A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Phoenix Petroleum Philippines Inc.
A Strategic Management Paper Presented to the Faculty Members
of College of Business and Accountancy
National University - Manila
_______________________________
In Partial Fulfillment of the
Requirements for the course
Strategic Management
_______________________________
Presented by:
DELOS SANTOS
HERNANDO
VILLAMOR
VILLANUEVA
YOUNG
Presented to:
Ms. Arlene San Pablo
A.Y 2021 – 2022
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 1
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
TABLE OF CONTENTS
CHAPTER 1
EXECUTIVE SUMMARY ............................................................................................................................................. 4
1. INTRODUCTION ................................................................................................................................................... 5
2. RESEARCH METHODOLOGY AND LIMITATIONS ........................................................................................................... 6
3. MISSION AND VISION ............................................................................................................................................ 6
3.1 Company Mission ................................................................................................................................. 6-7
3.2 Company Vision ........................................................................................................................................ 7
3.3 Review of Mission / Vision ................................................................................................................... 7-8
3.4 Recommendations ............................................................................................................................... 8-9
4. EXTERNAL ASSESSMENTS ...................................................................................................................................... 9
4.1. General Environment .............................................................................................................................. 9
4.2. Economic Forces ...................................................................................................................................... 9
4.2.1. Unemployment rate ............................................................................................................................. 9
4.2.2. Inflation ................................................................................................................................................ 9
4.3. Political Forces ......................................................................................................................................... 9
4.3.1. Tax rate ........................................................................................................................................... 9-10
4.3.2. Employment laws ............................................................................................................................... 10
4.4. Technological Forces ............................................................................................................................. 10
4.4.1. Internet ............................................................................................................................................... 10
4.4.2. Automation ........................................................................................................................................ 10
4.5 Social-demographic Factors ............................................................................................................ 10-11
4.6 Legal Forces ............................................................................................................................................ 11
4.6.1 Factor 1: Government laws. employment laws and Regulations. .................................................... 11
4.6.2 Factor 2: Tax rates ........................................................................................................................ 11-12
4.7 Competitor Analysis ............................................................................................................................... 12
4.7.1 Competitive Intelligence Program ...................................................................................................... 12
4.7.2 Five Forces Competition Model ........................................................................................................112
4.7.2.1 Threat of New Entrants ................................................................................................................. 12
4.7.2.2 Bargaining Power of Buyers ............................................................................................................ 13
4.7.2.3 Threats of Substitutes ...................................................................................................................... 13
4.7.2.4 Bargaining Power of Suppliers ........................................................................................................ 13
4.7.2.5 Rivalry Attractiveness ...................................................................................................................... 13
4.7.2.6 Industry Attractiveness .................................................................................................................... 13
4.7.3. Main Competitor ................................................................................................................................ 13
4.7.3.1 Main Competitor Profile ............................................................................................................ 13-14
4.7.4 COMPETETIVE PROFILE MATRIX .................................................................................................. 14-15
5. EXTERNAL FACTOR EVALUATION MATRIX (EFE MATRIX) ................................................................................. 15-16
5.1. External Critical Issues .......................................................................................................................... 17
CHAPTER 2
6. INTERNAL ASSESSMENTS................................................................................................................................. 17
6.1. Culture ................................................................................................................................................... 17
6.1.1. Style .................................................................................................................................................... 17
6.1.2. Ethics / Shared Values ........................................................................................................................ 17
6.2. Management ......................................................................................................................................... 18
6.2.1. Corporate Image ................................................................................................................................ 18
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 2
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
6.2.2. Strategy .............................................................................................................................................. 18
6.2.3. Organization / Structure .............................................................................................................. 18-19
6.2.4. Staffing and Motivating ..................................................................................................................... 19
6.3. Marketing .............................................................................................................................................. 19
6.3.1. Product ............................................................................................................................................... 19
6.3.2. Differentiating Attribute .................................................................................................................... 20
6.3.3. Pricing ................................................................................................................................................. 20
6.3.4. Promotions ......................................................................................................................................... 20
6.3.5. Distribution ................................................................................................................................... 20-21
6.4 Operations .............................................................................................................................................. 21
6.4.1 Very well-organized equipment’s and facilities ................................................................................. 21
6.4.2 Strategic location of facilities ............................................................................................................. 21
6.4.3 Quality Control .................................................................................................................................... 21
6.4.4 Better Plans ......................................................................................................................................... 21
6.5 Information System .......................................................................................................................... 21-22
6.6 Research and Development ................................................................................................................... 22
6.6.1 Research and development facilities. ................................................................................................. 22
7. INTERNAL FACTOR EVALUATION MATRIX (IFE MATRIX)..................................................................................... 22-23
7.1 Internal Critical Issues ............................................................................................................................ 24
8. STRATEGY FORMULATION ................................................................................................................................... 24
8.1. TOWS Matrix ................................................................................................................................... 24-25
8.2. Space Matrix (Strategic Position and Action Evaluation) .............................................................. 26-28
9. PRIORITIZATION OF STRATEGIES ........................................................................................................................... 29
9.1 QSPM (Quantitative Strategic Planning Matrix) ............................................................................. 29-33
10. CRITICAL STRATEGIC ISSUES......................................................................................................................... 33-34
CHAPTER 3
11. PROPOSED OBJECTIVES AND STRATEGIES ................................................................................................. 34
11.1. Strategic Objective .............................................................................................................................. 34
11.2 Business Strategy ................................................................................................................................. 34
11.1 Key Strategies per Business Unit of Phoenix Petroleum Company .................................................... 35
12. ACTION PLANS AND PROGRAMS................................................................................................................... 35-36
13. STRATEGY EVALUATION AND CONTROL ......................................................................................................... 36-37
13.1 Strategy Map ........................................................................................................................................ 37
13.1.2 Strategy Map – Balanced Scorecard ................................................................................................ 37
14. CONTINGENCY PLANNING ................................................................................................................................. 38
14.1. Downside – Potential Events .............................................................................................................. 38
14.2. Upside – Potential Events ............................................................................................................. 38-39
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 3
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Executive Summary
Petroleum is a high-risk company that needs a significant amount of capital as well as advanced
technologies. Phoenix Petroleum Philippines Inc. was the first independent oil business to be listed on
the Philippine Stock Exchange following the passage of the Oil Deregulation Law in 1998. Phoenix is
in the business of trading refined petroleum products and lubricants, as well as operating oil depots and
storage facilities and providing allied services. It is described as “one of the country’s most aggressive
independent oil companies”.
Researchers have found that the company has a delayed market share this year owing to the
COVID-19 Pandemic. The pandemic had a significant impact on the firm; thus, Phoenix Petroleum
management has been continually monitoring the COVID-19 situation and has made needed
adjustments to corporate operations and processes. This has impacted the company's planned
activities, which has had an impact on their retail business. Marine, commercial road transport, and
aviation were all impacted in their B2B segments.
In this paper, SWOT analysis and matrices were used and evaluated to help the researchers to
identify the capabilities and the weak areas of the company towards the Petroleum Industry as well as
the market competition. The resulting numbers and interpretation of each matrix along with the internal
and external forces that affects the company will give an overview with the overall opportunities, threats,
strengths, and weaknesses. This will serve as the basis of strategy and objectives formulation which
will help restructure the operations of the company and address the common encountered problems.
The purpose of this paper is to provide and give recommendations for Phoenix Petroleum Philippines,
a leading oil industry and to attain its aims and objectives, the researchers proposed a strategic
management plan for the company. Setting objectives, examining the competitive environment,
studying the internal and external structure of the company, reviewing their strategies, and ensuring
that the company implements the strategies across the organization even in the midst of pandemic.
As the findings of several analyses were collated and scored, researchers discovered that,
even though Phoenix Petroleum Inc. has been in the sector for many years, there are certain
challenges that they face that make it difficult for them to compete with the major petroleum
corporations. One of the important aspects to examine is their market development and
segmentation. Petroleum firms in the Philippines are similar in terms of the products and services they
provide; in fact, there is no significant difference in the quality of petroleum given on the market
between the main brands and their competitors, including Phoenix. They must consider market
development and segmentation because it will help them be known by consumers and persuade them
that there is not much difference in terms of quality of the products and services being offered. To be
more explicit, Phoenix Petroleum Philippines Inc. should market their existing goods as much as
possible; one of the reasons they are unable to reach a large number of potential customers is a lack
of advertising and promotion. Establishing branches in various locations as part of market expansion
would assist in reaching a large target market with shared wants. As a consequence of recognizing
opportunities, threats, strengths, and weaknesses, Phoenix Petroleum Inc. can engage in aggressive
actions such as market development for their existing goods and significant investment in technology.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 4
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
1.
