week 3 project swot analysis 5-7 apa

SWOT Analysis

Strengths

The Sinopec Group has a series of internal strengths that makes it competitive in the global and Chinese energy sector. One of the major strengths is that the company specializes in highly marketable products that have a high demand locally and internally something that leads to high sales. Secondly, the group has a strong research and development team that have identified reliable and effective marketing strategies (Fu, Guo, & Hong, 2019). Thirdly, the company has managed to maintain high level of customer satisfaction a strength that has attracted customer loyalty and excellent brand equity. The company has a strong culture of hiring competent and skilled employees who have promoted high levels of creativity and innovation.

One of the creative ideas invented by the employees and implemented by the shareholders is development of environment conservation strategies which comes as a company’s CSR practice and has made many people across the globe to perceive the group from a positive point of view (Fu, Guo, & Hong, 2019). For instance, in 2018, the company through the application of advanced technology innovation established smart plants that have turned the energy sector across the globe into a beautiful petrochemical industry. According to Vermeer, (2015); the innovative smart plants are a major CSR for the company since they are meant to accelerate the establishment of green enterprises in the industry. The overall intention is to ensure that only highly efficient and low-carbon petrochemical products access the market.

Through smart technologies; the company has been in the frontline to come up with systems and strategies to prevent water, soil, and air pollution which emanates from petrochemical products use across the globe. The strategies have helped in conserving water and increasing the rate of energy saving a project that a lot of people across the globe have benefited from. As a result of quality skills, the group has high performance records that make it possible for the group to maintain its leading position in the global energy sector. Moreover, constant training is done internally to ensure that employees have the latest skills and knowledge.

Weaknesses

The company targets developed countries as compared to developing countries and this has made the company and its various smart plants to be established in some countries. This has left a huge gap that competitors can use and offer a severe competition for the company. Secondly, taking into consideration the current company’s liquid asset ratio and compare it with asset ratio, it is evident that the company does not have a proper financial management platform. Thirdly, the company from time to time has suffered lawsuits related to environmental destruction especially where company drilling and processing plants are located something that affected the brand image of the company negatively. Lastly, the company has a long organizational structure that slows decision making process.

Opportunities

A majority of countries are developing in the automobile, industry, and other sectors that need high energy consumption hence posing an expansion opportunity for the group (Vermeer, 2015). Moreover, due to high need of energy and chemical products, a majority of countries have reduced the import rate since such agencies are operated by the government making it easier for the group to trade swiftly without incurring hefty costs. According to Fu, Guo, & Hong, (2019); the presence of advanced technology for instance online sales has opened an opportunity for the company not only to trade with the government but also individuals and transport the products using water transport or pipeline.

Threats

The energy sector is expanding as new fossil minerals locations are identified hence empowering different governments to establish their oil and chemical refineries. This comes as a major competition threat for the group since it lowers the demand of the finished goods that the company sells to such states (Wu, 2019). Secondly, there are ever changing chemical, oil, and gas production rules that constantly affect trading terms that the group has established something that affects sales and also threatens the future of the company.

Shareholder and stakeholder ethics theories

At the Sinopec Group, the shareholders have the highest power in the long list of the stakeholders. However, to promote coordination and organization between shareholders and stakeholders, company ethical policies have been implemented and they will play a major role in determining the social causes that the company embarks on. Currently, the company is pushing through with the social cause of making sure that smart plants are established in all company outlets across the globe (Wu, 2019). At the smart plants, disposal of harmful gases and chemicals in neutralized and end products are safe for the environment and human body systems. To ensure that the smart plants operate effectively, the group has put in place measures to use electricity energy instead of fossil fuel energy and this has led to construction of mega dams where water is captured, stored and used for electricity generation. The same water is used by community members for daily use and they also get energy from the electricity being generated at a relatively low cost.

To push through with this social cause, the Sinopec Group owes the stockholders return for their investment from the smart plants and energy generating systems that the money has been invested in. the company also owes the stakeholders quality products that are accessible and affordable while ensuring that the environment is being protected. As a matter of reality, pursuing the social responsibility program will help the company to connect more with its stakeholders and stockholders. According to Kong, (2010); the company shareholders and top management officials believe and applies ethics and it is for this reason that no resources allocated and meant for social responsibilities that would be diverted to other tasks.

References

Fu, J., Guo, Z., & Hong, J. (2019). Research on Information Disclosure of Social Responsibility of Petroleum Enterprises in China—Take Petro China (Company Code: 601857) as an Example. Automation, Control and Intelligent Systems, 7(2), 54.

Kong, B. (2010). China's international petroleum policy. Santa Barbara, Calif: Praeger Security International. Santa Barbara, Calif. : Praeger Security International

Vermeer, E. B. (2015). The global expansion of Chinese oil companies: Political demands, profitability and risks. China Information, 29(1), 3-32.Top of Form

Wu, W. (2019). Chinese oil enterprises in Latin America: Corporate social responsibility. Cham, Switzerland : Palgrave Macmillan

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