Research On The Reorganization Motivation And Synergistic Effect Of China Petrochemical Corporation

Company reshuffling, in the essence, is to reorganize and reallocate its resources based on market conditions to improve company’s efficiency, so as to maximize profits. As China’s social development is underway, companies and enterprises are deeply involved into competitions. More and more companies and enterprises are choosing to optimize the organize structures and better allocate resources through property trading and assets reshuffling. As a large state-owned enterprise, Sinopec entered into capital market in 2000. By making good use of adequate capitals and funds, Sinopec has expanded its markets and increased its international competitiveness. And its development mode has become more and more diversified.First of all, the article will review the theories of home and abroad about causes of reshuffling and synergy effects. Through the review of theories, we hope to com up with a framework to analyze and study company’s reshuffling. Second, we will make an overview of development of Sinopec and chart a blue print for the future. And then we will make case study about serial reshuffling of Sinopec. We will utilize the framework to analyze the motivation of reshuffling. Finally, we will draw conclusion from our analysis, which will provide references to other companies and studies in the future.The article is from the angle of large state-owned enterprise in terms of merge and acquisition. Given the stagnant oil market in the world this article provides a reference for large state-owned enterprise to better allocate its resources and increase its international competitiveness and it will also lay a firm foundation for other oil enterprises in structure reshuffling.