Study On Development Strategy Of Qilu Petrochemical Corporation

Qilu Petrochemical Corporation is directly under China Petrochemical Corporation. It is a large-scale petroleum chemical combined enterprise with oil refining, chemical, chemical fiber integrated. With China's accession to WTO, as well as the rapid development of international and domestic petrochemical industry in recent years, competition in the industry is increasing day by day. In addition, the international financial crisis affects petrochemical industry, the problem of strategy about survival and development of the corporation needs to be solved.This article focuses on the the problem of development strategy of Qilu Petrochemical Corporation. The artical analyses the external environment for the corporation from three aspects which are the macro environment, the overall environment of the industry and the competitive environment of the industry. It makes the status and development trends of petrochemical industry clear and identifies the opportunities and threats of the corporation's development. The article analyses the internal environment for the corporation and assesses its own resources and capacities so as to understand its own strengths and weaknesses.This article analyses strengths and weaknesses of the corporation qualitatively and quantitatively by EFE Matrix, IFE Matrix and SWOT analysis method. This article promotes several options, and makes a strategic choice, which is to take strength-opportunity (SO) strategy. The strategy means to exert internal strengths and use external opportunities. The corporation should magnify the ethylene and make the refining superior, so as to develop oil refining and chemical comprehensively, and take the road of economies of scale, and develop natural gas chemical industry appropriately.This article proposes the goal of the corporation. In the next five years or so, the goal is to expand the scale of ethylene to 1.4 million t/a, to expand the scale of refining to 15 million t/a to insure the supply of the ethylene raw materials and improve the quality of refined oil, and also to develop natural gas chemical industry appropriately. Therefore, Qilu Petrochemical Corporation could enhance its general competitiveness and consolidate the central position in the chain of domestic petroleum and petrochemical industry. Based on the crporation's objective, external and internal environment, this article proposes a series of strategic programs, which are to expand the ethylene scale, to expand and perfect the refining, to extend the chemical industrial chain, to develop natural gas chemical industry appropriately and so on. The article also puts forward some guarantee measures, for example, to ask for headquarter's support, to strengthen construction of the talents team, to optimize organizational structure and so on.