Chevron Corporation 2009Presented to: Prof M. Asim

Section: F

Presented by:Zohaib Zahid L1F11MBAM1029

University Of Central Punjab

Table of Contents

ContentsA. Case Abstract...................................................................................................3

B. Vision Statement..............................................................................................3

C. Values...............................................................................................................3

D. Executive Summary.........................................................................................4

E. External Audit..................................................................................................4

G. External Factor Evaluation Matrix (EFE)........................................................5

H. Internal Audit...................................................................................................5

I. Internal Factor Evaluation IFE Matrix.............................................................6

J. Swot strategies.................................................................................................8

K. Grand strategy Matrix....................................................................................10

L. IE Matrix........................................................................................................11

M. SPACE MATRIX..........................................................................................11

N. QSPM.............................................................................................................12

O. Future recommendations................................................................................14

Chevrons Corporation

A. Case Abstract

Chevron is one of the world's leading integrated energy companies and conducts business worldwide. Our success is driven by our people and their commitment to get results the right way by operating responsibly, executing with excellence, applying innovative technologies and capturing new opportunities for profitable growth. We are involved in virtually every facet of the energy industry. We explore for, produce and transport crude oil and natural gas; refine, market and distribute transportation fuels and lubricants; manufacture and sell petrochemical products; generate power and produce geothermal energy; provide energy efficiency solutions; and develop the energy resources of the future, including research for advanced biofuels.We trace our beginnings to an 1879 oil discovery at Pico Canyon, north of Los Angeles, which led to the formation of the Pacific Coast Oil Co. That company later became Standard Oil Co. of California and, subsequently, Chevron. We took on the name Chevron when we acquired Gulf Oil Corporation in 1984, nearly doubling our worldwide proved crude oil and natural gas reserves. Our merger with Gulf was then the largest in U.S. history.

Another major branch of the family tree is The Texas Fuel Company, formed in Beaumont, Texas, in 1901. It later became known as The Texas Company and, eventually, Texaco. In 2001, our two companies merged. The acquisition of Unocal Corporation in 2005 strengthened Chevron's position as an energy industry leader, increasing our crude oil and natural gas assets around the world.

B. Vision Statement

Chevrons vision statement is;“The Chevron Way explains who we are, what we do, what we believe and what we plan to accomplish. It establishes a common understanding not only for those of us who work here, but for all who interact with us.”

C. ValuesOur company's foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment and benefit the communities where we work.

D. Executive SummaryCompany Profile- Business Overview, Strategies, SWOT and Financial Analysis Company Profile- Business Overview, Key Strategies, Operations and SWOT Analysis” is a comprehensive report on Chevron Corporation Company Profile- Business Overview, Strategies, SWOT and Financial Analysis. The report provides complete information on the operations, organization structure and financial information details of the company. Key strengths and weaknesses of the company on which the company can develop are included. In addition, potential opportunities and key threats in the short to medium term future are also identified. Key historical events and summary analysis of the company and strategy of the company are provided. Locations and subsidiary information and company statement are included in the report

E. External AuditOpportunities

1. Globalization makes it easy to enter international market

2. People are looking for cheap internet connections.

3. Express foods are getting famous to reduce time to be spent.

4. Demand for non-chemical and healthy products.

Threats

1. Increase in the inflation rates creates a demand in lower priced products.

2. Many companies are pricing their products cheaper to impress customers.

3. Increase in hypermarkets and economical supermarkets

F. Competitive Profile Matrix

Chevrons Exson Mobil Shell

CRITICAL SUCCESS FACTOR

WEIGHT (WT)

RATING WT SCORE

RATING WT SCORE

RATING WT SCORE

Advertising 0.10 4 0.40 4 0.40 3 0.30

Product Quality 0.20 4 0.80 3 0.60 2 0.40

Price Competitiveness 0.05 2 0.10 3 0.15 3 0.15

Management 0.08 3 0.24 2 0.16 3 0.24Financial position 0.05 3 0.15 3 0.15 2 0.10

Customer loyalty 0.10 3 0.30 2 0.20 2 0.20

Global expansion 0.15 4 0.60 2 0.30 2 0.30

Employee benefits 0.10 4 0.40 2 0.20 2 0.20Customer Service 0.17 3 0.51 2 0.34 2 0.34

TOTAL 1.00 3.50 2.50 2.23

G. External Factor Evaluation Matrix (EFE)Key External Factors

Opportunities Weight Ratin

g

Weighted

Score

Globalization makes it easy to enter international market 0.15 4 0.60

People are looking for cheap internet connections. 0.10 3 0.30

Express foods are getting famous to reduce time to be spent. 0.10 2 0.20

Demand for non-chemical and healthy products. 0.10 3 0.30

Threats

Increase in the inflation rates creates a demand in lower

priced products.

0.15 3 0.45

Many companies are pricing their products cheaper to

impress customers.

