analysis of Chevron

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  • analysis of Chevron

    1. 1. Presentation Loading … Please wait Creativity BY US Please Press “Enter” to continue the presentation Loaded 100 % status : standby for execution
    2. 2. Case Analysis Of Chevron GROUP MEMBERS Rizwan Ashraf Shahid Iqbal Mushtaq Hassan Zeeshan Anwar
    3. 3. 1879: CHEVRON began with an oil discovery in north of LOS ANGELES. 1900: Bought by standard oil corporation. 1906: Merged name become SOCAL. 1948: Entered into petrochemical industry. 1984: Merger between standard oil company and gulf oil. As a part ofmerger SOCAL changed its name to chevron corporation. 2001: Bought TEXACO for $37.5 billion. 2005: Acquisition of UNOCAL made chevron world’s largest producer ofgeothermal energy.
    4. 4. A World Class Global Energy Company Chevron Corporation is an American multinational energy corporation There business oil, gas, and geothermal energy industries It including exploration and production; refining, marketing and transport; chemicals manufacturing and sales power generation 66,000 employees 18 refineries 5 popular consumer brands: Chevron, Unocal,Texaco ,standard and Caltex 25,000+ service stations5
    5. 5. “At the heart of the chevron way is our vision ... to be the global environmental friendly energy company most admired for its people, partnership and performance”
    6. 6. ChevronStandard OilTexacoCaltexUnocal
    7. 7. Star MartExtra MileRedwood MarketTown Pantry
    8. 8. DeloHavolineRevtexUrsa
    9. 9. Techron- ChevronClean System
    10. 10. Royal Dutch ShellExxonMobilBPConocoPhillips
    11. 11. External FACTOR EVALUATION MATRIX Opportunities Weight Rating Weighted Score1 Increase usage for energy 0.15 4 0.602 Increasing price of energy 0.12 3 0.363 Increasing propensity of people to spend 0.10 3 0.304 Increasing mobility of labor, capital and technology 0.09 2 0.185 Demand shifts for renewable energy 0.10 3 0.30 Threats6 Depletion of natural energy resources 0.11 2 0.227 Royal Dutch Shell and Exxon is rivalry in the industry 0.08 2 0.168 Regulations restricted excessive emission of CO2 0.07 2 0.149 The credit crisis and volatile commodity prices 0.10 3 0.30 of200810 OPEC restrictions, civil wars and hurricanes. 0.08 2 0.16 Total 1.00 2.72
    12. 12. Internal FACTOR EVALUATION MATRIXSr.No Strengths Weight Rating W.Score1 Spending on alternative energy 3.2 billion since 0.07 3 0.21 2002.2 Continuous investment in high profile projects to 0.08 3 0.24 increase oil production.3 Outstanding earning $23.9 billion in 2008 0.11 3 0.334 Achieve HART energy publishing refiner of the year 0.08 4 0.32 award in 20095 Investment in 13 power generation projects in Asia 0.10 3 0.30 and us6 4th largest integrated energy company in the world. 0.08 3 0.247 Operating in more than 100 countries and with 0.10 3 0.30 around 25,000 service stations worldwide8 Had global refining capacity of more than 2 mm 0.08 3 0.24 barrel per day.
    13. 13. Internal FACTOR EVALUATION MATRIX Internal FACTOR EVALUATION MATRIXWeaknesses Weight Rating W.Score71 % drop in income second quarter of 2009. 0.08 2 0.16Marketing operations lost $95 million in second 0.05 2 0.10quarter of 2009.stop drilling new gas wells in US continent. 0.05 2 0.1051 % decrease in revenue. 0.07 1 0.07Chemicals – significantly lower margins, lower 0.05 2 0.10income from equity.Total 1.00 2.71
    14. 14. Competitive Profile Matrix CHEVRON EXXON MOBIL SHELLCritical success factors weight Rating Score Rating Score rating scoreAdvertising 0.20 3 0.60 3 0.60 3 0.60Product quality 0.10 3 0.30 4 0.40 2 0.20Management 0.07 4 0.28 3 0.21 3 0.21Financial position 0.10 3 0.30 2 0.20 3 0.30Customer loyalty 0.05 2 0.10 3 0.15 3 0.15Global expansion 0.20 3 0.60 4 0.80 4 0.80Market share 0.09 3 0.27 3 0.27 4 0.36Logistics 0.15 3 0.45 3 0.45 3 0.45Production capacity 0.04 3 0.12 3 0.12 4 0.16Total 1.00 3.02 3.20 3.23
