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Chevron Corporation 2009

Presented to: Prof M. Asim

Section: F

Presented by: Zohaib Zahid

L1F11MBAM1029

University Of Central Punjab

Table of Contents Contents A. Case Abstract ....................................................................................................3 B. C. D. E. G. H. I. J. K. L. M. N. O. Vision Statement...............................................................................................3 Values ...............................................................................................................3 Executive Summary..........................................................................................4 External Audit...................................................................................................4 External Factor Evaluation Matrix (EFE) ........................................................5 Internal Audit ....................................................................................................5 Internal Factor Evaluation IFE Matrix .............................................................6 Swot strategies ..................................................................................................8 Grand strategy Matrix.....................................................................................10 IE Matrix.........................................................................................................11 SPACE MATRIX ...........................................................................................11 QSPM .............................................................................................................12 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. Values
Our 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 Summary
Company 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 Audit
Opportunities 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 CRITICAL SUCCESS FACTOR


Advertising Product Quality Price Competitiveness Management Financial position

Exson Mobil

Shell WT SCORE 0.30 0.40 0.15 0.24 0.10

WEIGHT RATING WT RATING WT RATING (WT) SCORE SCORE 0.10 0.20 0.05 0.08 0.05 4 4 2 3 3 0.40 0.80 0.10 0.24 0.15 4 3 3 2 3 0.40 0.60 0.15 0.16 0.15 3 2 3 3 2

Customer loyalty Global expansion Employee benefits Customer Service

0.10 0.15 0.10 0.17 1.00

3 4 4 3

0.30 0.60 0.40 0.51 3.50

2 2 2 2

0.20 0.30 0.20 0.34 2.50

2 2 2 2

0.20 0.30 0.20 0.34 2.23

TOTAL

G. External Factor Evaluation Matrix (EFE)


Key External Factors Opportunities Weight Rating Weighted Score Globalization makes it easy to enter international market People are looking for cheap internet connections. Express foods are getting famous to reduce time to be spent. Demand for non-chemical and healthy products. 0.15 0.10 0.10 0.10 4 3 2 3 0.60 0.30 0.20 0.30

Threats Increase in the inflation rates creates a demand in lower priced products. Many companies are pricing their products cheaper to impress customers. Increase in hypermarkets and economical supermarkets 0.10 1.00 2 0.20 2.55 0.20 3 0.60 0.15 3 0.45

H. Internal Audit
Strengths 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. 2. 3. Price of coffee is high at Chevrons Less marketing and advertising its product 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

0.21

0.84

operations across the entire oil and gas value chain 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 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

0.10

0.30

0.10

0.30

0.12

0.48

0.08

0.24

financial status through our data on statements and ratios Weaknesses 1. Understand the key strategies being adopted by the company to increase their market shares 2. less marketing and advertising its product 3. Chevrons products are not available at supermarket TOTAL 1.00 3.14 0.12 2 0.24 0.07 2 0.14 0.10 2 0.20

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

SO Strategies S1,S3,O1,O2,O3
Do advertisements about the FREE internet connections and the excellent service they provide.

WO Strategies W1,W2,O1,O3
Reduce the price and Advertise the products all over the places.

O2.
People are looking for cheap internet connections

W1,W3,O3 S5,O4
Do Chevrons shall increase the healthy products into market as the demand for it is high. R&D to sell products at supermarkets without reducing the quality with cheap price

O3.
Express foods are getting famous to reduce time to be spent

O4.
Demand for non-chemical and healthy products

THREATS
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

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 Matrix


Quadrant II Quadrant I

Quadrant III

Quadrant IV

1. 2. 3. 4.

Market development Product penetration Product development Forward integration

L. IE Matrix IFE weighted score 3.0 to 4.0 I II 2.0 to 2.99 III 1.0 to 1.99

IV Chevron VII

VI

VIII

IX

M. SPACE MATRIX
FS +6 CONSERVATIVE +5 +4 +3 +2 +1 CA I -6 IIIIIIIIIII -5 -4 -3 -2 -1 0 +1 -1 -2 -3 DEFENSIVE -4 -5 -6 ES COMPETITIVE +2 +3 +4 +5 +6 (2.5, 1.3) IS AGGRESSIVE

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
Opportunities

Weight AS

TAS

AS

TAS

1. Globalization makes it easy to enter

0.15

----

---

----

--

international market 2. People are looking for cheap internet 0.10

.40

.30

connections. 3. getting famous to 0.10

--

--

--

--

reduce time to be spent. 4. Demand for non0.10

.30

.30

chemical products. Threats 1. Increase in the inflation rates 0.15

.30

.45

creates a demand in lower priced products. 2. Many companies are pricing their products cheaper to impress 0.20

--

customers.

3. Increase hypermarkets and

in

0.10

.30

.10

economical

supermarkets Strengths 1. Huge market expansion to China, Brazil, India and Russia 2. Provide a great work environment 3. Apply the highest standards of excellence in services. 4. Chevrons has monopolistic advantages over its competitors. 5. Purchased Ethos healthy water for 8 million and also does not use chemical 6. Evaluate your company
against this company in terms advantages performance. of risk, and

0.21

.21

.63

0.10

.30

.20

0.10

0.10

.10

.40

0.12

0.08

.24

.32

Weaknesses

1. Price of coffee is high at Chevrons

0.10

.40

.30

2. less and

marketing advertising

0.07

.21

.21

its product 3. Chevrons products are not available at supermarket 1.00


0.12

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 recommendations
1. develop the energy resources 2. research for advanced biofuels.