Chevron Corporation Strategic Plan

Case Study 2008

Submitted to: Dr. Cherine Soliman

Work Group:
 Bishoy Refaat
 Eman Sayed
 Islam Kamel
 Karim Hossam

October 11th, 2022

 Content
Company Introduction The Company Vision and Mission

01 • Where we are, 2008 outlooks

and Competition overview
02 • Vision, Mission & Values Analysis
With Modified Versions

Environmental Audit Long Term Objectives

03 • Internal & External Audit

Outlook
04 • Setting long term objective
for the upcoming 5 years

Strategy Matching Stage Selecting Company Strategy

05 • Matching Stage for

Strategies Generating &
06 • Evaluating alternative
strategies and landing the
Evaluating selected one

Strategy Implementation Strategy Evaluation

07 •Here you could describe the

topic of the section
08 •How to measure, Evaluate
and Control Performance
01
Company
Introduction
Company History
1879
Pacific Coast Oil Company 1900
(1st Oil Discovery in LA)

Aramco Standard Oil Company (SOCAL)

Partnership bought Pacific Oil Company
1936
Formualtion of Caltex Group World War II
(Texaco Joint venture) to expand
SCOAL E&p into Middle East and
1948
Indonesia
Chevron Chemical Company
1984 (Entered the petrochemical business)

The largest Merger in the history

beween SCOAL and Gulf Oil
(SCOAL became Chevron
2001
Corporation)
Chevron Acquired Texaco for $37.5
2005 billion (down stream and retail
businesses)
Chevron acquired Unocal and
became the largest producer of
Geothermal Energy
Company Profile
Exploration and Production Upstream

Refining, Marketing and

Transport Downstream

Chevron Chemicals Manufacturing

and Sales Chemicals

Power Generation
Clean Energy
Facts about Chevron (2008)

Conduct Business in More than 100 The Second Largest integrated Energy Company
Countries 01 01 in United States

5 Popular Consumer Brands (Chevron, 2.53 million Barrels of net oil-equivelent per day
Unocal, Texaco, Standard and Caltex) 0 0 (38% of US production)

66,000 Employees 13 Power Generating facilities investment

2008 Net Income was the highest in the

company History 04 04 25000+ Retail Outlets
02 Vision, Mission
and Values
 Company Vision

To be the global energy company most admired for its people,

partnership and performance.

Dream Inspiring
 Vision Analysis
Point of Analysis 1 2 3 4 5
Broad in scope 
Generate strategic alternatives 
Reconciles interests among diverse stakeholders 
Finely balanced between specificity & generality 
Arouse positive feelings & emotions and motivate reader 
Generate favorable impression of the firm 
rational/realistic 
Reflect future growth 
Clear and unambiguous. 
Short 
 Vision
“Modified”

Aspiring Excellence through Innovation

To be an innovative energy partner, delivering sustainable value

and industry leading Performance
 Mission
Chevron will strive to: provide energy products vital to sustainable economic progress
and human development throughout the world; have superior capabilities and
commitment both at the individual employee level as well as at the organizational level;
deliver world-class performance; and earn the admiration of all our stakeholders;
investors, customers, host governments, local communities and Chevron employees,
not only for the goals but how they are achieved.

Customers Survival, Growth, Profit Technology

Employees Philosophy Markets
Public Image Self Concept Products or services
 Mission Analysis
Point of Analysis 1 2 3 4 5

Organization and Product definition 

Broad enough to allow for growth 

Distinguishes firm from all others 

Framework for evaluating activities 

Clear and unambiguous. 
Feasibility 
Inspiring 
Conciseness 
Analytical 
Credibility 
 Mission Analysis

Point of Analysis 1 2 3 4 5

Relation with Employee 

Relation with stakeholders 

Relation with Environment 

 Mission
“Modified”

Chevron will strive to: provide energy products vital to sustainable economic progress
and human development throughout the world; have superior capabilities and
commitment both at the individual employee level as well as at the organizational level;
deliver world-class performance; and earn the admiration of all our stakeholders;
investors, customers, host governments, local communities and Chevron employees,
not only for the goals but how they are achieved with the most innovative technologies
and leading the development of future clean energy.
 Values & Beliefs Analysis
• Our company’s foundation is built on our values, which distinguish us and guide our actions to deliver results.
• We conduct our business in a socially and environmentally responsible manner, respecting the law and universal
human rights to benefit the communities where we work.
• “The Chevron Way” provides a foundation for what we value, what we believe and how we behave.
• Throughout our history, Chevron has been a place where trust, respect and humility define our culture and where
performance, truth and accountability guide the way.
• We believe the future of energy will be lower carbon, and we intend to be a leader in that future.”

