...2 3 4 5 6 711 8 J. International Business and Entrepreneurship Development, Vol. 3, No. 1/2, 2006 Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective Salem M. Al-Ghamdi Department of Management and Marketing, King Fahd University of Petroleum and Minerals, P.O. Box 667, Dhahran 31261, Saudi Arabia E-mail: sghamdi@kfupm.edu.sa M. Sadiq Sohail* Department of Management and Marketing, King Fahd University of Petroleum and Minerals, PO Box 210, Dhahran 31261, Saudi Arabia E-mail: ssohail@kfupm.edu.sa E-mail: sadiqsohail@hotmail.com *Corresponding author Abstract: This paper analyses the competitive advantages of Saudi Arabia in the global petrochemical industry. Porter’s model is used for this purpose. Saudi Arabia, a leading producer of oil, is also the largest worldwide producer of a number of petrochemical products. Competitiveness in the global market demands an examination of comparative advantages and is the reason why Saudi Arabia is yet to succeed in the global market. This paper is an attempt to analyse the industry and to provide strategic alternatives. Keywords: petrochemical; Porter; Saudi Arabia; strategy. Reference to this paper should be made as follows: Al-Ghamdi, S.M. and Sadiq Sohail, M. (2006) ‘Sustaining competitive advantage in the global petrochemical industry: a Saudi Arabian perspective’, Journal for International Business and Entrepreneurship Development, Vol. 3, No. 1/2, pp.4–17. Biographical notes:...
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...Porters Five Forces Analysis for Industry Attractiveness- Competitive Rivalry With-in the Industry- Though there are many local and international companies in the industry, namely IOCL, HPCL, BPCL (All Government Owned), and Essar but none of them operates at the scale and integration levels which RIL operates. IOCL is selectively downward integrated, in terms of utilizing Naptha product to other Petrochemical products like PTA, MEG, PP & LLDPE, however the product range is not so diverse as RIL has. RIL on one hand has even further downward integrated its PTA & MEG product to become largest Polyester manufacturer and on the other hand PP and LLDPE production of Reliance is among the Asia’s highest. In terms of downward integration Reliance has gone beyond IOCL in aromatic products and plans to be sole player in many new products like Phenol etc. Haldia petrochemicals and another state owned firm GAIL are present in the downstream petrochemical business, however their scale of operation is non-threatening, or are hindered by feed-stock complications. Lastly the prices of fuels in India are regulated hence Reliance does not compete in domestic market in Diesel category, however it has a presence in Petrol and Aviation Fuel, and in select cases it competes. International players do not compete with Reliance, as they cannot match Reliance’s scale of operations and thus operate in non-competing niche product categories. However in some cases international...
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...http://www.ppec.com.pk Introduction We are proud to announce that we have established a registered and authorized firm. It is not wrong to claim it unique in consultancy services organization comprising of professionals and we are offering technical/legal guidance of competent professionals to all stakeholders, who are involved in the business of import, manufacturing , storage, transportation ,supply , use and handling of petroleum product, Petro chemicals ,compress/liquefied mineral and industrial gases. Vision: To strategically transform in to dynamic player as a service provider in the field of petroleum industry. To become a nationally acclaimed company for its excellence in the service sector of petroleum, explosives, petrochemicals ,transport and allied fields. To innovate the ideas for serving our customer while towing for profile of international standards. So deliver technically superb and economically feasible services, products and solutions to our customers, while meeting the technological and engineering standards. With the fast pace of our journey towards our VISION, we shall adhere to our core values. Mission: Our mission is to service and satisfy our customers by fulfilling their legal/technical/marketing needs with our quality services. We hope and believe that this path will lead to excellence, to innovation, and, gutsy leadership that will allow our clients to realize their aspirations at least and maybe a lot more. Our profitability is achieved...
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...This will provide a summary of the bid proposal to Dows headquarters for PBB by Vignart and Mercer, for a partially state and privately owned petro-chemical company in Bahia Blanca, Argentina. Bahia Blanca is rich in resources having access to Argentina’s largest gas basins making it an optimal location for a plant; which presents a great acquisition opportunity for Dow. The acquisition also provides Dow with exposure to the growing Ethylene and Polyethylene business in Argentina keeping them a world leader in the chemicals industry. The chemicals and plastics industry consisting of the production of ethylene and polyethylene can be very profitable. Ethylene is used to produce polyethylene; polyethylene is then used to produce plastics by manufacturers for household goods that we use every day, a few examples are the plastic gallon milk container, trash bags, and plastics for grocer foods like bread. The drivers of profitability are: size of the plant-larger plants produce more decreasing cost and impacting profits, capacity addition and reductions impact supply and demand, production cost-crackling naphtha is more expensive than cracking ethane to manufacture, global operating rate has a direct correlation with ethylene profitability. Dow has been the US leader in chemical and plastic manufacturing. Dow will have to consider prospective bidders, the quality of the manufacturing facility, uncontrollable risk like currency fluctuations and government policy impacting foreign...
