Running Head: THE SINOPEC GROUP (PVT) 1

THE SINOPEC GROUP (PVT)

Running Head: THE SINOPEC GROUP (PVT) 2

Table of Contents
Question 1........................................................................................................................................2
Area 1: Strategic Issue Diagnosis....................................................................................................2
Business Issues................................................................................................................................2
Industry Life Cycle......................................................................................................................3
Cultural Issues.................................................................................................................................3
Cultural Web................................................................................................................................4
Culture Classifications (Role, Power, Task, Personal)................................................................4
Political/Governance Issues.............................................................................................................4
Stakeholder Mapping: Conflicts of Interest and Powerbases......................................................5
Include here also any CSR issues................................................................................................5
Area 2: External Analysis................................................................................................................5
Macro Level Issues..........................................................................................................................5
PESTLE Analysis........................................................................................................................5
Political...................................................................................................................................5
Market and Industry Analysis..........................................................................................................6
Five Forces Analysis....................................................................................................................6
Environment-Organisation-Fit.........................................................................................................7
Scanning Practices.......................................................................................................................7
Area 3: Internal Analysis.................................................................................................................7
SBU Analysis...................................................................................................................................7
Value Chain.................................................................................................................................8
Organisational Architecture.............................................................................................................8
Synergy........................................................................................................................................8
Financial Resources.........................................................................................................................8
Ratio analysis...............................................................................................................................8
Integrative Internal Analysis............................................................................................................9
Generic Strengths.........................................................................................................................9
SWOT Analysis...........................................................................................................................9
Strengths.................................................................................................................................9
Weaknesses.............................................................................................................................9
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Opportunities.........................................................................................................................9
Threats....................................................................................................................................9
Question 2......................................................................................................................................10
Strategic intent...........................................................................................................................10
Strategic Option.........................................................................................................................10
Execution.......................................................................................................................................11
Structural design........................................................................................................................11
Structure Type.....................................................................................................................11
Change management..................................................................................................................12
Strategy.................................................................................................................................12
Structure...............................................................................................................................12
Systems..................................................................................................................................12
Shared values.......................................................................................................................12
Style.......................................................................................................................................12
Staff.......................................................................................................................................13
Skills......................................................................................................................................13
Defining and measuring success................................................................................................13
References......................................................................................................................................13
Appendices....................................................................................................................................15
Appendix 1 Cultural web...........................................................................................................15
Appendix 2 Mckinsey................................................................................................................16
Appendix 3 financial ratios........................................................................................................16
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Question 1

Area 1: Strategic Issue Diagnosis

Business Issues
Oil and gas industry is a major industry for any economy., currentlyCurrently, oOil
industry is facing aed significant major spike in prices. There are several risks that are associated
with oil and gas industry. First of all, there is a political risk, the changing government policies
related to oil prices and rules for limits of extraction. These rules and regulations vary from
country to country. Oil and Gas industry also possesses geological issue, and the cCompanies
have to take care of environment and there is always an uncertainty about the quantity of the
reserves. Geologist continuously work on pre estimation of the reserves area in which the
companies arey is willing to extract. There are few spots that are easy for extraction, alongside
with that there are some processspots that are very difficult forto extracting oil, extract from i.e.
uUnconventional drill and vertical drill. Industry also hasve price risk because the oil prices are
based on the extraction process and refining process. The more companies face geological
barriers the more price risks companies charge. The installment and winding process requires
huge investments. Oil and gas companies face huge challenge of controlling the cost., The
oOperational costs depends on the extraction process, and expensive drill issues (BEATTIE,
2021). Along with that, there are several other functional issues in the industry.