Culture 
Environmental Responsibilities 
Accountability 
Human Rights 
Future Vision 
Corporate Social Responsibilities 
Corporate KPI 
03 Environmental
Audit
External Audit Analysis
• The External Factor Evaluation Matrix
• A complete environmental scanning for different factors
• Studied the Relationship between Key External Forces and the company
• Porter five forces analysis
• List Under Each category their Opportunities and Threats
• Selected the Most Important ones to be imbedded in the Matrix

• The Competitive Profile Matrix

• A detailed Studying for the Whole Peer Group (Exxon Mobil, Shell, BP and ConocoPhillips)
The External Factors Scanning
Opportunities Threats
• The Multidiversified Markets due to company
 • The impact of Volatile nature of O&G 
profiles
• The expected increasing Demand on fossil
Economic  • Low global economic growth 
fuels
• Oil price may increase due to Other company • oil price could sink to $20 per barrel due to
 
start to decrease production current huge supply
• The Negative Image of Oil prices vs company
  
greed
Social
• The expected workforce reduction due to markets
  
exiting
Cultural   • The Nationalization Trend in Some Countries  
• The expected Merger and Acquisition Wave • Geopolitical risk due to dependency on Non-
 
by the big five North America properties
Demographic • Iraq potential bidding for oil Lease   
• Huge market as Chevron business in more
   
than 100 countries.
• Consumer Trend to use more friendly and • Bad image for oil and gas company due to
  
clean Fuels environment effect
Environmental
• Chevron spent around 50% of top 5
   
investment in renewable Energy
The External Factors Scanning
Opportunities Threats
  • OPEC Restriction of Oil production 
Political   • The political control of the hosting countries  
    • civil wars at production countries 
• The Legal Requirements for operations in many
   
countries
Governmental
• Governmental Environmental and taxation
  
legislation
• The New Focusing of Low Cost Production
  
Operations
Technological
• The R&D Innovation in the field of
   
Exploration
• Strategic Alliance with Different Service
 • The Strong position of the 4 big competitors  
Sector Companies
Competitive • Alternative energy production is growing but
currently represents just 2 percent of global    
energy production
Legal     • OPEC Restriction of Oil production  
The EFE Matrix
  Opportunities Weight Rating Weighted Score
1. The Multidiversified Markets due to company profiles 0.07 4 0.28
2. The expected increasing Demand on fossil fuels 0.08 3 0.24
3. oil price may increase due to Other company start to decrease production 0.03 2 0.06
4. The expected Merger and Acquization Wave by the big five 0.05 3 0.15
5. Iraq potential bidding for oil Lease 0.08 4 0.32
6. Concumer Trend to use more friendly and clean Fuels 0.04 2 0.08
7. The New Focusing of Low Cost Production Operations 0.06 4 0.24
8. Strategic Alliance with Different Service Sector Companies 0.04 3 0.12

  Threats Weight Rating Weighted Score

1. The impact of Volatile nature of O&G 0.07 3 0.21
2. Low global economic growth 0.07 2 0.14
3. oil price could sink to $20 per barrel due to current huge supply 0.07 4 0.28
4. The Negative Image of Oil prices vs company greed 0.08 3 0.24
5. The expected workforce reduction due to markets exiting 0.07 3 0.21
6. Geopolitical risk due to dependancy on Non-North america properties 0.08 3 0.24
7. OPEC Restriction of Oil production 0.05 3 0.15
8. civil wars at production countries 0.03 2 0.06
9. Governmental Evironmental and taxation legislation 0.03 2 0.06
  TOTALS 1.00   3.08
The Competitive Profile Matrix (CPM)

