Mobil USM&R

Mobil USM&R

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Presented By:

Adam Nurmohamed

Heidi Kwok

Pearl Law

Mandy Wong

Sean Ma

July 26, 2010

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Backgrounds Analysis Problems

Alternatives Recommendation Implementation

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World top 3 in integrated oil, gas and petrochemical

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Exploration & Producing

Marketing & Refining

ChemicalMining & Minerals

Real Estate Marketing & Refining

Background Analysis Recommendation Implementation

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5th largest U.S. refiner Gasoline products 7% of national share Finished lubricants products 12% of market share

Marketing & Refining


Current Situation

High expense

Dealer’s short term

goal

New potential strategy

6Background Analysis Recommendation Implementation

Stakeholders

• Managers & Employees• Customers – dealers & customers• Mobil Suppliers • Mobil C-stores • Mobil Shareholders • Creditors, banks


Development Process • Launched in 1994 by Renaissance Solutions• Senior-level executive leadership team (ELT)

guided• Interviews to extract ELT ideas about BSC • Developed objectives & measures for 4 BSC

perspectives


Critical Elements

• Bottom-up communications

• Feedback from employees

• Management support


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Road warriors true blues generation f3 homebodies priceshoppers0

0.05

0.1

0.15

0.2

0.25

0.3

0.16 0.16

0.27

0.21 0.2



Road warriors true blues generation f3 homebodies priceshoppers0

0.05

0.1

0.15

0.2

0.25

0.3

0.16 0.16

0.27

0.21 0.2

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Friendly

SafeFast


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Problems

Alignment of strategy to Organization’s

Mission

Centralized organization

Low customer service

High cost

Unclear strategy

Short-term decisions

Undesired brand image


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BSC

Tie measurement

with organization’s

strategy

Provide other performance measures

Employee support/

commitment


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Mission

Use innovations and technology to provide top-quality services and products to their valuable customers through dealerships and direct services.


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Decision Variables

Alignment with Strategy

45%

Feasibility30%

Efficiency

25%


24Background Recommendation

2 Alternatives

Employee and customer oriented

Quality service to create

sustainable brand

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Employee /customer oriented

• Productivity• Lower costs• Working environment• Customer loyalty• Dealer relationships

Background Recommendation

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Pros Cons


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Quality Oriented

• Brand image• Customer satisfaction• Higher quality of products/service• Competitive advantage


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Pros Cons


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Decision EvaluationDecision Criteria Weights Internal + External Brand

Alignment with strategy

45% 36% 22%

Feasibility 30% 20% 24%

Efficiency of results 25% 22% 17%

Total 100% 78% 63%


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Recommendation

MissionFinancial

Learning and Growth

Internal Business Process

Customer

Mission


Customer


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Objective MeasuresCustomer retention Percentage of customers

retained

Attracting new customers Number of new customers

Increase market share Market share in the industry

Customer satisfaction Surveys

Customer


Customer-sub Team

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Objective MeasuresDevelop profitable dealers Dealer profitability

Dealer satisfaction Surveys

Increase in sales Dealer sales growthCustomer


Dealer-sub Team

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Objective MeasuresProcess improvements Production cycle time

Minimize product waste / defects

Number of wasted / defective products

Reduce delivery time Order delivery time



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Gas/Membership CardsRecord of customer purchasesEasier purchasingDealer assessments

Customer SurveysQuality of service measuredEstimation of retention rate

Customer


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Bulk purchasingProfit margin increases

Refund/return policy5% refundable products recycle and reuse

Dealer


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Cost Reduction/Profit IncreasesDowntimeBrandExpenses

BSC familiarizationNBU



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Results

Short term Long Term

Operational ImprovementsCustomer base increase

Dealer partnerships

Knowledge baseProfitability

Competitive Advantage


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Summary

Desired financial performance

Align measurements with strategy

Process management

Climate surveys

Strategic Gas cards


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Thank you for listening

Questions?

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• Return on capital employed• Cash Flow• Profitability• Operating expense• Volume growth for gasoline sales

Financial

Mobil USM&R

Documents

Transcript of Mobil USM&R