KOCHHOPER DIM: December 2013

Report

“An overview of Qatar Petroleum”

Report

"An overview of Qatar Petroleum"

Submitted To

Prof. Dr. Md. Mahmodul Hasan,

Faculty of Business, EWU

Submitted By

SL. No	Name	ID
1	Md. Motiur Rahman	2012-1-91-004
2	Farin Tamanna Islam	2011-1-91-048
3	Bipasha Paul	2013-1-91-035
4	Asif Ahmed	2013-3-91-033
5	Ashadur Rahaman	2013-3-91-034
6	Biplob Ghosh	2011-2-91-021

Course Code : EMBA_591

Course Title: Business in the Global Environment

Submission Date : 12.12.2013

Semester : Fall 2013

EAST WEST UNIVERSITY

Letter of Transmittal

December 12, 2013

Prof. Dr. Md. Mahmodul Hasan

Faculty

Department of Business Administration

East West University

Subject: - Submission of Report on an Overview of Qatar Petroleum

Dear Sir,

We are the student of East West University requesting you to accept the report on an overview of Qatar Petroleum. We have tried to prepare this report as your instruction.

Although, it was very hard to complete this report successfully on time but it helps us to gain a practical knowledge of report writing procedure. Beside this, we are also able to gain the knowledge on the function and achievement of Qatar Petroleum in the world’s oil market. However, inspite of having a number of limitations, we have tried our level best to prepare this report as standard as possible.

So, we pray and hope that you would be kind enough to accept this report by considering the limitation and oblige thereby.

Sincerely Yours,

SL. No	Name	ID	Contact No.	Signature
1	Md. Motiur Rahman	2012-1-91-04	01675421465	Motiur
2	Farin Tamanna Islam	2011-1-91-048	01685684849	Farin
3	Bipasha Paul	2013-1-91-35	01675325656	Bipasha
4	Asif Ahmed	2013-3-91-033	01911661381	Asif
5	Ashadur Rahaman	2013-3-91-034	01675408404	Ashadur
6	Biplob Ghosh	2011-2-91-021	01617182157	Biplob

Acknowledgement

First of all, we are very much grateful to Almighty Allah for completing this report successfully on time.

In preparing this report on the given subject, we have faced different problems such as shortage of time and information. But, we overcome all those problems with the support of our respected course instructor. In this regard we are extremely grateful to our course instructor, Prof. Dr. Md. Mahmodul Hasan, Faculty, Department of Business Administration, East West University, who provided us all the supportive materials for completing our task properly. Thus, we cannot refrain our self from giving whole hearted thanks to our course instructor Prof. Dr. Md. Mahmodul Hasan, who remains with us all the time for completing this complex job properly.

Executive Summary

Globalization refers to the shift toward a more integrated and interdependent world economy system. And, Middle East plays a special role in the international oil industry by producing & sell 48.4% oil of the world As the blessing of globalization, Qatar Petroleum involves several joint venture and acquisition. Qatar Petroleum (QP), a state-owned corporation established in 1974, is responsible for all phases of the oil and gas industry in Qatar. This company participates in its investments alongside a group of the most reputable multinational and national energy companies, in both acquisitions and greenfield/brownfield projects. However QP’s strength is updated technology, weakness is lack of marketing initiative compares to other company, opportunity is the open world market where they can sell their product/service and threat is the huge competition which comes from the established and newly emerged companies. QP’s most exports go to Asia, with Japan and the international major customers are Emirates National Oil Co. (ENOC), Glencore, Bakri Trading, Vitol, Mitsui ITOCHU. Their vision, activities and industry’s growth rate put them in ‘Star’ segment of BCG Matrix. On the other hand, QP believes that their human resource is their main strength and asset as well. Thus, HR recruitment section always tries to recruit the best employee through application, assessment, interview and selection process. They are highly conscious about their employee’s health & safety, career development, job security. Beside this, they are also concerned to collect diverse workforce. So, it would not be illogical to say that QP is doing well in the Oil industry but they may face severe challenge as it is controlled by govt. Thus, they should think for going private and take necessary steps to expand their market in other part of the world beside Asia. Although, QP will not fail so easily because of its diversified talented resources and technical capabilities but it may lose its ground if it is not able to take right decision regarding the ownership. By considering this issue, QP management has already decided to go for IPO which could be worth around 3.2 billion riyals ($880 million). This positive step certainly makes QP more competitive in the world market as oil is commonly considered a political commodity around the world.

