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EXECUTIVE SUMMARY

Phoenix Petroleum Philippines Inc. is a independent retail petroleum company that hasbeen transforming the Philippines for more than 10 years already. Its long-termpresence in the Philippines has earned the company not only a strong foothold in themarket but also the undoubted trust and loyalty of Filipino consumers when it comes topetroleum products. The brand name has become so familiar with Filipinos that thesame brand has been used as the colloquial term for oil and gas. In a consumersproduct industry where end consumers bargaining power is high and competition istight, Phoenix Petroleum Philippines Inc, struggles to keep its market leadership when itcomes to an independent retail industry while continuously discovering ways for growthand profitability.

As the time goes by, it is hard to reach the number one spot but it will be harder to go in

it. For Phoenix, the threat of a maturing market continues to put pressure on thecompany to stay ahead of the industry and be a market-driver in its field.

This study aims to assess current capabilities which the organization possess in orderto address the threats and opportunities in the macro environment and presentrecommendations to sustain the companys strategies in its pursuit for continuousleadership in the industry it belongs to. This project desires to provide a comprehensiveanalysis of the local market as Phoenix Petroleum exerts great efforts to align itsperformance with local standards and keep up with its local counterparts and PhoenixPetroleum Philippines as a whole.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

TABLE OF CONTENTS 2

ACKNOWLEDGEMENT 4INTRODUCTION 5

Background 5

EXTERNAL ENVIRONMENTAL ANALYSIS 7

Definition of Industry 7

Present Task Environment Analysis 8

Threat of New Entrant 9

Threat of Substitute 12

Bargaining Powers of Buyers 12

Bargaining Powers of Suppliers 12

Competitive Rivalry 13Macro environment Analysis 14

Economic 14

Social 17

Demographic 18

Technological 20

Threats and Opportunities 21

Industry and Competitive Analysis 23

Strategic Map 25

INTERNAL ENVIRONMENTAL ANALYSIS 26

Overview of the company 26

Corporate Values 28

Value Chain Analysis 29

Supply Chain Management 29

Operations 30

Distribution 30

Sales and Marketing 31

Services 32

Technology 32

R&D Technology 32Human Resource Management 33

General Administration 33

Strength and Weaknesses 34

Financial Analysis 36

Balance Sheet 37

Profitability Ratio 43

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Liquidity Ratio 44

Leverage Ratio 44

Activity Ratio 45

STRATEGIC PLAN 46

Vision and Mission 46

Objectives 47

Evaluation of Present Corporate Strategies 48

Proposed Corporate Strategies 51

Competitive Advantage 51

Proposed Competitive Advantage 55

FUNCTIONAL AREA STRATEGY 56

Marketing 56

Target Market Segments 56

Marketing Objectives 56

Marketing plan 56Human Resource 57

Objective 57

Plan 57

Operation 57

Objective 57

Plan 57

Finance 58

Objective 58

Plan 58

Information (I.T) 58Objective 58

Plan 58

IMPLEMENTATION 59

Analysis of Company's Capabilities to

Implement Strategies 59

Balanced Scorecard 62

Managing Strategic Change 66

FINANCIAL PROJECTION 68

Best Case Projection 68

Probable Case Projection 72

Worst case Projection 76

Analysis of the Financial projection 80

SOURCES 81

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ACKNOWLEDGEMENT

Foremost, I would like to express my sincere gratitude to my advisor Prof. Real So for

the continuous support of my Strategic Management study and research, for his

patience, motivation, enthusiasm, and immense knowledge. His guidance helped me in

all the time of research and writing of this plan. I could not have imagined having a

better advisor and mentor for my Strategic Management study. His wide knowledge and

his logical way of thinking have been of great value for me. His understanding,

encouraging and personal guidance have provided a good basis for the present thesis.

My sincere thanks also goes to Chairman Domingo T. Uy, CEO Dennis A. Uy, Atty. AlanRaymond T. Zorilla, Mrs. Chesa Salud, Mrs. Shane Ferrer, for offering me the summer

internship opportunities in their groups and leading me working on diverse exciting

projects.

Last but not the least; I would like to thank my family: my parents Grace De Rama and

Ringo De Rama, for giving birth to me at the first place and supporting me spiritually

throughout my life.