Explain how PDVSA should use conjoint methods for determining if starting a project to extract petroleum from oil sands is justified
The Petroleos de Venezuela S.A. (PDVSA) has been going through a lot of challenges lately. One of the many challenges is the geo-political pressure from capitalistic countries due to Venezuela’s current political climate that by many adversaries are considered to be an extreme extent of socialism. Due to the controversies Venezuela has been facing, the PDVSA has seen its demand for refined oil products decline. Hence, the management is looking for new opportunities to expand in the international market.
PDVSA is also searching for new sources of oil. Recently, the management decided to go into the extraction of oil sands. Oil sands, also called tar sands and bituminous sands, are a type of unconventional petroleum deposit1. As the prices of refined petroleum products have been increasing, the extraction of petroleum from oil sands has become economically viable. However, crude bitumen cannot be extracted using conventional methods for the reason that crude bitumen has a very high viscosity (i.e. it is too thick to flow through oil pipes).
1 http://en.wikipedia.org/wiki/Oil_sands
PDVSA does not have the competences to be able do this project alone. Hence, PDVSA approached Suncor Energy to partner for the new oil sands extraction facility. Suncor Energy is a Canadian energy company that specializes in production of synthetic crude from oil sands.
Questions
- Explain how PDVSA should use conjoint methods for determining if starting a project to extract petroleum from oil sands is justified.
- Explain the sources of innovation that would be applicable to PDVSA as it strives to partner with Suncor Energy to extract petroleum from oil sands.
- Explain the type of innovation PDVSA will implement when it sets up its operation to extract petroleum from oil sands.
Building Depot is a hardware retailer in Curaçao and competes directly with Marchena Hardware, Gomez Enterprises and Kooyman. The main outlet of Kooyman (its Megastore in Zeelandia) has recently gained an advantage after the accident which caused a fire and made Building Depot cease operations for a long period. Building Depot has now been offered a key opportunity to restructure their business model and compete with Kooyman, which has developed capabilities in the meantime. 2
Building Depot has also introduced layaway or credit for the acquisition of products as a service to customers. This allows customers some freedom, financially, to acquire more products. This has lead to the central bank claiming authority to supervise the credit activities of Building Depot.
- Use the Theory of second mover advantages to explain which activities should definitely be in Building Depot’s game plan?
- Explain the Strategic Move of opening an outlet in Sta. Rosa using the Boston Consulting Group Matrix.
- Which variables are relevant when introducing such a credit instrument as a sales strategy?
Paper guideline:
Although this is not a case study but essay questions, use the 5 step method for analyzing cases when answering the questions.
Group of maximum 3. Individual work is not permitted.
3,000 – 4,000 words. Remember that if you do not comply with this requirement points will be deducted.
Submission day: Friday September 26, 2014
Turn It In: Class ID: 8554674; Enrollment password: enroll
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