Critical Evaluation of PETROBRAS' Corporate & Operational Strategy

This report provides a critical evaluation of the relationship between PETROBRAS' corporate business strategy and operational strategy. It begins by outlining the company's strategic vision, which focuses on adapting to societal energy demands, diversifying into renewable energy sources, and transitioning to a low-carbon economy. The analysis includes a SWOT analysis, highlighting strengths like market position and global presence, and weaknesses such as over-reliance on the home market. A PESTEL analysis examines the external factors influencing the company, including political influence, economic fluctuations, and environmental regulations. The report also identifies critical success factors such as research and innovation. Recommendations are made for strategic options, including exploration of new oil fields and partnerships. A force field analysis identifies driving and restraining forces related to change, such as competition and the need for skilled staff. The report concludes with a resource implementation plan and timeline.

Task 2
Critical Evaluation of the relationship in between the company, corporate business
strategy and operational strategy
The strategic plan of PETROBRAS Company provides a strategic vision of the
company with an alignment to the needs and wants of the society. The globalized version of
the needs and demands of the company depends on the habits of the society and thus presents
a diversified need for the different kinds of the present energy sources and the future energy
sources. Though the organization focuses on oil and gas, the management of the company has
plans to diversify itself in other energy sources. The main objective of the organization is to
turn itself into an environment friendly company that can easily support the transformation of
the host country to a low carbon economy. The company has plans to maximize its
exploration and production capabilities through a new developed portfolio and develop new
and sustainable oil and gas production methods. It has also plans to optimize and transform
its position in the segment of Natural oil and gas production in not only Brazil but also across
the globe, either by own capability or by the development of new and improved partnerships
with other oil and energy companies. Apart from this, the company has also plans to engage
itself in the exploration and production opportunities for the different kinds of the renewable
energy sources. The management of PETROBRAS has also developed strategies to support
the development of critical business skills and high culture business performance that are able
to address the challenges of the modern competitive environment in the energy sector.
The Operational strategy of the business is highly linked with the corporate strategy
as the new operational portfolio (E&P portfolio) has direct links with the strategic corporate
practices of the company, which involves the refinement, transportation, trade of the oil and

other forms of petrochemicals operated by the company. The operations of the business also
provides the necessary power to the company to evolve in the business and search for
opportunities in oil and gas and other forms of renewable energies. The linking of the
corporate strategies along with the operational strategies of the company ensures the journey
of the enterprise towards a bright and green future. The green future of the company will
involve the exploration of the business operations around wind, solar and biofuels, which are
the main corporate strategies of the organization.
Application of Strategic Models and Tools
The strategic models and tools of the organization includes the likes of the different
kinds of the organizational tools, which are important consideration for the success of the
business organization in a proper and efficient manner. The internal and external strategic
tools of PETROBAS is crucial for the organization. The report presents an internal and
external analysis that highlights the application of the strategic tools in the company. The
SWOT Analysis and the PESTEL Analysis has been presented here as the strategic tool for
the company.
SWOT analysis
STRENGTH OPPORTUNITIES Good position in the market Global presence
 Good reputation in both local and
international markets
 New markets and plans of expansion
 Opportunities in renewable energy sector
 A stable organizational structure can be
achieved
WEAKNESSESS THREATS Too much projects in the home country
 Problems of strong monopoly in oil and gas
sector
 Rising competition in the oil markets
 The sharp decline in oil production
 The emergence of other alternate fuels has

decreased the use of oil
The SWOT Analysis presented in the above table has presented a vivid picture of the
internal condition of the organization and though there are different kinds of strengths, there
are similar opportunities for the organization. This includes the scope for future expansion in
new markets and expansion in other areas of energy sectors presents a successful strategy that
gets used for the development of the business organization in an efficient manner.
PESTEL Analysis
The PESTEL analysis is an external strategic tool that needs use for gaining a clear
idea about the external analysis of the organization.
Political Economical Social Technological Environmental Legal
Great level of
influence from
political sources as
market share profit is
provided to the
government
Price fluctuations is
a problem
Local employment is
supported by
PETROBAS
Use of superior
technology
Risk of environment
due to drilling
Bound by
legislation
However, the stable
political environment
is useful for the
success of the
company
Oil revenue
contributes a major
share of Brazilian
economy
Corporate image
monitoring system is a
crucial factor for the
business
Use of technically
sound experts
Use of green
technologies
Maintain the
health and safety
laws
Tax reduction has
helped the
organization
The government
earns huge revenue
from the oil
production
Measurement and
monitoring the
development of the
business
Research and
development
procedures
Shift towards
production of
renewable energy
Implement and
enforce
environmental
regulations

The PESTEL Analysis of the company has provided the external analysis of the
organization, which can be said to be a proper and efficient increase of the organization in a
proper manner. The proper alignment of the strategy of the company with the different kinds
of the strategic aspects surely presents the organization with a clear view of the different
kinds of the strategies that can help in the future growth of the organization.
Evaluation of Critical Success Factors
The critical success factors for the company focuses on the development and growth
of the company on the lines of the new technologies. The evaluation of the key factors can be
helpful for the organization to develop itself. The success factor for PETROBAS is the
concentration of the organization on the research and innovation. The research and
innovation process of the organization can be helpful for the management of the business to
explore new oil and gas fields and indulge in the development of the renewable energy forms
that is equally efficient for the company to address the sustainability issues.
Recommendation and Justification of Strategic Option
The recommendations for PETROBRAS in this case has been the development of the
organizational procedures that helps the management to develop the different kinds of the
strategies and ensure smooth operational flow. The organizational flow of the business leads
to the success of the organization in the most efficient manner. The recommendation and
justification of the strategic option of the organization helps the management to analyse the
different kinds of the strategies in relation to the organizational elements. This includes the
likes of,
A. The development of the organization in other business fields like that of exploration
in new oil fields and gas sources