Chapter 1

Definition of Globalization

The world is moving away from self-contained national economies toward an interdependent, integrated global economic system, and globalization is the outcome of this process.

Globalization is a process which generates flows and connections, not simply across nation-states and national territorial boundaries, but between global regions, continents and civilizations. This invites a definition of globalization as: ‘an historical process which engenders a significant shift in the spatial reach of networks and systems of social relations to transcontinental or interregional patterns of human organization, activity and the exercise of power.

In a word, Globalization refers to the shift toward a more integrated and interdependent world economy system.

Figure 1: The Silk Road which Linking Europe and Asia through Trade

Chapter 2

Overview of Qatar Petroleum

Qatar Petroleum (QP), a state-owned corporation established in 1974, is responsible for all phases of the oil and gas industry in Qatar. The principal activities of Qatar Petroleum and its subsidiaries and joint ventures cover exploration, drilling and production operations, transport, storage, marketing and sale of crude oil, natural gas liquids, liquefied natural gas, gas-to-liquids, refined products, petrochemicals and fertilizers, and helicopter and financial services.

2.1 Organogram

Board of Directors of QP have been presented in the below organogram chart-

Figure 2: Organogram of Qatar Petroleum

2.2 Mission & Objectives

Qatar Petroleum’s mission is to ensure that Qatar receives maximum benefit from its Oil and Gas resources by engaging in activities that add value to these resources. Their overall objective is to maximize their contribution to the national wealth of Qatar and its National Vision, through the safe, efficient and environmentally acceptable exploitation of the country’s hydrocarbon resources and through related support activities.

2.3 Vision

Qatar Petroleum's new corporate vision was announced on 3rd October 2013 by His Excellency Dr. Mohammed bin Saleh Al-Sada, Minister of Energy and Industry. The vision statement, which sets the future direction of Qatar Petroleum, is:

"To be a world class oil and gas corporation, with its roots in Qatar, and a strong international presence."

The QP Vision Statement captures the corporation’s heritage and achievements in efforts to build a future based on world class performance, deep Qatari roots, and a strong presence in the world.

2.4 Strategic Culture

In order to deliver on the Mission, they are carrying the following some guidelines as part of their strategic culture-

They are always very much careful and cautious about the reliable and sustainable customer service.

They are quite interested regarding the grabbing of new opportunity and continuous research.

They always ensure the equal employment opportunity.

They have already achieved world-class standards of health, safety and environmental protection system.

They always keep in mind to meet National oil and gas demand in a cost-effective manner;

Chapter 3

List of Products/Services

The principal activities of Qatar Petroleum and its subsidiaries and joint ventures cover different sectors including

Exploration

Drilling

Production operations

Transport

Storage

Marketing and sale of crude oil and natural gas liquids

Liquefied natural gas

Gas-to-liquids

Refined products

Petrochemicals and fertilizers

Helicopter and financial services.

Figure 3: Qatar Petroleum Investment Portfolio

Chapter 4

SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities and Threats. Internal environment of an organization is responsible for strength and weakness where as external environment offers the opportunities and threats to the company.

SWOT analysis of QP have been presented as below-

Strengths

Diversified product offering

Extensive in-house petroleum/engineering expertise

Superior oil-related technology

Strong liquidity position

Integrated energy business

Strong infrastructural and financial support from host government

Strong distribution network

Weaknesses

Limited activities outside of middle-east

Non autonomy

Lack of knowledge for abroad operation

Cross cultural barrier to expand business overseas

Declining oil reserves

Opportunities

Emerging oil markets

Industrialized economy is growing at a faster rate

Incremental exports of ethane

Become the largest LNG producer in the world

Construction of Pearl GTL project (A project to produce synthetic fuels including base oils for manufacturing lubricating oils)

Rising fuel prices

Threats

International market

Fuel economy regulation

Emergence of alternative energy

Political risk

Unstable governments

Unfavorable tax structure in foreign countries

Volatile oil industry

Challenge of environmental regulations

Cost of new market penetration

Cost of environmental hazards

Chapter 5

PESTEL Analysis

PESTEL analysis stands for “Political, Economic, Social, Technological, Environmental and Legal” analysis. It is a part of the external analysis and gives an overview of the different macro environmental factors that the company has to take into consideration. It is a useful strategic tool for understanding regarding market growth or decline, business position, potential and direction for operations.

