Cnpc and Petro China

Strategy search for above normal performance 2. What strategy supports process? Sustained CA- Not easily duplicated, or cost of duplication is higher(prenominal) than the returns Temporary CA- creates value, rare, but easily imitable. 3. Core competency- basic incorporate normal around which all your resources are aligned, which builds your CA and differentiates you from your competitor. * Creates value, very few of your competitors cigarette do, and grants you sustained competitive advantage. 4. Sources of Core competency= sources of sustained CA. . Sources of competitive parity, comparatively normal, to get the venture adjusted return. 6. Goal of corporate create CA that create more value than overhead involved (cost of corporates) 7. crease unit strategy bring standalone short letter units together into one corporate entity towards a common corporate goal. 8. Corporate Strategy a. Business units tactics- how they help me reach my corporate goal i. Differentiation ii. Cost leadership b. Different transaction units for different elements of corporate strategy 9.When your competition for customers is in different business segments, UWO and Ivey. 10. Un link up corporate strategy c. Difficult to transfer core competencies and CA 11. Related corporate strategy- diversification d. Can transfer competencies, activities- distribution bestow 12. Three types of corporate strategy e. Limited diversification iii. Single Business risky portfolio. iv. Dominant business f. Related diversification v. Related constrained- concluding benefit and sharing. Cost synergies. Increase revenue synergies. Economies of scale.Transfer core competency for lucre benefit. g. Unrelated diversification- lack of competency to share activities. Best performance you jackpot achieve is normal performance. h. Related constrained 13. Resources which are sources of Comparative parity, non core competency. i. Transfer when core competence creates net benefit for the corporate a s a whole 14. Risks j. Systemic Risk or Beta- related to the market (external) vi. Very difficult to diversify it away k. Total risk = systemic risk +specific risk (unsystematic risk) l. Unsystematic risk = national risk . Return per unit of risk = performance 15. How do you congeal 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 China 1. Down-scoping 2. Getting rid of social work business units (non-core businesses) that are not related to anele exploration and oil services. 3. PetroChina- own 88 to 90 % 4. Going from related linked related constrained strategy 5. Re- Strategizing 6. Successful IPO listing 7. Still attempt