Liaoyang Petrochemical Company Competitiveness Evaluation And Countermeasures

Liaoyang Petrochemical Branch Co. (hereinafter refer as Liaoyang Branch Co.), previously a giant tax and profit contributor ranking among the national 50 ' s, however is currently a profit loss enterprise. With the development of social-economic globalization and intellectual-economy, it faces a series of new challenges: one is from domestic market; the second is from scientific and technological revolution and the third is from the development tendency of economic globalization. Among these challenges and difficulties, the urgent one for Liaoyang Branch Co. is to boost up its competence. To further study the competence and to probe the ways to establish the competitive advantage have a strong realistic sense for Liaoyang Branch Co. to step out the difficult plight. The article combines the qualitative and quantitative research to make an impersonal evaluation on the company' s competence based on the data from investigation. On this basis , by using the Competitive Advantage theory of Porter and the Core Competence theory of Prahalad, the article analyzes the main causes that affect competition, and sets up the countermeasures to enhance the competence.Based on the evaluating outcomes, the 3 first-class indexes of survival^ development and environmental influence are all lower than 0.5, and among those of 14 second indexes are all poor except for the operational ability, which indicates that the competence in Liaoyang Branch Co. is rather weak. The main cause is due to the poor internal capability of the enterprise, especially the problems lie in product combination fabrication, technology and equipment, research and development , organization and interface as well as in strategy administrations. Liaoyang Branch Co., a strategic unit of China Petrol who has no its own sale right, must take effective measures to improve its capabilities in strategic administation, fabrication, research and development, organizationand interface management so as to enhance its competence. Reshuffling the business flow as per the value chain, and the improving information share are all essential to the capability improvement for fabrication, organization and interface, particularly the enhancement of marketing capability. The capability of a enterprise is the result of Icnowledge accumulation, consequently to improve the study ability will help to strengthen the capabilities of strategic-administration , fabrication, research and development and organization and interface.