  Chevron Exxon Mobil BP shell CocoPhilips

Critical Success
Weight Rating Score Rating Score Rating Score Rating Score Rating Score
Factors
Advertising 0.10 3 0.30 4 0.40 3 0.30 4 0.40 3 0.30
Market Penetration 0.10 4 0.40 4 0.40 4 0.40 4 0.40 3 0.30
Customer Service 0.05 4 0.20 0 0.00 2 0.10 0 0.00 0 0.00
Store Locations 0.10 3 0.30 4 0.40 4 0.40 4 0.40 3 0.30
R&D 0.05 4 0.20 4 0.20 3 0.15 4 0.20 4 0.20
Employee Dedication 0.05 2 0.10 3 0.15 3 0.15 3 0.15 4 0.20
Financial Profit 0.10 4 0.40 3 0.30 4 0.40 3 0.30 3 0.30
Customer Loyalty 0.10 3 0.30 3 0.30 3 0.30 3 0.30 3 0.30
Market Share 0.05 4 0.20 3 0.15 4 0.20 3 0.15 3 0.15
Product Quality 0.10 3 0.30 3 0.30 3 0.30 3 0.30 3 0.30
Top Management 0.10 3 0.30 4 0.40 4 0.40 3 0.30 4 0.40
Global Expansion 0.10 3 0.30 3 0.30 3 0.30 3 0.30 2 0.20
Totals 1.00   3.30   3.30   3.40   3.20   2.95
Internal Audit Analysis
• The Internal Factor Evaluation Matrix
• Complete Scanning and Evaluation for The Organization
• Management and Organizational Culture
• Production and Operations Department
• Health and Safety Department
• Marketing Department
• Finance and Accounting Department
• R&D and MIS Departments
 Management and Organizational Culture
• Massive Geographic Presence: Chevron has a wide geographic presence around the globe. It has operations in more
than 180 countries. Its major business is concentrated  in countries like US, Nigeria, Congo, Angola, Sierra Leone,
South Africa, China , Cambodia, Myanmar, Saudi Arabia, Russia, Denmark, Norway, Canada, Brazil, etc. (S)
• Organization Chart is ensuring complete integration between different business units to consolidate a clear strategy.
(S)
• The Second Largest integrated company in the united States and among the largest corporation in the world (S)
• Multi Diversified Profile that engage every aspect of the crude oil and natural gas industry, including exploration and
production, manufacturing, marketing and transportation, chemicals man­ufacturing and sales, geothermal, power
generation, and renewables. (S)
• Its global workforce consisted of approximately 66,000 employees at year-end 2008. (S)
• Bad Practice for laying off while shutting off bio-fuel business (W)

Enterprise Strategies
 Management and Organizational Culture
• Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business around
the world. (S)
• More than 2,400 employees completed Operational Excellence (OE) training and certification in 2008, bringing the
year-end total to 11,700 (18%). (S)
• 16,500 employees (25%) had completed the OE Leadership Roles and Behaviors session. (S)
• Women’s Business Enterprise National Council’s Top Corporations, for the sixth consecutive year (U.S.). (S)
• Chevron takes seriously the conduct of its employees and requires questionable conduct to be reported. (S)
• One reporting method is the Chevron Hotline, which is operated offsite by Global Compliance Services
(AlertLine®), an independent agent. (S)
• Being able to find new resources at a comparatively low cost is an important skill, especially when commodity
prices are falling. (S)
• The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow
its service locally and globally (W)
• Following the close of bio fuels sales, the company had exited the fuels-marketing business in 22 countries since
2004. (W)
Diversity and Inclusion
• Chevron Support Equal Employment Opportunity
• There is a target to increase Women in Energy percentage to reach 30% by 2015
 Production and Operations
• Provide clean, safe and reliable operations through operational excellence; (S)
• Chevron Operational Excellence Management System (OEMS) integrates safety, health, environmental, reliability
and efficiency objectives throughout the corporation. (S)
• Operational Excellence holds company leaders accountable for achieving results in the right way by behaving in
accordance with our values. (S)
• Stopping drilling new gas wells in the continental U.S. (W)

Upstream Downstream and Chemicals

Health and Safety
• Reduced the days-away-from-work injury rate to a level that is among the best in the industry (S)
Marketing
• Strong marketing on the environmentally friendly and human side of its world-class operations(S)
• Brand Value: Chevron ranks at the 63rd position according to the Brand Finance report. Its brand value stands
at $17.822 billion. It stands at the 5th largest company in the oil and sector in the world. (S)
• Chevron's marketing organization is responsible for the marketing, advertising, sale, and delivery of products
and services to retail, commercial, and industrial customers worldwide. This includes the 25,000 retail
outlets (S)
• Chevron markets under three main brands: Chevron, Texaco, and Caltex (S)
• Chevron focused in large part in its 2008 television campaign on the environmentally friendly and human
side of its world-class operations This type of reputation marketing is particularly important in an industry
with an image problem (S)
Marketing
• Chevron Fuel and lubricants are officially recommended by prominent Renault, Nissan, and Mitsubishi
Alliance members(S)
• The marketing network supports more than 25,000 retail outlets (S)
• Chevron as the most powerful gasoline brand in the United States for the fifth consecutive year. (S)
• Chevron sold gasoline with Techron in 27 countries, comprising 90 percent of the branded gasoline sold
worldwide. (S)
Finance and Accounting
• The stock performance graph at right shows how an initial investment of $100 in Chevron stock would have
compared with an equal investment in average industry or the Competitor Peer Group.

