CALTEX PAKISTAN


INTRODUCTION

Chevron Pakistan is a wholly-owned subsidiary of Chevron Corporation,
one of the world’s leading integrated energy companies. Headquartered
in San Ramon, California, Chevron conducts business in more than a
100 countries and has a diverse and highly-skilled global workforce of
approximately 58,000 employees.
Being the world’s fourth largest oil company, Chevron is engaged in
every aspect of the oil and natural gas industry, including exploration
and production; refining, marketing and transportation; chemicals
manufacturing and sales; and power generation. In 2001, Caltex became
a part of Chevron-Texaco Corporation, which four years later changed
its name to Chevron Corporation. The Chevron-Texaco merger fostered
many natural synergies with Caltex, including shared standards of
performance and operational excellence geared to being a consistent
leader in the marketplace.
The company has an extensive presence in the country with a nationwide retail network consisting of 538 petrol outlets. Chevron was the
first in modernizing its retail outlets, installing electronic dispensers and
implementing Customer Service Systems. It was also the first oil
marketing company to launch a CNG station in Islamabad in 1996. Its
modern testing laboratory, fully equipped with the latest equipment
coupled with fully documented procedures, was the first ISO 9000
accredited Oil Testing Facility in the country. Chevron is also the
pioneer in establishing convenience stores at retail outlets and
introducing co-branded Cards in the market.


Chevron Pakistan is also the industry-leader in quality Lubricants in the

commercial, industrial and consumer marketplace.

Chevron Pakistan is highly committed to setting the industry standards
for safety and environmental protection, having recently received three
international awards in recognition of its world-class Health,
Environment and Safety Standards.
As an equal opportunity employer, Chevron is proud of having women
employed in key management positions across different departments.
With 98% of its employees worldwide being local nationals, Chevron is
a part of the community it serves.
Chevron Pakistan is actively engaged in community engagement
activities in the country. We have established enduring partnerships with
highly reputable NGOs and educational institutions. We support
educational projects for underprivileged primary school children and are
also contributing towards quality higher education. We also help provide
free healthcare and basic education and vocational training to deserving
women in an underprivileged community. In 2011, we have partnered
with a leading Cancer Hospital to provide free treatment to patients.
Caltex recorded an after tax profit of $530 million for the 2013 full year.
This includes significant gains of approximately $26 million (after tax).
This compares to the 2012 full year profit of $57 million, which
included significant items of $309 million (after tax) in respect of future
costs relating to the closure of the Kurnell refinery. The 2013 result
includes a product and crude oil inventory gain of $172 million after tax,
compared with an inventory loss of $92 million after tax in 2012.


CURRENT STRATEGIC DIRECTION:
VISION & MISSION STATEMENT
“Our energy fuels a brighter future”.

“We are Caltex. We are passionate about energy. We think and act like
business owners and we're in the business of serving customers. We are
trailblazers, we move swiftly, expect to win and exercise care in
everything we do.”

EVALUATION MISSION & VISION STATEMENT
I think this company’s mission and vision statement has got all the
components of an effective statement i.e. We are passionate about energy
reflects technological aspect and also that they are dealing with the fuel
and oil industry that reflects the market, We think and act like business
owners reflects their philosophy, we're in the business of serving
customers reflects customer component. We are trailblazers reflects that
they are guider and innovating leaders for their employees. We move
swiftly reflects survival growth strategy. Expect to win is their self
concept and exercise care in everything we do reflects positive public
image.


VALUES


MAIN COMPETITORS OF CALTEX ARE:

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Shell
PSO
Total

Attock Oil Company limited

LEVELS OF STRATEGIES:
Strategic Plan sets direction, aligns organization and differentiates them
from the competition. It guides actions to successfully manage risk and
deliver shareholder value.
Enterprise Strategies
People
Invest in people to strengthen organizational capability and develop a
talented global workforce that gets results the right way
Execution
Execute with excellence through rigorous application of our operational
excellence and capital stewardship systems and disciplined cost
management
Growth
Grow profitably by using our competitive advantages to maximize
value from existing assets and capture new opportunities
Major Business Strategies
Upstream
Grow profitably in core areas and build new legacy positions


Downstream and Chemicals
Deliver competitive returns and grow earnings across the value chain
Gas and Midstream
Apply commercial and functional excellence to enable the success of
Upstream and Downstream & Chemicals
Technology
Differentiate performance through technology
Renewable Energy and Energy Efficiency

Invest in profitable renewable energy and energy efficiency solutions

SWOT ANALYSIS
Strengths
1. barriers of market entry
2. high growth rate
3. skilled workforce
4. high profitability and revenue.
Weaknesses
1. high loan rates are possible
2. future profitability
3. costs
4. competitive market
Opportunities
1. new acquisitions


2. growing economy
3. new markets
4. income level is at a constant increase
5. growing demand
6. new products and services
7.
Threats
1. global economy
2. growing competition and lower profitability
3. financial capacity
4. government regulations
5. external business risks
6. unexpected problems


ANAYSIS OF EXTERNAL ENVIRONMENT

PEST ANALYSIS:
PEST analysis stands for "Political, Economic, Social, and
Technological analysis" and describes a framework of macroenvironmental factors used in the environmental scanning component of
strategic management.

POLITICAL FACTOR
 A powerful influence over the production of oil and the price is
made by instable situation from the Middle East, where every


conflict could disturb oil production and transport, resulting in the
rising of oil price.

 Crude oil prices have risen dramatically over the last few years,
driven by strong global demand, limited spare oil production
capacity, and continuing political instability in certain oil
producing regions.
 Taxes take up a significant component of the price in a litre of fuel,
but it varies from product to product. Tax rates can be as high as
almost half the cost of fuel.

ECONOMICAL FACTOR
 In any market situation, supply and demand imbalances can affect
prices in the short term. Supply shortages typically cause upward
price pressure, and can result from an unplanned refinery outage,
pipeline problems, or an unforeseen increase in demand.
Conversely, length of supply, where supply exceeds demand, can

result in downward price pressure.
 Generally, price adjustments in the market affect short-term
supply-demand imbalances and bring supply and demand back into
balance. Whether in a situation of supply tightness or length, price
will eventually bring the supply-demand balance into equilibrium
by attracting additional supply or influencing demand.
SOCIAL FACTOR


 Chevron Pakistan is actively engaged in community engagement
activities in the country. They have established enduring
partnerships with highly reputable NGOs and educational
institutions. They support educational projects for underprivileged
primary school children and are also contributing towards quality
higher education also help in providing free healthcare and basic
education and vocational training to deserving women in an
underprivileged community. In 2011, they partnered with a leading
Cancer Hospital to provide free treatment to patients.
TECHNOLOGICAL FACTOR
 Chevron Pakistan has a clear technological advantage and is
responsible for the introduction of modern operational concepts in
the industry. Chevron Pakistan’s state-of-the-art computerized
lubricating oil blending plant, set up and commissioned at the West
Wharf Terminal, Karachi is a prime example of its superior
technology. It is also the country’s first oil company to acquire ISO
14001:2004 International Environmental Management System for
its West Wharf Laboratory and West Wharf Lube Blending Plant.

ENVIRONMENTAL FACTOR
 Geographic position influence the activity of oil companies

because it defines the distances between exploitation, refiners and
consumers, or could influence the demand for oil because of
transports, international trade and migration.
 Caltex is committed towards making fuel efficient and less engine
emitter products


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Caltex with Techron is unbeatable at keeping fuel systems clean.
The unique formulation also minimizes any contribution to
harmful combustion chamber deposits which can cause increased
emissions of nitrogen oxides.