Stratma Matrices SHELL

PILIPINAS SHELL PETROLEUM CORPORATION CORPORATION STRATEGIC PLANNING MATRICES

PILIPINAS SHELL S HELL PETROLEUM CORPORATION CORPORATION INTERNAL FACTOR EVALUATION (IFE) MATRIX Key Internal Factors

e!"#t

STREN$THS 1 Strong market posion 2 Good locaon 3 Decreased gearing rao (27% in 2016 from 37% in 2015; gearing rao measre of  4 Do!led net pro"t dri#en !$ retail performance 5 esponsi!le energ$ pro#ision (eco&friendl$ ad#ocacies' EAKNESSES 1 eliance on oil !ased importaon 2 istor$ of ta) cases 3 ig* s*ipping cost de to imported oil 4 +rademark considered to !e assets of S*ell Grop instead of ,S,5 .)posed to foreign crrenc$ e)c*ange risks arising from crrenc$ /ctaons TOTAL CHECKING OK

Legend:   Weight:

 

0.0 = nt i!"#t$nt 1.0 = %&e&' i!"#t$nt ($ting%: 1= !$)# *e$+ne%% 2= !in# *e$+ne%% 3= !in# %t#ength 4= !$)# %t#ength

Rat!n"

0.16 0.11 0.16 0.19 0.12

4 3 4 4 3

0.07 0.08 0.05 0.03 0.03 1.00

2 2 2 1 1 OK

 

PILIPINAS SHELL S HELL PETROLEUM CORPORATION CORPORATION INTERNAL FACTOR EVALUATION (IFE) MATRIX Key Internal Factors

e!"#t

STREN$THS 1 Strong market posion 2 Good locaon 3 Decreased gearing rao (27% in 2016 from 37% in 2015; gearing rao measre of  4 Do!led net pro"t dri#en !$ retail performance 5 esponsi!le energ$ pro#ision (eco&friendl$ ad#ocacies' EAKNESSES 1 eliance on oil !ased importaon 2 istor$ of ta) cases 3 ig* s*ipping cost de to imported oil 4 +rademark considered to !e assets of S*ell Grop instead of ,S,5 .)posed to foreign crrenc$ e)c*ange risks arising from crrenc$ /ctaons TOTAL CHECKING OK

Legend:   Weight:

 

0.0 = nt i!"#t$nt 1.0 = %&e&' i!"#t$nt ($ting%: 1= !$)# *e$+ne%% 2= !in# *e$+ne%% 3= !in# %t#ength 4= !$)# %t#ength

Rat!n"

0.16 0.11 0.16 0.19 0.12

4 3 4 4 3

0.07 0.08 0.05 0.03 0.03 1.00

2 2 2 1 1 OK

 

e!"#te% Score

0.64 0.33 0.64 0.76 0.36 0.14 0.16 0.10 0.03 0.03 3.19

PILIPINAS SHELL PETROLEUM CORPORATION EXTERNAL FACTOR EVALUATION (EFE) MATRIX Key External Factr! OPPORTUNITIES 1 Demand for fel increases 2 mpro#ement in glo!al informaon and tec*nolog$ s$stem 3 Dialoge co&operaon and le#el grond compeon 4 ,romoons folloing trends 5 arket strctre4 G, THREATS 1 Depleon of natral energ$ resorces 2 8el prices are reglated !$ organi9aon in oil of !ig pla$ers 3 peraonal risk and s!stons 4 Go#ernment reglaons 5 .n#ironmental las TOTAL CHECKING Legend:   Weight:

 

0.0 = not important 1.0 = o!e!" important #ating: 1= repone i poor  2= repone i a$erage 3= repone i a%o$e a$erage 4= repone i &perior 

"e#$%t

*K

Rat#n$

"e#$%te& Scre

0.12

4

0.4'

0.10

3

0.30

0.10

3

0.30

0.0(

2

0.1'

0.12

4

0.4'

0.11

3

0.33

0.0(

2

0.1'

0.0'

2

0.1)

0.0'

2

0.1)

