Phillips 66

Executive Summary

This assignment is based on the business analysis of one of the top 500 U.S. listed companies according to the publication of Forbes magazine (Roush, 2012). Phillips 66 has been chosen to asses all the basic business fundamentals that entails in to place in the top five hundred U.S. companies. Phillips 66 is an energy manufacturing company with leading business segments of Midstream, Refining and Marketing (R&M), and Chemicals operates among the leading business leaders of the market. This manuscript covers the overview of the company, strategic analysis and its effectiveness to the industry and global markets. It concludes with the three tests for the winning business strategy to assess the current position and prognosis of the company in the industry.

I.Company Overview1

A.Organizational Overview1

Corporate Structure1

Culture2

`Sales3

History3

Industry Position4

B.Mission Statement4

C. Strategic Vision Statement4

D. Internal Leadership5

II. Strategic Analysis5

A.Five-Forces Model of Competition Chart5

B.SWOT Analysis Table7

C. Social Responsibility, Corporate Sustainability and the Environment9

D. Corporate Culture and Superior Strategy Execution10

III. Strategic Effectiveness Analysis12

A.Organizational Structure and Strategy12

B.Corporate Cultures and Strategy15

References20

Appendices22

Phillips 66

Company Overview

Organizational Overview

Phillips 66 is a holding company with wide array of business portfolio as petrochemicals and producer of natural gas liquids (NGL). On 1st May, 2012, it began its function of trading on the New York Stock Exchange (Applegate & Osborn, 1998). Phillips 66 has set up its headquarter operations in Texas, Westchase, and Houston with the workforce of approximately fourteen thousand (14,000) employees globally.

Corporate Structure

Phillips 66 works under the corporate umbrella of three business segments. These business segments include Midstream, Chemicals, Refining & Marketing (R&M). The wide network of this company operates fifteen refineries equipped with a capacity of 2.2 million barrels per day of net crude oil. This assortment includes ten thousands of branded marketing channels and a network of fifteen thousand miles of channel systems. The Midstream segment of Phillips 66 accomplishes processes in LLC and DCP Midstream (Applegate & Osborn, 1998). These are largest U.S. gas gatherers and processors, which acquired fifty percent interest and gross processing of 7.2 billion cubic feet natural gas capacity each day. Chevron Phillips Chemical Company LLC (CPChem), associated it as one of the top manufacturers of polyolefins and olefins globally. This process of refinery operations was facilitated due to the join strategic venture of the United States and the Middle East.

Greg Garland is the chairman and Chief Executive Officer (CEO) of this company. Previously, he has worked as senior vice president of Exploration and Production (E&P), Americas. His visionary leadership as CEO of this company is due to his previous association with CPChem as president. He has affiliated with ConocoPhillips for last thirty one years (Applegate & Osborn, 1998).

The right course of emphasis on the business segments of chemicals and midstream with the efforts of upgrading the refining portfolio is the strategic function of his leadership. Directing capital for high-return midstream and chemicals might result in an overall diversified portfolio and higher-return in last five years. Share purchases and shareholder return are future focuses for refining capital expenditure and self-funding options ...