Corporate strategy for Mobil Philippines, Inc.

Date of Publication

1997

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

This strategic management was conducted on Mobil Philippines Inc. (MPI), a 13-year old trading and manufacturing company of petroleum based products. The company is rich in heritage and history as Mobil has been in the country for the last hundred years. The headquarters is located in the national Development Company Building in Salcedo Village, Makati City.

As a major chemical, international aviation fuel and marine gas industry player, the company later expanded its business in lubricant last quarter of 1993. It is now positioned as the fourth largest lubricant marketer and the largest among the oil companies without any local refinery.

Mobil Philippines, Inc. was analyzed by the industry or to the group of companies which products are close substitute with each other. It belongs to the petroleum industry. Evaluating the competitive forces existing, the petroleum industry has a moderately high competitive environment. However, it must be noted that the barriers to entry in the fuel retailing business are low and the threat of new players is very high. Opportunities in this industry are high industry growth in paint, power generation, land transport and shipping marine. The threats on this industry are the oil deregulation and slow growth of both footwear and agrochemical.

Internally, the competitive advantages Mobil Philippines, Inc. possesses are better products and a wider variety of choices. The strengths that MPI have are worldwide presence and long experience on the petroleum business, strong support on the equipment builders, and the past business experience in the refining, distributing fuels in the local market, extensive research and development, presence of logistics on key cities and being ISO certified.

However, weaknesses are negative perception on sustaining business in the fuel retails and limited tank facility to store thruput products.

With the objective of increasing revenues by P5.5 billion and attaining net income of P 349 million in 1999, strategies have been proposed for both corporate and functional in scope. The major strategy is the introduction of fuels (except LPG) and refocusing current product lines in terms of market attractiveness and business strengths. To complement this strategy is the realignment of all tank farm facilities to be able to cope with additional inventory created by new business.

A projection has been presented in order to have an estimate the income of the company in the next years.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0234

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

58 leaves ; 28 cm.

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