0.11 1.00

3

0.33 2.(0

*K

PILIPINAS SHELL PETROLEUM CORPORATION INTERNAL'EXTERNAL MATRIX

IFE T STRONG 4.0 3.( 3.' 3.+ 3.) 3.5 3.4 3.3 3.2 3.1 3.0

4.0 3.( 3.' 3.+ 3.)    H    G    I 3.5    H 3.4 3.3 3.2 3.1 3.0

  !   e   r      c    S    &   e    t    %   $    #   e    "    l   a    t       T    E    F    E

2.( 2.' 2.+ 2.)    M    U    I 2.5    (    E 2.4    M 2.3 2.2 2.1 2.0 1.( 1.' 1.+ 1.)    " 1.5    O    L 1.4 1.3

2.( 2.' 2.+

1.2 1.1 1.0

,a!&e E/E I/E LE G# #E6

#a2.(0 3.1(

#o&nded *   2.( 3.2

Gro-  &i!d Ho!d  aintain Har$et or 6i$et

tal "e#$%te& Scre! AVERAGE 2.) 2.5 2.4 2.3 2.2 2.1 2.0

"EAK 1.( 1.' 1.+ 1.) 1.5 1.4 1.3 1.2 1.1 1.0

IE atri7 i a trategi8 too! %aed on the interna! and e7terna! a8tor o the organi9ation. /rom the 8a!8&!ated I/E atri7 o i!ipina ;he!!< the tota! -eighted 8ore i 3.1( or 3.2 -hi8h ho- that the 8ompan" ha a high interna! trength.  or the E/E atri7< it ho- a tota! -eighted 8ore o 2 .(0 -hi8h ho- that the 8ompan" ha a a!mot high a%i!it" to repond to it e7terna! a8tor. he IE atri7 &gget that i!ipina ;he!! ho&!d Gro- and &i!d. he entit" ho&!d o8& o n trategie !i>e ar>et enetration< ar>et 6e$e!opment< rod&8t 6e$e!opment< and Hori9onta!< /or-ard and a8>-ard Integration.

PILIPINAS SHELL PETROLEUM CORPORATION COMPETITIVE PROFILE MATRIX (CPM) CRITICAL SUCCESS FACTORS

"e#$%t

1 ri8e 2 rand 3 N&m%er o ran8he and /ran8hie 4 ar>et ;hare 5 ;er$i8e *ered ) e8hno!ogi8a! Capa%i!it" + d$ertiing ' G!o%a! reen8e ( C&tomer Lo"a!t"?#e-ard 10 /inan8ia! roit

0.10 0.13 0.12 0.13 0.10 0.11 0.05 0.0' 0.10 0.0' 1.00

TOTAL

CHECKING Legend:   Weight:

 

0.0 = not important 1.0 = o!e!" important #ating: 1= ma@or -ea>ne 2= minor -ea>ne 3= minor trength 4= ma@or trength

PILIPINAS SHELL PETROLEUM CORPORATION "e#$%te& Rat#n$ Scre

*K

3 4 4 3 4 4 4 4 4 4

*K

PHOENIX Rat#n$

0.30 0.52 0.4' 0.3( 0.40 0.44 0.20 0.32 0.40 0.32 3.++

4 2 2 2 3 3 2 1 3 3

*K

PETRON

"e#$%te& Scre

Rat#n$

0.40 0.2) 0.24 0.2) 0.30 0.33 0.10 0.0' 0.30 0.24 2.51

3 4 4 4 4 4 4 3 4 4

*K

"e#$%te& Scre 0.30 0.52 0.4' 0.52 0.40 0.44 0.20 0.24 0.40 0.32 3.'2

PILIPINAS SHELL PETROLEUM CORPORATIO TO"S MATRIX

1 2 3

4 5 OPPORTUNITIES 1 6emand or &e! in8reae

2

Impro$ement in g!o%a! inormation and te8hno!og" "tem

3

6ia!og&e< 8oAoperation and !e$e! gro&nd 8ompetition

4

romotion o!!o-ing trend

5

ar>et tr&8t&re: *LIG**L

THREATS 1 6ep!etion o nat&ra! energ" reo&r8e

2

/&e! pri8e are reg&!ated %" organi9ation in o i! o %ig p!a"er

3

*perationa! ri> and &%tit&tion

4

Go$ernment reg&!ation

5

En$ironmenta! !a-

N

STRENGTHS ;trong mar>et poition Good !o8ation 6e8reaed gearing ratio B2+D in 201) rom 3+D in 2015 gearing ratio mea&re o the degree to -hi8h operation are inan8ed %" de%t

