going global (ib)

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Global Planning



HOW TO BE GLOBAL

The first requirement to venture into this journey isto acquire knowledge and understanding of globalbusiness environment . It is like swimming - it is

one thing to swim in a swimming pool, andanother to swim in deep sea. As such, anybusiness, which wants to be a global player, mustknow the nature of the global market place. Asound knowledge of different countries and theireconomies, managing cross cultural teams,predicting global market upheavals and getting

prepared for forecasting them are some of thethings which a business firm must understand,without which it will be impossible to succeed.



Corporate Profile

Incorporated on 17th august 1974 underthe Malaysian Companies Act Of 1965.

Custodian Of National Petroleum

Resources under the Malaysian PetroleumDevelopment Act of 1974.

It is a diversified and all over integratedand formed petroleum company into the

following basic areas of work:



E and P

Refining

Marketing

Distribution

Transmission

LNG and Gas

Petrochemical

Trading

1970’s1970’s 1980’s1980’s 1990’s1990’s 2000’s2000’s

PSC & Project ManagerIntegrated Oil Company

Global PlayerPSC Manager



Petronas And Subsidiaries

Petronas

Wholly Owned

Subsidiaries40

Partly Owned

Subsidiaries15

Associated

Companies20

Overseas13

Domestic27

Overseas1

Domestic14

Overseas5

Domestic15



Petronas – Integrated company



Petronas Business Performance

P A R i l P h i l



Petronas – A Regional PetrochemicalHub



Petronas towards Globalization

Vision : A leading oil and gas multinational ofchoice.

Mission : They are a business entity andpetroleum is the company’s core business.

Their primary responsibility is to develop and

add value to the natural resource.

Object of the company: Contributing towards

the well-being of the people and the nation.



F t Aff ti P t t d



Factors Affecting Petronas towardsGlobalization…

Internal Factors :

Declining the domestic petroleum resourcebase.

Loosing valuable skilled staff.

Many on-going projects require efficientproject management.

Grow business with prudent portfoliomanagement.

Undertaking organizational transformationfor quantum leap competitiveness.



External Factors :Volatile crude oil price.

Competition with super major oilcompanies.

Riskier frontier exploration.

Tight labor market.Surplus capacity worldwide.

Cyclic petrochemical product prices.Emerging market in fast growing

regions.

Environmental regulations.



Risks and constraints

Business risks:

Change in government

Change in judicial system

War, terrorism and political unrest

Global and regional tradeprotectionism

Lack of Tax and financial systemBureaucracy, lengthy procedures &

process



Physical Constraints: -

Poor infrastructure

Unavailable skilled labor

Employee security concernsInadequate communication accesses

Travel restrictions, access to internationalroutes



Going Global requires

transformation in competencyand mindset…



PAST

Operational Mgmt.

VolumeCautious Mode

Inward LookingTechnology – an

afterthought

FUTURE

Global Mindset

Risk takingStrategic thinking

Value (Monetization)

Technology is thesolution

GAP



Case Study - 1

TATA has made major forays into globalmarkets.

TATA Motors, earlier called TELCO isupbeat after a speculating comeback inthe past two years.

The recovery has been led majorly by thesmall car INDICA.



For Ratan Tata, automobiles is a strongpassion.

Within a Tata group, Tata motors enjoy aspecial place.

And for that genuine reason, Ratan Tata isplanning to make the company a globalplayer.

Contd



Case Study - 2

The clientA leading provider of semiconductorcomponents to electronic equipmentmanufacturers

Business problem

The client's order planning and schedulingsystems were not integrated across sites andfacilities. With ever increasing demand of

specialized products and shorter lead times thecompany was facing planning and schedulingproblems leading to inappropriate delivery

commitments and inefficient resource utilization.



Contd

Challenges

Wipro was engaged by client to develop

and deploy the global planning system atits 3 Test sites. The challenge beforeWipro was to implement internal supplychain management solution to enable ashift from mass production to customized

one. The project required an in-depthunderstanding of the supply-chain

dynamics of the semiconductor industry.



Wipro solutionWipro solution was to develop this application in 3-Tierarchitecture. The solution was developed in four phases:

Data Integration, Global Planner, Factory Planner, andDispatcher and Plan Manager. The solution addressedthe key issues of determining the product mix, the site ofproduction, due date and batch size of production (what,where, when and how much). The required dataintegration solution had to interact with 20+ externalsystems which rendered the task of development

extremely complex and time consuming. The wholeapplication had to be developed in 7 iterations to ensurefull proof quality of the solution.



Business benefitsThe solution by Wipro offered numerous benefits to the

client. The new global planning and scheduling systemhelped in developing a scheduled plan for eachproduction site that led to optimized and better use ofcompany's resources. It integrated data distributed

across sites through a centralized common Masterdatabase that helped in providing an integrated view ofthe organization. The solution had a site-specific factory

scheduler and absorbed efficiently all the variationshappening at global level. It helped in tracking productmovements at the respective shop floor and addressedany fluctuations in the production system.

S C



Summary and Conclusions

Domestic operations have set a solidfoundation for PETRONAS to enter into the

globalization era.As a new company, the international spaceprovides a challenging and competitive

environment to PETRONAS.Strategic partnering and alliancing helpsaccelerate chance in the international

business.Competency and mindset transformations areessential in the more challenging and

competitive business environment.

going global (ib)

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