Research On Competing Strategy Of JZ Petrochemical Co

The enterprises of oil and petrifaction are capital and technology intensive industry. The environment of politics, economy, market, technology as well as society is pretty much complicated and its investments and risks are generally much more severe. Therefore, it is especially of importance to strengthen strategy management and improve the level of decision-making and build up the abilities of adjustment to environment.Jinzhou Petrochemical Company (JZP) is a 70 years old state-owned enterprise. In recent years, this company is developing in a new stage. But in the face of the rapid changing economy at home and abroad, JZP must know very well about itself and find appropriate position, which can make sure it take advantage of the opportunities to advance management level constantly and achieve sustainable development in order to stand out of numerous competitors. This paper is taking it as a typical case to study the strategy management.Focusing on the JZP's situation, the paper analyzes the environment of geology, economy, politics, law as well as the technology and social culture. After that, the article researches the development of oil refining industry and trend in the aspect of world as well as in China. The essay applies the Porter's five forces model to study the competing environment in detail. Besides, analyzing the inner and outside environment, and with the assistance of SWOT method, the author thinks that the ST-type strategy is the most suitable one for JZP. On the basis of the strategy, the paper puts forward the following means to executive them:actualizing Refinery-Chemical integration, perfecting the optimal production lines to reduce cost, improving the unlisted companies and the collectively-run ones' administration to advance harmoniously as a whole, developing joint venture cooperation and strengthening information system construction. In order to make sure the strategy is realized, the company needs to establish strategic management committee, implement the management measure in detail for enhancing the ability of management and control, and create stable condition of working and organization. In addition, harmonious diggings service and enterprise culture should be advanced gradually.The paper can be divided into five parts, which are introduction, exterior and interior environment analysis, strategy system construction and the means to implement it.