Strategic Management Accounting for Caltex Australia Limited

This presentation provides an overview of Caltex Australia Limited, its primary and support activities, vision and mission, Porter's Five Forces analysis, external stakeholders, performance measures, and reward system of top executives. The presentation concludes with the opportunities and threats available for Caltex in the energy sector.

STRATEGIC
MANAGEMENT
ACCOUNTING
CALEX AUSTRALIA LIMITED

INTRODUCTION
• Caltex Limited is an ASX listed
company.
• It is engaged in the business of
supplying transportation fuel.
• It also has various convenience
stores across the country.

Value Chain Analysis
Primary Activities: Support Activities
 Inbound Logistics
 Operations
 Outbound
Logistics
 Marketing and
Sales
 Procurement
 Technological
Development
 Human Resources
 Infrastructure

Caltex’s Vision and
Mission
Vision:
• To become the leading oil
refining company in
Australia.
Mission:
• To supply and distribute fuel
as well as lubricant products
to different markets.

Porter’s Five Forces of
Caltex
 Threat of new entrants-
Low
• High entry barriers
• Customers loyalty towards
existing brand.
 Threat of Substitutes-
Low
• Limited Substitutes

Continued..
 Threat of Existing Rivalries: Low
• Few competitors
 Threat of bargaining power supplier:
Low
• High competition among suppliers
 Threat of bargaining power supplier:
Low
• Large number of buyers
• Limited buyer’s choice
• Importance of Caltex’s products

Caltex’s External
Stakeholders
 Customers
 Suppliers
 Government
 Providers of Finance:
• Shareholders
• Banks and Financial Institutions

Caltex Performance
Measures
 Replacement cost of sales operating
profit (RCOP) NPAT
 Total shareholder’s return
 Strategic growth measure
 Strategic convenience retail measure
(Caltex, 2017).

Reward System of Top
Executives
 MD and CEOs: STI opportunity: Increase
10% of Basic Salary from 60% to 70%
 Other senior Executives: STI opportunity:
Increase 10% of Basic Salary from 50% to
60%

Continued…
 Audit and Human Resources
Committee Chairperson: Increment
of $10,000 in sitting fee.
 Non-executive directors: Increase in
base fees of 2%
 OHS & Environmental Risk Chairman:
Increment of $4,000 (Caltex, 2018).

Conclusion
• The business of Caltex is being
operated successfully.
• Huge opportunities are available for
Caltex in Energy Sector.
• Along with opportunities various
threats are also there.

References
• Caltex (2017) About Caltex [online]. Available from
http://microsites.caltex.com.au/annualreports/2017/
[accessed 7 September 2018]
• Caltex (2018) Our Vision [online]. Available from
http://microsites.caltex.com.au/annualreports/2007/caltex/4
060_CaltexsVision,ValuesandStrategicIntents.html
[accessed 7 September 2018]
• Caltex (2018) Our Company Proudly fuelling Australia
since 1900 [online]. Available from
https://www.caltex.com.au/our-company [accessed 7
September 2018]