Company profile and SWOT of Sinopec

SWOT ANALYSIS OF SINOPEC Name Institution Affiliation Course Date of Submission SWOT Analysis of Sinopec For a long time, different companies have been trying to come up with ways of improving their service delivery, taking advantage opportunities and beating competition. The companies have over the years put into action the management techniques. (Ferrell et al., 2011). One of these companies is China Petroleum & Chemical Corporation (Sinopec). Sinopec is a vertically integrated company where a state owned company, China Petrochemical Corporation (Sinopec Group) holds 78.5% stakes of the company. Sinopec involves itself in exploration, production, refining, marketing, and distribution of oil and natural gas. It`s the largest company in China that deals with oil and gas production and distribution. Sinopec operates in China and has its headquarters in Beijing (Jiansheng, 2005). Furthermore, the company has created massive employment opportunities and has more than 350, 000 employees. In 2003, the company ascertained that it would continue to produce oil and gas in the best ways to avoid wastage. Strengths Sinopec enjoys a variety of strengths that enable its survival. To begin with, the company has a strong brand name in China. The citizens and the authority in China hold the company in high esteem due to their policy and production process of avoiding wastage and being environmentally friendly and conscious (Böhm, 2009). In addition, the company has huge operations in terms of production, exportation and marketing. It produces a variety of products including polymers, petrochemicals, fertilizers and synthetic fibers. The company`s operations utilizes advanced technological techniques that enables it produce their products in large quantities with its annual production capacity being 1,500,000 tons. Furthermore, Sinopec has put focus on Deep Basin Oil and production of liquids especially that of light oil in some regions to enhance is productivity and have a wide range of market in the next few years. In Asian ratings, Sinopec is viewed as the largest refiner in the whole of Asia with many refineries across the continent. According to recorded numbers, Sinopec has over 25 refinery stations in Asia alone. The company has been rated to be one of the major companies that have huge sales throughout the year with over 1.5million Yen worth of products in 2012 and is planning to increase its sales in the near future. This has boosted the company`s quarterly and yearly profits by over 24% to 17 billion Yuan every year. In 2003, the company`s pre- tax profits was one of the highest ever recorded in its history (Böhm, 2009). The company has invested in the North Sea by buying more of the assets there. In 2009, Addax was bought by Sinopec for the cost of $7billion giving the company an upper edge to its competitors. In addition, Sinopec has had the highest bond investment of all time in China. In April, 2013, the company issued a $3.5 billion dollar bond hereby pushing the bond values this year. The demand for this bond was strong and many investors placed high bids to acquire them. This shows the investor confidence in the company especially by the western investors who took a third of the bond. Weakness- Despite all the numerous strengths, Sinopec has a variety of weakness. To begin with, Sinopec operations are not geographically diversified. Its Chinese operations are not throughout the country. The company only has a number of oilfields in China as the other competitors like Petro China have captured the other ones. This makes Sinopec`s production to be limited thereby not giving it an opportunity to maximize its output. Moreover, it has not had any efforts in its overseas expansion in the Middle East, Russia and Africa. Its recent deal to acquire Russian Imperial failure was a big blow to the company operations as their expansion was stalled due to this. Apart from that, Sinopec majorly depends on third party crude oil suppliers for their oil. In case these suppliers are not able to deliver their product on time, the refinery p...