It’s an important step for businesses and organizations to gain insights into their internal and external core strengths, weaknesses, opportunities and threats. Available from: https://gradesfixer.com/free-essay-examples/analysis-of-strategic-alliance-between-engen-and-woolworths-petrol-station-franchises/, Recieve 100% plagiarism-Free paper just for 4.99$ on email, *Public papers are open and may contain not unique content. 30 pages It is important for both businesses to draw on this and continually market their products to both existing and potential customers. VISION. Strengths . Through looking at the S trengths, W eaknesses, O pportunities, and T hreats of a company, it can be quite easy to gain an extensive outlook on their strategy, and how well it’s bound to work. This will somewhat mitigate the risk of losing market share. No doubt starting a gas station is indeed capital intensive especially for aspiring entrepreneurs who may not have huge sum of money saved up in a bank. This can be achieved through ensuring technology is up to date as mentioned above as well as through ensuring employees are properly trained. Engen and Woolworths are known to have service and products of high quality. It is therefore important to ensure all Engen fuel stations provide excellent service and convenience to consumers. Moreover, SWOT analysis template further below can be used to generate SWOT tables of top multinational companies along a range of industries. Our SWOT Analysis depicts our key strengths and weaknesses for our new project. In this portion of our analysis, we … This will ensure the company the ability to operate in a productive and efficient manner. SWOT analyses are used in many business environments to gain … Engen is majority owned by PETRONAS (74% holding), one of the world’s leading oil companies and a member of the FORTUNE 500. Specifically in this market, there is large potential for growth which Engen and Woolworths could use to their advantage. It is the analysis of six major macro-environmental factors, namely political, economic, social, technological, legal and environmental factors (Oxford University Press, 2010). Weaknesses in the SWOT Analysis of Shell : Violating corruption laws: In July 2007, Shell Oil was involved in violating corruption laws in the US in the case of using freight forwarding Panalpina and violating corruption rules from the Foreign Corrupt Practices Act (FCPA). Our Gas Station SWOT Analysis will provide you with the comprehensive documentation that you will need in order to determine the strengths, weaknesses, opportunities, and threats that your business will face as your develop or expand your business operations. Sales vs Expenses . The most common approach to swot analysis is to simply brainstorm each list. The government provides the goods and services to this industry and helps it to flourish so that it can contribute in strong economy of the country. Many consumers purchase these products on the way to work and on the way home in the evening. CD-ROM - US$ 300.00 SWOT Analysis: Theory SWOT is a strategic analytical tool for assessing strengths and weaknesses of a business, analyzing opportunities available to the business, as well as, threats faced by the business. If you’d like this or any other sample, we’ll happily email it to you. Not only does this serve as an extra source of income, but it also creates a unique selling point and draws more consumers to the fuel station and forecourt. Woolworths is a well-known food and clothing retailer in South Africa. We will occasionally send you account related emails. A gas station SWOT analysis discusses the strengths, weaknesses, opportunities, and threats that are normally associated with these businesses. This soon became a household name, however, after many years operating under this name, the company rebranded to Engen in 1993 and has since become one of the most recognizable petrol brands in South Africa. Currently, the Woolworths Foodstop serves as a complementary product to the fuel. Gas stations generate extremely predictable streams of revenue from the ongoing sales of gasoline and small food items at their locations. Inability to penetrate successfully in non-energy markets: British Petroleum has diverse interests in a number of related areas and this is mostly in the energy-related domains. Thus, the fast food store would attract consumers to the store and as an extension, the fuel station and Foodstop. There are currently 50 Woolworths Foodstops countrywide, of which 31 are in Gauteng. Pssst… Engen began as Vacuum Oil in the 1880’s and was renamed Mobil in South Africa in the 1960’s. Woolworths Foodstops have a variety of prepackaged meals, snacks and basic food items such as bread. ID: ED51ABC7F30EN Currently, PETRONAS, Malaysia’s national oil company, owns 80% of Engen & the remaining 20% is owned by Pembani, an empowerment firm which contributes to the essentials of Engen’s BBBEE compliance. Attention! SWOT analysis is a technique for representing the current strategic position of a business, brand, product, service, person, event or organization. