STRATEGY, LEADERSHIP AND DECISION-MAKING: A CASE STUDY ON THE HISTORICAL STRATEGIC CHANGE OF THE MEXICAN PETROLEUM INDUSTRY

Mexico’s national oil company, PEMEX’s long-standing monopoly in the country’s hydrocarbon sector has ended by a strategic change in the industry to private participation/investment. Resource nationalism is popular in Latin America, however, Mexican leadership has made controversial amendments to their constitution. Mexico hasn’t followed national trends represented in some Latin American countries such as Venezuela and Bolivia. Instead, Mexico follows a more investment friendly course in which Brazil and Colombia set precedent. They intend to bring international finance, expertise, technology and management capability in order to explore for and develop uneasy oil. Pemex cannot undertake this on their own due to decades of its reliance on producing fields. The paper is based on a case study analysing issues of leadership and effective decision making regarding strategic changes of Mexico’s oil and petroleum business. The main conclusion is that Mexico has made significant strategic changes based on rational reasons which challenge for further development in the sector but important issues have to be considered.