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Efe and CPM Matrix - JG Summit

The document analyzes key external factors and strategic success factors for JG Summit Olefins Corporation. It finds that JG SOC has an overall weighted rating of 3.12 for external factors, above average, indicating it is performing well relative to opportunities and threats. It also compares JG SOC to competitors on critical success factors, finding JG SOC has the highest total score of 3.75, demonstrating major strengths in areas like customer loyalty, technology, and financial capacity.

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Engelyn Bondoc
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115 views11 pages

Efe and CPM Matrix - JG Summit

The document analyzes key external factors and strategic success factors for JG Summit Olefins Corporation. It finds that JG SOC has an overall weighted rating of 3.12 for external factors, above average, indicating it is performing well relative to opportunities and threats. It also compares JG SOC to competitors on critical success factors, finding JG SOC has the highest total score of 3.75, demonstrating major strengths in areas like customer loyalty, technology, and financial capacity.

Uploaded by

Engelyn Bondoc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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S T R AT E G I C M A N A G E M E N T

KEY EXTERNAL FACTORS


O P P O RT U N I W R AT I WEIGHTED
TIES
Local Collaborations GT
0.05 NG3 SCO RE
0.15

Adhere to international quality and


0.1 4 0.4
safety standards
Increasingly prioritize sustainability
0.08 4 .32
and environmentally friendly practices

Job Opportunities 0.07 3 0.21

Technological Advances 0.1 3 0.3


Proximity to the market 0.1 2 .2

Supply chain intergration 0.07 3 0.21

Reconfiguring business model 0.05 2 0.1


KEY FACTORS
Threats W R AT I WEIGHTED
M a r k e t Vo l a t i l i t y 0.1 G T N4G S C.O
4 RE

Environmental Regulations 0.04 2 0.08

E n e rg y C o s t 0.04 2 0.08

Competitive Pressures 0.07 3 0.21

Currency Exchange Rates 0.1 4 .4

Changing Demographics 0.03 2 0.06

Total : 3.12
Based on JG Summit Olefins Corporation’s external factors evaluation, the company has gained an
overall weighted rating of 3.12, above the average score of 2.5. Given the said value, this indicates
the JG SOC is performing well in relation to its external environment by taking advantage of existing
opportunities and being able to overcome the threats the corporation is facing. Some of these external
issues are the following

• Changing Demographics
• Energy Cost
• Environmental Regulation
• Reconfiguring Business Model
• Proximity to the Market
Complex Profile Matrix
critical jG summit ExxonMobil First In
W
sucess factors olefin corporations Product Solutions Colours
GT
Rate Score Rate Score Rate Score

1.Ease of Location 0.20 3 0.60 2 0.40 3 0.60


2.Price competition 0.05 3 0.15 3 0.15 2 0.10
3.relationship with the
0.05 4 0.2o 3 0.15 3 0.15
suppliers

4.customer loyalty 0.30 4 1.20 3 0.90 3 0.90


5.technology 0.20 4 0.80 3 0.60 2 0.40
6.financial capacity 0.20 4 0.80 4 0.80 3 0.60
To t a l : 1.00 3.75 3 2.75
r a t i n g : 4 = M a j o r s t r e n g t h , 3 = m i n o r s t r e n g t h , 2 = m i n o r w e a k n e ss , 1 = m a j o r w e a k n e s s
1. Ease of Location
JG SummitOlefins Corporation caters clients from the Philippines and Southeast Asia , their
current location provides geographic proximity and logistical advantages, reducing shipping
costs and lead times. It garnered a weighted average of 3%implying that the said factor has
an average impact on JG Summit Olefins Corporation's location. With a rating of 3 giving a
total score of .60, shows that their company’s geographic location can make a significant
impact in their business since it targets their potential costumers.
2. Price Competition
The JG Summit is one of the leading conglomerates in the Philippines, and itsprice
competitiveness is a key factor in its success. From consumer goods to oil and gas, the company
has managed to keep its prices competitive in an ever-changing market. The company has done
this through careful cost management and a focus on efficiency. This has allowed JG Summit to
remain cost-competitive, even as its product offerings expand. Furthermore, the company has
also looked to innovate and create new products and services that give customers better value
for their money. This has enabled the company to stay ahead of the competition and maintain its
price competitiveness.
3. Relationship with the Suppliers
The existence of numerous suppliers within an industry indicates the availability of ample raw
materials for production purposes. This situation presents an opportunity for companies in the
industry to expand their product offerings and increase the quantity of goods available for sale,
thereby broadening the array of products accessible to customers. This factor was assigned a weight
of 5%. A rating of 4 was given to JG Summit Olefins Corporation as they focus on building strong
and collaborative relationships with their suppliers. They follow principles and practices in their
supplier relationships. However, they consider details regarding suppliers confidential or proprietary
information and may not be publicly disclosed.
4. Customer Loyalty
Businesses today focus on maintaining satisfied as well as loyal customers to ensure
effectiveness in the midst of steep competition. Hence, meeting customer expectations and
catering to their needs automatically helps in attracting clients and encourages repeat
purchases. A weighted average of 3% has an average impact on JG Summit Olefins
Corporation's profitability level. With a rating of 4 giving a total score of 1.2, shows that
their clients’ loyalty is the most important factor in their business development since has
been in the business industry for about 66 years now
5. Technology
The use of technology in terms of the production in the corporation produces a heavy weight
to the course of the business. A weight of 20% is given for this factor as it is considered an
essential factor to the business petrochemical industry’s innovation and sustainability. The
corporation's main production involves the technologically advanced devices that generate
petrochemical products.
6. Financial Capacity
The financial capacity factor assesses a company's capability to both sustain its operations
and allocate funds effectively. In this instance, it was determined by comparing key financial
ratios to those of competitors and was given a 20% weighting in the evaluation. It seems that
JG Summit Olefins Corporation has proven its capacity to secure sufficient funds for daily
business expenses. This is a positive sign of their financial wellbeing, indicating their ability
to operate smoothly without encountering financial challenges.

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