The client firm is one of China’s largest offshore oil corporations in China and its services cover the oil business process including offshore oil and natural gas prospecting, development and manufacturing. As the largest public listed offshore oil corporation in China, the client firm could not only provide its customers the independent operations services, but also offer them integrated project contracting services. Its service areas include the Chinese offshore and other international locations such as South America, North American, the Middle East, Africa, Europe, South East Asia and Australia.
The recently years have seen the continuous increases of international oil prices, which have been driven by the US dollar depreciation, strong oil demands, active speculations and geographic politics. The increase oil price has resulted in the investment scale growth for the international oil prospecting and production and led to significant business opportunities for oil corporations. The client firm is now developing the domestic and international market under the international strategic framework and striving to meet its corporate aspiration of “becoming a top international oil corporation”
1. In order to realize its demanding strategic objectives and capitalize the valuable opportunities, the client needed to best overcome the challenges of greater international exposures and its international operations management system optimization.
2. The relatively simple functions of its overseas subsidiaries could hardly support its future overseas operations and the client needed more in-depth analyses on the client demands of the regional markets.
3. It was lack of market, legal and taxation information associated with the strategic locations and was confronted with insufficient marketing costs due to its project-based overseas subsidiary set-up model.
4. The client had mutli-layer structure for the equity structure of its overseas subsidiaries, which were rooted from the British Virgin Island base parent company, thus resulting in complicated overseas financial management, taxation planning and overseas brand establishment.
5. the vertical management model formed during the initial internationalization period caused the conflicts between overall interests and partial interests and created imbalance between long-term and short-term development
6. Its human, materials and financial capitals for operations were centralized in China and the global resources failed to be tapped. Therefore, the client firm suffered from slow market responses, low resource allocation efficiencies and high resources utilization costs.
1. The advice for the client to adopt a tertiary organizational structure of headquarter-regional company and national company and establish key development areas and regional centers.
2. The build-up comprehensive regional management functions inside the regional companies and the establishment of integrated business marketing teams and specialized project management departments
3. The launch of overseas capital pool to enhance the overseas fund utilization rate, improve the financing capacity and achieve rational taxation planning for the client
4. The adoption of periodical management reforms to achieve the regional and national driven dual management system
5. The authorization for 7 regional functions and the improvement for 19 key management processes.
1. Overseas business development strategies and regional entry strategies
2. Overseas regional positioning selection and regional center function positioning
3. The acquisition and integration related advisory
4. The design for overseas business, finance and human resources authorization and core business processes