Industry Life Cycle

Oil and gas industry life cycle consists of five stages, which are: i.e. Explore, Appraisal,
Develop, Produce and Close. Exploration of oil / gas resources that use geological surveys. And
government hunts for investments and decides through direct interviews or bidding procedures.
Government accepts the proposal of international companies for testing in a particular area
locally. The duration of licenses and permits varies from country to country and from license to
block. International companies can test on their own, or two or more companies can test build
joint ventures for inspection and single designated company. In case any viable source of oil/gas
is identified, then the companies follow further phases. The duration of Exploration projects is
from one year to five year. Second phase is the appraisal phase, during whichthis the phase
government further checks the viability of site and further infrastructure planning is done to
approach the site. Meanwhile, drilling and welling process is also planned. This phase’s duration
is four to ten years. Third phase is develop phase, in which thethis phase government goes for
further planningplanning’s and renews their permits, to and it start production process on the site.
This process has the duration is consist of four to ten years. Moving forward, fourth phase is the
productione phase. In this phase, the companies start the production of oil/ gas and they also start
the distribution [process but the production quantity is always uncertain, . dDue to the
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uncertainty in the geological uncertainties. The duration of this phase is twenty to fifty years.
Last phase is close phase. When it is no more cost effective then mutual decision of closing the
site takes place. The duration of this phase is two to ten years. (Darko, 2014).

Cultural Issues

Every industry is influenced by the cultural factors, and the industry like oil & gas also
faces challenges posed by the globalization and other social and cultural factors. Tension ion Oil
and gas industry has increased aimed globalization. The demand for energy is increasing and the
international oil companies have limited the access to hydrocarbons reserves. Now the
companies are involved in negotiation and struggle to maintain good relations, because any
failure can cause anycost company to incur irrecoverable cost. higher (Oil, 2008). Increasing
environmental issues also possesses challenges and issues for oOil and gas companies.
Increasing climate change requires oil and gas industry to go for green and less impactful
activities and reduce their adverse impact on the environment. It is quite challenging for the
companies to manage such major issues. International companies work with organizations, i.e.
Government iIssues permits to the international countries and due to having different cultures,,
Cultures influence the leadership style also gets influenced., It also affects the management style
of the companies (Capello, 2020x). Different cultures are very sensitive to the environmental
concerns, some cultures are sensitive to their management practices, and few cultures are
sensitive to their business profits and governance. So these all factors affect the business
requirements.

Cultural Web

Cultural web is the process of explaining the culture of an organization. As we discussed

earlier, cCulture matters in oil and gas industry., referRefer to appendix 1 for Cultural web of Oil
and gas companies. In oOil and gas industry; the roles of Oil and gas companies is well defined
and structured. There are myths in the oil and gas industry that oil & gas reserves will end soon
and oil is made from Diana sour bones, along with that, oil can burst out of the ground and if
people do not use petrol based gas, then the world’s condition will get better. Oil and Gas
companies communicate positive stories of the company. Oil and Gas companies use effective
communication strategies and there are highly skilled employees working for these companies.in
the company. The systems and deliverables are kept simple and sorted to manage the business
requirements. Government is involved with companies because, the companiesy have to follow
the rules and regulations set by the government. Oil and Gas companies involve management to
make maintain their make strategies. The power in Oil and gas companies is distributes and
allocated . allocated.
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Culture Classifications (Role, Power, Task, Personal)

Sinopec International Petroleum Exploration and Production Corporation hasve

diversified cultures. Corporate culture of SIPC and believe in trading two way deep integration
in the Chinese culture and learning process. Chinese laborers learn global practices and
unfamiliar specialists learn Chinese qualities, establishing an environment of trust, fortitude and
comprehension. The vision of of SIPC is “Building a world-class petroleum corporation” and
core values of SIPC are:is integrity, entreprising, responsibility and integrity (SINOPEC, 2000).
The rRole in the organization is defined. Organizational structure is divided on functional levels,
and the responsibilities are also allocated.