Introduction
According to Nikkei Asia (2021), Phoenix Petroleum Philippines, Inc. (PNX) is the independent
and fastest-growing oil company in the Philippines. It is a thriving nationwide network of retail and
commercial channels, with a diverse product line that services both individual and industrial clients.
The company was founded by Domingo T. Uy and Dennis A. Uy on May 8, 2002, and is
headquartered in Davao City, Philippines. Since its first station in Davao, it has expanded nationwide
to build a wide network of retail stations and commercial and industrial clients. Its business covers the
trading of refined petroleum products and lubricants to retail and commercial channels, operation of
oil depots, storage, and transport services. Its integrated logistics services include hauling and intoplane services of Jet-A1 fuels to airports and airlines and refueling of aircraft in key cities. The
Company’s products are services are distributed and marketed under the Phoenix Fuels Life
trademark. Phoenix Petroleum is a publicly listed company on the Philippine Stock Exchange since
July 2007, the only oil company to do so after the Oil Deregulation Law was passed in 1998. The
Company has been recognized by various award-giving bodies for its leadership, marketing, and CSR
programs, Phoenix (2021). Cebu Pacific was the company's first major client. Since 2004, the oil
business has been Cebu Pacific's official logistical partner, meeting the airline's refueling needs in all
of its Mindanao destinations.
According to Phoenix (2021), their subsidiaries are P-F-L Petroleum Management, Inc. (PMI) which
is primarily engaged in organizing, managing, administering, running, and supervising the operations
and marketing of various kinds of services-oriented companies such as petroleum service stations.
Phoenix LPG Philippines, Inc. is engaged in selling and marketing liquefied petroleum gas (LPG) and
other petroleum products. PNX Petroleum Singapore Pte Ltd., the trading and supply business of the
Phoenix Petroleum Group. It trades and supplies a wide range of refined products to various
businesses, following international trading standards. Subic Petroleum Trading and Transport Phils.,
Inc. (SPTT) and it is engaged in buying and selling, supply and distribution, importation and exportation,
storage and delivery of all types of petroleum for industrial, marine, aviation, and automotive use.
Morever, the Philippine FamilyMart CVS, Inc. which is the exclusive area franchisee of FamilyMart in
the Philippines. Phoenix Energy International Holdings Pte. Ltd., was established in 2018 in Singapore
to manage the international investments, including the expansion of related business activities and
operations, of Phoenix Petroleum in the Asia Pacific region. Its subsidiary, Phoenix Gas Vietnam LLC,
is engaged in the LPG business and is based in Ho Chi Minh City, Vietnam. Phoenix Pilipinas Gas and
Power, Inc. that engage in, conduct, and carry on the business of selling and trading of natural gas and
liquefied natural gas (LNG) on a wholesale basis. Phoenix Asphalt Philippines, Inc. is a joint venture of
Phoenix Petroleum, Thailand-based TIPCO Asphalt Public Co. Ltd, and PhilAsphalt Development
Corporation. It manufactures, operates, markets, and distributes asphalt, asphalt-related products,
other by-products of crude oil, and other petroleum products for the construction and maintenance of
roads and other infrastructure.
With its vision to be an indispensable partner in the journey of everyone whose life they touch,
Phoenix Petroleum is committed to deliver world-class services, empower people, and inspire every
Filipino’s entrepreneurial spirit, Phoenix (2021).
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 5
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
2. Research Methodology and Limitations
The approach chosen is qualitative research and will consider the purpose of the study, the
role of the researcher, the data collected, the method of data analysis, and how the results will be
presented. Qualitative data collection is exploratory; it involves in-depth analysis and research.
Qualitative data collection methods are fundamentally centered around acquiring bits of knowledge,
thinking, and inspirations; subsequently they go further as far as examination. The researcher
observes these data sets through qualitative data analysis. Qualitative analysis uses subjective
judgment to analyze a company's value or prospects based on non-quantifiable information, such as
management expertise, industry cycles, the strength of research and development, and labor
relations. The case study research method has grown into a valuable qualitative research method. It
involves a deep dive and a thorough understanding of the data collection methods and inferring the
data. There might be some potential limitations in this review and researchers may experience an
issue with an absence of past research examines on the theme, restricted admittance to information
since the researcher’s review relies upon approaching individuals, associations, or records and, out of
the blue, access is denied or in any case restricted and time limitations.
This review will cover the systems made by Phoenix Petroleum Philippines Inc., that assisted
them with dealing with the organization well and gain supportable turn of events. Besides, this review
will give a general bearing by creating plans and approaches intended to accomplish goals and
afterward designating assets to carry out the plans. Eventually, it will permit Phoenix Petroleum
Philippines Inc., to acquire an upper hand over its rivals. This review won't cover different brands that
steer clear of the organization.
3.
Mission and Vision
3.1. Company Mission
- We deliver the best value in products and services to our business partners
- We conduct our business with respect, integrity, and excellence
- We provide maximum returns to our shareholders and investors
- We create opportunities for learning, growth, and recognition for the Phoenix Family
- We build programs to nurture the environment and welfare of the communities we serve
In addition, we also conclude the company’s Core Values.
Integrity
We adhere to the highest standards of ethics and conduct. Our reputation defines who we are.
Excellence
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 6
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
We strive to be better in everything we do. Service All stakeholders are our customers; thus,
we provide unrivalled customer experience.
Innovation
We believe that change is constant. We challenge convention with fresh, better, and more
valuable products, services, and ideas.
Teamwork
We value relationships. We achieve our goal through collaborative efforts, recognizing the
contribution of team members and respecting each other’s opinions and ideas.
Stewardship
We nurture our resources responsibly.
3.2. Company Vision
To be an indispensable partner in the journey of everyone whose life we touch.
3.3. Review of Mission / Vision
According to a study of the company's vision and mission, the organization placed a high value
on its objective and took great action, resulting in an excellent result. It is because to their vision that
we can comprehend and evaluate the history, background, and goals that they have successfully
attained. They walk the talk. On their vision, they are making a concerted effort to fulfill their purpose
to attain their vision, which will have a profound impact on everyone.
VISION – MISSION STATEMENT EVALUATION MATRIX
VISION
To be an indispensable partner in the journey of everyone whose life we touch
Does their Vision statement answer the question “What do we want to
become?”
Yes
No
MISSION
To achieve this, we shall:

We deliver the best value in products and services to our business partners

We conduct our business with respect, integrity, and excellence

We provide maximum returns to our shareholders and investors

We create opportunities for learning, growth, and recognition for the Phoenix Family

We build programs to nurture the environment and welfare of the communities we serve
Does their Mission statement answer the question “What is our business?”
Yes
No
9 Components of a Mission Statement
Customers
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195

Page | 7
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
the best value in
Products or Services
products
and
services
Markets

Technology

for
Concern for survival, growth, and profitability
growth,
learning,
and
recognition for the
Phoenix Family
Philosophy

Self-concept

Concern for Public Image

Concern for Employees

Assessment:
Did the Company’s Vision and Mission Statements exhibit the characteristics of a welldeveloped Vision and Mission Statements? Improve or recommend a statement as you see fit.
The vision and purpose statement of the Phoenix Petroleum Philippines Inc. firm is brief yet
comprehensive. However, they did not specify what their business is about in their mission statement.
But they were able to better understand where and what they intended to be as a company in the
future. They should have been indicating what are their products and services that they are providing
to be more specific.
3.4
Recommendations
The point of this review was to investigate the reach and the intensity by laying out objectives
and systems of Phoenix Petroleum Philippines, Inc. to make the organization or association more
competitive. As they acclimate to the quickly creating real factors of the worldwide energy climate, oil
and gas companies are moving forward their maintainability commitments. We're seeing an
expanding number of oil and gas organizations test and prevail with a developing number of
advances and arrangements that assist them with turning out to be more economical, save costs, and
decrease their carbon impression. Researchers will show and talk about the drawn-out monetary
arrangement/projections in examination with authentic execution, the projected Income Statement,
Balance Sheet and Cash Flows. Showing proportion to deals and yearly development rates.