B. The development of the business by exploration of other different sources like that of
the organizational elements
C. Exploring new opportunities to partner with other industries in the same area
D. The development of the best technologies to explore challenging areas
Identification of Change Factors by completing a Force field Analysis
The challenging funding environment and the need for Petrobras to spread its wings,
explore the unexplored, and turn itself into a green company with minimum carbon footprint
can help the organization to attain the sustainability and success for its future endeavours.
The company has been busy in the identification of the renewable energy program that will
surely be the key to the success of the organization in the coming future. The well-defined
areas of success and the increased changes in the organization due to the new plans will bring
in a new generation for the management of Petrobras as a shift from the traditional sources of
energy to the modern and developed sources of energy can be said to be the major source of
business success. The implementation of the government funding to the exploration and
research on new and renewables sources of energy can be said to be a major element for the
success of the organization. The basis of the Force Field Analysis helps the organization to
put aside other thoughts and concentrate on its vision switchover towards the concentration
for the organizational goals. It is important for the organization to concentrate on the factors
that can help them to address the issues related to the change of needs for the development
and exploration of renewable energy. The analysis for Petrobras presented below has
provided a perfect picture for the same.
Driving Forces Desired Plans Forces against changes
 Huge competition
from other oil and
 The plan of the
organization is to
 The new change will
take time and will

gas production firms
like Repsol, Aramco
and many more as
such
 Reduction in training
time
 The increase of
skilled staff will help
the organization
accordingly
formulate and
implement the
different renewable
energy options and
make the utmost use
of the program.
lead to an increase in
cost
 There will be fear
that some of the
staffs may lose the
jobs, as many of the
staffs will not be
similarly trained and
expertise like that of
the modern recruits
of the organization.
Driving Forces
The driving forces of the company will include;
a. Competition- Petrobras has a large competition in the market, as because the
organizations like that of PETRONAS, Repsol and Aramco has implemented
strategies to address the needs for the organization in the most efficient manner. The
management of the company needs to address them accordingly.
b. Training Time reduction- The reduction in the training time will lead to a number of
business problems. The very first problem that will be faced by the company will
include the likes of the absence of properly trained staff, which can make the
organization force to compromise the quality of the staffs.
c. Increase of skilled staff- The increase in the appointment of the skilled staffs can help
the organization to assess the new and developed technologies and make through

different kinds of the business organizations in the most efficient manner. The
increase in the presence of the skilled staff can also be helpful for business success.
Desired Plans
The desired plans of the organization depends on the plans of the management of
Petrobras to implement the new and improved technology and gather a strong plan for the
success of the organization. The desired plans of the organization can be helpful for the
success of the business in the most efficient manner.
Forces against Change
The forces for the change can be the real obstacles to the change process. The change
management in Petrobras will involve;
a. Increase in cost and time- There will be a serious increase in the cost and time of the
project as because it will involve an initial investment opportunity for the company,
which can be successful for the organization in the most effective manner.
b. Absence of desired skills- The absence of the desired skills among the employees can
lead to a knowledge gap in the organization.
Identification of Change Agents and proposal of suitable structure for
implementation of the plan
The nature of the changes and the implementation process is key to the choice of the
identification of the change agents. The major responsibilities for the management of the
company via the new standards will be addressed at all the levels of the organization. The
management of the business and their strategic objectives can help in the success of the
organization. The change agents here are the changes in the transformational leadership
and the regional level automobiles of the organization.

Resourced Implementation plan for the strategy with a timeline
Task Name Duration Start Finish
Project Morrison
Strategic Planning 277 days Mon 09-09-
19
Tue 29-09-
20
Preparing a detailed
plan 25 days Mon 09-09-
19 Fri 11-10-19
Meeting with the
stakeholders of the
organization
5 days Mon 14-10-
19 Fri 18-10-19
Taking a final decision 1 day Mon 21-10-
19
Mon 21-10-
19
Creation and
appointment of a
management team for
the new plan
20 days Tue 22-10-
19
Mon 18-11-
19
Carrying out a
feasibility report
according to the
recommendations of
the plan
80 days Tue 19-11-
19
Mon 09-03-
20
Carrying out a
financial feasibility
report
45 days Tue 10-03-
20
Mon 11-05-
20
Submission of the
plan to the
management of the
company
1 day Tue 12-05-
20 Tue 12-05-20
Execution of the plan 100 days Wed 13-05-
20 Tue 29-09-20

Potential risks during implementation
There are different kinds of the business risks that can disrupt the success factor of the
country. The risk management of the organization can help it to address the different areas of
business concern. First of all the company will be able to risks of manufacturing identified by
the organization. The risks has helped me to identify the organization in the most efficient
business manner.

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