Executive Summary

 Petron Corporation is the largest oil refining and marketing

company in the Philippines
 Supplies 40% of the countries requirements
 Operates a refinery in Limay Bataan, with a capacity of 180,000 barrels
a day
 Offers a huge range of petroleum products, which include gasoline,
diesel, LPG, jet fuel, kerosene, industrial fuel oil, petrochemical
feedstocks benzene, toluene, xylene and propylene

 Has 32 depots and terminals situated throughout the country, with over
1,700 service stations nationwide
 Exports petroleum and non-fuel products to Asia Pacific countries such
as Japan, India, Malaysia, Singapore, South Korea, Thailand, Pakistan,
and even UAE
 Net income of 7.9 billion in 2010, which is an 86% increase from
the previous year.
 Market share reached nearly 38%, leading the nearest competitor by
nearly 10

Company History

 1933 - Stanvac was created

 1960’s - Company was split into Exxon and Mobil
 Both sold their shares to PNOC which was later renamed
Petron
 1994 – 40% of shares were sold to Saudi Aramco, 40% remained with
PNOC, while 20% were publicly owned
 2008 – Ashmore group gains 90% of stocks, then majority of
stocks were offered to SMC
 Now – SMC controls 51%, Ashmore 40%, 9% public
Mission Vision
 To be the leading provider of total customer solutions in the energy
sector and its derivative businesses. We will achieve this by:

 Being an integral part of our customers’ lives, delivering consistent

customer experience through innovative products and services;
 Developing strategic partnerships in pursuit of growth and opportunity;
Leveraging our refining assets to achieve competitive advantage;
 Fostering an entrepreneurial culture that encourages
teamwork, innovation and excellence;
 Caring for community and the environment;
 Conducting ourselves with professionalism, integrity and
fairness; Promoting the best interest of all our stakehold
Porter’s 5 forces analysis

New Market
Entrants
Moderate

Supplier Buyer
Competitive
Power Rivalry Power
High INTENSE Low

Threat of
Substitute
Product
WEAK
Competitive Profile Matrix

Critical Success Factors Wt Petron Shell Chevron

Rating Weighted Rating Weighted Rating Weighted

Score Score Score

Price 0.20 4 0.80 4 0.80 4 0.80

Product Quality 0.20 4 0.80 4 0.80 3 0.60
Market Share 0.15 4 0.60 3 0.45 2 0.30
Channel of Distribution 0.15 4 0.60 3 0.45 3 0.45
Financial Position 0.10 3 0.30 3 0.30 2 0.30
Customer Loyalty 0.10 3 0.30 3 0.30 3 0.30
Advertising 0.10 2 0.20 2 0.20 2 0.20

Total 1.0 3.6 3.3 2.95

EFE Matrix

EXTERNAL OPPORTUNITIES Force Weight Rating Weighted

Rating
1 Production of other chemicals Technolo 0.20 4 0.80
gical

2 Expansion to South East Asia Cultural 0.20 4 0.80

3 Strong peso exchange rate Economic 0.05 3 0.15

al
4 Harnessing local gas deposits Technolo 0.05 1 0.05
gical
EXTERNAL THREATS

1 Heightened competition Cultural 0.20 4 0.80

2 Government tax laws Political/ 0.20 2 0.40

Legal
3 Crude Oil Importation Dependency Economic 0.10 3 0.30
al
Total 1.0 3.1
IFE Matrix

INTERNAL STRENGTHS Force Weight Rating Weighted

Rating

1 Strong brand quality and third party recognition Culture 0.20 4 0.80

2 Technological innovation R&D 0.15 3 0.45

3 Cost effective solutions R&D 0.15 3 0.45

4 Site acquisition/ proximity Operations 0.05 3 0.15

INTERNAL WEAKNESSES

1 Marketing and advertising strategies Marketing 0.10 2 0.20

2 Customer loyalty strategies Marketing 0.10 2 0.20

3 Quality of service at gasoline stations Mgmt 0.10 2 0.20

Hig em yee Turn ver Rate HR 1 2 2

Total 1.0 2.75

TOWS Matrix

Strengths Weaknesses
TOWS Analysis 1. Strong brand quality and third 1. Marketing and Advertising
party recognition Strategies
2. Technological innovation 2. Customer Loyalty Strategies
3. Cost effective solutions 3. Quality of service at gasoline
4. Site acquisition stations
4. High employee turnover rate