1 2 3

6o&%!ed net proit dri$en %" retai! perorman8e

4

#eponi%!e energ" pro$iion Be8oAriend!" ad$o8a8ie

5

SO STRATEGIES

arket ,enetraon & :er more promoons (eg ego 8errari' to take ad#antage of t*e do!led net pro"t t*s en*ancing its pro"ta!ilit$ and gaining more cstomers (S1 S< <'

,rodct De#elopment & =li9e modern tec*nolog$ to manfactre and e)plore more sorces of !io&oils in t*e contr$ !t considering ,S,->s eco&friendl$ ad#ocacies (S5 2 5'

,rodct De#elopment & -o&operate to certain re"neries and increase t*e nm!er of are*oses fel terminals and import facilies in t*e ,*ilippines and a?erards ma)imi9ing t*e demand t*at t*e compan$ recei#es from its consmers (S2 S3 2 3'

arket ,enetraon & ncrease en#ironmental ad#ocacies !$ spporng more tree&planng ac#ies and eco&friendl$ dri#es as part of t*e compan$>s corporate social responsi!ilit$ as t*is old not onl$ impro#e p!lic image !t old also take part in re"ning t*e natre (S5 <'

arket De#elopment & ncrease gas staons t*at old !e accessi!le to all kinds of tra#elers as t*is old increase sales de to *ig* demand of gasoline it* limited compeon in t*e market (S2 5' ST STRATEGIES

=nrelated Di#ersi"caon & mpro#e cas*&genera#e matre !sinesses *ic* ill nderpin S*ell>s "nancial performance !$ p@ng p con#enience stores and ot*er non&fel retail o:erings to its esta!lis*ed !ranc*es (S1 S< +1'

arket De#elopment & .)pand t*e !ranc*es in good locaons sc* as in maAor *ig*a$s !$ making more BS*ell of Csia to aEract more cstomers t*s generate more income (S2 +2'

Fackard De#elopment & =li9e ,S,- >s facilies and infrastrctres (eg re"ner$ are*oses fel terminals' ell to a#oid se of s!sttes and e)pending to nrelated sorces of energ$ (S3 +3'

=nrelated Di#ersi"caon & .sta!lis* food park near gas staons to aEract more cstomers and generate more income (S1 +2 +<'

arket ,enetraon & ncrease de#elopment of en#ironmental ad#ocacies in taking part of folloing en#ironmental las and reglaons ,S,- ma$ spport more eco&friendl$ marat*ons and tree&planng ac#ies to preser#e and protect t*e en#ironment (S5 +5'

"EAKNESSES #e!ian8e on oi! %aed importation Hitor" o ta7 8ae High hipping 8ot d&e to imported oi!

rademar> 8onidered to %e aet o ;he!! Gro&p intead o ;C E7poed to oreign 8&rren8" e78hange ri> ariing rom 8&rren8" !&8t&ation "O STRATEGIES

,rodct De#elopment & a#e a dialoge it* competors to co& operate it* t*eir respec#e re"neries and to ork *and&in& *and in e)ploring ne sorces of oil&!ased prodcts (1 2 3 5' ori9ontal ntegraon & 8ocs on promong t*e disnct S*ell prodcts (eg 8elSa#e H&,oer' to increase compe#e ad#antage o#er competors to gain poer in t*e market t*erefore ge@ng t*e least cost for t*e sppl$ of oil at ma)imm !ene"t (1 < < 5'

arket ,enetraon & Strengt*en t*e market strateg$ !$ making more promoons or gi#ing free!ies to aEract more cstomers +*is a$ ,S,- ill ma)imi9e its sales to e)ceed cost incrred on imported oil (3 2 <'

,rodct De#elopment & Clign t*e local !randing of S*ell it* its internaonal standards and li9e t*e !rand !$ coping p it* ne tec*nologies from its internaonal partners (< 1 2'

arket ,enetraon & Since glo!al informaon and tec*nolog$ s$stem is no impro#ed ,S,- ma$ dec rease its e)posre to foreign e)c*ange risks !$ li9ing t*e modern tec*nolog$ to plan its ming of importaon seElements (5 2' "T STRATEGIES

