1. Group 2
Camille Taper, Bryan
Ratajczyk,
Marc DiVall, Vincent Vanden
Borre

2. Summary
• In order to access new sources of oil in deep
seas and arctic regions extremely large
amounts of capital are required for R&D and
for the actual extraction process
• The only way for these companies to do this is
to merge…
• The text also describes numbers in tables to
support these mergers

3. Question 1: Are companies such as Exxon Mobile, BP Amoco, and
Royal Dutch/shell MNEs? What criteria do they meet that makes them
MNEs?
• First of all, yes they are, simply because the case study states in
the table at the bottom the Rankings of oil MNEs… 
• MNEs are as defined: “controls and operates business
establishments in at least two countries.”
• foreign direct investment flow
• International Labour Organization (ILO) defines it as country can
promote social and economic welfare, improve living
standards, and foster such human rights as freedom of
association.
• Wikipedia defines it as: is a enterprise that manages production
or delivers services in more than one country.
• By these definitions, all three companies stated above fall into
the criteria of an MNE.

4. Question 2: how important is an understanding of
governmental regulation to success in this industry?
• It is very important for oil companies to
understand the government regulations, there
are factors such as:
– Drilling for oil
– International Borders
– Regulations for building (international) pipelines
– environmental

5. Question 3: In terms of Porter’s determinants of national
competitive advantage, which one of these four
determinants is most important for these oil companies?
Why?
• Porter’s Four determinants of National Competitive
Advantage are:
– Factor Conditions
– Strategy, structure and rivalry
– Demand conditions
– Related and supporting industries
• We believe that the most important of the four is
“Factor Conditions”  LLC
– Because first of all, we need the space (cannot be
moved, we need to go to the oil fields), the money to
build pipelines and machinery, and obviously you need
national labour that will go into the Arctic…)