Opportunities SO STRATEGIES WO STRATEGIES

1. Expansion to South East Asia
2. Production of other chemicals 1. Create more chemicals from by- 1.Produce high quality chemicals that
3. Strong Peso Exchange Rate products of crude oil (S2, S4, O2) can be sold for more profit (W1, O2)
4. Harnessing local gas deposits
2. Acquire distribution facilities 2. Improve the quality of service so
within South East Asia(S4,O1) that it can be classified as world class
(W3, O1)
3. Invest in acquiring local gas
deposits (S2, S4, O4) 3. Extend loyalty programs to other
products that Petron generates (W1,
W2, O2)

Strengths ST STRATEGIES WT STRATEGIES

1. Heightened Competition
2. Government Taxes 1. Use the company’s image as 1. Implement strategies which reward
3. Crude Oil Importation leverage to gain a larger market share brand loyalty (W1, W2, T1)
Dependency and open new business opportunities
(S1, S2, S4, T1) 2. Conduct customer loyalty surveys
(W1, W2, T1)
2. Improve pricing schemes (S3, T1)
3. Find ways to do low cost marketing
3. Fast deployment of cost effective and advertising especially on far
solutions (S3, T2) flung areas (W1, W2, T2)
Strategic Position and Evaluation Matrix

X Axis Rating

Industry Strength (IS) 6 best, 1 worst

1. High entry cost 6

2. Availability of substitutes 5

3. Intense rivalry with competitors 6

IS Average 5.66

Competitive Advantage (CA) -1 best, -6 worst

1. Brand Image -1

2. Sustained Growth and Profitability -3

3. Pricing -3

4. Customer Retention and Acquisition -3

CA Average 4.5

Directional Vector Coordinate X = IS AVE + CA AVE 1.16

 Y Axis Rating

Financial Strength (FS)

1. Strong brand equity and recognition 6

2. Technological innovation 4

3. Cost effective solutions 4

4. Site acquisition 6

FS Average 5

Environmental Stability (ES)

1. Production of other chemicals -3

2. Expansion to South East Asia -1

3. Strong Peso exchange rate -3

4. Harnessing local gas deposits -5

ES Average -3

Directional Vector Coordinate Y= FS AVE + ES AVE 2

Space Matrix Vector Coordinates

Conservative Aggressive
5

1 (1.16, 2)

-5 -4 -3 -2 -1 1 2 3 4 5

-1

-2

-3

-4

-5

Defensive Competitive
Internal External Matrix

The IFE Total Weighted Score

The EFE Total Weighted

IFE = 2.75 Strong Average Weak

EFE = 3.1
Score

High I II III
(3.0-4.0)
Medium IV V VI
(2.0-2.99)
Low VII VIII IX
(1.0-1.99)
Grand Strategy Matrix

Rapid Market Growth

Strong Compet t ve
Weak Competitive

Quadrant II Quadrant I

Pos t on
Position

Quadrant III Quadrant IV

Slow Market Growth

Action Plans

Activities (Marketing) Time Table Expected Output Group Responsible

1. Generate social media March to June 2019 1. Enhance the Marketing/ Advertising
accounts of the company company’s image Department

2. Create commercials/ March to December 1. Public will be more Marketing/ Sales

advertisements that 2019 knowledgeable about Department
promote the company’s the existing services/
existing promos/ products products that Petron
offers
2. Improve sales

3. Conduct regular March to December 1. Improve customer Marketing/ Sales

promos like raffle 2019 satisfaction Department
draws, etc 2. Improve sales

4. Conduct nationwide March to December 1. Attain feedback/ Marketing/ Sales

surveys regarding Petron’s 2018 knowledge about Department
services for its gasoline existing problems on
stations the gasoline stations
Activities Time table Expected Output Group Responsible

1. Construction of June to December 2021 1. More reliable and Special Projects Group
Coal facility economical steam and
power supply
2. Cost savings
3. Internally generated by-
product (petrocoke) can
now be used to fuel the
power plant

2. Refinery Master Plan June to December 2020 1. Enhance company’s Special Projects Group
(RMP 2) capability to refine fuel
from other sources
2. Production of fuels
that meet the global
clean air standards
3. Double Petron’s
refining capabilities 4.
Enhance proplylene
production by 200%
Strategic Goals
 Increase net income
 Increase petroleum market share
 Improved customer service at gasoline stations
 Increased customer satisfaction/loyalty
 Increase LPG Market Share
 Increase loyalty card membership