Moreover, the organization truly gave a significance to their central goal which coming about a
feasible objective which it characterizes the business, items or administrations, and clients,
subsequently characterizing the essential goal. The organization gives itemized data concerning what
the association does, how it does, and who it does it for and it is long haul in nature. According to
auditing the organization's profile, foundation, and history, they have accomplished a great deal of
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 8
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
objectives and goals wherein they set the high bar with regards to an oil industry. We suggest that the
organization should stick more and walk their mission for them to be more competitive and notable
organization. Also, their vison expressing, " To be an indispensable partner in the journey of everyone
whose life we touch." which is valid since the organization is the main autonomous and quickest
developing oil organization in the Philippines. Giving an effect and heritage to all individuals
particularly to their esteemed clients and they are fundamental, and others or things can't work
without them. We suggest that the organization should upgrade the "Phoenix" brand, increment piece
of the pie in the downstream oil markets in the Philippines, work on functional proficiency and
productivity and increment market outreach, center around higher edge business, and construct a
reasonable development mode since we realize the previous years have seen momentous
development for them - development for the company that aims to maintain and outperform in the
years to come.
4. External Assessment
External Assessment is a way of examining the industry environment of the company. The
fundamental goal of external assessment is to identify the opportunities and challenges that will help
the company’s profitability, growth, and volatility in a certain market. It includes factors such as
competitive structure, competitive position, dynamics, and history.
4.1. General Environment
The general environment is the set of external elements that influence an organization's
operation and performance. These external factors can impact whether a company enjoys market
opportunities or setbacks. PESTLE analysis tool or Political, Economic, Social-demographic,
Technological, and Legal forces are necessary to identify to be able to come up with advantage and
take part in the market position.
4.2. Economic Forces
4.2.1. Unemployment rate
It has an adverse effect between petroleum industry and household, as the unemployment rate
increases the household purchasing power decreases. This can have a huge impact for the company
along with pursuing their objectives and target revenue for a certain period as the level of activities for
fuel or gas consumption declines.
4.2.2. Inflation
In petroleum companies, general rise in price level of petroleum products happens time to
time, there’s a volatility in prices which they are out of control since most of the resources or products
are coming from few suppliers. It results to higher price of products in the market in which the
purchasing power of individuals decreases over time.
4.3. Political Forces
4.3.1. Tax rate
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 9
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
As part of Fiscal policy of the government one of their activities to generate revenue or income
from businesses is that they are setting fair tax rates for every business activity. Under the law’s final
tranche, there will be additional excise taxes of P1.00 per liter for gasoline, P1.50 per liter for diesel,
and P1.00 per kilogram for household liquefied petroleum gas (LPG) will be imposed. There will also
be an additional 12% value-added tax, bringing the total to P1.12 per liter for gasoline and per
kilogram of LPG, and P1.68 per liter for diesel. The complete set of regulations for petroleum products
was stated under excise tax on Petroleum Products (Section 148) (Excise Tax - Bureau of Internal
Revenue (bir.gov.ph))
4.3.2. Employment laws
This has been mandated to protect the rights and wellbeing of every employee for they
deserve the benefits and proper treatment from their employer as they contribute a lot from business
operations and help achieve their objectives. With regards to the working hours, employees’ benefits,
mealtimes, night shift, leaves, overtime rate and other employees’ rights was completely stated under
Labor Code of the Philippines.
4.4. Technological Forces
4.4.1. Internet
It is undeniable that worldwide internet connectivity has increased in recent years. Many
businesses utilize the internet to communicate with their clients and attract a huge market including
individuals in which this opens an even bigger market opportunity. However, what’s out of control for
companies is the point of view of every user towards their advertisements or promos posted online
whether it will be persuasive for them or not.
4.4.2. Automation
The emergence of automation most especially in petroleum companies is cost efficient since it
allows low skilled operations to be replaced by machine operated ones, on the other hand this could
be a downside for employment, and this might contribute to the unemployment rate which may not be
such a good thing.
4.5 Social-demographic Factors
A field of study concerned and focusing with the analysis of how social and cultural factors are
related to population characteristics. Also, it plays a big role for Phoenix Petroleum Philippines Inc. to
easily identified and fulfilled the wants of consumers that having a price quality and good quality of
products.
Major Impacts to social-demographic factors
A.
Products
Phoenix Petroleum Philippines, Inc. is engaged in trading of petroleum products on wholesale
and retail basis and operating of gas stations, oil depots, storage facilities and allied services.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 10
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Petroleum products, refueling aircrafts, LPG, and mart are list of the products and services they’re
offering in the Philippines. Also, gas station has a product that are always in demand due to needed
of people for daily lives and it has big impact in our society and mostly to our economy. Gas is an
important input for transportation.
B.
Services
Phoenix offering good services they hired people that are well trained to serve their customer
well. Phoenix providing a world class service and having good services can attract more customers
and a lot of investors. Having a good service that can satisfied customers become devoted buyers
when a business is trustworthy and provides good customer service, people will start to patronize and
recognized the business itself.
C.
Environment
It’s very important to know about your surroundings because the chemicals used at specific
times can be harmful to health of peoples, that’s why Phoenix continues improving their over-all
performance. They create and regulate a safe working environment, empower, and protect
employees, human health. Phoenix Petroleum ensures the safety of everyone involved in its business
by providing information about how to handle certain products like Gasoline, Biodiesel, Kerosene, and
other specially formulated oils.
4.6 Legal Forces
Legal forces in the marketing environment that are shaped by government laws affecting
business. The legal systems are strong enough to ensure the security of the organizations intellectual
these include:
4.6.1 Factor 1: Government laws. employment laws and Regulations.
4.6.2 Factor 2: Tax rates
Laws
Based on Republic Act No. 8479 This Act shall be known as the “Downstream Oil Industry
Deregulation Act of 1998 It shall be the policy of the state to liberalize and deregulate the downstream
oil industry to ensure a truly competitive market under a regime of fair prices, adequate and
continuous supply of environmentally-clean and high-quality petroleum products.
Employment Laws
Phoenix created a very safe environment for all employees and, they are all well trained to
serve and handle the customers.
Regulations
All the gasoline station that all existing will be permitted to present their locations. That
hereafter no curb pumps will be permitted to be installed at the corner of any street in the city of all
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 11
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
gasoline stations. Gasoline station will be permitted to be installed within five hundred meters from
any existing gasoline station and they’re all required to follow all the regulations for the safety of the
citizens. no gasoline station will be permitted to be installed within five hundred meters from any
existing gasoline station.
Tax Rates
Phoenix Petroleum is the first oil company that volunteered to pay in advance taxes due for its
gasoline and petroleum-based product sales in 2017.
4.7 Competitor Analysis
4.7.1 Competitive Intelligence Program
Studying the competitors today makes it easier to find or study competitors and the market
because the needed data can easily be found on the internet. In using the Five Forces Competition
Model, the researcher will identify how the new entrants in the market can affect the company. It will
also give the researcher an idea of the bargaining power of customers and the suppliers. This model
will give an idea of the industry and the effect of substitutes that can threaten the company and study
the rivalry among the competitors.
4.7.2 Five Forces Competition Model
4.7.2.1 Threat of New Entrants
The threat of new entrants for Phoenix Petroleum Inc. is low because of the certain criteria
needed to start with the oil industry. It will be hard to enter, considering the barriers when entering the
market is strong, and it needs high capital cost, and the resources for the startup company will be
hard. They also must consider the resources they need to build the company and the market's high
barrier to enter the market. It is an advantage for many companies that already established their
names in the market.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 12
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
4.7.2.2 Bargaining Power of Buyers
In terms of the bargaining power of buyers in the oil and gas industry, it is significantly low
because the customers do not influence the changes in the price of the product. The decision in price
is dependent on the supplier of oil, and it is also influenced by the price of the oil and petroleum
globally. If the supplier sets the price, the customers do not have any authority to change that price.
4.7.2.3 Threats of Substitutes
The threat of substitutes for the oil and gas industry is low, considering there are alternatives
for fuel like renewable energy that came from solar and wind energy, coals, hydrogen power, and
nuclear energy. Although there are many substitutes, the market is still dominated by fuel since many
customers are still using gasoline as the main source of their fuel. The substitutes do not influence the
consumers to change in their use of fuel.