The comparison covers a five-year period beginning December 31, 2003, and ending December 31, 2008, and for the
peer group is weighted by market capitalization as of the beginning of each year. It includes the reinvestment of all
dividends that an investor would be entitled to receive and is adjusted for stock splits. The interim measurement points
show the value of $100 invested on December 31, 2003, as of the end of each year between 2004 and 2008.
Finance and Accounting
• Chevron is among the largest corporations in the world based on market capitalization as of December 31,
2008. (S)
• The net income results were the highest annual earnings in the company’s history in 2008.
• Chevron has had 21 consecutive annual increases in dividends, with dividends growing at an average annual
rate of 12 percent over the past 5 years. (S)
• The growth rate is 7 percent for the last 21 years. (S)
• Sales and other operating revenues totaled $265 billion with an overall net income of $23.9 billion for 2008.
(S)
• Over the last five years, cash returned to stockholders has totaled more than $46 billion, $25 billion in share
buybacks and over $21 MM in dividends. (S)
• The return on average stockholders’ equity is 29.2 percent for 2008.
Finance and Accounting
• Chevron has the complete integration from producing, refining to selling products. This ensures the
completion of the value chain process. It is present in every step of the way of the process right from
obtaining crude to selling the finished products. (S)
• Financial drop for revenues and profit 71 percent drop in their second quarter in 2009 profits to the lowest
level in five year (W)
• Last year’s return on capital employed (ROCE) for the corporation was 26.6 percent, and has been over 20
percent for each of the last 5 years. In 2008(S)
• Chevron’s ROCE was the second highest in its five-company peer group (ExxonMobil, Royal Dutch Shell,
BP, and ConocoPhillips). (S)
 R&D and MIS
• Finding and developing a major crude-oil and natural-gas
discovery is a complex process that can take more than 10
years to complete. (W)
• A rigorous management system is in place to ensure that
capital is directed to the most promising prospects and used
wisely in their execution. (S)
• Developing a field also requires the successful application of
the most advanced technology available, innovative and
experienced people, and partnerships based on mutual trust.
(W)
• Chevron is continuously trying to improve its technology to
decrease its carbon footprint and greenhouse emission while
trying to extract more fuel with fewer efforts (S)
• Chevron has increased its spending on R&D 18% year on
year since 2003 but remains behind the leaders. (W)

Exploration and Production Cycle

 IFE Matrix
  Strengths Weight Rating Weighted Score
1. Massive Geographic Presence: Chevron has a wide geographic presence around the globe. It has operations in more than
0.08 4 0.32
180 countries
2.
Complete Integration: Chevron has the complete integration from producing, refining to selling products. 0.10 4 0.40
3. Brand Value: Chevron ranks at the 63rd position according to the Brand Finance report. Its brand value stands at $17.822
0.10 4 0.40
billion
4.
Strong marketing on the environmentally friendly and human side of its world-class operations. 0.06 3 0.18
5. Strong HR who find new resources at a comparatively low cost is an important skill, especially when commodity prices are
0.05 3 0.15
falling
6. The company’s convenience store brand, ExtraMile, was ranked as the number-one convenience store by an independent
0.05 3 0.15
survey for the second year in a row
7.
Reduced the days-away-from-work injury rate to a level that is among the best in the industry 0.04 4 0.16
8. 16,500 employees (25%) had completed the OE Leadership Roles and Behaviors session. 0.08 3 0.24
9. Chevron has had 21 consecutive annual increases in dividends, with dividends growing at an average annual rate of 12
0.07 3 0.21
percent over the past 5 years.

  Weaknesses Weight Rating Weighted Score

1.
Chevron has increased its spending on R&D 18% year on year since 2003 but remains behind the leaders. 0.10 1 0.10
2. Strategy of adapting a greener Work practice 0.09 1 0.09
3. stopping drilling new gas wells in the continental U.S. 0.08 2 0.16
4. The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its
0.05 1 0.05
service locally and globally
5.
  Following the close of these sales, the company will have exited the fuels-marketing business in 22 countries since 2004. 0.05 2 0.10

  TOTALS 1.00   2.71

04 Long Term
Objectives
 Chevron Long Term Objectives
Increase Global Market Share by 20%.

Maintain Net profit incrementally increasing by 15 %.

Increase Dividends/ Stakeholders shares by 15%.

By 2013
Rank among the top five in the Oil and Gas R&D activities.

