The Study Of Strategy Management In Petro China Based On Strategy Dynamics

Petro China is faced with much more complicated external environment,which includes oil price downturn,weak consumption growth,production of unconventional oil & gas and the quick development of new energy resources.Furthermore,the internal environment of Petro China is tough as well,including plummeting profit of upstream business and high cost of production.It is necessary to study how to improve the strategy management to respond to the changes under the combined effects of external and internal factors.Strategy Dynamics is used to study strategy management in this paper.First of all,the relations between external and internal factors in every four business segments are analyzed to understand the business.Then the strategy dynamics models are built based on the initial scenario design and data sorted from annual reports.Two scenario matrices are established in this paper: oil industrial chain scenario matrix and gas industrial chain scenario matrix.Oil scenario focuses on the fluctuation of oil price and the growth of new energy vehicles numbers in the next five years,and gas scenario focuses on mining technology progress,price reform and infrastructure construction.Quantitative analysis is completed with the strategy dynamics models.Business indexes are compared between different scenarios within one matrix,and the integral condition of two chains are also been discussed.Finally,proposals associated with strategy management against the situations are put forward.The dynamic of strategy management and the ability of responding to different situations in the future are improved with the support of Strategy Dynamics.