4.7.2.4 Bargaining Power of Suppliers
In the bargaining power of supplier in the industry of oil and gas, it is significantly high because
the one who is influencing the price of the oil is the supplier. The price of the oil is also dependable on
the international market, especially if the company could get from their natural resources. It would be
an advantage if the source of the companies' oil came from their own natural resources.
4.7.2.5 Rivalry Attractiveness
The rivalry among competitors in the oil and gas industry in the Philippines is intense due to
the number of companies that are doing their job in the industry. It is also significant that the profit
margin is hard to maintain since other companies need to adjust their pricing based on the
competitor's pricing and the regulation of the government. The oil industry in the Philippines was
dominated by big names that are also recognized internationally. The competition between the
companies in the oil and gas industry is still increasing because of the high demand for the product.
4.7.2.6 Industry Attractiveness
The attractiveness of the industry in the Philippines is high because of certain factors that
affect the attractiveness of oil and gas products. The main factor is that the still-growing population in
the country, infrastructure that relay on petroleum-based products. It was also influenced by the
competitiveness of the companies that are still increasing year by year. It also gives impacts the
investors to invest in the oil and gas industry because of the high demand for the product and the
policies of government to invest in the industry.
4.7.3. Main Competitor
4.7.3.1 Main Competitor Profile
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 13
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
4.7.4 Competitive Profile Matrix
The Competitive Profile Matrix (CPM) is widely used as a strategic planning analytical tool
designed to identify a firm’s major competitors and its strengths and weaknesses in relation to a
sample firm’s strategic position. There are critical success factors in a CPM which determines the
issues internally and externally. The 2 closest competitors of Phoenix Petroleum Philippines, Inc. are
Unioil Philippines, Inc, who is engaged in the production and marketing of oil and gas and Chevron
Philippines, who is engaged in distributing fuels, lubricants, and other petroleum products in the
Philippines.
Critical
Success
Factor Weight
Phoenix Petroleum
Unioil Petroleum
Philippines Inc.
Philippines, Inc.
Rating
Rating
Score
Chevron Philippines
Score
Rating
Score
(CSF)
Market Share
0.20
4
.8
3
.6
4
.8
Product Quality
.15
4
.6
3
.45
3
.45
Price Competitiveness
.10
4
.4
2
.2
3
.3
Brand Reputation
.10
4
.4
4
.4
4
.4
Marketing
.10
4
.4
4
.4
3
.3
Total Outlets
.10
3
.3
1
.1
4
.4
Customer Service
.15
3
.45
4
.6
4
.6
Customer Loyalty
.10
4
.4
3
.3
3
.3
Total
100%
3.75
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
3.05
3.55
Page | 14
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
This table shows that the Critical Success Factor (CSF) stated are significant to the company
as well as its market. It indicates how well the company is performing and how competitive it is. When
it comes to Brand Reputation, the three companies stand out in the list. While on the Product Quality,
Price Competitiveness and Customer Loyalty only Phoenix Petroleum Philippines was protruded
among them. And it is important that your company stick out with those factors because it plays a big
role to make your company successful.
Identification
of
the
Critical
Success
Factors
With
High weighted scores from CPM
Weighted Scores From
CPM
Phoenix Petroleum Philippines, Inc.
3.75
Chevron Philippines
3.55
Unioil Petroleum Philippines, Inc.
3.05
5. External Factor Evaluation Matrix (EFE MATRIX)
Key External Factors
Weight
Rating
Weighted
Score
OPPORTUNITIES
O1. Lower inflation rate – The low flash rate gets greater
strength to the market, empower credit at lower loan cost to the
0.08
3
0.24
0.08
3
0.24
competitor's benefit and empower to expand its seriousness 0.08
4
0.32
3
0.27
customers of Phoenix Petroleum Philippines, Inc.
O2. New fads in the buyer conduct can open new market for the
Phoenix Petroleum. It gives an extraordinary chance to the
association to construct new income streams and differentiate
into new item classifications as well.
O3.
The market improvement will prompt weakening of
contrasted with different competitors.
O4. The new technology gives a chance to practices differentiated
pricing technique in the new market. It will empower the firm to keep 0.09
up with its steadfast customers with extraordinary help and bait new
customers through other worth arranged recommendations.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 15
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
O5. Opportunity for this organization to expand their impact
over their customers in this way acquiring a competitive advantage 0.08
4
0.32
4
0.40
4
0.27
0.08
2
0.24
quantity of players in the business which has come down on 0.09
3
0.27
3
0.21
0.08
3
0.24
T5. Due to the high bargaining power of the consumers, they 0.08
3
0.24
over different competitors is conceivable.
O6.
The country offers a solid development viewpoint with
significant new investment openings in the medium to long term 0.10
future. (Business Wire, 2019)
O7. Domestic and foreign organizations intending to extend their
tasks in the Philippines halfway and downstream oil and gas 0.09
industry. (Business Wire, 2019)
THREATS
T1. The tax rate is one of the contemplations of the financial
backers
and in this case, investors might not pursue investing in companies
here in the Philippines.
T2. Intense competition – Stable profitability has expanded the
productivity as well as on generally deals.
T3. Ought to there be infringement of legitimate guidelines and
laws, the organization will be dependent upon complaint and 0.07
liabilities.
T4. The slow development in competitive advancement yields
slow individual organization growth because the two competitors
are much likely the same.
can modestly change to different brands.
TOTAL:
1.0
3.26
Rating Legend: 4 = response is superior, 3 = the response is
above average, 2 = response is average, 1 = the response is
poor.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 16
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Weight Legend: range weight from 0.00 (not important) to 1.0
(very important)
5.1. External Critical Issues
The table shows that Phoenix Petroleum Philippines, Inc. achieved an above average rating of
3.26 which shows a 0.76 difference from the midpoint rating of 2.50. It shows that Phoenix Petroleum
is doing well. However, the fact that the EFE rating did not reach 4, such ought not be treated as a
setback. Instead, it should be construed to mean that Phoenix has yet to improve and has more room
for improvement. Notwithstanding this, Phoenix must not be lenient or over complacent because they
still need to address external factors such as consumer preferences, buying habits and economic
factors. On the other hand, there are multiple opportunities that await Phoenix that may lead towards
achieving the 4 or at least 3.5 rating. Opportunities such as possible expansion of outlets and the
continued customer support or preference will prove to be very useful and beneficial for Phoenix.
6. Internal Assessment
6.1. Culture
The Company wants to create a safety-conscious culture that is deeply ingrained and visible in
every way a Phoenix employee thinks and executes their job. Its goal is to successfully incorporate
occupational health, safety, security, and environmental management issues and concerns into senior
management's daily business decision-making processes and strategic planning.
6.1.1. Style
They are partnering with Enderun College and other prestigious academic institutions to create
leadership programs that will educate their next generation of leaders for the challenges of the future,
instilling in them the same culture and values that our firm stands for. They also renew and reaffirm
their unambiguous commitment to safety as a top priority for their company. It is their obligation to
guarantee that no one is harmed, whether they are stakeholders in the areas in which they operate or,
more importantly, their own employees on the ground. They are working hard to guarantee that they
only build safe and secure environments that adhere to the highest standards of occupational health
and safety.
6.1.2. Ethics / Shared Values
The values they want to instill in their organization are humble, hungry, hardworking, honest,
honest, and holy. These are the same attitudes that brought them to where they are now. The founder
would constantly remind them that they must continue to provide outstanding quality at a reasonable
price. They have implemented a program to assist them in identifying and developing high-performing
team members as future leaders of their organization. Their organization is punching above its weight,
ready to take on the competition and position itself as the preferred and legitimate option.
6.2. Management
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 17
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
6.2.1. Corporate Image
"We are breaking into new markets, establishing operations in new territories, and helping improve
more lives.”
Phoenix is making strides in its mission to demonstrate the world-class goods and service
brand that Filipinos are capable of. They are entering new markets, creating businesses in new areas,
and assisting in the improvement of lives—not only those of Filipinos, but of discriminating customers
worldwide. All of this would not have been possible without the knowledge and skill of its workers,
partners, suppliers, and other stakeholders. They are appreciative for the continuing support and
belief in their mission, as they have always been.
