Cnpc and Petro China

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1. Strategy – search for above normal performance
2. What strategy supports growth?
Sustained CA- Not easily duplicated, or cost of duplication is higher than the returns Temporary CA- creates value, rare, but easily imitable.
3. Core 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.

5. Sources of competitive parity, relatively normal, to get the risk adjusted return. 6. Goal of corporate – create CA that create more value than overhead involved (cost of corporates) 7. Business Unit strategy – bring standalone business units together into one corporate entity towards a common corporate goal. 8. Corporate Strategy

a. Business units – tactics- how they help me achieve my corporate goal i. Differentiation
ii. Cost leadership
b. Different business units for different elements of corporate strategy 9. When your competition for customers is in different business segments, UWO and Ivey. 10. Unrelated corporate strategy

c. Difficult to transfer core competencies and CA
11. Related corporate strategy- diversification
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. Increase revenue synergies. Economies of scale. Transfer core competency for net benefit. g. Unrelated diversification- lack of ability to share activities. Best performance you can achieve is normal performance. h. Related constrained

13. Resources which are sources of Comparative...
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