0.20 3 0.60

Increase in hypermarkets and economical supermarkets 0.10 2 0.20

1.00 2.55

H. Internal AuditStrengths

1. Understand the company operations across the entire oil and gas value chain

2. Identify strengths, weaknesses, opportunities and threats facing the organization

businesses

3. Respond to your competitors’ business structure, strategy and prospects through support sales activities by understanding your customers’

4. Capitalize on the analysis of experienced companies when entering a new niche or market

5. Gain insight into the methods used by key industry players which give them a competitive edge

6. Understand the company''s financial status through our data on statements and ratios

Weaknesses

1. Price of coffee is high at Chevrons

2. Less marketing and advertising its product

3. Chevrons products are not available at supermarket

I. Internal Factor Evaluation IFE Matrix

Key Internal Factors Weight Rating Weighted Score

Strengths

1. Understand the company

operations across the entire oil

and gas value chain

0.21 4 0.84

2. Identify strengths, weaknesses,

opportunities and threats facing

the organization

businesses

0.10 4 0.40

3. Respond to your competitors’

business structure, strategy and

0.10 3 0.30

prospects through support sales

activities by understanding your

customers’

4. Capitalize on the analysis of

experienced companies when

entering a new niche or market

0.10 3 0.30

5. Gain insight into the methods

used by key industry players

which give them a competitive

edge

0.12 4 0.48

6. Understand the company''s

financial status through our data

on statements and ratios

0.08 3 0.24

Weaknesses

1. Understand the key strategies

being adopted by the company

to increase their market shares

0.10 2 0.20

2. less marketing and advertising

its product

0.07 2 0.14

3. Chevrons products are not

available at supermarket

0.12 2 0.24

TOTAL 1.00 3.14

J. Swot strategies

STRENGTHS

S1.

Huge market expansion to China, Brazil,

India and Russia

S2.

Provide a great work environment

S3.

Apply the highest standards of excellence

in services.

S4.

Chevrons has monopolistic advantages over

its competitors.

S5

Purchased Ethos healthy water for 8 million

and also does not use chemical flavor for

coffee.

S6

Launching the sales of Frappuccino in

Japan and Taiwan

WEAKNESSES

W1

Price of coffee is high at

Chevrons

W2

less marketing and

advertising its product

W3

Chevrons products are not

available at supermarket

OPPORTUNITIES

O1.

Globalization makes it easy to enter

international market

O2.

People are looking for cheap internet

connections

O3.

Express foods are getting famous to

reduce time to be spent

O4.

Demand for non-chemical and healthy

products

SO Strategies

S1,S3,O1,O2,O3

Do advertisements about the FREE

internet connections and the excellent

service they provide.

S5,O4

Chevrons shall increase the healthy

products into market as the demand for it

is high.

WO Strategies

W1,W2,O1,O3

Reduce the price and Advertise the

products all over the places.

W1,W3,O3

Do R&D to sell products at

supermarkets without reducing the

quality with cheap price

T1.

Increase in the inflation rates creates a demand in lower priced products.

T2.

Many companies are pricing their products cheaper to impress customers.

T3.

Increase in hypermarkets and economical supermarkets

THREATS

ST Strategies

S2,S3,S4,T1,T2

Chevrons needs to change its market strategy by reducing the price to compete with the competitors.

WT Strategies

W1,W2,T1,T2

Create new complementary products which contain good quality and lower price to attract more customers.

W3,T3

Chevrons needs to analyze the way to reduce the risks of selling its coffee products at supermarkets as customers are demanding for it.

K. Grand strategy MatrixQuadrant II Quadrant I

Quadrant III Quadrant IV

1. Market development2. Product penetration3. Product development4. Forward integration

L. IE MatrixIFE weighted score

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

I II III

IV

Chevron

V VI

VII VIII IX

M. SPACE MATRIXFS

+6 -CONSERVATIVE AGGRESSIVE

+5 -

+4 -

+3 -

+2 -

+1 - (2.5, 1.3)CA IS I IIIIIIIIIII

-6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 -1 -

-2 -

-3 -

DEFENSIVE -4 - COMPETITIVE

-5 -

-6 - ES

N. QSPM Do advertisements about the FREE internet connections and the excellent service they provide

Chevrons shall increase the products into market as the demand for it is high

Key Factor Weight AS TAS AS TAS

Opportunities

1. Globalization

makes it easy to

enter international

market

0.15 ---- --- ---- --

2. People are looking

for cheap internet

connections.

0.10 4 .40 3 .30

3. getting famous to

reduce time to be

spent.

0.10 -- -- -- --

4. Demand for non-

chemical products.

0.10 3 .30 3 .30

Threats

1. Increase in the

inflation rates

creates a

demand in

lower priced

products.

0.15 2 .30 3 .45

2. Many

companies are

pricing their

0.20 - -- - -

products

cheaper to

impress

customers.

3. Increase in

hypermarkets

and economical

supermarkets

0.10 3 .30 1 .10

Strengths

1. Huge market

expansion to China,

Brazil, India and

Russia

0.21 1 .21 3 .63

2. Provide a great

work environment

0.10 - - - -

3. Apply the highest

standards of

excellence in

services.

0.10 3 .30 2 .20

4. Chevrons has

monopolistic

advantages over its

competitors.

0.10 3 .10 4 .40

5. Purchased Ethos

healthy water for 8

million and also

does not use

chemical

0.12 - - - -

6. Evaluate your company

against this company in

terms of risk,

0.08 3 .24 4 .32

advantages and

performance.

Weaknesses

1. Price of coffee

is high at

Chevrons

0.10 4 .40 3 .30

2. less marketing

and advertising

its product

0.07 3 .21 3 .21

3. Chevrons

products are not

available at

supermarket

0.12

1.00 2.16 3.21

Z score

X1 =working capital / total asset

=2609396/5672600 =0.46

X2= retained earnings/ total asset

=2402400/5672600 =0.42

X3 =EBIT/ total asset

=512,900/5672600 = 0.09

X4= marketing value of equity / total liability

= /3181700

X5= Sale / total asset

=10383000/5672600 = 1.83

Z score = 1.2x1 + 1.4x2 + 3.3x3 + .6x4 + x5

O. Future recommendations1. develop the energy resources2. research for advanced biofuels.