Political/Governance Issues
Sinopec International Petroleum Exploration and Production Corporation is a subsidiary
of Sinopec group. It deals with the external upstream of oil and gGas cCorporation in place of
Sinopec. It is dealsing with exploration and production business and investments. It is a
professional firm, which is working on upstream investments and operations. Decision making
process takes place in the headquarters and the national companies are executive’s centers. The
potential issues related to governance are the policies related to licensing of geology, and
cCapacity and different rules and regulations in other countries (Valérie Marcel, 2012).

Stakeholder Mapping: Conflicts of Interest and Powerbases

In international oil and gas industry; there are major players so, =conflicts among any
countries or companies strictly affect the activities of Sinopec International Petroleum
Exploration and Production Corporation. For example: i.e. the recent conflict between Russia
and Saudi Arabia has also affected the overall oil market. Oil prices are high in the global
market. The stakeholder’s major issues in the current time areis environmental issues. Customers
are concerned with environmental issues and their concerns have increased the pressure on oil
and gas companies. The overall industry is divided into three streams, and these three streams
have different stakeholders. These three different streams are: uUpstream activities, midstream
and downstream. Upstream activities involve the initial production process to exploration
process and the production of crude oil. Midstream activities involve processing, sorting,
marketing and transportation process. Whereas, downstream involves refining, processing,
production and distribution activities. These three streams have different stakeholders and their
power bases also differ from oneeach another.

Include here also any CSR issues

CSR involves actions by the companies that are for the betterment of the environment and for
social welfare. We can say that it is an attempt to reduce the adverse impact on the environment
and people. CSR allows the companies to contribute in the development of the country. In last
five years, CSR is being highly focused by thein the focus of companies. The oil and gas
Running Head: THE SINOPEC GROUP (PVT) 7

industry is growing business that is involved in CSR activities for so long, i.e. social activities,
political activities, technological activities and environmental activities (Frynas, 2005). Due to
the nature of business in oil and gas industry;, these activities have increased the threat for the
environment. So to compensate that threat; the companies are involved in the SCR activities.
Sinopec International Petroleum Exploration and Production Corporation works on reducing the
poverty, aids donations, provides support for construction project, participates in social welfare
programs, works for local employment, works on green projects to save the ecology system, and
strictly compliesy with international laws and regulation.

Area 2: External Analysis

Macro Level Issues

PESTLE Analysis

Political

In oil and gas industry; the government hasve bilateral and quadrilateral agreements,
alongside which, it with that it deals with the international relations with different companies
from different countries throughoutof the world.
Economical
China has invested in several development plans and these projects generate huge
economy. In an inclusion to this, it along with that it also generates a wide range of clients that
affects the economic recovery. Chinese economy is increasing, and it is increasing through
different projects.
Social
SIPC has been involved in several social initiatives and has supported programs on global
level. Along with that, the Global organization world compact Cchinesea network is also
supporting two summits that are aimed at to working on the climate change and for social cause.
Not only this, theat company does care about its employees and takes part in public welfare
activities companies.
Technological
The cCompany is focused on technology and innovation., dueDue to its business nature;
it is essential for the company to become technologically sound. During last three years; the
company hasve won several innovation awards, i.e. seven national awards. The cCompany hasve
acquired several domestic and foreign intellectual properties for technologies. The cCompany is
also doing well in analysianalysis sand exploration.
Legal
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The cCompany has to deal with new rules and regulations related to rock oil trade, and
hasve to compliance with the overseas laws.
Environmental
The obligation of environmental issues in increasing for the company, ason companies
because there are bottlenecks in the whole process and other issues as well, i.e. blue air schemes
and clear water. Companies have to deal with these issues and at least meet the minimum
requirements of environmental friendly activities. The activities in oil and gas industry have huge
impact on environment. Anand increasing environment concern requires the companies to play
their part.

