Project Management: Comprehensive Analysis of Petrobras

This project management assignment provides a comprehensive analysis of Petrobras, a prominent multinational oil and gas company based in Brazil. The report begins with an introduction to Petrobras, outlining its business operations, vision, mission, and value statement. It then delves into recommendations for new changes, such as advancements in business administration and the use of artificial intelligence. The core of the analysis evaluates the company's organizational data, including its financial performance trends, share price, market share, profitability, and major competitors. The project also examines industry and macro-environmental forces, competitive positioning, and a detailed SWOT analysis. The report concludes by providing an overview of Petrobras' strengths, weaknesses, opportunities, and threats, along with relevant references.

Running head: PROJECT MANAGEMENT
Project Management
Name of the student
Name of the university
Author Note:

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Table of Contents
Introduction................................................................................................................................3
Vision.........................................................................................................................................3
Mission.......................................................................................................................................4
Value Statement.........................................................................................................................4
Recommendations for new changes...........................................................................................4
Evaluation of the organizational data.........................................................................................5
Trends of Financial performance...........................................................................................5
Share Price.............................................................................................................................5
Market Share..........................................................................................................................5
Profitability............................................................................................................................5
Major Competitors.................................................................................................................6
Industry and Macro-Environmental forces................................................................................6
Competitive Position in industry............................................................................................6
SWOT Table..........................................................................................................................6
References..................................................................................................................................8

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Introduction
Petrobras is a semi-public multinational company that is based in Rio De Janeiro of
Brazil. The company is also described as Brazilian Petroleum Corporation and is quite an
important company that is well recognized across the globe. The company deals in the
business of petroleum and other different kinds of the petroleum products. This includes the
likes of Natural Gas, Lubricant, Petrochemicals, biofuels as well as fertilizers. The company
has an employee strength of more than 70,000 people with an annual income of more than
US$ 6billion. The business experts claims the company to be an asset holder of
approximately around US$25 billion. The company has operations based in mining, drilling
and exploring new oilfields and natural gas fields in both offshore as well as onshore areas.
The huge scale investment of the company across the different areas and countries of South
America has been an additional advantage for the business organisation (petrobras.com.br
2019). The company has strategic resources located across Brazil, Uruguay, Argentina,
Paraguay, Colombia, Bolivia as well as Chile. Apart from the South American investments
the global reach of the company which is also to be respected as the management of the
company has been able to establish itself in different areas like Japan, Namibia and many
more similar countries.
Vision
The vision of the company as a global leader of petroleum producing and exploring
companies is to evolve gradually and perform unique technical capabilities that will help
them address the needs of the society for energy in a successful manner (petrobras.com.br
2019). The vision of the company thus clearly states the importance of the business
organization and helps the management to ensure the presence of a sustainable energy
process.

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Mission
The mission of the company is to operate in a safe and profitable manner in Brazil and
other areas where the company operates. The major mission of the company is thus to ensure
being a socially and environmentally responsible company that is easily able to meet the
demand of the clients and is able to provide the essential products and services of the client’s
needs that can help in the development of the countries accordingly.
Value Statement
The presentation of a strong value will ensure the success of the business in the most
proper and essential manner. The presence of a strong value can help the company to earn the
respect and trust of the suppliers as well as the end users of the products. The value statement
for Petrobras is based on a number of different steps. This includes the likes of;
a. Respect for the environment, people and all the other forms of life
b. Meeting the challenges and addressing them in a strong manner
c. Providing confidence by addressing the different challenges
d. Ethical Standards and transparent policy structure of the company
e. Market Driven Strategies
f. Use of the latest technology to ensure the presentation of the best products
Recommendations for new changes
The management of the company has been trying out some new changes that will be
helping to shape the future of the company. Some of the new recommendations are as
follows;

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a. Changes in business administration
b. Use of advanced technologies like Artificial Intelligence
c. Establishment of the company business in different other areas and markets like that
of Asia and Australia
d. Establishment of task forces to create new and innovative business strategies
Evaluation of the organizational data
Trends of Financial performance
With a production output of 2.3 million barrels of oil per day, the company is
undoubtedly one of the largest producers of oil and natural gas across the globe. The revenue
of the company stands currently at around US$ 90 billion with operating expenses of around
US$ 30 billion (petrobras.com.br 2019). The company earns a huge profit or income of
around $6.6 billion, which is just enough to make it one of the largest corporations to be
owned by the government of any country (petrobras.com.br 2019). The company employs
more than 70,000 employees with assets rounding up to more than $250 billion. The huge
presence of financial assets makes it certainly one of the most important oil companies
internationally.
Share Price
The current share price of the company stands at 26.67 Brazilian real. The 26.67
Brazilian Real is a stable and secured share price for the company as well as the investors.
Market Share
According to different reports on the market share of the company, it can be estimated
that the organization had a market share of around 29% of all the fuel distribution market of
Brazil. The 29% share comprised largely of 85% fossil fuel, 54% kerosene, 46% gasoline,
30% diesel and other gases in respective orders.

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Profitability
After the huge transformation in the upper level management of the company, the
company registered a profit of 2.1 billion Brazilian Real compared to a loss of more than
double the amount at the same time of the earlier financial year. The company termed the
profit to be special as because it turned out to be the first full year profit of the organization
after the year 2013.
Major Competitors
The major competitors of Petrobras includes Shell, PETRONAS, Exon Mobil, Pemex,
Aramco, Repsol and many more similar such companies.
Industry and Macro-Environmental forces
Competitive Position in industry
The Petrobras Company has been one of the major players in the oil and gas market.
They have played and will play a major role in the future exploration and discovery of
different renewable and non-renewable sources of energy (petrobras.com.br 2019). The
presence of the company in Brazil and other different parts of the globe puts it into a stiff
challenge with the other similar companies like Shell and Repsol.
SWOT Table
Strengths Opportunities Customer satisfaction levels Huge and strong network of
distribution
 Strong brand portfolio
 Automation of business activities
 Strong brand presence
 Decreasing cost of transportation
 Establishment in new markets
 Low rate of inflation
 Economic influence

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Weaknesses Threats Absence in large scale international
markets Financial problems Gaps in product range
 Absence of strong marketing
 Lawsuits in various international
markets
 No regular supply
 New technological developments
 Influence of other rivals

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References
Bray, C., Reed, S. and Brasileiro, P., 2018. Petrobras of Brazil to Pay $2.95 Billion Over
Corruption Scandal. New York Times, January, 3.
Junior, F.H., Galleli, B., Gallardo-Vázquez, D. and Sánchez-Hernández, M.I., 2017. Strategic
aspects in sustainability reporting in oil & gas industry: The comparative case-study of
Brazilian Petrobras and Spanish Repsol. Ecological indicators, 72, pp.203-214.
Petrobras. (2019). Strategy: Learn about our Mission and Vision - Petrobras. [online]
Available at: http://www.petrobras.com.br/en/about-us/strategic-plan/ [Accessed 27 Aug.
2019].
Reynolds, E.B., Schneider, B.R. and Zylberberg, E. eds., 2019. Innovation in Brazil:
Advancing Development in the 21st Century. Routledge.
Silvestre, B.S. and Gimenes, F.A.P., 2017. A sustainability paradox? Sustainable operations
in the offshore oil and gas industry: The case of Petrobras. Journal of cleaner
production, 142, pp.360-370.