PowerPoint Presentation

Jeralyn Baldado- Catiis Strategic Management R14.

Company Background. Largest local oil refining and marketing company Primary source of profits: Refined petroleum products (LPG, gasoline, diesel, jet fuel, kerosene, industrial fuel oil, solvents, asphalts, mixed xylene, propylene, benzene, and toluene) Major markets: Retail, industrial, LPG, and lube sectors Relies on service stations, LPG dealerships, sales centers, and other retail outlets to reach customers.

Vision Statement. Current Vision Statement. “To be the leading provider of total customer solutions in the energy sector and its derivative businesses.”.

Mission Statement. Current Mission Statement. Revised Mission Statement.

Porters Five Forces. P.

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. THREAT OF SUBSTITUTES (moderate).

Porters Five Forces. abstract. Summary Industry : Local Downstream Industry Growth Rate : 4.4% Overall Rating : Moderately Attractive.

Value Chain Analysis. P.

Value Chain. Firm Infrastructure Petron is managed by San Miguel Corporation who holds 68% of the controlling interest and 32% to other investors including the public. Here in the Philippines, they are capable of supplying around 40% of the country’s total fuel requirements through the operation of our 180,000 barrel-per-day oil refinery in Bataan. Considered one of the most advanced facilities in the region, our refinery processes crude oil into various petroleum products including gasoline, diesel, LPG, jet fuel, kerosene and petrochemicals. HR Management Petron Corporation believed that the right mix of characteristics and skills are crucial to the progress and success of the organization. Thus Petron implements several human resource programs to address the evolving needs of an expanding organizations. The company dedicated 53,239 training hours for all Petron employees. To further strengthen Petron’s leadership pipeline, the development of the future leaders was also accelerated through mentoring and coaching programs. Tech Development Petron Corporation , the largest oil refining and marketing company in the Philippines has partnered with Axens to supply technologies for its Bataan Refinery upgrading ( RMP-2 project). The project aims heavier crude processing for higher quality products and propylene production. The upgraded Petron Bataan Refinery will reinforce Petron’s position on the domestic market for clean fuels and propylene. Procurement Petron Corporation acquires crude oil for the Limay Refinery from foreign suppliers through combination of terms purchase contract and spot market purchases. The company also imports aviation gas, asphalt and some gasoline blending components. Petron continues to support DOE’s directive on prioritizing local produces ethanol by complying with the required monthly allocation. Inbound Logistics Operations Outbound Logistics Marketing & Sales Petron Corporation sources their crude oil mostly from the Middle East, specifically from one of the largest crude oil producers , Saudi Aramco. The crude oil is then transported to Bataan Refinery through large capacity vessels. Petron Corporations refinery located in Limaan Bataan. The largest refinery with production capacity of 180,000 barrels per day. It process crude oil into petroleum products. Form Petron Bataan Refinery, petroleum products are delivered to over 30 terminals for storage across the country via barges and vessels. From the storage facilities, fuels are transported by land via tank trucks and delivered to 2, 400 service stations and industrial clients in essential industries Petron Corporation has partnered with popular food and service locator chains to give the customers the best one stop, full service experience. They have San Miguel Food Avenue stores that offer a wide variety of food , beverages and personal items. Petron also re launched their Treats convenience stores for motorist on the go..

Caltex Philippines. Competitor Set. Petron Corporation.