Market and Industry Analysis

Five Forces Analysis

Threats of the latest Entrants

New entrants in the industry bring innovation, but it require huge investment to start
operating in oil and gas industry. New entrants bring innovation, new ways of purification, and
refining. But current players in the industry have reached to their economies of scale, irrespective
of projects. But the threat of new entrant is the industry is low because of government rules and
regulations, political pressure and investment requirement.
Bargaining Power of Suppliers
Companies in oil and gas industry have different suppliers as there are few major players
in the market and the suppliers are dominant in the industry. The company’soverall company
image and business value have allowed itcompany to have the negotiation power due to its
global business image. As company have enough power in the SIPC have negotiation power due
to its global business image. The bargaining power of suppliers is moderate in the oil and gas
industry.
Bargaining Power of Buyers
The bargaining power of buyers is low in the oil and gas industry., Ddue to the
involvement of the government; the buyers usually pay for the process set by the government.
Companies estimate their prices based on the cost of exploration and processing. Companies
look for profitable deals.
Threats of Substitute product or Services
Threat of substitute is low, because oil and gas, and natural reserves and almost
everything around us needs oil or gas. In the near coming future, this ratio will gocome down
because the companies are working on electrical appliances and gadgets. But it is not possible to
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totally replace the consumption and usageuse of oil or gas. The threat of substitute in oil and gas
industry, in terms of product, is low, but the technology . But technology will evolve with time.
Rivalry among the prevailing Competitors
The rivalry in the global market is increasing, and the countries a making full efforts to
dominate the oil and gas market. The trade is also growing in the oil and gas industry.

Environment-Organisation-Fit

Scanning Practices

The scanning practices are the process of analyzing the business issues and threats, alongside
which, it also analyzes along with that It analyze the external opportunities. These issues and
opportunities affect the decision making of the company. So, the external scanning considers the
trends, competition, cCustomers, economy, lLabor supply and legal rules, tTechnology and
regulations. SIPC evaluates individual factors, especially:, government rules and regulations,
technology innovation, trends and economy fluctuations.

Area 3: Internal Analysis

SBU Analysis

Value Chain

SIPC company works on its supply chain to reduce the cost., theThe value chain was
described by the company which has that increased the production and exploration of oil and gas
production. The cCompany generates positive effective results in terms of production, outputs,
and cost effectiveness through the value chain of natural gas business. The cCompany’s main
focus is on improving the exploration quality and increasinge the output of oil and gas.
(Corporation, 2019).

Organisational Architecture
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Synergy

Working in teams is an effective method to generate best results and increase the oil and
gas production methods. There are several factors in oil and gas industry that need team work
work, which and this is possible through implementing cultural values and trust. SIPC’s culture
is accepting others and working in teams, because it is very essential for oil and gas industry to
have employees who trust each other and are empathetic towards one another.y (Andreas
Exarheas, 2018).

Financial Resources

Ratio analysis

In financial analysis, I have taken data of 2019 and 2020 to evaluate the business
performance. Overall financial analysis shows that the profitability of the company was
positively affected from year 2019 to 2020. Along with that, the current ratio of Sinopec in 2019
was 0.77 in 2019 and had increased to 0.87 in 2020. The quick ratio of Sinopec hasalso
increased from 2019 to 2020, i.e. respectively i.e. 0.44to 0.58, respectively. The ROA of
Sinopec has decreased from 2019 to 2020 (4.10%to 2.41%) the ROE hasis also decreased 8.22%
to 4.72%) and so has the Net margin also reduced. Debt to assets ratio has decreased from 2019
50.1% in 2019 to to 2020 i.e. 50.1% to 49.0%in 2020. The debt to equity ratio has decreased
from 1.00 to 0.96. The efficiency ratios have had an overall increases. The financial ratios of the
company shows that itsthe overall profitability of the company has decreased from year 2019 to
2020. Whereas, the liquidity of the company has increased, which that means the that company is
able to pay its current liabilities from its current assets. Efficiency ratios shows that the
operational efficiency has increased from year 2019 to 2020.