Figure 4: PESTEL Analysis

Political

World energy markets are becoming more volatile due to the threat of geopolitical instability. The recent geo political tension in gulf region has pushed the petroleum industry in some sort of uncertainty. QP seriously considers the changing political factors. The embargo on Iran and Serian petroleum exports has been a challenge for the other petroleum exporters’ nations including Qatar.

World energy markets are becoming more volatile due to the growing oil requirements of а buoyant Chinese and Indian economy, creating tension between nations.

Economic

Any slightest fluctuation in crude oil prices can have direct and indirect influence on the economy of the countries.

Any massive increase or decrease in crude oil has impact on the condition of stock markets in throughout the world.

Alternative energy sources as а percentage of total energy supply are increasing and are expected to continue to do so, tripling from 2 per cent in 2002 towards 6 per cent in 2030. (Brоadhurst, А. 2002, p87)

Social

Kyoto Agreement, signed in 1992, has led to carbon funds and emission trading in Europe and around the world, which is becoming а legal requirement.

Growing social awareness against the burning of fossil fuel has been an issue for the producers of petroleum as like QP to think for product diversification or to go for extensive R&D for reducing CO2 emission.

Technology

The International Energy Agency states that alternative energy markets will be underpinned by technological breakthroughs.

Environmental

Deepwater areas plant are concerned of the impact of hurricanes and tropical storms

Climate change and greenhouse gas emissions legislation, along with concern over the future of hydraulic fracturing, pose major problems to the oil and gas industry.

Legal

Following the BP Deepwater Horizon oil spill in the Gulf of Mexico, the moratorium placed on offshore drilling in the region crippled the oil and gas industry. Tighter safety and environmental guidelines are requiring massive investment on the industry’s part.

Chapter 6

Global Business Arena

Qatar Petroleum International (QPI) has been established to make strategic commercial investments across the energy value chain around the world and is currently 100% owned by Qatar Petroleum (QP).

QPI currently manages a multibillion dollar portfolio of investments including, but not limited to: upstream, gas & power, refining/petrochemicals, and other midstream/downstream activities. The Company participates in its investments alongside a group of the most reputable multinational and national energy companies, in both acquisitions and greenfield/brownfield projects.

Recent activities include:

Investment (20%) in two blocks as a non-operator in an exploration project in Mauritania with TOTAL E&P Mauritania as operator. Seismic and drilling studies have been completed, and drilling commenced in 2009.

Evaluations and pre-feasibility studies supporting a 24.5% equity investment in a potential multi-billion dollar petrochemical and refinery complex in China.

Invested in QPI & Shell Petrochemicals (Singapore) Pte. Ltd (QSPS), a joint venture with Shell holding interests in an olefins plant and polymer plant in Singapore.

Continued to advance the Long Son Petrochemical Project, a petrochemical joint venture with a consortium including SCG, in Vietnam.

Submitted bids, along with Marubeni Gas & Power, Chubu Electric, and Qatar Electricity and Water Corporation (QEWC), for two independent power projects (IPPs) in Oman.

Memorandum of Understanding has been signed around the globe particularly with international and national oil companies and governments to ensure development of potential investment opportunities.

Current QP interests in LNG terminals (South Hook, Adriatic and Golden Pass) continue to transition to the QPI portfolio.

QPI are continuing to explore, evaluate and invest in strategically aligned projects around the globe and build its team to execute, maintain, and grow its successful investment portfolio.

Chapter 7

Global Exploration Zone (Map)

This chapter contains the global oil industry related map-

Figure 5: Oil Producing Countries Map

Chapter 8

Political Economy & International Business

Oil is commonly considered a political commodity. Because of its pivotal importance as a primary source of energy, governments are concerned for its continued availability, and seek to minimize import dependence.