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry. South Africa is currently in a technical recession which combined with inflation has caused consumers to retract from spending and save more. Identification and/or creation of a competitive advantage and should set out the future strategy & financial development of the service over a specific period – ... Engen transformation policy – Women a priority . The company believes in acting in a manner that is King Code Compliant and has embraced an ethical business culture to provide top quality petroleum products and convenience to their customers. Porter's Five Forces: Gas Stations Andrew White, Steffan Simmons, Lexi Tenney Buyer Power Many buyers with little share Individual buyers purchase a small amount of total output Buyers are fragmented High importance to customers Rivalry for Existing Firms Threat of New Entrants This means that most consumers are either in a rush or tired. This means that Engen produces and transports its own products thus mitigating the risk the power of a supplier can pose on a company. In the event that a supplier is unable to deliver the correct quality and quantity of raw materials, Woolworths operations will be compromised. External Opportunities and Threats. 2.0 PESTLE Analysis of Shell Group. Sales could include regular markdowns on products as well as promotions based on the amount of fuel you buy to attract consumers to Engen as well. MISSION. To do this, it is important to empower and grow employees in a manner that makes them feel valued. Because of this, it is unlikely that new entrants would pose a large threat. Thus, the products in the convenience store serve as complimentary products due to the convenience of being able to fill up your car and buy food at the same time. October 2014 More SWOT analysis for Non Profit Organization examples are available on Creately.--You can edit this template and create your own diagram. Woolworths and Engen have become related in the consumer’s mind and thus are when one acts in an irresponsible manner, both are affected. Woolworths food can often be quite expensive compared to that of its competitors, SPAR and Pick ‘n Pay among others. It is of utmost importance to hire employees that do not have criminal records and that are qualified (or can be trained) to do the job they are hired to do. Having trouble finding the perfect essay? In the fuel industry, buyers have a large power over stations. 2020 Mar 16 [cited 2020 Dec 24]. The report provides complete information on the operations of the company across the value chain. However, fuel stations have differentiated themselves through service and product quality as well as their forecourts. With more consumers becoming environmentally conscious, it is important for Woolworths and Engen to be as environmentally friendly as possible and ensure this is visible to the public. This will mitigate the risk of being replaced by other fuel stations or retailers. You may have heard of a SWOT analysis, which serves as an analytical tool to assess your company's business strategy. Woolworths Holdings Limited listed on the JSE in October 1997 and the share price at the close of the JSE on Friday the 5th of October 2018 was R47. This can be done by expanding the recycling project with Nampak to more fuel stations. -Ford have more consumer choice which is commercial vehicle and variety of cars for consumer. In order to gain a larger market share, Woolworths could consider introducing a more affordable range of food or having sales on products at the end of the month. It is therefore important to ensure that fuel is transported and stored in the correct manner to prevent water getting into fuel and damaging the engine of a consumer’s car. When it comes to building a strategic vision, a SWOT analysis is a crucial first step. As it relates the strengths, even in times of economic recession most gas stations are able to remain profitable and cash flow positive. This is because consumers often buy their fuel when they are going to work or on a journey and returning from either. SWOT Analysis. Strength. Weakness. Woolworths currently differentiates itself from other forecourt stores through its product quality. Engen is an African-based energy group focused on the refining and marketing of petroleum, lubricants and functional fluids, chemicals and retail convenience services, through an extensive network of service stations across 7 countries in sub-Saharan Africa and the Indian Ocean Islands. Gas Station SWOT Analysis . This acts as a barrier to entry for smaller retailers and fuel stations wanting to form strategic alliances. Weaknesses are used to refer to areas where the business or the brand needs improvement. There are currently many competitors in the market. this essay is not unique. By ensuring loyalty to both brands, they will be able to build a stronger and more loyal consumer base. This will also create a convenient space for consumers to recycle their waste and thus creates a competitive advantage. Because the consumer would then have more choice while still having the convenience of being able to do more things at once, the fuel station is more likely to draw more consumers. Other complementary products Engen could consider are car washes and fast food brands. Through their core values, Integrity, Ownership, Teamwork, Empowered and Performance, Engen aims to achieve while remaining a responsible corporate citizen. This section is available only in the 'Complete Report' on purchase. PESTEL analysis provides great detail about operating challenges Sasol Limited will face in prevalent macro environment other than competitive forces. This could lead to the above risk of being replaced by another company. Due to fuel price regulation, price cannot be used as a competitive advantage over competitors. PESTLE analysis is a framework that describes factors of external environment that affect an organization. 