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...Pioneer Petroleum Pioneer Petroleum is a multinational corporation that is in position to capitalize on investments all around the World. Within the industry Pioneer’s gasoline are among the cleanest burning fuels. They are better position than most to meet strict environmental guidelines as they currently have clean efficient running plants positioned to capitalize on less polluted products. Also Pioneer Petroleum is heavily involved in exploration and devilment. From 1924 to the present, pioneer has been able to expand both vertically and diversify horizontally. With such resources and capital, the company has to oversee so many opportunities and ventures. Presently the company is at odds over whether they should use a company wide cut off rate based on the overall weighted average cost of capital or if Pioneer should use multiple rates that reflect risk-profit characteristics of the several businesses or economic sectors. At first we must decide if the methodology used in computing the company’s overall weighted average cost of capital is just. Second, we should decide in which terms Pioneer adheres to future investments. Should they adjust discount rates for different divisions and projects and stay away from a universal cutoff rate? Third, the capital budgeting criteria must be set for different projects across Pioneer’s divisions. What distinctions among projects need to be noted and how the standards should be determined are all questions that arise...
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...JAIPURIA INSTITUTE OF MANAGEMENT PROJECT REPORT ON PETROL INDUSTRY INTRODUCTION Petroleum industry in India Petroleum Industry Research is a very important aspect related to Petroleum industry all over the world. Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels such as coal or natural gas, or renewable sources such as corn or sugar cane. The petrochemical industry in India has been one of the fastest growing industries in the country. Since the beginning, the Indian petrochemical industry has shown an enviable rate of growth. This industry also has immense importance in the growth of economy of the country and the growth and development of manufacturing industry as well. It provides the foundation for manufacturing industries like construction, packaging, pharmaceuticals, agriculture, textiles etc. Its significance is increasing with the passage of time due to the following aspects:- • Petroleum is a non-renewable resource and is available under the earth's crust in limited quantity. So, research becomes essential in case of exploration of petroleum so that the supply side of it remains viable during the near future. • Petroleum Industry is generally accompanied by huge amount of pollution emission which required to be checked for social welfare. Hence, extensive Petroleum Industry...
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...Our Quality Management Our Social Commitment Performance indicators CORPORATE GOVERNANCE Corporate Governance Integrated Risk Management Board of Directors Top Management Structure of Organization of TVK Plc. Supervisory Board Report by the Supervisory Board Corporate Information GLOSSARY OF TERMS SHAREHOLDER INFORMATION STATEMENT OF RESPONSIBLIT Y 1 16 122 125 132 133 136 142 150 152 156 158 159 161 162 165 168 169 2 tvK annual report 2008 content tvK at a glance Tisza Chemical Group Public Limited Company (TVK Plc. or TVK) operates in Tiszaújváros, as a member of the Petrochemical Division of the MOL Group, and cooperates integratedly with Slovnaft Petrochemicals, s.r.o., in Bratislava. We are supplying polymers mainly to European plastic processing companies, and our olefin sales are significant mainly towards the Hungarian chemical and oil-processing industries. Our petrochemicals business is among the top ten players in the European polyolefin market, and are supported by excellent geographic position. We produce commodity polymers in competitive quality, which are fundamental for a wide range of industrial application and for the production of a vast number of consumer goods that are essential to our everyday lives....
