The locus of strategic decision-making of oil exploration

The strategic decision call be more difficult to make and especially how responsibilities for strategic decision-making are to be divided between the centre and the business units within SINOPEC. Based oil extensive review of the relevant literature and the data collected form interview and secondary Sources, the authors discussed issues about the external and internal factors influencing strategic decision-making, and the benefit and cost of devolution vs. centralisation. Firstly, oil exploration is the key activity to the resources development strategy, while the confusion of the responsibility and competences lead to the low quality outcome of oil exploration. Secondly, the close decision-making process and the managerial attitude to outcomes of oil exploration eroded the effectiveness of strategic decision-making concerning oil exploration. Finally, the authors recommended that decentralizing the decision-making authority to oil branches, changing managerial attitude to the process and the outcomes of decision-making concerning oil exploration., and rebuilding effective performance evaluation, and cultivating the parenting capability on oil exploration would benefit for the success of Sinopec upstream.