In fact, whether oil deserves to be considered a political commodity is debatable. For the past century or longer, oil has been in abundant supply, and the leading industrial players—the major international oil companies in the past, the OPEC producers today—have been primarily concerned with avoiding excess supply and a consequent collapse in prices. The perception of tightness in global oil supplies that has become more and more

ﬁrmly rooted since about 2003 is novel.

The Middle East plays a special role in the international oil industry. For better understanding, region wise total reserve of the oil has been presented in below table

The above scenario can be presented in the following chart-

Figure 6: Chart of oil reserves among different Region 2012

Oil is a very important factor in the international relations of the Middle Eastern states, both with respect to regional, or inter-Arab relations, and with respect to international relations at large—that is, relations with industrial and other developing countries. Oil has influenced diplomacy towards the region, but in most cases diplomacy has failed to yield the results that were expected of it, at least as far as oil is concerned. In more recent years, oil has more frequently been used as a tool, rather than as an objective: witness the American embargo against Iran, then Libya, and the UN-imposed embargo against Iraq. In all cases, the major industrial powers have made their own access to oil more difficult, in order to pursue a political priority.

However, slowly but surely, the balance of power (opportunities and capabilities) has shifted in the Middle East region, away from the older established but oil-poor states and in favor of the newly consolidated oil-rich ones.

Chapter 9

The Strategy of International Business

Qatar Petroleum (QP), the country's bellwether entity, unveiled the strategy to become a world-class oil giant through optimum exploitation of oil wealth and enhanced global expansion. Thus, they have developed some strategy to conduct their international business. Some of the prominent parts of those strategies have been mentioned below-

They are more interested to enter in the market by using the joint venture approach. Probably, this approach gives them more comfortable zone as this strategy allows them to share the risk and costs with the partner of building a new business.

In connection with the above strategy, the have been able to create a healthy partnership environment and attract a large number of leading international companies with very advanced technology and substantial financial strength. This proves that they have committed to joint efforts and engage in mutually beneficial in long-term relations

QP is working hard to promote the presence in the world, carrying its brand everywhere and creating opportunities, relations and partnership with other company of the world in the oil industry.

Since 2003 QP continued to play a significant role in organizing and hosting international and regional conferences on energy related subjects and advancement of technologies. By becoming the host of such major events they have proved that most of the world-class energy players have strong business relations with Qatar.

Beside this, they also have achieved major milestones in concluding important agreements to establish GTL plants with major international oil and gas companies and expand existing facilities and projects in various areas.

QP are maintaining and as well as expanding their international business by following the above strategy. However, they can change their strategy at any time on the basis of situation demand.

Chapter 10

Entry Strategy or Forms of Strategic Alliances

A market entry strategy is the planned method of delivering goods or services to a target market and distributing them there. When importing or exporting services, it refers to establishing and managing contracts in a foreign country

Some of the most common market entry strategies are

ü Licensing

ü Greenfield project

ü Franchising

ü Alliances

ü Exporting

ü Turnkey project

ü Joint ventures

ü Wholly owned subsidiaries

The operations and activities of Qatar Petroleum are conducted at various onshore and offshore locations. In addition, QP carries out activities through subsidiaries, joint ventures, acquisitions and other investments. Some notable strategic entry and alliances have been mentioned below (all information correct as of October 2009)-

1. Astad Project Management

ASTAD Project Management was established on March 2, 2008, as a strategic 50/50 joint venture by Qatar Petroleum (QP) and Qatar Foundation (QF) to provide project management services for complex infrastructure and buildings across the region

2. Gasal

Gasal Q.S.C. was established in 2006 as a joint venture between Air Liquide [40%], Qatar Petroleum [30.5%] and Qatar Industrial Manufacturing Company [29.5%] to provide industrial gases such as oxygen, nitrogen, hydrogen and argon to the steel, oil, gas and chemical downstream industries in Qatar.

3. Gulf Drilling International (GDI)

It was incorporated in 2004 as the joint venture between Qatar Petroleum (60%) and Japan Drilling Company (40%).

4. Qatar Chemical Company (Q-Chem)

Qatar Chemical Company Ltd (Q-Chem) is a joint venture between Qatar Petroleum Corporation and Chevron Phillips Chemical Company LLC. The Q-Chem project was launched in May 1997.