,rodct De#elopment & n#est on ne tec*nologies related to prodcing oil from !iological prodcts a#aila!le in t*e ,*ilippines (1 +1 +5'

-ompl$ it* go#ernment rles on ta)es (2 +<'

arket ,enetraon & =li9e t*e sage of t*e trademark t*r making more ad#ersements and p@ng p more sorces of income like con#enience stores and fast&foods t*s ill *elp t*e compan$ generate more sales despite of controlled prices !$ an organi9aon (< +2'

arket ,enetraon & ,lan t*orog*l$ t*e ming of importaon seElements it* related pares and considering t*e forecast of foreign e)c*ange rates (5 +2 +<'

arket ,enetraon & Fild more re"neries and are*oses to accommodate t*e !ranc*es and franc*ises naonide (3 +3'

PILIPINAS SHELL STRATEGIC POSITION  ACTION EVALUATION (SPACE) MATRIX

FINANCIAL STRENGTH 1 te8hno!ogi8a! inno$ation 2 trong %rand eF&it" and re8ognition 3 8ot ee8ti$e o!&tion 4 10D de8reae on gearing ratio

Rat#n$

A-era$e COMPETITIVE AVANTAGE 1 high F&a!it" -or>or8e 2 %rand image 3 8&tomer retention and a8F&iition 4 pri8ing

Rat#n$

A-era$e Legend:   #ating: 1= Wort )= et

Val*e 4 4 4 3 3.+5 Val*e A1 A1 A3 A3 A2

EXTERNAL STRATEGIC PO ENVIRONMENTAL STA+ILIT, 1 po!iti8a! &n8ertaintie 2 e8o!ogi8a! a8tor   3 te8hno!ogi8a! 8hange 4 8orr&ption in oi! %&ine

INUSTR, STRENGTH 1 gro-th potentia! 2 a$ai!a%i!it" o &%tit&te 3 high entr" 8ot 4 e7teni$e reear8h de$e!opment

 

SITION Rat#n$

A-era$e Rat#n$

A-era$e

Val*e A3 A5 A3 A4 A3.+5

0

Val*e ) 5 ) 5 5.5

poiti$e negati$e

3.5

negati$e poiti$e

PILIPINAS SHELL STRATEGIC POSITION  ACTION EVALUATION (SPACE) MATRIX

F#nanc#al Stren$t% Cn!er-at#-e

. . . . . . . . . . . . .

C/0et#t#-e A&-anta$e

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

A$$re!!#-e

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

. . x . . . . . . . . . .

. . . . . . . . . . . . .

e1en!#-e

#a-

#o&nded * 

3.5

4

0

0

. . . . . . . .

. . . . . . . . . . . .

. . . . . . . . . . . . .

. . . . . . . . . . . . .

C/0et#t#-e En-#rn/ental Sta2#l#ty

,a!&e  7i  a7i

. . . .

;CE atri7 i &ed to identi" -hat trategie the 8ompan" need to &nderta>e &ing it interna! and e7terna! a8tor. aed on the ;CE atri7< i!ipina ;he!! i on the &adrant 1 or on  ggrei$e ide -hi8h mean a!! the dimenion are 8onidered poiti$e. he 8ompan" ho&!d 8onider trategie -hi8h 8an aggrei$e!" gro- the %&ine name!": ar>et enetration< ar>et 6e$e!opment< rod&8t 6e$e!opment< Hori9onta!< /or-ard and a8>-ard Integration trategie< and #e!ated and nre!ated 6i$erii8ation trategie. In&*!try Stren$t%

PILIPINAS SHELL PETROLEUM CORPORATION +CG MATRIX

Relat#-e Mar3et S%are 0.5 H#

%$1

0

STARS

L4

5UESTION MARKS

20D

   %    t   4      r    G   !   e    l   a Me&#*/    S   y   r    t   !   *    &   n    I