Competitive Profile Matrix. Oil refinery against blue sky.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 1) Distribution Network 0.20 4 0.80 3 0.60 2 0.40 2) Refining Capacity 0.18 4 0.72 3 0.54 2 0.36 3) Product Range 0.16 4 0.64 2 0.32 3 0.48 4) Quality of the Products 0.13 3 0.39 4 0.52 2 0.26 5) Number of Suppliers 0.11 3 0.33 4 0.44 2 0.22 6) Advertising and Promotion 0.09 4 0.36 3 0.27 2 0.18 7) Customer Service 0.07 4 0.28 3 0.21 2 0.14 8) Price Competitiveness 0.06 2 0.12 3 0.18 4 0.24 Total 1.00 3.64 3.08 2.28.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 1) Distribution Network 0.20 4 0.80 3 0.60 2 0.40.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 2) Refining Capacity 0.18 4 0.72 3 0.54 2 0.36.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 3) Product Range 0.16 4 0.64 2 0.32 3 0.48.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 4) Quality of the Products 0.13 3 0.39 4 0.52 2 0.26.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 5) Number of Suppliers 0.11 3 0.33 4 0.44 2 0.22.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 6) Advertising and Promotion 0.09 4 0.36 3 0.27 2 0.18.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 7) Customer Service 0.07 4 0.28 3 0.21 2 0.14.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 8) Price Competitiveness 0.06 2 0.12 3 0.18 4 0.24.

Competitive Profile Matrix. Critical Success Factors Weight Petron Shell Caltex Weight Rating Score Rating Score Rating Score 1) Distribution Network 0.20 4 0.80 3 0.60 2 0.40 2) Refining Capacity 0.18 4 0.72 3 0.54 2 0.36 3) Product Range 0.16 4 0.64 2 0.32 3 0.48 4) Quality of the Products 0.13 3 0.39 4 0.52 2 0.26 5) Number of Suppliers 0.11 3 0.33 4 0.44 2 0.22 6) Advertising and Promotion 0.09 4 0.36 3 0.27 2 0.18 7) Customer Service 0.07 4 0.28 3 0.21 2 0.14 8) Price Competitiveness 0.06 2 0.12 3 0.18 4 0.24 Total 1.00 3.64 3.08 2.28.

External Factors Evaluation. Close-up of fuel gauge.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O1 Increasing number of Vehicles in Phil Market 0.13 4 0.52 O2 Increasing Ride-hailing, Food & other Delivery Services 0.12 4 0.48 O3 Government’s Build Better More Program 0.11 4 0.33 O4 Fuel Consumer Spending 0.10 3 0.30 O5 Refinery Production and Demand 0.09 3 0.36 Subtotal 1.99 THREATS T1 Competition in Downstream Oil Industry 0.13 4 0.52 T2 Dependency on Petroleum Source 0.12 3 0.36 T3 Rising of Electric vehicles 0.11 2 0.22 T4 Increasing Inflation Rate 0.09 3 0.27 Subtotal 1.37 Total 1.00 3.36.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O1. Increasing number of Vehicles in Philippine Market 0.13 4 0.52.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O2. Increasing Ride-hailing ,food and other delivery services 0.12 4 0.48.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O3. Government’s Build Better More program 0.11 4 0.33.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O4. Fuel Consumer Spending 0.10 3 0.30.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O5. Refinery Production and Demand 0.09 3 0.36.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score THREATS T1. Competition in downstream oil industry 0.13 4 0.52.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score THREATS T2. Dependency on Petroleum Source 0.12 3 0.36.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score THREATS T3. Rising of Electric vehicles 0.11 2 0.22.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score THREATS T4. Increasing Inflation Rate 0.09 3 0.27.

External Factors Evaluation. Key External Factors Weight Weight Rating Weighted Score OPPORTUNITIES O1 Increasing number of Vehicles in Phil Market 0.13 4 0.52 O2 Increasing Ride-hailing, Food & other Delivery Services 0.12 4 0.48 O3 Government’s Build Better More Program 0.11 4 0.33 O4 Fuel Consumer Spending 0.10 3 0.30 O5 Refinery Production and Demand 0.09 3 0.36 Subtotal 1.99 THREATS T1 Competition in Downstream Oil Industry 0.13 4 0.52 T2 Dependency on Petroleum Source 0.12 3 0.36 T3 Rising of Electric vehicles 0.11 2 0.22 T4 Increasing Inflation Rate 0.09 3 0.27 Subtotal 1.37 Total 1.00 3.36.

Internal Factors Evaluation. A truck at a gas station Description automatically generated.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.

Internal Factors Evaluation. * Rating is as follows: Company’s response to the internal partner is 1 = poor, 2 = average, 3 = above average, and 4 = superior.