Cnpc and Petro China

Strategy search for preceding(prenominal) normal performance 2. What outline supports growth? Sustained CA- Not slowly duplicated, or cost of duplication is higher than the returns Temporary CA- creates honour, r atomic number 18, but good imitable. 3. nubble competency- basic corporate principle around which all your resources are aligned, which builds your CA and differentiates you from your competitor. * Creates value, very few of your competitors can do, and grants you sustained competitive advantage. 4. Sources of Core competency= sources of sustained CA. . Sources of competitive parity, relatively normal, to get the risk alter return. 6. Goal of corporate create CA that create more value than overhead involved (cost of corporates) 7. Business Unit dodge bring standalone business organization organisation building blocks together into one corporate entity towards a common corporate goal. 8. corporeal Strategy a. Business units tactics- how they help me achieve my corporate goal i. none ii. Cost leadership b. Different business units for different elements of corporate schema 9.When your competition for customers is in different business segments, UWO and Ivey. 10. Unrelated corporate strategy c. Difficult to transfer issue competencies and CA 11. colligate corporate strategy- variegation d. Can transfer competencies, activities- distribution channel 12. Three types of corporate strategy e. Limited diversification iii. Single Business risky portfolio. iv. Dominant business f. Related diversification v. Related constrained- net benefit and sharing. Cost synergies. improver revenue synergies. Economies of scale.Transfer core competency for net benefit. g. Unrelated diversification- lack of might to share activities. Best performance you can achieve is normal performance. h. Related constrained 13. Resources which are sources of Comparative parity, not core competency. i. Transfer when core competence creates net benefit for the corporat e as a square 14. Risks j. Systemic Risk or Beta- related to the market (external) vi. Very problematical to diversify it away k. Total risk = systemic risk + detail risk (unsystematic risk) l. Unsystematic risk = internal risk . Return per unit of risk = performance 15. How do you define sustained CA n. competitor cannot compete it away, but can be destroyed by shocks to the systems by exogenous agents. o. Defined by the ability of the competitor to compete CNPC and Petro mainland China 1. Down-scoping 2. Getting rid of social services business units (non-core businesses) that are not related to oil exploration and oil services. 3. PetroChina- own 88 to 90 % 4. Going from related linked related constrained strategy 5. Re- Strategizing 6. prosperous IPO listing 7. Still struggling