Reliance Group | International Business Environment

combine Group multitheme Business EnvironmentThe assurance Group, founded by Late Dhirubhai H. Ambani, and is one of the largest private sector companies in India, with transmission linees in the energy and materials cling to chain. Reliance Groups annual revenues are in excess of US $ 58 billion. Reliance Industries Limited has become a Fortune Global 500 Company.Reliance Group is a extremely diversified group and is in to multi crossroad business like oil and hit man exploration, retail of petro and consumer products and manufacturing of petrochemicals / refining and textile products. Here I have summarised how globalisation has affected the survival and sustainable instruction of Reliance Industries Ltd.Reliance Group is a highly diversified group and is in to multiproduct business like oil/ throttle exploration, retail of petro/consumer products and mfg. of petrochemical/refining and textile products. Here I have summarised how globalization has affected the survival a nd sustainable exposement of Reliance Industries Ltd.GLOBALISATIONIf I was to summarise in one word as to what is Globalisation Liberalisation is leading to I bequeath say Competition.Globalisation has a serviceman-shaking impact on entrepreneurial enterprises in many ways. Globalisation provides a great opportunity for entrepreneurial ventures to expand their business externally. With the help of local governments, large corporations, and international organisations, entrepreneurial enterprises are able to confront the challenges posed by globalisation and economic liberalisation, to improve their competitiveness in the global market, and better make the global consumers. A number of hypotheses are examined to understand how globalisation has affected the survival and sustainable development of entrepreneurial enterprises.Globalisation has forced Reliance in the following waysIt has aligned with the global trendsDevelopment policies and compensation systems were designate in place.Built leaders within organisation, within this talent pool.International Business Environment affects the development of RILExploration and intersection of oil and gas is critical for Indias energy security and economic emersion. India imports almost two-thirds of its approximate oil requirement. Reliances oil and gas exploration and production business is therefore inevitably linked with the national imperative. Exploration and production, the initial link in the energy and materials value chain, remains a major growth area and Reliance envisions evolving as a global energy major.With suppuration competition and ever growing demand for energy, especially from developing countries, the focus is on energy security. Over the years the EP industry has registered significant growth, primarily due to spiralling crude oil and gas prices.RIL began gas production within six and a half years of gas discovery, in comparison to the world average of 9-10 years for similar profoundly piss production facilities. Continuous gas production for about a year, with 100% uptime, once once again demonstrates the Companys flawless commissioning and execution capabilities.In April 2010, RIL entered into a articulatio venture with the USA based telamon Energy, Inc. ( atlas vertebra) under which RIL acquired 40% interest in Atlas core Marcellus Shale acreage position. RIL has become a follower in approximately 300,000 net acres of undeveloped leasehold in the core area of the Marcellus Shale region in south western Pennsylvania for an acquisition cost of $ 339 million and an additional $ 1.36 billion capital cost under a carry arrangement for 75% of Atlass capital costs over an anticipated 7 and a half year development programme.Low operating costs and proximity to USA neon gas markets combine to make the Marcellus Shale region one of the most economically attractive, unconventional pictorial gas resources play in North America. The acreage will assist the drillin g of over 3,000 wells with a resource potential of approximately 13.3 Trillion Cubic Feet equivalent (TCFe). While Atlas will serve as the development operator for the joint venture, RIL is expected to become a development operator in certain regions in the coming years in the JV.Atlas will continue acquiring leasehold in the Marcellus Shale region and RIL will have the option to acquire 40% share in all innovative acreages. RIL also obtained the right of first offer with respect to potential future sales by Atlas of around 280,000 additional Appalachian acres currently controlled by Atlas (not overwhelmd in the founder joint venture). The RIL-Atlas joint venture has the potential to become one of the largest prime acreage holders in the Marcellus Shale region.This joint venture will materially increase RILs resource base and provide an entirely new broadcast from which to grow its exploration and production business while simultaneously enhancing its ability to operate unconven tional projects in the future.Additionally, RIL has farmed out 20% PI in the blocks Borojo North and Borojo South in Colombia and 30% PI in block 18 and 25% PI in block 41 in Oman. The Regional organization of Kurdistan has assigned third party participating interest of 20% all(prenominal) in blocks Rovi and Sarta to M/s OVM the assigned agreement is yet to be signed by RIL. RIL now has 13 blocks in its international EP portfolio including 2 in Peru, 3 in Yemen (1 producing and 2 exploratory), 2 each in Oman, Kurdistan and Colombia, 1 each in East Timor and Australia amounting to a total acreage of over 93,500 sq. kms.Sustainability Strategy adopted/used by RIL in Global MarketsReliance has made sustainable development a cornerstone of its business strategy to achieve sustainable and profitable growth. RIL adopted principle of materiality and prioritized key issues after collective awkwardness by focal point and key s deportholders. These issues include Energy Security, Health Safety, Corporate Governance and Transparency, Product obligation, mood Change and Waste Management.RIL sustainable development strategy draws on proven technology and risk management framework and evolves from the materiality analysis that has been performing over the years. The focus areas under sustainability development strategy include the followingEnergy SecurityAs a company RIL involved in the energy and materials value chain, so it is committed to responsible use of energy. Its systems and processes ensure optimum energy usage by regular monitoring of all forms of energy and increasing the efficiency of trading operations.Growth through InnovationRIL firmly bank that growth through innovation will give a big competitive advantage and will be a key differentiator. Companys goal is to make RIL one of the most innovative companies in the world and to achieve breakthrough growth in revenues and profits by creating and implementing sustainable solutions. RIL is developing an innovative ecosystem that builds on organisational systems and processes, talent management, open innovation and world class RD facilities.Health and SafetySafety overrides all production targets this vision drives RIL to continuously look for ways to achieve zero accident at workplace. RILs vision is to develop a dedicated pool of safety professionals and lead in safety performance across its operations by focusing on process safety and behavioural safety..EnvironmentProtecting the environment and preserving natural resources is a high priority area. Through annual environment plan and business targets, RIL identify projects and take action to reduce water consumption and become carbon neutral and achieve maximum attainable recycling and reuse of wastes. RIL set targets for key environment-related performance indicators such as material intensity, GHG emissions, air quality, water consumption, effluent discharge, waste generation and disposal, and conservation of bio-diversity.P roduct ResponsibilityFor RIL, product responsibility is to offer businesslike and reliable product and services with minimum environmental impact throughout the life cycle of the product from the cradle to the grave. Its product and services are designed, manufactured and delivered with principle consideration of customer safety.Social invention BuildingSocial welfare and community development is at the core of RILs Corporate Social Responsibility (CSR) philosophy. RILs strategy is to have close and continuous interaction with the people and communities around our manufacturing divisions to bring qualitative changes and support the underprivileged.