    15. 15. Space MatrixFinancial position Rating Stability position ratingSpending on alternative energy 3.2 billion since 5 The economic environment is unstable especially -52002. in under developing countries.51 % decrease in revenue. 4 The risk of expanding the business is greater due -4 to natural disasters.Outstanding earning $23.9 billion in 2008 6 The fluctuation of oil price affects business -5 environment.Marketing operations lost $95 million in second 3quarter of 2009. 184=4.5 -143=-4.67Industry position Competitive positionThe demand of energy usage is increasing 6 Achieve HART energy publishing refiner of the -4tremendously. year award in 2009High capital investment and the use of 5 Investment in 13 power generation projects in -4technology have created the barriers of entry. Asia and usThe company has investing for alternative 5 4th largest integrated energy company in the -5energies. world. Operating in more than 100 countries and with -5 around 25,000 service stations worldwide 16/3=5.33 -18/4=-4.5
    16. 16. Space Matrix
    17. 17. The External-Internal Matrix
    18. 18. Boston Consulting Group (BCG) MatrixDIVISION REVENUES Revenue Profit Profit % Mkt share Growth MILLION $ % million $ % rate %1.Upstream and 1,28,747 47 % 18,187 76 24% 45 % gas2.Downstream 1,33,594 49 % 6,222 26 27% 30 %3.Chemicals 2,617 1% (239) (1) 20% 5.96 %4.Power 8,047 3% 239.31 1 30% 32 %Total 2,73,005 100 23,931 100
    19. 19. Boston Consulting Group (BCG) Matrix 1 4 2 3
    20. 20. Quantitative strategic planning matrix Invest in solar and Invest in biofuel wind energy energyOpportunities Weight AS TAS AS TASIncrease usage for energy 0.15 2 0.30 4 0.60Increasing price of energy 0.12 2 0.24 4 0.48Increasing propensity of people to spend 0.10 2 0.20 3 0.30Increasing mobility of labor, capital and technology 0.09 2 0.18 3 0.27Demand shifts for renewable energy 0.10 4 0.40 3 0.30ThreatsDepletion of natural energy resources 0.11 2 0.22 3 0.33Royal Dutch Shell and Exxon is rivalry in the industry 0.08 - - - -Regulations restricted excessive emission of CO2 0.07 3 0.21 1 0.07The credit crisis and volatile commodity prices 0.10 - - - -of2008OPEC restrictions, civil wars and hurricanes. 0.08 2 0.16 1 0.08
    21. 21. Strengths Weight As TAS AS TAS1 Spending on alternative energy 3.2 billion since 0.07 3 0.21 3 0.21 2002.2 Continuous investment in high profile projects to 0.08 - - - - increase oil production.3 Outstanding earning $23.9 billion in 2008 0.11 2 0.22 4 0.444 Achieve HART energy publishing refiner of the year 0.08 2 0.16 3 0.24 award in 20095 Investment in 13 power generation projects in Asia 0.10 - - - - and us6 4th largest integrated energy company in the world. 0.08 2 0.16 3 0.247 Operating in more than 100 countries and with 0.10 1 0.10 4 0.40 around 25,000 service stations worldwide8 Had global refining capacity of more than 2 mm 0.08 1 0.08 3 0.24 barrel per day. weaknesses 71 % drop in income second quarter of 2009. 0.08 - - - - Marketing operations lost $95 million in second 0.05 - - - - quarter of 2009.
    22. 22. stop drilling new gas wells in us 0.05 - - - -continent.51 % decrease in revenue. 0.07 - - - -Chemicals – significantly lower 0.05 - - -- -margins, lower income from equity.Total 1.00 2.84 4.20S # 1= invest in solar and wind energy = 2.84S# 2= invest in biofuels = 4.20
    23. 23. Recommendations• Should have to sale its chemical business because it becomes dog.• Should invest in wind and solar energy.•Start exploration of gas wells•Get help from technology•Should invest in bio-fuel energy sources.•Should have to improve ethical operating standards

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