Be the pioneer to implement the Green/Renewable Energy Initiatives with profitability by

2013

Achieve the Highest among intellectual human Assets “Capacity Building”

Enterprise Strategies
 Strategy
05 Matching Stage
Matching Stage
• Several Matrices have been analyzed to evaluate and land all
alternative possible strategies
• The Matching Stage Matrices are
• SWOT Matrix
• SPACE
• IE Matrix
• BCG Matrix
• Grand Matrix
SWOT Matching
Strengths Weaknesses
1 Massive Geographic Presence: Chevron has a wide geographic presence around the globe. It has
operations in more than 180 countries Chevron has increased its spending on R&D 18% year on year since 2003 but
2 Complete Integration: Chevron has the complete integration from producing, refining to 1
remains behind the leaders.
selling products.
3 Brand Value: Chevron ranks at the 63rd position according to the Brand Finance report. Its brand 2 Strategy of adapting a greener work practice
value stands at $17.822 billion 3 Stopping drilling new gas wells in the continental U.S.
4 Strong marketing on the environmentally friendly and human side of its world-class operations.
5 Strong HR who find new resources at a comparatively low cost is an important skill, especially when The business has experienced a shortage of technical and financial resources, which
4
commodity prices are falling has reduced its ability to grow its service locally and globally
6 The company’s convenience store brand, ExtraMile, was ranked as the number-one convenience
store by an independent survey for the second year in a row  Following the close of these sales, the company will have exited the fuels-
5
7 Reduced the days-away-from-work injury rate to a level that is among the best in the industry marketing business in 22 countries since 2004.
8 16,500 employees (25%) had completed the OE Leadership Roles and Behaviors session.
9 Chevron has had 21 consecutive annual increases in dividends, with dividends growing at an
average annual rate of 12 percent over the past 5 years.

Opportunities SO Strategy WO Strategy

1 The multidiversified markets due to company profiles
2 The expected increasing demand on fossil fuels
3 Oil price may increase due to other company start to decrease production
4 The expected merger and acquisition wave by the big five
5 Iraq potential bidding for oil lease
6 Consumer trend to use more friendly and clean fuels
7 The new focusing of low cost production operations
8 Strategic alliance with different service sector companies
• Open more 10 % more stores at each country to support down stream sales and
improve market penetration (S1,O1)
• Target on joint venture with BP in north Africa “horizontal integration” (S1,O1)
• Open new market in IRAQ “market penetration” (S1,O5)
• Increase investment in exploration activities by 20% (S2,O2,O3)
• PR release in Arabic to show chevron value to Iraq market , to prepare for project
award (S3,O5)
• Invest 15 % more in clean energy research and technology (S4,O6)
• Decrease operation cost by 10 % keeping same production level (S5,S8,O7)
• Forward integration with 100 more convenient and retail stores (S6,O8)
• Proceed with a strong strategic alliance to boost the downstream and clean energy
sectors. (S9,O8)
• Invest 15 % more in clean energy research and technology (W1,O6)
• Open 2 new R&D centers dedicated for studying new techniques for cost
optimizations practices (W1,O3,O7)
• Decrease flare gas emission by 20% and decrease organic waste in working sites by
40% (W2,O6)
• Target to have joint venture with ExxonMobil company which have highest number
of gas wells in US (W3,W5,O4)
• Vertical strategy to fulfill the strategy alliance and increase market share (W4,W1,O8)
• Direct 50% of bio fuel budget to be added to upstream activities (W5,O2)
• Market development by increase drilling and production activities in US and other
countries by 30% (W3,O2)

Threats ST Strategy WT Strategy

1 The impact of volatile nature of O&G
2 Low global economic growth
3 Oil price could sink to $20 per barrel due to current huge supply
4 The negative image of oil prices vs company greed
5 The expected workforce reduction due to markets exiting
6 Geopolitical risk due to dependency on non-north America properties
7 OPEC restriction of oil production
8 Governmental environmental and taxation legislation
• Use advertising to show price decrease to consumer and increase brand value , and
direct 30% of marketing budget into improving the company image (S3,S4,T3,T4)
• Close sites with legal environmental issues to keep best market image (S4,T8)
• Develop a resource orchestration strategy for company discipline to be able to work
under workforce capacity of 75% of all disciplines to reduce termination rate by 10 %
(S5,T5)
• Hire fresh calibers to decrease labor cost (S5,T2,T3)
• Plan for a conservative dividends plan of 10% per year w.r.t net profit ratio (S9,T1)
• Invest more in renewable energy (W1,T3)
• Decrease flare gas emission by 20% and decrease organic waste in working sites by
40% (W2,T8)
• Exist from low market profit bio fuel sector and focus to increase sites in US
(W3,W5,T2)
• Develop a resource orchestration strategy for company discipline to be able to work
under workforce capacity of 75% of all disciplines to reduce termination rate by 10
% (W4,T2,T5)
 SPACE Matrix
Internal analysis: External analysis: Conservative
FP
Aggressive
7
Financial position (FP) Stability position (SP) 6