6.2.2. Strategy
Though there may be uncertainties in the coming years, they stay focused on producing better
value and expanding operations to achieve ongoing growth, particularly in their key business areas of
Retail, Gas, and B2B, as well as enhanced financial discipline, cost leadership, and superior returns.
They are focusing their efforts on creating long-term investments that will eventually strengthen
corporate sustainability. Phoenix also maintaining their clients' and partners' confidence, which has
allowed them to enter new markets while improving their current valued relationships—adding
volume, extending contracts, or delivering new associated services when possible. Moreover, their
retail customers' and consumers' ongoing and even rising patronage as they further improve their
brand's market standing from a challenger to a genuine large player. Phoenix is unyielding in its
pursuit of becoming an even more formidable force that will continue to disrupt the industry while
further integrating their beneficial effect on the lives of more people.
6.2.3. Organization / Structure
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 18
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
6.2.4. Staffing and Motivating
Phoenix highly encouraged its own workers to serve as brand ambassadors, providing them
with product knowledge and including them in product launch activations and on-the-ground events at
Phoenix retail locations.
6.3. Marketing
6.3.1. Product
Trading of petroleum products; distribution of fuels to retail and industrial customers;
marketing and distribution of LPG, lubricants, and other chemicals; and terminalling and hauling
services, which include the lease of storage space and into-plane services in airports, are the primary
business lines of the company. PNX has also grown into the selling of its gasoline goods as well as
complementing non-fuel retail industries such as convenience store retailing and digital transaction
services through its subsidiaries.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 19
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
6.3.2. Differentiating Attribute
Phoenix's goal is to be the most competitive player in the business and being a strong and
resilient franchise necessitates being agile and efficient. As a result, they have formed alliances with
counterparties in supply chain, distribution, and manufacturing to reduce costs and enhance
efficiency. For storage and logistics, FamilyMart collaborated with Worklink, a wholly owned
subsidiary of Chelsea Logistics. Phoenix can save money by utilizing their current size, infrastructure,
and experience, simplifying their business, and allowing them to focus on store expansion and
operations to better position the firm for growth. Phoenix lubricants altered their business strategy
from in-house production and tolling to having the products made and blended offshore by an
established and renowned brand. They were able to streamline their operations, reduce costs, and
position themselves for regional development by offering higher-quality products. They've done the
same with their hauling fleet, working with a counterparty that has even superior skills and experience
than their firm, allowing them to double their fleet capacity through improved fleet utilization —
unlocking value for the company once again. They will continue to be on the lookout for ways to add
value to their company.
6.3.3. Pricing
Phoenix approach is now offering fuel cost savings to vaccinated consumers. Filipinos who are
partially or completely vaccinated can save money when they fill up at Phoenix Petroleum Philippines
Inc. gas stations. Aside from gasoline and diesel fuel, Phoenix Petroleum stated that immunized
customers may also receive price savings on lubricants purchases, as well as auto repair and
maintenance services from its Autoworx program. Phoenix Petroleum President Henry Albert
Fadullon stated that the company's grant of cost reduction to customers is part of the company's
support to the State effort in accelerating Covid-19 vaccination initiatives, so that the country's
economy can eventually recover from the doldrums it has been thrown into.
6.3.4. Promotions
Phoenix Fuels was recognized as the Marketing Company of the Year at the prestigious Agora
Awards of the Philippine Marketing Association. The company also won in the Stevie Awards, an
international award-winning body that recognizes creativity and excellence in marketing campaigns,
for their Phoenix Fuels with PULSE Technology campaign. This recognition puts them in the league of
some of the best local and multinational consumer brands in the country.
6.3.5. Distribution
Phoenix believes that gas will be a vital energy source as the country moves from traditional
fuels to more renewables, which is why the firm is investing heavily in LPG and, ultimately, liquefied
natural gas (LNG). They want to provide gas as an alternative to diesel and fuel oil, leveraging their
dominating B2B business, while LPG or LNG can be a viable option for commercial sectors such as
hotels, resorts, mining operations, manufacturing, and power production. Moreover, Phoenix
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 20
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Petroleum advanced their digital effort even further by giving discounted gasoline coupons through
Limitless, an app-based loyalty program. Phoenix thought that by working with Limitless and providing
their discounted coupons online, their consumers would receive a significant discount without having
to queue at the stations. It is safer, as well as more convenient, because the coupons may be spent at
any moment. Furthermore, as their business evolves, they have revolutionized the manner they
provide their items and execute their promotions. Incorporating e-commerce into their business has
been critical, particularly this year when safety has been a top priority
6.4 Operations
This will have an impact on the Phoenix Petroleum Philippines company's internal operations.
This section contains information regarding more equipment used by firms, improved planning,
strategies for their location, and regulating or managing the quality of their products.
6.4.1 Very well-organized equipment’s and facilities
We confirmed that Phoenix equipment’s are well maintained because the company believed
that if they will maintain the cleanliness of their curb pumps the better the quality is and to avoid,
reduced engine frictions. Also, protection to corrosion that may cause gas engine damage and it may
lead of having a bad impact to their customers and they don’t that to happen.
6.4.2 Strategic location of facilities
The Phoenix company is part of the products, services, and procedures in its strategic
positioning of its facilities; and it will help a lot to the company to be well known in the business
industry. It will be easier to Phoenix to be well known because of their good quality of the product
since they’re partnership with PERTAMINA company, PERTAMINA is owned by the Government of
Indonesia, and they are supplying Phoenix petroleum company here at Philippines and Singapore.
6.4.3 Quality Control
Phoenix Petroleum continuously meets its clients' demands by supplying products that are
both economical and of great quality. According to client evaluations, they are highly happy with their
product experience. That Phoenix keeps its promise to serve people by providing world-class
products and excellent customer service.
6.4.4 Better Plans
Phoenix Petroleum is always developing and inventing its products, as well as targeting
reduced costs by building a leaner supply chain and lower expenditure base. This strategy is aimed to
attract more investors and customers.
6.5 Information System
Phoenix Petroleum Company is one of the Philippines' fastest growing and most competent oil
companies. We discovered that there has been an improvement in their operations, logistics, and
aircraft refueling, and that they are also supplying services to Philippine Airlines (PAL) at Davao City
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 21
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
International Airport. They are also enhancing their products and providing better services. When it
comes to employees, they make certain that they provide a safe workplace and atmosphere for them.
6.6 Research and Development
Research and development created to discover more about the new products and strategies
that may apply to the company. Also, the creation of a better services that customer and everyone in
the company will benefited. Research and development are one of the most important because it’s
creating new technologies, process, or enhancement on the product and expansion of their
operations, in this analyzation Phoenix petroleum company will experience the future growth.
6.6.1 Research and development facilities
To develop new products pricing, packaging, all the materials that they are going to use will
affect cost of the products, higher production higher price cost of products; services and process
development is provided by the organization’s research and development. In this sector you must
know that what is needed to be improved and change if there’s any. Also remember that high cost of
production will affect the whole system and it might be a problem that customer will not patronizing
the product due to high pricing strategies, but it is a must to fulfill the customers want which the good
quality. The main goal of this research and development is to improve what is already there, and if the
company notices that their objectives or plan for the company and it must be changed for the benefit
of Phoenix Petroleum to rank in the top and to be more profitable, having a good background and
feedbacks is good because it will attract more investors and consumers.
7. Internal Factor Evaluation Matrix (IFE Matrix)
Key External Factors
Weight
Rating
Weighted
Score
Strengths
01.Brand Image of company.
0.10
4
0.40
0.08
4
0.32
0.08
3
0.24
(Known for being 3rd biggest oil industry in the Philippines and
known for 19 years in the industry.)
02. High Quality technology resources.
(They’re investing so that it makes their product good quality and
to attract its target consumers.)
03. Largest supplier in the market.
(Has 670+ operating retail stations and there’s still under
construction.)
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 22
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
04. Supplies major Airlines.
0.09
4
0.36
0.08
3
0.24
0.09
4
0.36
0.07
3
0.21
0.06
2
0.12
02.Oil spill controversies affecting the brand image of the 0.04
1
0.04
0.06
3
0.18
0.04
2
0.08
0.07
3
0.21
(Refueling Cebu Pacific Air and Philippine Airlines which shows a
good background.)
05.Strong management team.
