐Jahromi, Fontes
& Cochrane, 2017.
As the industrial sectors in the global economy are changing quite rapidly and bringing
different dimensions to the businesses, it is highly important for the organizations in every
industry to stay relevant to the industrial needs and the market demands. The business
implications have a profound impact on the organizations to stay competitive and sustainable at
the same time for achieving long term growth (Ngoasong, 2014). Hence, it is extremely essential
for the organizations to understand the principles of the market and develop strategies
accordingly to not only gain a competitive edge in the market but also for sustaining in the long
term. It is seen usually seen that the businesses adopt strategies that directly or indirectly reflect
the national culture and the value that it delivers to the customers. Thus, any strategic business
development should adopt business models that explore the relationships between the nature of
the business, culture, innovative management and proposed value of the organization to deliver
the best outcome (França et al., 2017).

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Business development depends on quite a few important factors, namely, communication,
cross channel marketing, remote working, and storytelling technique for brand promotion. The
main motive of strategic business development is to create long term relationship with the proper
demographic of the society and proposing the best value to the customers and in turn earning
profit (Björkdahl & Holmén, 2013). Strategic business development helps the organization to
find out the USP of its product, service or idea and create a business plan around it. This process
is followed in all the industries or sectors.
This study aims to review and propose strategic business development in the oil and gas
industry of Malaysia. The case of Palfinger Asia Pacific Pte Ltd in Malaysia will be chosen to
conduct this study. The business model of this company will be reviewed to explore the different
aspects of the company which are relevant for the industry. A comprehensive literature review
will be conducted to create a conceptual context for the study. It will focus on the business and
financial portfolio of Palfinger Asia Pacific Pte Ltd in Malaysia to compare the industry
scenario.
1.2 Company overview
Palfinger Asia Pacific Pte Ltd is one of the major lifting solution providers in Malaysia.
The company provides highly innovative, cost effective and reliable hydraulic lifting solutions in
the commercial vehicle industry and in the maritime field. In Malaysia, the company offers
products like loader cranes, marine cranes, Epsilon timber and recycling cranes, davit system,
tail lifts, access platforms, mobile cranes, passenger lifts, truck bodies, railway systems, rope
access professionals and truck mounted forklifts. It also offers tools and equipment for