Return on investment (ROI) increased 2.7 %

3 Demand variability -1 5
comparing with 2007 4

Net income was 23.9 M$ and increased by

4 Technological changes very few -4 3

28% comparing with last year 2

Increase the total revenue by 23% 3 Competitive pressure -6 1

Working capital (ROCE) for the corporation was CP IP

-7 -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 7
26.6 percent, and has been over 20 percent for -1

each of the last 5 years. In 2008, chevron's 4 Risk of involved in business -7 -2

X-Axis: 0.8
ROCE was the second highest in its five-
company peer group
-3
Y-Axis: - 1.2
-4
Achieving annual growth 12 % for dividend over
3 Barriers to entry into market -5 -5
past 5 years higher than closest competitor -6

Financial position (FP) average 3.4 Stability position (SP) average -4.6 -7

  Defensive SP Competitive

Internal analysis: External analysis:

Competitive position (CP) Industry position (IP)
Market share 3rd in market share globally -3 Growth potential 5
Product quality (standardized product quality) -4 Financial stability (volatile industry ) 2
Technological know-how (continues need for Regulation for geographic expansion( entry into
-3 2
RND) market )
Control over suppliers and distributors
(complete integration cycle between suppliers -2 Resource utilization (high lay off rate) 3
and distributers)
    Profit potential 7
Competitive position (CP) average -3 Industry position (IP) average 3.8
 BCG Matrix

 Backward, Forward, or
Horizontal Integration  Market Penetration
 Market Penetration  Market Development
 Market Development  Product Development
 Product Development  Divestiture

1 2 4

Division Revenue % Net Profit $m Net Profit %

1. Upstream 47% 18,187 76%
2. Downstream 49% 6,222 25%
3. Chemicals 1% -239 -1%
4. Renewable Energy 1% 239.31 1%
  100 23,931 100
3  Retrenchment
 Divestiture
 Liquidation
 2.71
IE Matrix

3.08
Grand Matrix
06
Strategy
Selection
 QSPM Matrix
     
      Global Expansion in Joint venture with Increase Market Share in
Clean Energy (Product ExxonMobil Company Upstream Sector (Market
Development) (Horizontal Integration) Development)
     
  Opportunities Weight AS TAS AS TAS AS TAS
1. The Multidiversified Markets due to company profiles 0.07 4 0.28 4 0.28 4 0.28
2. The expected increasing Demand on fossil fuels 0.08 1 0.08 4 0.32 4 0.32
3. oil price may increase due to Other company start to decrease production 0.03 3 0.09 4 0.12 4 0.12
4. The expected Merger and Acquization Wave by the big five 0.05 3 0.15 4 0.20 2 0.10
5. Iraq potential bidding for oil Lease 0.08 3 0.24 4 0.32 4 0.32
6. Concumer Trend to use more friendly and clean Fuels 0.04 4 0.16 1 0.04 1 0.04
7. The New Focusing of Low Cost Production Operations 0.06 3 0.18 2 0.12 2 0.12
8. Strategic Alliance with Different Service Sector Companies 0.04 3 0.12 3 0.12 3 0.12

  Threats Weight AS TAS AS TAS AS TAS

1. The impact of Volatile nature of O&G 0.07 4 0.28 1 0.07 1 0.07
2. Low global economic growth 0.07 2 0.14 2 0.14 1 0.07
3. oil price could sink to $20 per barrel due to current huge supply 0.07 3 0.21 2 0.14 2 0.14
4. The Negative Image of Oil prices vs company greed 0.08 4 0.32 2 0.16 2 0.16
5. The expected workforce reduction due to markets exiting 0.07 3 0.21 2 0.14 3 0.21
6. Geopolitical risk due to dependancy on Non-North america properties 0.08 4 0.32 4 0.32 2 0.16
7. OPEC Restriction of Oil production 0.05 4 0.20 4 0.20 2 0.10
8. civil wars at production countries 0.03 4 0.12 3 0.09 3 0.09
9. Governmental Environmental and taxation legislation 0.03 4 0.12 3 0.09 2 0.06
 QSPM Matrix
     
     
Global Expansion in Joint venture with ExxonMobil Increase Market Share in
Clean Energy (Product Company (Horizontal Upstream Sector (Market
Development) Integration) Development)
     

