Strategic Management Accounting of Caltex Australia Limited

Running Head: Caltex Australia Limited
STRATEGIC MANAGEMENT
ACCOUNTING

Caltex Australia Limited 1
Executive Summary:
Caltex Australia Limited is one among the leading corporations of the Energy sector of
Australia. This report sets out the vision, mission, goals and objectives of the business of
Caltex. As a part of this report the company’s value chain analysis will be undertaken to
create a better understanding of company’s business. Further, the analysis of all the forces
that influences the performance of the company is undertaken in the further section of the
report is undertaken. This analysis has been undertaken in accordance with the porter’s five
forces model. Further, the external stakeholders of the business are identified as government,
suppliers, customers, finance providers etc. The annual report of Caltex has also been
reviewed to identify the performance measures of the company and RCOP (NPAT), total
shareholder’s return, Convenience retail measure etc.

Caltex Australia Limited 2
Table of Contents
Executive Summary:..................................................................................................................2
Introduction:...............................................................................................................................4
Part A: Value Creation...............................................................................................................4
1. Value: Diagram of Value Chain Analysis of Caltex Limited.........................................4
2. Vision and Mission of Caltex..........................................................................................6
3. Goals and objectives of Caltex........................................................................................6
Part B: Strategic Management:..................................................................................................7
1. Porter’s Five Forces Model.............................................................................................7
 Threats of the new entrants:........................................................................................8
 Bargaining Power- Suppliers:......................................................................................8
 Bargaining Power- Customers:....................................................................................8
 New Substitute product’s threat:.................................................................................9
 Threat of rivalries:.......................................................................................................9
2. External stakeholders of Caltex:.....................................................................................9
Part C: Performance Measurement:........................................................................................10
1. Performance measures..................................................................................................10
2. Reward system of top executives..................................................................................11
Conclusion:..............................................................................................................................12
References................................................................................................................................13

Caltex Australia Limited 3
Introduction:
Caltex Australia is a company that is listed on the Australian Stock Exchange. Headquarter of
the company is located in Sydney, Australia. The company was incorporated in the year 1900
(Caltex, 2018). Caltex deals in petroleum products and as a part of its business it is engaged
in purchase, refinement, selling and distribution of petroleum products across the Australian
country as well in other countries like New Zealand and Singapore. The company operates
through various segments such as supply & marketing segments, Lytton Segments (Caltex,
2017).
Part A: Value Creation
1. Value: Diagram of Value Chain Analysis of Caltex Limited
Inbound
Logistics
Operations Outbound
Logistics
Marketing and
Sales Service
Distribution of
Petroleum
Product
Refining of
Petroleum
Products
Warehousing
Shipment
Customer
value,
convenience
retailing
Customer
Service
Primary Activities
Procurement Technological
Development
Human
Resource Infrastructure
Secondary Activities
Purchasing
raw material
Product
Design
R&D
Recruiting,
hiring, training
General
management
Finance