5. Oryx GTL

Oryx, a joint venture between Qatar Petroleum (51 percent) and Sasol of South Africa (49 percent) operates a second-generation gas-to-liquids (GTL) complex in Ras Laffan Industrial City.

6.Laffan Refinery

Laffan Refinery, Qatar’s first condensate refinery, started production in September 2009 and is operated by Qatargas Operating Company Limited (Qatargas). Shareholders in this initiative include Qatar Petroleum (51%), ExxonMobil (10%), Total (10%), Idemitsu (10%), Cosmo (10%), Mitsui (4.5%), and Marubeni (4.5%)

11. South Hook Gas Company

South Hook Gas is a joint venture between Qatar Petroleum International (70%) and ExxonMobil (30%). Its prime role is to purchase LNG from the Qatargas 2 project and then sell the gas to ExxonMobil Gas Marketing.

13. Pearl GTL

Pearl GTL is being developed by Qatar Petroleum and Shell and includes the construction of the largest Gas to Liquids plant in the world at Ras Laffan Industrial City. Major construction was completed end-2010 with production ramp-up in 2011.

12. Strategic Partnership with Total

Qatar Petroleum International (QPI) and TOTAL seal a strategic partnership in CONGO

13. Acquisition of Suncor Energy

Qatar Petroleum (QP) have reached an agreement with Suncor Energy (TSX: SU / NYSE: SU) to acquire a vast majority of its conventional natural gas and crude oil business in the Western Canadian Sedimentary Basin for C$1 billion (US$1 billion) in cash.

Beside this, QP also carries some other subsidiaries as the part of its investment portfolio.

Chapter 11

Value Chain Model

A firm’s operations can be thought of a value chain composed of a series of distinct value creation activities, including production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure

Value creation activities can be categorized as primary activities (R&D, production, marketing and sales, customer service) and support activities (information systems, logistics, human resources)

Figure 7: Value Chain Model

On the basis of above definition and figure, the value chain activities of Qatar Petroleum have been identified in the next page.

Figure 8: Qatar Petroleum Value chain

11.1 Primary Activities

a) Research & Development (R&D)- Qatar Petroleum Research & Technology Department was set up in 2009 to plan and execute R&D needs for existing business and new business opportunities and initiate, lead and support initiatives toward acquisition, development and retention of new knowledge that will deepen and broaden the technical capabilities of QP. In the above figure of QP value chain, ‘Exploration’ is the part of R&D

The QPRTC focuses on the following main QP operational research areas:

ü Operations

ü Subsurface

ü Downstream

ü Environment

b) Production -QP’s oil and gas fields fall into three categories - the North Gas Field, onshore oil, and offshore oil.

Figure 9: Offshore oil production station PS-3.

High quality crudes and associated gas are produced from the offshore Maydan Mahzam and Bul Hanine fields which began production in 1965 and 1972, respectively. QP also operates two offshore production stations on these fields, PS-2 and PS-3. According to value chain figure, in this part, QP performs hydrocarbon production, shipping, refining, storage, distribution activities.

c) Marketing & Sales – Tasweeq, Qatar International Petroleum Marketing Company Ltd, markets the Regulated & Non-Regulated Products (crude oil and GTL entitlements) on behalf of Qatar Petroleum under an agency agreement. This company also concerns about the financial market risk.

d) Customer Care – QP’s Customer Care Unit dedicated to customer care needs and always welcome structured recommendations for improvements within the Department.

11.2 Secondary Activities

a) Information System – Information and Communication Technology (ICT) department is committed to enabling QP’s vision and mission.