  Strengths Weight AS TAS AS TAS AS TAS

1. Massive Geographic Presence: Chevron has a wide geographic presence around the globe. It
has operations in more than 180 countries 0.08 3 0.24 4 0.32 3 0.24
2. Complete integration: Chevron has the complete integration from producing, refining to
selling products. 0.10 4 0.40 4 0.40 3 0.30
3. Brand Value: Chevron ranks at the 63rd position according to the Brand Finance report. Its
brand value stands at $17.822 billion 0.10 4 0.40 4 0.40 3 0.30
4. Strong marketing on the environmentally friendly and human side of its world-class operations.
0.06 4 0.24 3 0.18 3 0.18
5. Strong HR who find new resources at a comparatively low cost is an important skill, especially
when commodity prices are falling 0.05 3 0.15 3 0.15 3 0.15
6. The company’s convenience store brand, ExtraMile, was ranked as the number-one
convenience store by an independent survey for the second year in a row 0.05 0 0.00 0 0.00 0 0.00
7. Reduced the days-away-from-work injury rate to a level that is among the best in the industry
0.04 2 0.08 3 0.12 4 0.16
8. The net income results were the highest annual earnings in the company’s history. 0.08 3 0.24 3 0.24 4 0.32
9. Chevron has had 21 consecutive annual increases in dividends, with dividends growing at an
average annual rate of 12 percent over the past 5 years. 0.07 3 0.21 3 0.21 3 0.21

  Weaknesses Weight AS TAS AS TAS AS TAS

1. Chevron has increased its spending on R&D 18% year on year since 2003 but remains behind
the leaders. 0.10 4 0.40 1 0.10 2 0.20
2. When comparing Chevron with its competitors from 2003 to 2007, Chevron had a 106 percent
resource replacement through exploration ratio. This is approximately 40 percent higher than 0.09 2 0.18 2 0.18 3 0.27
the nearest competitor
3. stopping drilling new gas wells in the continental U.S. 0.08 3 0.24 4 0.32 2 0.16
4. The business has experienced a shortage of technical and financial resources, which has
reduced its ability to grow its service locally and globally 0.05 3 0.15 3 0.15 2 0.10
5.   Following the close of these sales, the company will have exited the fuels-marketing business
in 22 countries since 2004. 0.05 3 0.15 3 0.15 4 0.20
 Company Capabilities
However the product development strategy by invest more in Renewable Energy Product is the highest
score in QPSM Matrix, Our Selected strategy will be Market development by increase our market share in
the upstream industry as it matches our company culture.

On other hand we advise the company to start prepare the resources and start to adapt the organization
culture to accept the renewable energy gross in the future
07
Strategy
Implementation
Strategy Implementation
• In this critical step we will plan following activities
• Establish the annual target for increase of Market share by 5% yearly to achieve 20% over 4 Years
• Establish the annual target For increase of Net profit and Dividends for shares by 4% yearly to achieve 15% over
4 Years
• Establish Target for Investment in RND and Renewable Energy .

• Set up new policies that support Achieve the Highest among intellectual human Assets “Capacity Building”
• Plan for More Resources to cover the need for Market development strategy that company plan to implements .
• Create new incentive Plan to encouragement all employees to achieve new strategy targets.
• Start to reallocate Engineers from Bio chemical lines to Upstream activity to support the increase in production and
market development strategy.
• Link each sector yearly bounce by there performance and KPIs to achieve the annual targets .
• Adapt the marketing Strategy and all relegated marketing activities to support the new strategy of Market
development . And also start to develop customer awareness about renewable energy to let them ready to accept new
product on long term.
• Agree on the implementation budget and align with finance team to prepare all needed resources for implementation .
• Reconstruct RND department to match the digitalization concept , and depend on AI technology to invent more product
updates that support marketing development strategy.
08
Strategy
Evaluation
Strategy Evaluation
• Measure following Targets each quarter to confirm the trend of increase will match the targets for Market share
increase , Annual net Profit increase and for excepted dividend .
• Confirm by KPIs that polices and targets is feasible and confirming that we still have competitive advantage after
implementing the new polices.
• Continuously review both IFE and EFE matrixes and incase of huge deviation happen , we must start the analysis from
beginning as in this case new strategy should be implemented.
• Evaluate Exxon Mobile and BP reaction for the new implemented strategy.
Thank You
 Chevron
Corporation
Content
• Company Introduction
• Vision, Mission, Values Analysis
• External Audit Outlook
• Internal Audit Outlook
• Long Term Objectives
• Matching Stage for Strategies Generating & Evaluating
• Selecting Company Strategy
• How to implement Our Strategy
• How to measure, Evaluate and Control Performance
 Strengths Weaknesses
SWOT Matching 1.