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...A foam cup, also referred to as a styrofoam cup is a disposable drinking cup made of plastic, expanded polystyrene (EPS) to be exact. Despite seeming like a very mundane and trivial product, it’s formulation is extensive, covering crude oil extraction, refining, chemical transformation, distribution, retail, and disposal. Both the production and disposal of foam cups also have serious environmental impacts and its widespread use has generated significant recycling issues. Raw Material Extraction The lifecycle of a foam cup begins with the extraction of crude oil by oil rigs both on-shore and from beneath the sea floor in the Gulf of Mexico. These rigs require large amounts of manpower and energy and freshwater to operate, and pose a real threat for potential spills which can damage and harm marine ecology. Refining of Material Crude oil is unusable as it comes out of the ground. It must be purified and separated into its useful components, which is where the oil refinery comes in. The US Gulf Coast has the largest concentration of refineries in the world. It is from the refinery that we get transportation fuels such as gasoline, diesel, and jet fuel. It is also where we get raw materials for the chemical industry. For the production of plastics we get naphtha, which are 5 to 9 carbon chains that can be used as the raw material in a plant to make ethylene and benzene. Benzene and ethylene are subsequently reacted in another plant to make styrene. Refineries...
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...stocks, bonds and exchange currencies. Some of the biggest financial markets around the world are Hong Kong, United States and the United Kingdom. Economically, the GCC countries which consist of six countries: UAE, Oman, Saudi Arabia, Kuwait, Bahrain and Qatar; have been mainly dependent on oil and petroleum trading. Although finance in the GCC has grown to be a vibrant industry, but the GCC financial markets remain small and behind their potential globally. Since the beginning of the last decade, the GCC tried changing the strategy and going more into the financial markets. In the past five years, this strategy went to partially fall apart. The global financial crisis affected the finance business dramatically and the Gulf region did not handle it that well. Although the global view to the GCC financing has not been positive, but the GCC has been working and trying with all their efforts to develop their market and move forward. Saudi Arabia Stock Exchange, Tadawul ( TASI ), came along in the mid 1930's but remained informal until the early 1980's when the government formed a regulated market for trading with the required systems and techniques. It lists 159 publicly traded companies ( as of September 2, 2012). There are 15 sectors in the Saudi market which are: Banks & Financial services, Petrochemical Industries, Cement, Retail, Energy & Utilities, Agriculture & Food Industries, Telecommunication & Information Technology, Insurance, Multi-Investment, Industrial Investment...
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...senior representatives from major local and international companies, government officials from Qatar and stakeholders from the across the GCC and the wider world. The conference discussed the most pressing issues in Qatar’s projects markets today including inflation, labour and material shortage, new procurement requirements and the solutions to overcome these challenges. Key industry trends were mapped and technologies that are improving infrastructure performance, increasing ROI, and setting new standards for infrastructure delivery and deliverables were highlighted by various speakers. The best practices in infrastructure design, delivery, and operations from peer organisations were also shared during the Qatar Projects Conference. The conference provided ample opportunity to network and interact with clients, operators, developers, contractors and industry thought leaders. The conference helped gain insight through presentations from clients who are procuring projects and helped businesses to learn how to prepare for, and take advantage of the key contracts being awarded in the country. There were many and varied projects addressed at the Qatar Projects Conference Some of them were Manateq’s Economic Zones and projects development, the Al Karanaa Petrochemicals Complex Project - the largest multi-billion greenfield & petrochemicals project in the world, the latest developments and expansion plans for Hamad International...
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...The GCC in 2020 Outlook for the Gulf and the Global Economy A report from the Economist Intelligence Unit Sponsored by the Qatar Financial Centre Authority The GCC in 2020: Outlook for the Gulf and the Global Economy About this research T he GCC in 2020: Outlook for the Gulf and the Global Economy is a white paper written by the Economist Intelligence Unit and sponsored by the Qatar Financial Centre (QFC) Authority. The findings and views expressed in this briefing paper do not necessarily reflect the views of the QFC Authority, which has sponsored this publication in the interest of promoting informed debate. The Economist Intelligence Unit bears sole responsibility for the content of the report. The author was Jane Kinninmont and the editor was Rob Mitchell. The findings are based on two main strands of research: l A programme of in-depth analysis, conducted by the Economist Intelligence Unit, which drew on its own long-term forecasts and projections for the six GCC economies, along with other published sources of information. l A series of interviews in which economists, academics, and leading experts in the development of the GCC were invited to give their views. In some cases, interviewees have chosen to remain anonymous. Our sincere thanks go to all the interviewees for sharing their insights on this topic. March 2009 © The Economist Intelligence Unit Limited 2009 The GCC in 2020: Outlook for the Gulf and the Global Economy Executive summary ...
