D.

Strategies Formulated and Briefly Discussed/Assessed

Within a broad business context, strategy is an integrated set of plans for

achieving long-term organizational goals. Multiunit corporations have three levels of
organizational strategy: corporate strategy, business strategy, and functional
strategy.

Corporations often consist of multiple divisions, each operating independently

and having its own strategy, known as a business strategy. Yet, the top management
in a corporation tends to develop an overarching strategy that reflects its overall
scope and direction. Such a strategy, which enables various business units to work
together in order to meet the expectations of shareholders and achieve particular
goals, is known as a corporate strategy.

 CORPORATE-LEVEL STRATEGIES

In a broad sense, corporate strategy establishes the overall direction of the

firm. Also, corporate strategy is a smaller part of a larger and distinct process known
as the strategic management process, consisting of several interrelated stages, of
which corporate strategy development falls within the strategy formulation stage.
To achieve its goal of growing its network to 1,000 stations nationwide this year,
SeaOil applies these corporate growth strategies:

Partnership Strategy
SEAOIL signed a definitive agreement that forges a strategic
partnership with Caltex Australia Petroleum Pty Ltd (“Caltex Australia”).
The Australian company will acquire a 20 percent equity interest in
Seaoil in what is intended to be a long-term partnership between the two
independent players.
Caltex Australia is a 100 percent publicly-owned company, listed on the
Australian Stock Exchange (ASX) under the symbol CTX. It does not share any
common ownership with the local Caltex brand, which is owned by Chevron
 Philippines Inc. In terms of size, Caltex Australia at US$6.5B–US$7.0B
surpasses the combined market capitalization of locally listed Pilipinas Shell
(SHLPH) and Petron (PCOR) by more than 70 percent.
The new strategic partnership will see Caltex Australia support Seaoil's
current growth strategy, which aims to double the company’s retail network
and terminal storage capacity over the next five years. As part of the formation
of the strategic partnership, Caltex Australia will supply fuel to Seaoil via
Ampol, its fuel sourcing and shipping business in Singapore.
This partnership will also mean exciting times for their employees,
their franchisees, distributors and customers as SeaOil leverage our partner’s
scale and expertise to provide high quality, affordable and accessible fuels and
lubricants to the fast growing Philippine market.

Diversification Strategy
Over years, SeaOil consistently adding new products and services for
continuity of the SeaOil operations.
Recently, SeaOil ventures into lubricants and auto services. In 2018,
SeaOil opened its first branded lubricant service center, LubeServ at its station in
Dau, Pampanga and would open 4 more centers within the year.
Aside from oil change and lubrication services, LubeServ will also offer
aircon and electrical repairs, tune up, auto detailing and several other vehicle
maintenance services.

 BUSINESS-LEVEL STRATEGIES

Once corporate strategies are developed, the focus is upon formulating

business-level strategies. Business-level strategies are strategies that give the firm
a competitive advantage. According to Porter's Generic Strategies model, there
are three basic strategic options available to organizations for gaining competitive
advantage. These are: Cost Leadership, Differentiation and Focus.
Cost Leadership
SeaOil created their own niche to secure a sizeable share of the
market, so they leveraged on lower pricing to attract customers. True
enough, price-conscious motorists, specifically the PUV drivers, became their
frequent patrons. Long lines of jeepneys were a usual sight at our stations.
SeaOil offers high quality petroleum and gas with 7 pesos difference amongst
the “Big 3” gas companies.

Differentiation
SeaOil envision to differentiate the SEAOIL brand in the minds of the
consumers. They want customers to see SEAOIL as one that can challenge the
other oil players in terms of product quality.
SEAOIL is the first fuel company in Asia that offers fuels powered with
world-trusted and proven STP additives. Their products EXTREME 97,
EXTREME 95, EXTREME U, and their diesel EXCEED are formulated with
proprietary friction-busting formula that significantly improves engine
performance.
SeaOil is also famous for giving “Lifetime Free Gas” for lucky four
winners every year. SEAOIL customers can expect to win over 100,000 instant
prizes through peel-off cards. Thirty (30) P10,000 worth of SEAOIL gift cards
will also be raffled off in the monthly draws. To qualify, a customer must gas
up at least P500 worth of Extreme 97, Extreme 95, Extreme U, Extreme Diesel
fuels and/or SEAOIL Lubricants at any SEAOIL station nationwide.

Focus
Their focus is innovation. Their desire to fuel a better future for
Filipinos became their motivation to introduce fuel products ahead of
competition, making them known as the Innovation Leader in Philippine fuel
industry. They were the first to shift to unleaded gasoline and first to
introduce low-sulfur diesel, knowing that lead and sulfur have detrimental
effects on people’s health and on environment.
 They continue to live up to Innovation Leader reputation, as they
continue to introduce high-quality products for the benefit of Filipino
motorists. In 2013, they further enhanced their fuel product lineup by
partnering with STP – a renowned brand of fuel additives.

 FUNCTIONAL-LEVEL STRATEGIES

Functional strategies flow out of an organization's functional departmental

areas, developed in furtherance of the aforementioned corporate and business-level
strategies.

Operations Strategies
SeaOil Lapaz makes sure that the daily operations will go smooth.
SeaOil team always forecasts daily fuel consumption. They use dip stick often
to avoid shortage of resources and distribution. The need for forecast arises
because the manager must place order of new fuel deliveries by minimum one
week earlier.
The team also frequently checks the gas pumps to avoid
under/overfilling of gas to the customers.

Financial Strategies
SeaOil maintains a system of internal control to provide reasonable
assurance regarding the reliability of financial reporting, insuring the
following objectives are met. The cashier receives the cash from customers
then he/she counts and records the payment. The cash received will be hidden
inside the cash drawer and when it reaches 5,000 pesos, they will be kept in
the vault. And at the end of daily operations, the cashier counts all the cash
received to make sure if its balance according to journal record. Then, after a
week or two, it will be deposited to the bank for safety keeping.
Marketing Strategies
The functional strategy for the marketing department in support of the
business' goal to increase market share by using promotional tools to inform,
persuade customers about the products which SeaOil has to offer. They use
social media networking websites and tarpaulins to strengthen the business’
customer relations.
SeaOil Lapaz Branch also conducts game plan or strategic meeting
about proposing what promotional offers they could implement to boost sales.
Recently, they executed a plan of giving free brood cocks for top three highest
volume contributors.

Human Resource Strategies

The success or failure of a business venture lies in the hands of the

individuals who constitute the organization. SeaOil HR strategy involves:

Recruitment and Selection

SeaOil identifies and select the most competent and skilled applicants.
They must match job qualifications.

Job Qualifications:

Station Head/Manager

Must a graduate of any 4 year course (business related courses are preferred)

Computer literate

Good leadership skills

Cashier

 Must a graduate of any 4 year course (business related courses are

preferred)
 Responsible for recording financial transactions and reports

Pump Attendants

 Must atleast a graduate of 2 year vocational course

 Must have related work experience

Training

Employees will be trained to perform their jobs properly.

Compensation

Attractive compensation more than competitors increase the

competency of work that helps to attract and retain capable people.