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 Set 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 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