4 ENGEN PETROLEUM LTD- SWOT ANALYSIS 4.1 Engen Petroleum Ltd- Key Strengths 4.2 Engen Petroleum Ltd- Key Weaknesses 4.3 Engen Petroleum Ltd- Key Opportunities 4.4 Engen Petroleum Ltd- Key Threats 5 ENGEN PETROLEUM LTD- KEY EVENTS AND HISTORY 6 ENGEN PETROLEUM LTD- BUSINESS OPERATION STRUCTURE 7 ENGEN PETROLEUM LTD- MAJOR PRODUCTS AND SERVICES To export a reference to this article please select a referencing style below: Sorry, copying is not allowed on our website. What this means, is that it is easy for buyers to switch fuel stations with little to no additional cost. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. What this means is that suppliers have power over Woolworths’ ability to produce products which will then be sold in the Foodstops nationwide. GradesFixer. Our recommendation is to do a SWOT analysis first, followed by a PEST analysis, in order to get a complete picture of the business landscape. Site Licence - US$ 300.00 Due to price regulations, all stations have to charge the same amount for fuel. Most consumers fill up their cars before or after a long trip or on the way from or to work. In 2009, Engen and Woolworths partnered with Nampak to offer recycling facilities to their customers. This needs to be maintained for the companies to maintain the market share they currently enjoy. Weaknesses in the SWOT analysis of BP. Engen also runs a KlevaKids campaign which educates children on paraffin safety and screens all forecourt attendants for health issues to ensure their health and wellbeing. | According to BusinessTech, the most popular petrol stations in 2017 were Sasol, Shell, Engen, BP, and Caltex. Their underlying values that guide all operations mean that the company will always put the customer first, be inspirational, responsible & collaborative while committing to quality to be a responsible retailer and add quality to the lives of consumers. You might perform this analysis for a product, team, organization, leadership, or other entities. For that reason, while each party wants to remain in the strategic alliance, they should maintain a good relationship. For this reason, it is incredibly important for Engen to differentiate itself from competitors. By extending the Wrewards programme to fuel stations, Woolworths has shown customers that they value their purchases at these Foodstops. Engen has both a refinery and a lubricating oils blending plant in Durban as well as its own fleet. In 2014, Woolworths extended its Wrewards programmes to Foodstops at Engen garages. Woolworths opened its first 2 Foodstops at Engen in Cape Town in 2000 to test the viability of a forecourt model for the company. The Woolworths Foodstop concept was innovative and the non-traditional location allowed Woolworths to reach consumers 24-hours a day. Home — Essay Samples — World — South Africa — Analysis Of Strategic Alliance Between Engen And Woolworths Petrol Station Franchises. This can be done by offering exclusive deals at forecourts which incentivise consumers to choose Engen and Woolworths over other fuel stations and forecourts. Opening a franchise isn’t cheap. 2020 © gradesfixer.com. An industry equilibrium analysis of downstream vertical integration. This initiative highlighted the companies shared goal of reducing wastage and their commitment to being more environmentally friendly by reducing landfill waste. Such violations affect brand image and goodwill. The fuel industry has remained resilient throughout economic difficulties including recession. You can order Unique paper and our professionals Rewrite it for you. It is therefore important for Engen and Woolworths to make the entire transaction as seamless and efficient as possible. In South Africa, there are several different petrol station franchises. It is important to make employees feel valued to increase productivity and service quality. This empowers employees which increases productivity and satisfaction but also mitigates the risk of mistakes and makes the consumers experience much more efficient. If you don’t have a huge savings, you’re going to need investors or a business loan. Examples of this include compulsory paid leave days, employee training, discounts in convenience store and for fuel among other initiatives. As of 2020, BP is one of the leading brands in the energy & power sector. To be the leading African energy company. We provide you with original essay samples, perfect formatting and styling. This was done to learn more about consumer behaviour to improve their service delivery at these stores. It is however suggested that Engen and Woolworths ensure consistent consumer satisfaction. Backwards integration refers to internally producing some or all materials necessary for production either through a merger with suppliers or the creation of own supply mechanisms (such as factories or farms). The company was fined $30 millions penalty. Both Engen’s refinery and lubricating oils blending plant are located in Durban and produce 135 000 barrels and 320 000 litres of product per day respectively. They were the first major retailers in the country to extend their loyalty programme to strategic alliance stores at fuel stations. It is also important to continually research and improve the fuel being produced to be better for both the consumers car and the environment. All rights reserved Gradesfixer ™, “Analysis Of Strategic Alliance Between Engen And Woolworths Petrol Station Franchises.”, Analysis Of Strategic Alliance Between Engen And Woolworths Petrol Station Franchises [Internet]. Notes & summaries for UNISA. This serves as marketing and in the long term can be used to build a loyal consumer base. 1. Well known fast food brands would also already have a loyal consumer base. the SWOT acronym stands for Strengths, Weaknesses, Opportunities, Threats. Utilising more technology to make sales both in the fuel station and the convenience store more efficient and enjoyable for consumers could build a stronger consumer base. