Developing Strategy Research Of A Company In Chinese Petrochemical Processing

Since the establishment of the diplomatic relations between China and South Korea in1992, the two countries have kept frequent trade with each other. Especially after enteringthe21stcentury, South Korea has met a bottle-neck in its economic development afternearly40years’ of rapid growth. Its domestic demand was close to saturation and theenterprises began to accelerate the pace of overseas development. After its admittance intothe WTO in2000, in addition to some industries vital to the national economy and thepeople’s livelihood, China opened almost all the areas to the outside world, andsuccessively introduced polices encouraging foreign investment. Since then, the tradevolume between China and South Korea had grown rapidly, and Korea-owned enterprisesbegan to invest directly in China. As of2007, China had become the largest export andinvestment country for South Korea.Even before the establishment of Sino-S. Korea diplomatic relations, A Company hadbegun to carry out business in China. In the early stage, it focused on trade and then beganits investment of non-core business. Due to its lack of understanding for relevant industrialpolicies in China, insufficient attention to strategies and decisional mistakes, its majorinvestment projects made no advance. In particular, the development of the petrochemicalindustry of A Company in China fell behind that of the petrochemical giants from Europe,America and Japan, and also fell behind the development pace of Samsung, LG andHyundai from South Korea.The thesis tries to offer some advice on how to deal with and solve the problems at thestrategic level. Since the petrochemical industry falls within conditional-accessible catalogof industries in China, A Company can avoid the edge by setting the advantages oftechnology, low cost and management expertise into full play. A Company should enhanceits understanding for relevant industrial policies of the Chinese Central Government, andadvance exchange and cooperation with local governments at all levels and other partners.At the same time, it should boost the strategic shift of development in accordance with China’s Twelfth Five-year Plan. In addition, A Company should also lay emphasis on thetechnical support, service and innovation for the petrochemical industry. While stressinginternal management, the company should also make localized strategy in line with theactual situations in China.A Company can make a success and achieve its mission and long-term goal in Chinaonly after solving the problem of its development strategy within the Chinesepetrochemical industry.