   %    t   4      r    G   !   e    l   a    S   y   r    t   !   *    &   n    I

0

A20D

CASH CO"S

POOR OGS

L4

Relat#-e Mar3et S%are

;HELL

E#*N

H*ENI

#KE ;H#E B6*E

20.2

30.2

).(

#ELI,E #KE ;H#E

0.)+

1.00

0.23

A12.1(D

A4.54D

1.+4D

#KE G#*WH #E

CG atri7 i a %&ine too! &ed to e $a!&ate the trategi8 poition o the %&ine %rand porto!io and it potentia! %aed on it ind&tr" gro-th rate and re!ati$e mar>et hare. he CG atri7 ho- that i!ipina ;he!! a!! &nder the third F&adrant 8a!!ed Cah Co- -ith a mar>et hare o 20.2D and a A12.1(D gro-th rate. hi mean that i!ipina ;he!! ha a high mar>et hare %&t -ith a !o-Agro-ing ind&tr". he trategie to %e imp!emented are rod&8t 6e$e!opment< 6i$erii8ation< 6i$etit&re< and #etren8hment.

PILIPINAS SHELL GRAN STRATEG, MATRIX

Ra0#& Mar3et Gr4t%

5UARANT 6

5UARANT 7

  n       #    t    #   !       P   e      #    t    #    t   e   0   /       C   $   n      r    t    S

  n       #    t    #   !       P   e      #    t    #    t   e   0   /       C    3   a   e    "

5UARANT 8

5UARANT 9

Sl4 Mar3et Gr4t%

STRATEGIES 5UARANT 6 Mar3et e-el0/ent Mar3et Penetrat#n Pr&*ct e-el0/ent Hr#:ntal Inte$rat#n #-e!t#t*re L#;*#&at#n

5UARANT 7 Mar3et e-el0/ent Mar3et Penetrat#n Pr&*ct e-el0/ent Fr4ar& Inte$rat#n +ac34ar& Inte$rat#n Hr#:ntal Inte$rat#n Cncentr#c #-er!#1#cat#n

5UARANT 8 Retrenc%/ent Cncentr#c #-er!#1#cat#n Hr#:ntal Inte$rat#n Cn$l/erate #-er!#1#cat#n #-e!t#t*re L#;*#&at#n

5UARANT 9 Cncentr#c #-er!#1#cat#n Hr#:ntal Inte$rat#n Cn$l/erate #-er!#1#cat#n <#nt Vent*re!

Grand ;trateg" atri7 i an intr&ment or 8reating dierent and a!ternati$e trategie or the organi9ation %aed on t-o dimenion: 8ompetiti$e poition and mar>et gro-th. With the Grand ;trateg" atri7< i!ipina ;he!! a!! on the &adrant 4 -hi8h mean that the 8ompan" ha a trong 8ompetiti$e poition %&t -ith a !omar>et gro-th. he trategie to %e &ed or thi F&adrant are #e!ated and nre!ated 6i$erii8ation< Hori9onta! Integration< and Joint ,ent&re.

PILIPINAS SHELL PETROLEUM CORPORATION GRAN STRATEG, MATRIX

Ra0#& Mar3et Gr4t%

5UARANT 6

5UARANT 7

5UARANT 8

5UARANT 9

  n       #    t    #   !       P   e      #    t    #    t   e   0   /       C    3   a   e    "

Sl4 Mar3et Gr4t%

STRATEGIES 5UARANT 6 Mar3et e-el0/ent Mar3et Penetrat#n Pr&*ct e-el0/ent Hr#:ntal Inte$rat#n #-e!t#t*re L#;*#&at#n

5UARANT 7 Mar3et e-el0/ent Mar3et Penetrat#n Pr&*ct e-el0/ent Fr4ar& Inte$rat#n +ac34ar& Inte$rat#n Hr#:ntal Inte$rat#n Cncentr#c #-er!#1#cat#

5UARANT 8 Retrenc%/ent Cncentr#c #-er!#1#cat#n Hr#:ntal Inte$rat#n Cn$l/erate #-er!#1#cat#n #-e!t#t*re L#;*#&at#n

5UARANT 9 Cncentr#c #-er!#1#cat# Hr#:ntal Inte$rat#n Cn$l/erate #-er!#1#ca <#nt Vent*re!

  n       #    t    #   !       P   e      #    t    #    t   e   0   /       C   $   n      r    t    S