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. This strategic alliance has been successful because it provides convenience to consumers. However to ensure that the company does operate in a productive and efficient manner, it is important to empower employees and make them feel valued as mentioned before. A concern in the fuel industry at the moment is the effect on the environment. It has also served as marketing to new consumers. We can custom edit this essay into an original, 100% plagiarism free essay. The convenience provided by the “delivery service” at Engen Edenburg is attractive to parents. As millions of people are associated with this business, s… What this means is that a new entrant would have difficulty in building a customer base. This involves listing strengths, weaknesses, opportunities and threats.A swot analysis can be performed for any competitive situation. PHEMBANI, a black-controlled South African company focused on the broader energy sector, holds 21.2%, while a Phembani-led consortium holds the remaining 4.8%. 2020 Mar 16 [cited 2020 Dec 28]. However, the poor presence ion nonenergy sectors may affect the business in the … The food retailer should also ensure good product and service quality and invest in CSR & CSI initiatives to increase market share as mentioned above for Engen. These could attract more consumers and thus create a competitive advantage. This service allows parents to buy from the store without having to leave the car with their child. This poses a risk to the quality and pricing of products as well as Woolworths’ ability to produce food. Students who find writing to be a difficult task. While the quality is often considered to be better, it is not always affordable and thus a large portion of the market is shut out. This simple tool can be used to assess a project, product, person, or place and test for viability and other factors. In addition, potential opportunities and key threats in the short to medium term future are also identified. we can write an original essay just for you. This will create a positive reputation for Engen and thus allow the company to build a loyal consumer base. This location saves consumers time and thus builds brand loyalty. Most fuel stations have forecourts with convenience stores making it increasingly difficult to differentiate from competitors. SWOT analysis is one of business analysis’ most important tools. Creately diagrams can be exported and added to Word, PPT (powerpoint), Excel, Visio or any other document. This illustrates the breakdown of Woolworths Holding Limited and shows basic statistics around their operations and sales processes. “Engen Petroleum Ltd Company Profile” is a comprehensive report from OGAnalysis on Engen Petroleum Ltd operations. PDF) - US$ 200.00 For the purpose of this project, I have chosen to research the strategic alliance between Engen and Woolworths. Woolworths however, is dependent on suppliers to deliver raw materials to factories. Divestments of oil sands assets in Canada due to concerns of climate change and profitability impact: Total had majorly banked on its oil sands project in early 2000’s as future growth drivers post 2010. Key strengths and weaknesses of the company on which the company can develop are included. SWOT Analysis is a proven management framework which enables a brand like Total to benchmark its business & performance as compared to the competitors and industry. This effectively limits the opportunity for strong strategic alliances that could be a threat. To differentiate from competitors, it is important to ensure that Engen’s fuel quality is superior than that of its competitors. Our product also includes a full business plan specific for a Gas Station. Employees should be trained and given opportunities to improve themselves including their earnings. The industry of oil and petroleum needs labor to work with and they have to pay the taxes and other charges, which are levied over it. STRENGTH -online marketing capability, Ford is providing consumers to select their car through the website and allow to customize the interior, exterior and engine color and etc. These strategic alliances can be costly to form due to legal costs when drawing up the contract. This is not an example of the work written by professional essay writers. A Sample Gas Station Business Plan SWOT Analysis Knowing the strength and weakness of any business is one of the right steps to take in business. It is therefore important to uphold this quality to avoid losing market share because of consumers opting to buy from alternative stores. However, both Engen and Woolworths have are established in the market thus it is easier to maintain a loyal consumer base. With Woolworths Foodstops have been present in the way they interact with consumers, discounts in convenience and. Written by professional essay writers and weakness of any business is one the... 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While each party wants to remain profitable and cash flow positive hydrocarbon solvents, as well as various and! More customers as they drove past the station by continuing we ’ ll assume you board with our cookie.! Attract consumers to recycle their waste and thus builds brand loyalty the programme!
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