Caltex (Philippines), Incorporated

• Main Author: Macapagal, Mario S.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4503
• Institution: De La Salle University

This strategic management paper aims to provide the company Caltex (Philippines), Incorporated a proposed strategy to become at least a profitable company and to arrest the decline in market share amidst increasing demand forecasts and doubly-increasing number of new industry players everyday. The first part of the paper will touch on the downstream oil industry as a background in understanding its market dynamics with special emphasis on the Retail Trade channel of said industry. The threats and opportunities, key success factors and the forces surrounding the industry will also be discussed. After establishing the petroleum industry scenario the paper will present the company, Caltex (Philippines), Incorporated (CPI) against its major competitors, the companys internal strengths and weaknesses and most importantly its financial standing. The proposed strategy discussed in this paper aims to aid CPI in maintaining its status as a major player in the country despite having the least number of stations among the Big Three, notwithstanding the recent closure and eventual conversion of its refinery opex management, exploring ways to better source opportunities to maximize revenues and a renewed focus on non-fuel related revenue to veer away from over dependence on the highly volatile fiscal world of oil. Thus, for Caltex to remain profitable, competitive, and be the Brand-of-Choice, an implementation strategy is devised by outlining the needed policies to ensure consistency of implementation flow throughout the organization. Likewise, the varied aspects of an organization was mentioned and given direction of fit harmoniously to one another. At the last part is the presentation of financial summary and tables to show in terms of financial standing the result of the proposed strategies for Caltex (Philippines),Inc. Given the voluminous information needed to do a thorough analysis and comprehensive recommendation for this industry, this paper although providing salient facts on the energy/downstream oil industry in general shall put greater emphasis on the Fuel Retail Industry in particular.