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...CEPCO (Civil and Electrical Projects COntracting) is a leading construction company with corporate headquarters in Jeddah, Saudi Arabia, and offices throughout Saudi Arabia and the Middle East. CEPCO has been in business since 1977 and provides construction services in the fields of Civil & Infrastructure, Electrical, Electromechanical, Oil, Gas & Power. CEPCO executes projects for civil and electrical projects in Saudi Arabia and in GCC countries, especially in the field of 69 up to 380 kV Cable Systems, Delivery, Installation and Testing of 110 kV Transformers and Substation Construction. They are qualified Turnkey-General Contractors with Saudi Electricity Company – Western, Eastern, Southern and Central Regions. CEPCO has executed a number of projects and had a turnover in excess of $150 million in 2007, and $500 million until end of 2008. In addition to construction services, CEPCO is an authorized agent for world class manufacturers and provides related support and field services. As a privately owned company, CEPCO's current strategy is to enhance its growth by building the company's resources and depth of services provided. Contents [hide] 1 Project fields 1.1 Civil and Infrastructure 1.2 Electrical 1.3 Electromechanical 1.4 Oil, Gas and Power 2 Trade 2.1 Authorized agents 2.2 Associates/Partners 3 References Project fields[edit] Civil and Infrastructure[edit] Specialized for turn-key contracts for water distribution, rainwater evacuation schemes...
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...III: Doing Business in the United Arab Emirates 11 Practical advice on entering the market 11 Where to get advice and help 11 Developing a strategy 12 Market research 12 Visiting the UAE 13 Visas 13 Time your visit well 13 Local holidays 13 Arriving in the UAE 13 Getting around 13 Visit programs 14 Hotels 14 Tips and tricks 14 Trade missions 15 Missions to Australia 15 Trade exhibitions 15 Health and safety 15 Personal behaviour 15 Import Procedures 15 Customs and regulatory environment 15 Documentation 16 Packaging and labelling 16 Agency representation 16 Professional services 17 Franchising 17 Review of options for representation in the UAE. 18 Major industry sectors in the United Arab Emirates 19 Oil and petrochemicals 19 Aluminium 19 Cement 19 General manufacturing 19 Building and construction 19 Water resources 20 ICT 20 Internet 20 Food and beverages 20 UAE retailing 21 Healthcare 21 Automotive 21 Banking and finance...
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...ECONOMICS II THE ACCESSION OF SAUDI ARABIA TO THE WTO ANALYSING THE FUTURE CHALLENGES SUBMITTED BY: AKANKSHA PRAKASH I.D.NO.: 1785 IIND YEAR B.A.LL.B. {HONS.} TABLE OF CONTENTS RESEARCH METHODOLOGY___________________________________________________________2 INTRODUCTION_________________________________________________________________________3 THE ACCESSION OF SAUDI ARABIA TO THE WTO: AN ANALYSIS OF THE FUTURE CHALLENGES____________________________________________________________________________4 • Objectives________________________________________________________________________4 Diversification of the economy______________________________________4 Development of modern infrastructure________________________________4 Access to Foreign Direct Investment (FDI) and modern technologies________4 Enhancement of purchase power of the population_______________________4 Employment Generation___________________________________________5 Maximization of competitive advantage in petrochemicals________________5 Open Access to international Market__________________________________5 Open Access to international Market__________________________________6 Integration of Saudi Arabia’s economy with the global economy____________6 • Reforms__________________________________________________________________________6 Foreign Investment_______________________________________________7 Trade in Goods___________________________________________________8 ...
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...1. What are some of the key motivations for firms to engage in international business? • Seek opportunities for growth through market diversification • Earn higher margins and profits • Gain new ideas about products, services, and business methods • Better serve customers that have relocated abroad • Be closer to supply sources, benefit from global sourcing advantages, or gain flexibility in the sourcing of products • Gain access to lower-cost or better-value factors of production • Develop economies of scale in sourcing, production, marketing, and R&D • Confront international competitors more effectively or thwart the growth of competition in the home market • Invest in a potentially rewarding relationships with foreign partners 2. Describe the five drivers of globalization? Explain in detail with reference to BRIC Countries. • Worldwide reduction of barriers to trade and investment. • Transaction to market-based economies and adoption of free trade in China, former Soviet Union countries, and elsewhere. • Industrialization, economic development, and modernization. • Integration of world financial markets. • Advances in technology. The BRIC countries are made up of Brazil, Russia, India and China - although if we were to categorize them by importance, it would actually be CIRB. The BRIC are both the fastest growing and largest emerging markets economies. They account for almost three billion people, or just under half of...
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