ICT is a key stakeholder in many QP strategic programs such as the Intelligent Oilfield (IOF) initiative. ICT's objective is to significantly contribute towards extending the life of oil fields by decades and production by up to 10% both of which are significant targets for a company with revenues approaching US$ 40 billion per annum.

b) Company Infrastructure & Logistics System – QP have strongly developed their required infrastructure in their desired filed of work and also provide efficient field logistic system. On this issue it should be noted that Dukhan field, field logistics Company, has the largest fleet of vehicles in QP and provides efficient and cost effective logistics support to the entire Dukhan.

c) Human Resource – The ISO-certified QP Administration Directorate strives to provide quality customer service with cost discipline to support QP core business in the five ‘Key Result Areas’ of Human Resources, Qatarization, Training, Medical, and Services (housing, facilities, maintenance, transport, offices, recreation)

Chapter 12

Global Marketing

12.1 Product

QP has concluded EPSA and DPSA with the following major international oil and gas companies: ExxonMobil, Anadarko Qatar, Maersk Oil Qatar, Talisman Energy Qatar, Wintershall Consortium, and Marubeni. Their main products are listed below-

Gas-to-Liquids (GTL)
Natural Gas Liquids (NGL)
Liquefied Natural Gas (LNG)

Beside this, they have also ‘PIPELINE GAS PROJECTS’.

12.2 Price

QP is doing business in the global oil industry. Thus, they have to follow global pricing strategy which is determined by the global demand and supply of oil and gas.

12.3 Place

The main activity of the refinery is to process crude oil and condensate into various finished products to meet domestic demand and for export. Most exports go to Asia with Japan. And, in the international market, the major customers are-

12.4 Promotion

QP is working hard to promote their presence in the world, carrying its brand everywhere for creating opportunities, relations and partnership with other company. Thus, since 2003, QP continued to play a significant role in organizing and hosting international and regional conferences on energy related subjects and advancement of technologies. By becoming the host of such major events they have proved that most of the world-class energy players have strong business relations with Qatar.

12.5 Market Segment

QP has segmented its market geographically into different region (such as- Asia, Middle east, etc) and product basis (GTL, NGL, LNG etc.)

12.6 Branding

QP has taken global branding strategy by expressing their vision for getting the strong presence in the world’s oil and gas industry. For achieving their vision, they always try to provide prompt and better service than the competitor. And, thus they are always active to participate in various agreements with renowned companies in this sector through join venture strategy. By doing this, they are able to overcome their shortfall and capitalize their strength and opportunity in the right direction. On this issue, their competitive advantage is the high tech production facilities and the talented human resources around the globe. Moreover, as a part of branding, QP sponsors the 7th IEEE GCC Conference & Exhibition, which was held in Doha with the theme “Towards Improving Quality of Life.”

12.7 BCG Matrix

QP approximately produces 2.3 million barrels petroleum per day. The vast majority of Qatar’s production is in the form of natural gas, which gets shipped as LNG around the world. Their vision- to become the world class oil and gas corporation and also achieve a strong international presence- proves their clear intention that they want to see themselves in Star segment of BCG Matrix.

Figure 10: BCG Matrix of QP

As the industry is growing at a faster rate and the QP is also enjoying a competitive high marker share so we can put QP in ‘Star’ segment of BCG matrix.

Chapter 13

Detailed Financial Investment

13.3 EPS

QP is fully state owned corporation. Thus, EPS is not possible to calculate. Beside it also should be noted that QP is not enlisted in the stock market yet. However, QP management has already decided to go for IPO in 2014.

13.4 Break Even Analysis

Last three year’s break even point (unit & total sales) of QP have presented in below table-

Chapter 14

Global Human Resources Management

14.1 Recruitment

The Human Resources Recruitment Section manages the recruitment process from needs identification to job specification by selecting and interviewing candidates. Selected expatriate candidates are required to complete some formalities to process their work permits and employment visas as provided by Qatar Country Immigration norms. Their selection process as follows-

Figure 11: Selection Process

STAGE 1: Application

Potential candidate needs to apply in the QP’s website under the ‘current vacancies’ tab. Candidates may apply maximum three position according to their educational background, skill & experience.

STAGE 2: Assessment

Every application is reviewed and if candidate is not being contacted after 3 months then that application is considered as unsuccessful.

STAGE3: Interview

The interview process may include a Telephonic interview with a QP Recruiter and/or Line Manager and a face-to-face/ onsite interview.

STAGE4: Selection

QP sends offer letter to selected candidate and upon acceptance the candidate has to go to a medical examinations and immigration requirements before joining QP.

They usually undertake a number of pre-employment checks like ID check, Criminal record check, Pre Employment check etc.