Integrative Internal Analysis

Generic Strengths

Sinopec International Petroleum Exploration and Production Corporation is a major

player in the market. Iits strength is its fast growth patterns, the company is involved in
innovation and continuous research techniques. The cCompany is able improve the efficiency of
operations and value chain. Sinopec International Petroleum Exploration and Production
Corporation’s business operations are successful in the industry, and the cCompany is famous for
its quality and efficiency.
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SWOT Analysis

Strengths

Sinopec International Petroleum Exploration and Production Corporation is a competitive

business in the industry. The company It is famous for its effective business operations, which
that helps it in company to reducing itse the operational cost and increasinge the business
outputs. The cCompany is also involved in innovation and research activities to increase itsthe
business efficiencies of the company and to make its business operations are successful.
Weaknesses

The cCompany’s weakness is that it is not listed among the top leagues of the industry
and it needs to implement athe sustainable business model.
Opportunities

The cCompany has anve opportunity to goopt for mixed ownership. The and also the
consumption of oil is increasing in Cchina, so the company has have to plan accordingly to meet
itsthe business demandsdemand of the company. As the government supports green projects,
because it is a global issue and every country is playing its part to reduce the industry’sits
negative impact on the environment and society.

Threats

The cCompany always faces issues while implementing the business models for
efficiency., competitionCompetition in the industry is high and so are the price fluctuations and
due several challenges andto uncertainties in the industry. the price fluctuations are high. There
are several challenges in the industry due to uncertainties.

Question 2

Strategic intent

Current Strategies
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The current strategic objective of Sinopec is to be ranked asas worldthe world class
Petrol Corporation. The cCompany strives to reduce risks, work on management efficiency and
optimize itsthe business structure.
Mission
“Over the years, Sinopec has adhereds to the specific concept of development, and has actively
exploreds sustainable development strategies., theThe company has also fulfilleds its corporate
social responsibility and strives to achieve the harmonious development between production and
security, energy and environment, enterprises and employees, and, enterprise and society”
Vision
“Building a world-class petroleum corporation”

Strategic Option

Recommended Strategies
Currently, Sinopec is working on developing its operational process and is trying to
implement business models, but unfortunately it company is unable to implement any business
model in the company due to uncertainties. Currently, the business is doing well in the market
but the competition is high, due to which the and company needs to change its business activities
and process, in order to develop a proper mechanism. Due to the changing business trends and
government lLegislations; the cCompany needs to change its strategies. so Tthe new business
strategies are explained below:
 Sinopec needs to focus on environmental business issues and start working on planning
green activities. Sinopec should invest in green technology. Government will also
provide rRelief on these projects.
 Sinopec can build its reputation through these projects. Due to the environmental
friendly technology; Sinopec can play its part to save the climate. This will hHelp
Sinopec in many aspects.
 Sinopec can invest in technology and R&D to develop a business model that isare
efficient for production.
 The gGovernment will also support Sinopec in green projects, alongside which, theith
that company should also invest in CSR activities, especially in those areas that are near
by the exploration and drilling sites, because these areas the ones which have gotten
severely impactedo duegot to the extractionhurt more from the activities.
 Sinopec should go for partnerships and joint ventures to reducereduce costthe cost and
increase the business’ reach with the region, and to reduce the competition.
 Sinopec needs to focus on the changing business and social trends and take initiatives to
sustain it the competition and increase its product output, because the changing trends are
posing risks tofor the company.
 The gGovernments around the globe areis working on restructuring the business goals
and legislations, so, it is important for Sinopec to have to prepare for it and invest in
Running Head: THE SINOPEC GROUP (PVT) 13

technologies that can assist it in company in dealing with these unpredictable risks and
uncertainties.
 The cCompany needs to train its employees and maintain an empathetic culture in the
organization, to in encourage the team work and to increase the business’s outputs.
These all strategies will help the company into strengthening those business operations
whichthat can resist the risks. R & D will help the company to become responsive to the business
issues. These strategies will help the business into integratinge the entireall business divisions
with each other and to improve the business efficiency.

