China National Petroleum Corporation-CNPC Development Strategy Research

This paper studied China National Petroleum Corporation (CNPC), using strategy setting methods (including PEST, Five-Forces Model, SWOT and other traditional theory. Besides, we have made use of QSPM quantitative matrix method and Entropy Method) to make systematic and scientific analysis about CNPC's development environment and strategy choice.At first ,we start from analysis of CNPC's strategic atmosphere, the outer atmosphere mainly focus on macroscopic and industry atmosphere , including political, economy, society, technology , resource supply demand and market. The inner situation pays more attention to oil and gas natural resources, scale and strength ability, market and revenue ability, organization system and scientific research ability. At present, the economy is developing in high speed, the petrol is at high price and the corporation between nations is prospective, under such circumstances, CNPC is in the important strategic changing period. Although CNPC has accumulated many advantages in the past years, it has to face the terrorism, Capital budget policy and fierce competition. There still exists policy barrier and structure conflict, so the whole revenue increases difficulty and lack of innovation ability. Based on these, we use classic method SWOT to analyze CNPC's strength, weakness, opportunity and threat, and get four ideas about CNPC's future development strategy: growing strategy, centralizing strategy, compensating strategy and deflating strategy. Bring a new concept "Entropy Law" coming from thermodynamics and "QSPM" to do research in CNPC and make positive analysis. Then we get the conclusion that under current situation, CNPC had better choose growing strategy as its future strategy, mainly focusing on resource advanced strategy, market widening strategy and transnational operating strategy, and raises practical strategy and assurance on petrol exploring and producing; gas store ; refine and chemistry industry; value line extension; globalizing marketing these five aspects.