 

t#n

*W; ar>et enetration ar>et 6e$e!opment rod&8t 6e$e!opment Hori9onta! Integration /or-ard Integration a8>-ard Integration #etren8hment 6i$etit&re LiF&idation nre!ated 6i$erii8ation #e!ated 6i$erii8ation Joint ,ent&re

CG #I

IE G#N6 ;CE #I ;#EG #I *L 1 1 2 1 1 2 1 1 1 8 E8oAriend! 1 1 1 8 1 1 2 1 1 2 1 1 1 1 0 1 1 1 8 1 1 1 8 1 1

impro$e o!8!eaner energ"

PILIPINAS SHELL PETROLEUM CORPORATION 5UANTITATIVE STRATEGIC PLANNING MATRIX PROUCT KE, FACTORS

"e#$%t

OPPORTUNITIES 1 6emand or &e! in8reae 2 Impro$ement in g!o%a! inormation and te8hno!og" "tem 3 6ia!og&e< 8oAoperation and !e$e! gro&nd 8ompetition 4 romotion o!!o-ing trend 5 ar>et tr&8t&re: *LIG**L THREATS 1 6ep!etion o nat&ra! energ" reo&r8e 2 /&e! pri8e are reg&!ated %" organi9ation in oi! o %ig p!a"er 3 *perationa! ri> and &%tit&tion 4 Go$ernment reg&!ation 5 En$ironmenta! !a- TOTAL STRENGTHS 1 ;trong mar>et poition 2 Good !o8ation 3 6e8reaed gearing ratio B2+D in 201) rom 3+D in 2015 gearing rati 4 6o&%!ed net proit dri$en %" retai! perorman8e 5 #eponi%!e energ" pro$iion Be8oAriend!" ad$o8a8ie "EAKNESSES 1 #e!ian8e on oi! %aed importation 2 Hitor" o ta7 8ae 3 High hipping 8ot d&e to imported oi! 4 rademar> 8onidered to %e aet o ;he!! Gro&p intead o ;C 5 E7poed to oreign 8&rren8" e78hange ri> ariing rom 8&rren8" !&8 TOTAL TOTAL ATTRACTIVENESS SCORES CHECKING *K Legend:  ttra8ti$ene ;8ore 1= not a88epta%!e 2= poi%!" a88epta%!e 3= pro%a%!" a88epta%!e 4= mot a88epta%!e

Attract#-ene!! Scre!

0.12 0.10 0.10 0.0( 0.12

4.00 3.00 4.00 3.00 4.00

0.11 0.0( 0.0' 0.0' 0.11 1.00

3.00 2.00 3.00 2.00 2.00

0.1) 0.11 0.1) 0.1( 0.12

4.00 4.00 3.00 2.00 3.00

0.0+ 0.0' 0.05 0.03 0.03 1.00

2.00 2.00 3.00 2.00 2.00

*K

EVELOPMENT

IVERSIFICATION

"e#$%te& Attract#-ene!! Scre!

Attract#-ene!! Scre!

0.4' 0.30 0.40 0.2+ 0.4'

3.00 4.00 2.00

0.33 0.1' 0.24 0.1) 0.22 3.0)

3.00

0.)4 0.44 0.4' 0.3' 0.3)

4.00 4.00 4.00 2.00

0.14 0.1) 0.15 0.0) 0.0) 2.'+ 5.(3

2.00

*K

HORI=ONTAL INTEGRATION

"e#$%te& Attract#-ene!! Scre!

Attract#-ene!! Scre!

"e#$%te& Attract#-ene!! Scre!

0.00 0.30 0.40 0.00 0.24

4.00 3.00 4.00 3.00 2.00

0.4' 0.30 0.40 0.2+ 0.24

0.00 0.2+ 0.00 0.00 0.00 1.21

3.00 2.00 3.00 2.00 2.00

0.33 0.1' 0.24 0.1) 0.22 2.'2

0.)4 0.44 0.)4 0.3' 0.00

4.00 4.00 4.00 2.00 3.00

0.)4 0.44 0.)4 0.3' 0.3)

0.00 0.00 0.00 0.0) 0.00 2.1) 3.3+

2.00 2.00 2.00 2.00 2.00

0.14 0.1) 0.10 0.0) 0.0) 2.(' 5.'0

*K