Execution

Structural design

 In order to execute these strategies; Sinopec should develop a team withhaving a team
leader.leader, and the And tTeam should mutually decide and set goals after
brainstorming.
 Set goals should be communicated with all the business divisions, in order to create
synergy among the business and divisional goals. The cCompany can adopt partial
autonomy strategy to set the employees’ goals and to improve the operationals strategy.
 To adapt to the business mModel; the cCompany should work on continuous
improvement strategies

Structure Type

The cCompany should use decentralized structure in the company,. bBecause it is a huge
organization and centralization tends towill reduce the process’s speed . So in order to maintain
the business operations. Sinopec is a massivehuge organization whichand needs to work on an
efficient operational process, and, to maintain the business operations; it is important for the
company to have decentralized business structure. It reduces the burden of higher management
and diversification helps the company in havingto have different ideas and operations. This will
help the company into improving itse supervision process and controlling the business
environment. It improves the decision making process as well.
Running Head: THE SINOPEC GROUP (PVT) 14

Change management

To bring change in it; in the company Sinopec should use 7s framework. It is a tool that
analyzes the company’s design by looking at itsthe strategy, structure, systems, shared values,
style, staff and skills, to analyze the alignment and to able the company toto achieve itsthe
business objectives. This framework will help the company into analyzinge the departments and
design sync among the departments. It will help the company into improvinge and maintaining
the business performance and designing best strategies for implementing the business strategies.
Further, refer to appendix 2. The and detailed discussion is mentioneddiscussed below:
Strategy
Strategy is an action plan that is designed by the companies to achieve competitive
advantage and compete in the market. As we know that the competition in oil and gas industry is
increasing dsue to the uncertainties, so Sinopec is being suggested to follow the strategies, i.e.
planning green activities, environmental friendly technology, invest in technology and R&D,
partnerships and joint ventures, increase the product output and train employees and maintain an
empathetic culture. The cCompany shouldwill do planning for long-term, to haveprovide
permanent business solutions.

Structure
Structure is the process to represent the business units, and organizational divisions are
designed in it. It also includes the information about the job responsibilities and authorities. It is
also called an as organizational chart, which it is an easy way to give idea about hierarchy and
positions. For Sinopec, we have suggested to develop business a project team that can work on
this process reengineering. Whereas, it is also mentioned that the company also has have to
follow a decentralized business structure to speed up the process.
Systems
System is defined as the process and procedures that the company follows to achieve the
business goals and to perform regular business activities. Managers in Sinopec are expected to
report to their higher management teams and provide progress reports on various running
projects.
Shared values
Shared values are treated as the backbone of Mckinsey’s 7s model. These values, these
are basically norms and benchmarks of the company. TheyIt help the company into guidinge its
employees and describing thee action plan and behaviors that are expected from the company.
By fFollowing the new strategies; Sinopec is able to utilize the following climate change factors
and business development, enabling its so employees are expected to follow the norms and
conditions of being environment friendly and showing green behavior.
Style
Style is defined as the way leaders manage the business and how top managers manage
their employees and their teams. It is about how the managers and team leaders behave with
Running Head: THE SINOPEC GROUP (PVT) 15

employees and how they train and guide thememployees. Sinopec Uunder these new goals;
Sinopec will be acting as a decentralized business model. The managers are and it is suggested
that managers will be responsible to monitor the employees’ behavior and to guide them so that
they could make it further guide employee to perform well. The mManagers will also receive
trainings onabout how to manage the teams and how to promote synergy among team members.
These actions and trainings will help the company into achieving itse business goals.

Staff
Staff define how many employees are workingthere in the company and how many people will
take part in the change process. It is also an estimate of how many employees the company needs
to complete a project. So, the company is suggested to develop a team that will work forof
planning and implementation process. So, for these suggested changes; the company will require
7 to 10 members in the team, to propose these changes and to work on the implementation
process.
Skills
Skills in 7s framework iares defined as the ability of employees that will help the
company into achieving itse the set goals and objectives. In order to implement these new
suggested strategies; the company will need a specialized team which has the experience of
workingo have worked in change management, planning and business development activities.
Employees should be able to critically analyze all the factors and to maintain the implementation
process. It is very important for the company to correctly identify the required skills that are
required to meet the objectives.