(It shows the growth of the business, and you’ll see it’s sustainable
and will last for a long term.)
06. Partnership with well-known company.
(Partnership with Cebu Pacific Air and their supplier is Pertamina
which owned by Government of Indonesia.)
07. Loyal Employees.
(Loyal employees because they make that Phoenix is giving
benefits for their employees and making sure their safety.)
Weaknesses
01.Increasing cost of product.
(Because Phoenix company is still improving their product costing
and lowering their expenses.)
company.
(It has a big impact to the background of the company when
talking oil spill, but Phoenix doesn’t have a lot of controversies
about leaking.)
03.High investment in technology.
(They have more expenses because they are investing on
improving their products then it will add the cost of product.)
04.Limited access to international market.
(They are not very well known in other countries because they
don’t have any branch in other countries; except to Singapore.)
05 Advertising and promotional of the company.
(They don’t have much advertisement.)
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 23
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Overall total:
2.76
7.1 Internal Critical Issues
The IFE Matrix showed that Phoenix petroleum Philippines Inc., achieved a result of above the
average rating of 2.76. Also, we confirmed that Phoenix company is the 3rd biggest in the oil sector in
the Philippines, as culled from market data of the Department of energy. This matrix showed that
Phoenix is doing well and based on their rank in oil sector, however IFE rating did not reach the
highest which there’s still a room to improve. Being known in the oil industry is a big opportunity to
attract more customers in the market, just like other businesses it’s needed to improve the internal
factors even though the company is in the good condition, in the other hand we noticed that in the oil
industry there’s a lot of difficult opponents or competitor that are also using good quality of their
products. We suggested that they are investing on technology a lot then they must improve the other
sectors also their pricing strategies, such as offering new products or any services and control and
maintain their quality on a very high standard above so that to prove to its competitor that your
product is way more useful and make sure that Phoenix will benefit by improving the sectors.
8. Strategy Formulation
This area focuses on the formulation of the strategy. This section of the paper enables
strategists to have a concise overview and assessment of the opportunities, threats, strengths, and
weaknesses that a company encounters concerning the previous section of this paper– the External
Analysis. Furthermore, there are seven methods available for use that are included in this strategyformulation framework.
8.1. TOWS Matrix
Threats, Opportunities, Weaknesses, and Strength Matrix is one of the strategies that analyzes
the internal and external factors to help the company to form a strategy. It also provides on how the
company can maximize their strengths and opportunities and on how the company can improve their
weaknesses and on how they can minimize the impact of threat to the company.
INTERNAL
FACTORS
EXTERNAL
FACTORS
Strengths
Weaknesses
S1. Brand Image of company.
S2. High Quality technology
resources.
S3. Largest supplier in the
market.
S4. Supplies major Airlines.
S5. Strong management team.
S6. Partnership with well-known
company.
S7. Loyal Employees.
W1. Increasing cost of product.
W2. Oil spill controversies affecting
the brand image of the company
W3. High investment in
technology.
W4. Limited access to international
market.
W5. Advertising and promotional of
the company.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 24
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Opportunities
O1. Lower inflation rate
02. New fads in the buyer
conduct can open new
market for the Phoenix
Petroleum.
03. market improvement
O4. New Technology
05. Expand their impact
O6. The country offers a
solid development
viewpoint with significant
new investment openings
in the medium to long
term future.
07.Domestic and foreign
organizations intending
to extend their tasks in
the Philippines halfway
and downstream oil and
gas industry.
Threat
T.1 Tax rate
T2. Intense competition
T3. Ought to there be
infringement of legitimate
guidelines and laws, the
organization will be
dependent upon
complaint and liabilities.
T4. The slow
development in
competitive yields
T5. High bargaining
power of the consumers
SO Strategies
1. Acquiring more
partnership that can help
strengthening their
position in the market.
(S6, O5)
2. With the help of supplying
major airlines, it can help
expand their market and
be known internationally.
(S4, 07)
3. Acquiring more
technology to help the
company to be more
efficient in production.
(S2, O4)
ST Strategies
1. Continuing to improve
management team to be
more competitive in the
market. (S5, T2)
2. Focusing more on
supplying major airlines
that can help their
company to be more
competitive and introduce
new products. (S4, T4)
3. Acquire more investment
that can help the
company to pay a high
tax rate. (S5, T1)
WO Strategies
1. Introducing new products to
the market can help the
company to be well-known
in market. (W5, O3)
2. Investing more on a longterm investment to lessen
the cost of their products in
the long run. (W1, O6)
3. Considering to be ESG
company to be more
efficient and to help the
natural resources. (W2, O3)
WT Strategies
1. Introduce new product or
increase the price on their
product to avoid tax rate
and to stay liquid. (W1, T5,
T1)
2. Focusing on advertising the
company and its product
since the competition is
intense in oil and gas
industry (W5, T2, T4)
8.2. Space Matrix (Strategic Position and Action Evaluation)
SPACE Matrix is one of the most critical phases. It will help the company develop an
appropriate strategy, whether aggressive, conservative, defensive, or competitive. The two axes of
SPACE Matrix act for two internal dimensions, the Financial Position [FP] and Competitive Position
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 25
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
[CP], and two external dimensions, which are the Stability Position [SP] and Industry [position [IP].
These factors are the most important determinants of an organization’s overall strategic positions.
Space Matrix of Phoenix Petroleum Philippines Inc.
Internal Analysis
External Analysis
Financial Position (FP)
Stability Position (SP)
Return on Investment
5
Technological Changes
-4
Leverage
4
Rate of Inflation
-4
Liquidity
5
Price Elasticity Demand
-4
Working Capital
5
Unemployment
-2
Cash Flow
4
Competitive Pressure
-2
Earnings Per Share
3
Taxation
-3
Return on Assets (RoA)
4
Barriers to Entry
-1
Total
4.28
Total
-2.85
1.43
Competitive Position (CP)
Industry Position (IP)
Market Share
-2
Growth Potential
6
Product Quality
-1
Profit Potential
5
Price Competitiveness
-1
Financial Stability
4
Customer Loyalty
-2
Extent Leverage
5
Customer Service
-3
Ease to Entry into Market
5
Marketing
-2
Resource Utilization
5
Total
-1.83
Total
5
3.17
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 26
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
SWOT Strategies
Acquiring more partnership that can help strengthening their position in the market. (S6, O5)
Since Phoenix Petroleum Philippines Inc. has an aggressive strategy, the company should
consider partnering with a well-known company that can help the company continue to establish its
position in the market and look for companies that they can acquire to increase their market share. It
can also help the company be more competitive since the competition in the oil and gas industry is
aggressive.
Acquiring more technology to help the company to be more efficient in production. (S2, O4)
Investing in technology can help the company be more competitive in the market, and it can
also help to maximize the resources that the company uses in its operations. It will be helpful for them
since their operations require maintenance and are valuable for managing materials. Their operations
will be more efficient when they use technology for their productions.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 27
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
8.3. BCG Matrix (Boston Consulting Group)
BGC Matrix as per 2018 – 2019 Data
Brand
Revenues
% Of
Corporates
Revenue
Largest
Rivals
Market
Share
Your
Brand’s
Market
Share
Relative
Market
Share
Market
Growth
Rate
Sales of
Goods
Fuels
Services
and other
revenue
Rent
Income
Total
96,501,653,189
98.65%
17.20%
8.22%
0.48
8%
1,205,744,987
1.23%
27.08%
7.08%
0.26
5%
115,701,069
.12%
20.15%
9.17%
0.46
9%
97,823,109,246
100%
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 28
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
9. Prioritization of Strategies
This area focuses on the strategy prioritization. In this part of the paper, it sums up all
the necessary information such as the factors to be considered for the internal assessment of the
company and it will also highlight the downside factors that needed to be addressed for the purpose
of improvement. This section will show which part of the internal factors would be the most effective
and efficient to use for the company that would help contribute for its growth and help achieve its
objectives.
9.1 QSPM (Quantitative Strategic Planning Matrix)
Develop market
Acquiring more
segments for
technology to help
products
the company to be
more efficient in
production
Key Factors
Weight
AS
TAS
AS
TAS
4
0.20
3
0.15
4
0.16
2
0.08
4
0.16
3
0.12
Opportunities
1. Lower inflation rate – The low flash rate 0.05
gets greater strength to the market,
empower credit at lower loan cost to the
customers
of
Phoenix
Petroleum
Philippines, Inc.
