Research On The Development Strategy Of SZ Petroleum Corporation

The enterprise development strategy is a necessary condition for the survival and development of the company,especially in the rapidly changing oil energy sector,the development strategy has a more decisive role.Since the outbreak of the world financial crisis in 2008,the global oil market has undergone a reversal of the economic cycle.Especially in the past two years,the international oil price has had a “fall-into-cliffs” drop.The overall oil industry is still struggling,facing the “double squeeze” of the low oil price shocks and the falls in both volume and price.Domestic and overseas oil companies are facing new crossroads.How to achieve better operating results in the new situation,to highlight its own core competitiveness,and to find a strategy that suits its development is an important issue that oil companies will soon face.Taking SZ Petroleum Corporation as an example,this paper tries to find a strategy suitable for the stable development of the company.Firstly,this paper uses PEST analysis methods to analyze the external macro-environment of the company from four major aspects(political,economic,social,and technological).It applies Porter's five-force competition model in analyzing the competitiveness of the petroleum industry.Five kinds of strength involved in this model include: Extant competitor,the new rival invades,the threat of the substitute,buyer's ability of negotiation price,the competition between seller's ability of negotiation price.Secondly,it analyze the internal resource and capacity of SZ Petroleum Corporation,including human resources,supplier resources,equipments and construction teams,technology research and development capability,internal management ability,market possessions,senior management team,the construction of enterprise culture.Effectively identifies its strengths and weaknesses and summarizes the company's internal advantages and disadvantages.On this basis,applying the SWOT analysis method,it forms a SWOT matrix of corporate development strategies and summarizes the four combination strategies of SO-growth strategy,WO-torsion strategy,ST-dispersion strategy and WT-defense strategy,Comparing the specific application of the four development strategies with the development characteristics of the company itself,combined with the vision and goals of SZ Petroleum company.It comes to a conclusion that the company should adopt a “SO-growth” development strategy and explicitly propose that SZ Petroleum Corporation should implement the "integration" strategy and "internationalization" strategy.Finally,in order to ensure the smooth implementation of the strategy,from the perspectives of organizational functions,funds,personnel,laws,project management,and other aspects,this paper provides an elaboration of the specific safeguard measures for the implementation of the strategy in ten general aspects,including the adjustment of the organizational structure,the strengthening of the fine management of the project,the control the legal risks in international operations,the advanced international tax planning work,the establishment of strategic alliances in oil industry,the strengthening of capital operations,the strengthening of resource integration capabilities,the international teambuilding,the attaching importance to domestic and international bidding work,and enhancing of the company's informatization management level.