14.2 Health & safety

At Qatar Petroleum, Health, Safety & Environment (HSE) includes environmental conservation and protection, sustainable development, occupational health, safety, oil spill and emergency response preparedness, management and quality assurance, & HSE management systems.

14.3 Workforce Diversity

Qatar Petroleum is running large offshore installations and gas processing facilities off the coast of Qatar with a very diverse workforce, strict regulations and company rules. They bring together a diverse and talented workforce to take on the world’s toughest energy challenges and provides its people the resources and opportunities they need to make an impact

14.4 Career Development

QP has several training program for developing the employees’ career. Those training program are as follows-

Security Preparation Program
Technician Preparation Program
Clerical Preparation Program
Tailor Made Program
Fireman Preparation Program

QP is a leader in Qatar at providing university scholarships for new high school graduates. They provide Direct Scholarship, Scholarship Transfer, Academic Bridge Program (ABP)

14.5 Global Human Resource Planning

All Laws and regulations are guaranteed for Qatar Petroleum’s staff based on the following principles. They provide-

Job Security
Empowerment and Authority
Employees a strategic framework
Respect
Opportunity for Growth:
Access to Information
Commitment:
Involvement
Positive Relationships with Coworkers
Balanced Work Life
Performance Culture
Fairness
Recognition
Medical Care

14.6 Labor Relation

QP take care their employees and maintain a very friendly work environment with all levels of employee.

14.7 Wages Structure

QP’s employee compensation may include a salary and benefits that are equal to or above market rates, and all receive those on time without any delay.

14.8 Benefits & Rewards

QP offers a comprehensive employee benefits package which includes health insurance, paid time off, paid holidays, and paid vacation.

Chapter 15

Recommendation

QP is doing well in the Oil industry and they are in the right path to achieve their vision. i.e. to build a strong international presence. So, the following recommendation may help them to reach their target at a faster rate-

QP is controlled by govt. Sot it faces lot of challenges to compete with other aggressive privately owned companies. To sustain in this modern era, a company will have to be proactive, aggressive, and agile but QP is little bit far behind those qualities.
QP should consider itself going private so that it can freshen up things a little bit.
More dynamic feedback system will have to be developed to communicate with the customer promptly.
More new business ventures should be considered by the company
They should take necessary steps to expand their market in Europe and America.
New operational plan needs to be designed to get the best out of its resources.
QP should address some of the environmental issues so that it does not face the media backlash like BP oil did.

Chapter 16

Conclusion

Qatar Petroleum is one of the important company in oil and natural gas industry of the world. It has huge resources and technical capabilities to achieve its current vision. But, it may face certain problem to make a good competition with the private owned company because of the bureaucratic dependency. However, QP will not fail so easily because of its diversified talented resources and technical capabilities but it may lose its ground if it is not able to take right decision regarding the ownership. By considering this issue, QP management has already decided to go for IPO in 2014 which could be worth around 3.2 billion riyals ($880 million). This is positive movement for QP which will definitely make them more competitive in the market. Beside this, they should keep in mind that customer driven approach is the new best thing in today’s business world. So, company should adopt such approach and concentrate to expand their market share around the world. Last but not the least, QP should always try to build up strong brand image by arranging and as well as sponsoring the seminar or conference which is related to environment and Oil & Gas industry.

References

Book

1. Griffin Ricky, W. (2005). Management, 8th Ed. Boston, New York: Houghton Mifflin Company

HILL, Charles. W. L. (2005). International business: competing in the global marketplace, 8th Ed. Boston, McGraw-Hill/Irwin.

Website

1. http://www.qp.com.qa [Accessed: 23 November 2013]

2 https://www.tasweeq.com.qa [Accessed: 23 November 2013]

3. http://en.wikipedia.org/wiki/Market_entry_strategy [Accessed: 23 November 2013]

4. http://www.ifpinfo.com/Top-MiddleEast-NewsArticle-3505 [Accessed: 23 November 2013]

5. http://www.mic.com.qa/mic/web.nsf/web/mic_aboutqp [Accessed: 23 November 2013]

6. http://www.princeton.edu/~gluciani/pdfs/Chapter%20in%20Fawcett.pdf

[Accessed: 23 November 2013]