2. New fads in the buyer conduct can open 0.04
new market for the Phoenix Petroleum. It
gives an extraordinary chance to the
association to construct new income
streams and differentiate into new item
classifications as well.
3. The market improvement will prompt 0.04
weakening of competitor's benefit and
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 29
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
empower to expand its seriousness
contrasted with different competitors.
4. The new technology gives a chance to 0.05
2
0.10
4
0.20
4
0.16
2
0.08
3
0.15
1
0.05
4
0.16
3
0.12
3
0.12
1
0.04
4
0.20
3
0.15
practices differentiated pricing technique
in the new market. It will empower the firm
to keep up with its steadfast customers
with extraordinary help and bait new
customers through other worth arranged
recommendations.
5. Opportunity for this organization to 0.04
expand their impact over their customers
in this way acquiring a competitive
advantage over different competitors is
conceivable.
6. The country offers a solid development 0.05
viewpoint
with
significant
new
investment openings in the medium to
long term future. (Business Wire, 2019)
7. Domestic and foreign organizations 0.04
intending to extend their tasks in the
Philippines halfway and downstream oil
and gas industry. (Business Wire, 2019)
Threats
1. The tax rate is one of the contemplations 0.04
of the financial backers and in case,
investors might not pursue investing in
companies here in the Philippines.
2. Intense competition – Stable profitability 0.05
has expanded the quantity of players in
the business which has come down on
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 30
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
productivity as well as on generally
deals.
3. Ought to there be infringement of 0.03
legitimate
guidelines
and
laws,
2
0.06
1
0.03
3
0.12
4
0.16
4
0.12
3
0.09
the
organization will be dependent upon
complaint and liabilities.
4. The slow development in competitive 0.04
advancement
yields
slow
individual
organization growth because the two
competitors are much likely the same.
5. Due to the high bargaining power of the 0.03
consumers, they can modestly change
to different brands.
TOTAL
0.50
1.71
1.27
Strengths
1. Brand Image of company
0.06
4
0.24
2
0.12
0.05
3
0.15
4
0.20
0.05
4
0.20
2
0.10
0.04
2
0.08
1
0.04
(Known for being 3rd biggest oil industry
in the Philippines and known for 19 years
in the industry.)
2. High Quality technology resources
(They’re investing so that it makes their
product good quality and to attract its
target consumers.)
3. Largest supplier in the market
(Has 670+ operating retail stations and
there’s still under construction.)
4. Supplies major Airlines
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 31
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
(Refueling
Cebu
Pacific
Air
and
Philippine Airlines which shows a good
background.)
5. Strong management team
0.04
2
0.08
1
0.04
0.04
4
0.16
2
0.08
0.04
-
-
-
-
0.04
3
0.12
4
0.16
2. Oil spill controversies affecting the brand 0.02
-
-
-
-
3
0.09
4
0.12
(It shows the growth of the business, and
you’ll see it’s sustainable and will last for
a long term.)
6. Partnership with well-known company
(Partnership with Cebu Pacific Air and
their supplier is PERTAMINA which
owned by Government of Indonesia.)
7. Loyal Employees
(Loyal employees because they make
that Phoenix is giving benefits for their
employees
and
making
sure
their
safety.)
Weaknesses
1. Increasing cost of product
(Because Phoenix company is still
improving their product costing and
lowering their expenses.)
image of the company
(It has a big impact to the background of
the company when talking oil spill, but
Phoenix
doesn’t
have
a
lot
of
controversies about leaking.)
3. High Investment in technology
0.03
(They have more expenses because
they are investing on improving their
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 32
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
products then it will add the cost of
product.)
4. Limited access to international market
0.05
4
0.20
1
0.05
5. Advertising and promotional of the 0.05
4
0.20
1
0.05
(They are not very well known in other
countries because they don’t have any
branch in other countries; except to
Singapore.)
company
(They don’t have much advertisement.)
TOTAL
0.47
1.52
0.96
OVERALL TOTAL
1.0
3.23
2.23
10. Critical Strategic Issues (Which of the internal factors is/are crucial to the attainment of the
strategic direction of the company?
The most important goal being set by Phoenix Petroleum Inc. is to be one of the competitive
players in the industry of petroleum provider. To achieve the objectives being set out it is necessary to
identify what are the internal factors that are crucial for the attainment of the strategic direction of the
company. As the results of different matrix being tabulated and ranked, researchers identified that
even though Phoenix Petroleum Inc. has already been years into industry, there are specific
hindrances that they encounter that makes them hard to keep up with the leading petroleum
companies. One of the relevant factors needed to be considered would be their market development
and segmentation. Petroleum companies here in the Philippines are alike in terms of products and
services being offered, as a matter of fact there is no huge difference between the leading brands vs
the other competitors including Phoenix in terms of quality of petroleum being offered in the market.
They must take into consideration their market development and segmentation because it will help
them be known by the consumers and it will also make them persuade that there is not much
difference in terms quality of the products and services being offered and at the same time, they can
surely get what they need for a lower price as compared with the leading competitors. To be specific,
Phoenix Petroleum Philippines Inc. needs to promote as much as possible their existing products, one
of the reasons why they cannot reach a lot of potential consumers is because of their lacking in terms
of advertisements and promotion. Establishing branches into different location as part of market
development will help reach out broad target market with common needs. As the results of identifying
the opportunities, threats, strengths, and weaknesses, it comes out that formulations, Phoenix
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 33
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Petroleum Inc. can perform such aggressive activities including market development for their existing
products and high investment in technology.
11. PROPOSED OBJECTIVES AND STRATEGIES
11.1. Strategic Objective
Market Segmentation and Development
Since Phoenix currently supplies airlines such as Cebu Pacific and Philippine Airlines, the
company could market its existing goods and services to large-scale oil consumers such as cargo
companies and sports car racing as their oil petroleum provider. They must also extend their retail gas
outlets into rural areas. In the next years, their competitive edge over their competitors is anticipated
to expand by 5%. In addition, the corporation should invest more in advertising.
Continue to have a high Market Share
Since the pandemic started, Phoenix Petroleum Company continuing to increase its market
share in the market. The company can maximize its position in the market by providing quality
services and products that can help it be more established in the market. Understanding the market
and being competitive in the market can be a good sign to the company. So, by the end of year 2022
of December, the Phoenix Company will continue to increase their market share by 8%.
Prioritizing Goal #3 Ensuring Healthy lives of all ages
Phoenix Petroleum Company has a fundamental in helping its people and fellow citizens by
improving their health and safety by giving free medical check-ups and bloodletting, especially those
in disadvantaged or rural areas. The company can continue providing help to its people by providing
more services, especially during the pandemic by the end of the pandemic.
11.2 Business Strategy
Market Penetration
The company has established its position as the 3rd biggest oil industry in the Philippines. It
can continue to dominate the market by introducing technology to its operations. The company will
continue to provide quality services and products. It can also introduce new products to the market
and maximize its partnership with big companies. Since the competition in the market is strong,
Phoenix Petroleum Company can acquire more advertisements to help the promotions of their
products.
Operational Efficiency
Since we are in an industry where technology is a big part of the operations, Phoenix
Petroleum Company can acquire technology since one of their strengths is having high-quality
technology resources; then the company can invest more in technology to have efficient operations in
giving their services and products. It can help the company to maintain their position in the market.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 34
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
11.1 Key Strategies per Business Unit of Phoenix Petroleum Company
Department
Objective
Rationale
MARKETING
To improve market share, advertising,
Maximizing the use of platforms
promotional, and sales report will be
would boost the clientele.
used.
To boost the Phoenix Petroleum
Company’s informative promotional
approach and exposure.
FINANCE
To determine the financial requirement
Phoenix Petroleum Company would
and the resources needed to support
seek for investors not just in the
and achieve the goals of the firm.
Philippine market, but also in the
international market.
INFORMATION
To upgrade the company’s technology
MANAGEMENT to speed up the internal operations.
Phoenix Petroleum Company will
deploy Enterprise Resource Planning
Software and Geographic Information
System Software to boost their
technology.
HUMAN
To enable firm personnel to go high-
Employees must be acknowledged
RESOURCE
quality work and become market
and paid to volunteer for projects that
competitors.
are incidental to their line of work to
further maximize talent and ability, as
well as a means of motivation to do
so.
