Strategic Planner
Case Study: The Director of
Strategic Planning & Analysis for the olefins business of a large Integrated Oil & Gas
firm needs to present an outlook to the Board to inform the possible divestment of some
unprofitable assets. She needs access to credible data, must analyze the full value
chain (from crude oil to feedstocks and end use demand) and need to present
upside/downside risks to their outlook. A full understanding of the competitor landscape
is also required. Currently the strategic planner uses competing data but is frustrated
that the energy market assumptions are no longer transparent, meaning the basis of the
chemicals forecasts are unclear. The planner is finding this problematic in ensuring a
consistent outlook across their energy and chemicals businesses.
Key Challenges
- Value Chain Analysis: Analyzing the entire value chain from crude oil extraction to
the final olefins products. This requires a deep understanding of each stage,
including production, refining, and distribution processes, and how they impact
costs and profitability.
- Risk Assessment: Identifying and presenting both upside and downside risks to the
outlook. This includes evaluating market volatility, geopolitical risks, regulatory
changes, and technological advancements that could affect the olefins business.
- Competitor Landscape: Gaining a thorough understanding of the competitive landscape.
This involves analyzing competitors’ strategies, market positions, technological
capabilities, and potential moves that could impact the firm’s market share and
profitability.
- Technological Integration: Keeping up with technological advancements and their
implications for the olefins business. This includes assessing the impact of new
technologies on production efficiency, cost reduction, and product innovation.
Solution:
- Gain access to credible data for the full olefins value chain. The planner knows
that the data will be fully aligned with S&P's crude and chemical feedstock
outlooks, as well as S&P's economic, trade and mobility data which she also uses.
She knows the Board trusts the history and reliability of S&P's data
- Access historical and forecast supply/demand/trade data on a country and regional
basis, including production capacity and capacity build-out. The capacity and
production data can be analyzed by production route
- Understand production costs for key competitors and where her company sits on the
cost and margin curve. Review potential buyers
How our Solution Helps
- Deliver a credible business strategy
- Validate investment plans
- Identify market opportunities and risks
- Assess the competitive landscape
Workflow Solutions:
- Chemicals Enhanced Analysis & Forecasts provides easy access to all the data needed for analysis including capacity, production, capacity utilization, trade grids, demand by derivative and end use and long-term price outlooks.
- Because all the data can be downloaded into Excel, she can easily incorporate our data into her own model.
- Written analysis helps the strategic planner understand market drivers and the experts are available if the planner has questions.
- With data from Chemicals Enhanced Analysis & Forecasts and industry specific analysis from Specialty Chemicals Update Program, she is able to assess the entire value chain and understand dynamics in key end use sectors.
- Chemicals Cost & Margin Analytics (CCMA) provides detailed cost and margin models for the IOG’s competitors. Company Strategies & Performance helps identify potential buyers.