Defining and measuring success

In order to measure the success of the project; the team members will keep the progress
report of what is happening and how much work is done and how much work is remaining.
Project leader will weekly and monthly check the progress reports sent by divisions on weekly
and monthly basis, and it will also solve the business issues. After identifying the gap; project
leaders will timely communicate issues with the staff and concerned division, to solve the issues
in meeting the objective on timetimely. Leaders will continuously work on improving the
uncertain business environment. Furthermore, the company will measure the overall success
from the market share and output generation, because. Because the ultimate purpose of these
strategies is to improve the output generation and increase the operational efficiency. There are
several business factors that also help the company in to measuring itse the success. As weThe
company also has a lower turnover rate as the employees are satisfied with the company and are
also performing well can also look at turnover rate in the company because satisfied employee
perform well in the organization. The exploration and drilling process isare same but after using
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new technology;, there are chances that the company’s output will be increase and so will itsd
and overall business performance will also increase.

References
Andreas Exarheas. (2018). How to be a Good Team Player in Oil and Gas. Retrieved from
RINGzone:
https://www.rigzone.com/news/how_to_be_a_good_team_player_in_oil_and_gas-31-
dec-2018-157813-article/
BEATTIE, A. (2021). Investopedia. Retrieved from
https://www.investopedia.com/articles/fundamental-analysis/12/5-biggest-risks-faced-by-
gas-and-oil-companies.asp
Capello, M. A. (2020x). THE WAY AHEAD. Retrieved from https://jpt.spe.org/twa/leadership-
and-culture-oil-and-gas-industry
Corporation, C. P. (2019). Sinopec Announces 1H2019 Results Further Realises the Advantage
of Integrated Operations. cision .
Darko, E. (2014). Short guide summarising the oil and gas industry lifecycle for a non-technical
audience. ECONOMIC AND PRIVATE SECTOR PROFESSIONAL EVIDENCE AND
APPLIED KNOWLEDGE SERVICES.
Oil, W. (2008). Worldoil . Retrieved from https://www.worldoil.com/magazine/2008/april-
2008/features/cultural-challenges-in-oil-and-gas-industry-management
SINOPEC. (2000). SINOPEC. Retrieved from http://sipc.sinopec.com/sipc/en/about_us/honor/
Valérie Marcel, P. H. (2012). Governance Challenges for Emerging Oil and Gas Producers.
Running Head: THE SINOPEC GROUP (PVT) 17

Appendices

Appendix 1 Cultural web

Power Structure
The power in Oil and gas
companies is distributes
and allocated.

Organizational Structure
Control System
Oil and gas companies is
Oil and Gas companies well defined and
involve management to structured
maintain make
strategies.

Cultural web

Routine and Rituals Myths

The systems and Oil and Gas companies
deliverables are kept communicate positive
simple and sorted to stories of the company
manage the business
requirement.

Symbols
Oil and Gas companies
use effective
communication
strategies
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Appendix 2 Mckinsey

Appendix 3 financial ratios

Liquidity 2020 2019

Current Ratio 0.87 0.77
Quick Ratio 0.58 0.44
Profitability 2020 2019
ROA 2.41% 4.10%
ROE 4.72% 8.22%
Net Margin 1.98% 2.44%
Solvency 2020 2019
Debt to Assets Ratio 49.0% 50.1%
Debt to Equity Ratio 0.96 1.00
Efficiency 2020 2019
Days Sales Outstanding 6.17 6.71
Days Payables Outstanding 32.70 27.70
Inventory Turnover Days 32.84 28.58
Running Head: THE SINOPEC GROUP (PVT) 19