12. Action Plans and Programs
Timetable
Expected Output
Activities
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Person/s
Responsible
Page | 35
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
November 2021 – The Phoenix will be recognized to
Market
Managers
Segmentation December 2023
more potential customers and
and
clients as a result of this action plan.
Development
Advertisement reaches both local
Marketing
and large-scale customers, as well
Department
from
All
Sectors
as new potential investors and
clients. In addition, to gain a
Research and
competitive edge.
Development
Department
Continue to
November 2021 – Continue to look for innovative ways
have a high
December 2023
Market Share
Top Management
to improve the company's financial
situation in the new normal. The
Managers
introduction of a new retail shop,
Sectors
from
All
particularly in rural areas,
represents a rise in market share.
November 2021 – This approach will result in a
Prioritizing
Goal
#3 December 2023
Financing Department
CSR Team
favorable brand image for the firm
Ensuring
while also giving back to and
Healthy lives
assisting the community.
of all ages
Financial Department
Marketing Department
13. Strategy Evaluation and Control
In this stage is to determine whether the internal and external objectives missions are already
achieved or still trying to achieve it, even though Phoenix petroleum is in the list of one of the biggest
and largest company in oil industry still they’re continuously improving their internal and external
factors. In their internal they must improve their internal factors; their overall operations to offer a
better service to the consumers.
13.1 Strategy Map
Perspective of:
Financial to have an increase within a target month or time frame, to increase the market share value
of the company. Good productivity and strategies that company will benefited sooner.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 36
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Internal process this stage is to improve the internal factor were focusing on new strategies to
develop new products. Also, to create an effective marketing strategy that will work in the long run,
and efficient allocation and production. Offering good services and products will reflect how the
organizations are different from the other competitors.
Customer the target here is to be patronize by all the target consumers, which will be based on the
uniqueness of the product, services and company relations to its customer. Additionally, having a
good background and feedbacks of the company has a big impact on attracting customers.
L&G
INTERNAL
CUSTOMER
FINANCIAL
Learning and growth investing on technologies is one of the needs to support the organizations
work and show the competitiveness of the company, having knowledge and backgrounds when it
comes to the marketing strategies in oil industry is also considered as growth mostly when the
employees are very much aware on happenings in the market and understanding in the industry
they’re belonging. The managers or higher must have the leadership skills to coherent the company’s
vision and mission to help the company run for the long term.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 37
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
14. Contingency Planning
A contingency plan is a plan of action designed to assist an organization in effectively responding to
a big future event or circumstance that may or may not occur. A contingency plan is often known as
"Plan B" because it may be employed as an alternate course of action if expected results do not
materialize. Business continuity, catastrophe recovery, and risk management all include contingency
planning.
14.1. Downside – Potential Events
Phoenix has a lot of possibilities to seize, but what if those opportunities are hampered by their
threats? Phoenix supplies major airlines and recently signed a supply agreement with Asia's oldest
airline and the country's flag carrier, Philippine Airlines (PAL), and has expanded its services to Cebu
Air, Inc. in two more domestic airports, bringing the total to 17 under their decade-long partnership,
but COVID-19 disrupted the airline industry, causing several airlines to go bankrupt. If the
aforementioned airline firms were disrupted, they might not continue to use Phoenix as a supplier
and might adopt cost-cutting measures, which relate to steps implemented by a corporation to
minimize its expenditures and increase profitability.
Moreover, several gas stations of Phoenix may be compelled to close operating retail stations and
others may be forced to limit operations if the COVID-19 pandemic extends the enhanced community
quarantine due to obligatory stay-at-home orders.
14.2. Upside – Potential Events
Upside part of contingency planning highlights the potential opportunity events which can have
a huge impact towards the company, it might result into a tremendous growth if opportunities are
about to happen in the future, as well as the threats if were not bound to happen or mitigated, it is
expected that Phoenix Petroleum Inc. will gain competitive advantage towards the industry and there
is a high possibility that they will take higher part in the market share.
As part of the opportunities for Phoenix Petroleum Inc. it is stated that domestic and foreign
organizations intending to extend their tasks in the Philippines halfway and downstream oil and gas
industry. If Phoenix can grab those opportunities, there could be an ease for them with refining their
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 38
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
available offered products for the consumers and as a result of possible downstream, marketing and
distribution of their products can be less complicated, and they can prevent shortage for their supplies
and stocks. Another factor that can contribute for the long-term growth of the company if opportunity
is bound to happen is investing with the new technology. Innovation is endless, and the company
must keep up with the changes and if possible, they must invest on a differentiated new technology
among competitors because it will give them a chance to practices for differentiated pricing technique
in the new market and this can be a cost efficient in a way that they can save up more instead of
incurring expenses or loss and as a result, Phoenix Petroleum company can empower their image
with this opportunity and they can attract more potential customers who will help them achieve the
objectives and goal being set up in the long run. Threats such as high bargaining power of the
consumers which results to modestly change into different brands, Intense competition because of
the rivalry similarities, the slow development in competitive advancement yields slow individual
organization growth if not occurred by Phoenix Petroleum Inc. in the future will boost their profitability
and market improvement, at the same time it will weaken their competitor’s benefit. The resulting
outcome if the listed opportunities happened and if the threats did not occur in the future will make
Phoenix Petroleum Inc. to be the one of the top players in the oil and gas industry, and their
performance will shape their image to the consumers as one of the best oil and gas provider in the
market who offers a quality products on a less expensive price which is very essential for consumers
in selecting their preferred petroleum provider. Furthermore, Phoenix Petroleum is one of the top
companies in oil industry and set a goal to be higher to surpass all the competitors due to uniqueness
of products. It’s not about being on top but also to develop and emerge in the market. Offered a good
deal to known companies and be the supplier.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 39
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
References
An archive of our annual reports since 2007. (2018, February 4). Phoenix Fuels. https://www.phoenixfuels.ph/annualreports/
Building Indispensable Partnerships. (2019). https://www.phoenixfuels.ph/wpcontent. https://www.phoenixfuels.ph/wp-content/uploads/2019/05/CSR-Report-lowres.pdf
Company information. (2020). PSE EDGE
portal. https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=608
De Guzman, J. (2015, March 20). Phoenix petroleum Philippines. prezi.com. https://prezi.com/fjvkitjvzujy/phoenixpetroleum-philippines/
(2020, December 17). Phoenix Fuels. https://www.phoenixfuels.ph/
Phoenix Petroleum Philippines, Inc. Investor Presentation. (2021, April). Fastest-Growing Oil Company in the Philippines
| Phoenix Fuels. https://www.phoenixfuels.ph/wp-content/uploads/2021/04/Phoenix-Non-DealRoadshow-presentation.pdf
Phoenix petroleum widens market share. (2021, September 24). Manila
Bulletin. https://mb.com.ph/2021/09/24/phoenix-petroleum-widens-market-share/
Phoenix petroleum’s market share grows to 8.3%. (2021, September 22). BusinessWorld
Online. https://www.bworldonline.com/phoenix-petroleums-market-share-grows-to-8-3/
Phoenix petroleum’s market share grows to 8.3%. (2021, September 22). BusinessWorld
Online. https://www.bworldonline.com/phoenix-petroleums-market-share-grows-to-8-3/
Phoenix Petroluem Philippines. (2020). Born To Survive, Built To
Thrive. https://file:///C:/Users/Jizza/Downloads/2020_Phoenix_Petroleum_Annual_Report.pdf
https://www.phoenixfuels.ph/phoenix-leads-as-independents-continue-market-share-expansion-in-1h21/
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 40
Ms. A.A. San Pablo
A Strategic Management Paper for
Phoenix Petroleum Philippines Inc.
Documentation
Here is the documentation from the time the researchers spent consulting with their professor and
brainstorming with their group members.
The researchers had their last meeting with their
professor about the final paper. The professor
suggested that researchers make some minor
adjustments to the table describing the company's
mission, matrix, APA format, and executive summary.
The group members discussed the changes that they
needed to make based on the advice of their professor.
They finished the revision in 3 hours and 30 minutes.
The whole class had a discussion and lesson with their
professor.
DELOS SANTOS, HERNANDO, VILLAMOR, VILLANUEVA, YOUNG
FIN 193/195
Page | 41
Ms. A.A. San Pablo