2.
Massive Geographic Presence: Chevron has a wide geographic presence around the globe.
It has operations in more than 180 countries
Complete Integration: Chevron has the complete integration from producing, refining to
1.

2.
Chevron has increased its spending on R&D 18% year on year since 2003
but remains behind the leaders.
Strategy of adapting a greener work practice
selling products. 3. Stopping drilling new gas wells in the continental U.S.
3. Brand Value: Chevron ranks at the 63rd position according to the Brand Finance report. Its 4. The business has experienced a shortage of technical and financial
brand value stands at $17.822 billion resources, which has reduced its ability to grow its service locally and
4. Strong marketing on the environmentally friendly and human side of its world-class globally
operations. 5. Following the close of these sales, the company will have exited the fuels-
5. Strong HR who find new resources at a comparatively low cost is an important skill, marketing business in 22 countries since 2004.
especially when commodity prices are falling
6. The company’s convenience store brand, ExtraMile, was ranked as the number-one
convenience store by an independent survey for the second year in a row
7. Reduced the days-away-from-work injury rate to a level that is among the best in the
industry
8. 16,500 employees (25%) had completed the OE Leadership Roles and Behaviors session.
9. Chevron has had 21 consecutive annual increases in dividends, with dividends growing at
an average annual rate of 12 percent over the past 5 years.

Opportunities SO Strategy WO Strategy

1. The multidiversified markets due to company profiles   • Invest 15 % more in clean energy research and technology (W1,O6)
2. The expected increasing demand on fossil fuels • Open more 10 % more stores at each country to support down stream sales and improve • Open 2 new R&D centers dedicated for studying new techniques for cost
3. Oil price may increase due to other company start to decrease market penetration (S1,O1) optimizations practices (W1,O3,O7)
production • Target on joint venture with BP in north Africa “horizontal integration” (S1,O1) • Decrease flare gas emission by 20% and decrease organic waste in working
4. The expected merger and acquisition wave by the big five • Open new market in IRAQ “market penetration” (S1,O5) sites by 40% (W2,O6)
5. Iraq potential bidding for oil lease • Increase investment in exploration activities by 20% (S2,O2,O3) • Target to have joint venture with ExxonMobil company which have highest
6. Consumer trend to use more friendly and clean fuels • PR release in Arabic to show chevron value to Iraq market , to prepare for project award number of gas wells in US (W3,W5,O4)
7. The new focusing of low cost production operations (S3,O5) • Vertical strategy to fulfill the strategy alliance and increase market share
8. Strategic alliance with different service sector companies • Invest 15 % more in clean energy research and technology (S4,O6) (W4,W1,O8)
• Decrease operation cost by 10 % keeping same production level (S5,S8,O7) • Direct 50% of bio fuel budget to be added to upstream activities (W5,O2)
• Forward integration with 100 more convenient and retail stores (S6,O8) • Market development by increase drilling and production activities in US and
• Proceed with a strong strategic alliance to boost the downstream and clean energy sectors. other countries by 30% (W3,O2)
(S9,O8)

Threats ST Strategy WT Strategy

1. The impact of volatile nature of O&G • Use advertising to show price decrease to consumer and increase brand value , and direct • Invest more in renewable energy (W1,T3)
2. Low global economic growth 30% of marketing budget into improving the company image (S3,S4,T3,T4) • Decrease flare gas emission by 20% and decrease organic waste in working
3. Oil price could sink to $20 per barrel due to current huge supply • Close sites with legal environmental issues to keep best market image (S4,T8) sites by 40% (W2,T8)
4. The negative image of oil prices vs company greed • Develop a resource orchestration strategy for company discipline to be able to work under • Exist from low market profit bio fuel sector and focus to increase sites in US
5. The expected workforce reduction due to markets exiting workforce capacity of 75% of all disciplines to reduce termination rate by 10 % (S5,T5) (W3,W5,T2)
6. Geopolitical risk due to dependency on non-north America • Hire fresh calibers to decrease labor cost (S5,T2,T3) • Develop a resource orchestration strategy for company discipline to be able
properties • Plan for a conservative dividends plan of 10% per year w.r.t net profit ratio (S9,T1) to work under workforce capacity of 75% of all disciplines to reduce
7. OPEC restriction of oil production termination rate by 10 % (W4,T2,T5)
8. Governmental environmental and taxation legislation