I. Name of the Firm ▪ PETRON CORPORATION II.

Vision, Mission, Goals and Core Values ▪ To be the

leading provider of total customer solutions in the energy sector and its derivative businesses. ▪ We will
provide excellent service to our customers, good opportunities for our suppliers, and respect for the
community and the environment in which we live and work. These actions will result in the continued
growth and fair returns for our shareholders. ▪ Being an integral part of our customers’ lives, delivering
a consistent customer experience through innovative products and services. ▪ Developing strategic
partnerships in pursuit of growth and opportunity. ▪ Leveraging our refining assets to achieve
competitive advantage. ▪ Fostering an entrepreneurial culture that encourages teamwork, innovation
and excellence. ▪ Conducting ourselves with professionalism, integrity and fairness. III. Brief History ▪
The Standard Vacuum Oil Company, sometimes known as Stanvac, was founded on September 7, 1933,
when the Standard Oil Company of New Jersey and the Socony Vacuum Oil Company of New York
combined. Stanvac swiftly resumed its operations in 1945 after ceasing them during World War II and
assisted in the reconstruction of a newly independent country. To fulfill the nation's expanding fuel
needs, Stanvac began building a refinery in the province of Limay, Bataan, in 1957. Its daily capacity for
refining crude oil was 25,000 barrels at the time of its opening in 1961. This was the most advanced
refinery in South East Asia at the time. Esso Philipines was founded in 1962 after Standard Oil and
Socony Vacuum's cooperation ended. When we first introduced the nation to high-octane gasoline, Esso
Extra, and bottled LPG, Esso Gasul, we were already a leader in innovation. At the height of the first oil
crisis in 1973, the Philippine National Oil Company (PNOC) bought Esso Philippines and renamed it
Petrophil Corporation. We were successful in keeping our pledge to provide a steady and dependable
supply of fuels at this crucial time. Petrophil was renamed Petron Corporation in February 1988. Petron
was willing to collaborate with the national government during the most challenging and arduous
periods the nation has ever experienced, including the Gulf War in 1991. A stock purchase deal between
PNOC and Saudi Aramco was formed in 1994, giving Aramco a 40% stake in Petron. 20% of PNOC shares
were sold in the same year in what the Philippines referred to as the "mother of all initial public
offerings (IPOs)". Petron was first managed by San Miguel Corporation (SMC) in 2009. SMC is one of the
major international companies in the nation today and has been in the beverage, food, and packaging
industries for more than 120 years. It has expanded into sectors like power, mining, toll roads, and
airports in recent years. For the eleventh year in a row, Reader's Digest awarded Petron the Gold
Trusted Brand Award in the Petrol Station category at the end of 2010. Petron Bataan Refinery (PBR)
launched its upgrade project, known as the Refinery Master Plan Phase 2 in April 2011, to
commemorate its 50th anniversary (RMP-2). The PBR maximized its 180,000 barrels per day capacity in
2017, reaching its best usage rate, thanks to its expanded capabilities. This means that Petron will be
able to meet the nation's fuel requirements, particularly for high-value industries like petrochemicals.
Despite being in business for 85 years, Petron is still committed to and passionate about its mission to
be the top supplier of comprehensive customer solutions for the energy industry and its derivative
companies. IV. SWOT-PESTLE Analysis Strengths ▪ PETRON CORPORATION, the largest oil marketing and
refining company in the Philippines, supplies nearly 40% of the country's oil needs as well as energy for
millions of Filipinos. ▪ San Miguel Corporation is a powerful principle shareholder with an experienced
management team and staff. Weaknesses ▪ The business operating results and financial condition of the
Company may be materially adversely impacted by the volatility of crude oil and petroleum product
prices. ▪ In both Malaysia and the Philippines, the Company is principally dependent on a limited
number of suppliers for a sizeable share of its crude oil needs. Opportunities ▪ In order to more
effectively transport goods to the central region, the company linked the Port Dickson Refinery and the
Klang Valley Distribution Terminal in the second quarter of 2015. ▪ The $2 billion RMP-2 project was
finished by the company in the 2014 fourth quarter. This made it possible for the Limay Refinery to
transform fuel oil production into higher value products and raise utilization levels to the current levels
of about 90%. The RMP-2 facilities underwent modifications in 2015 to maximize value creation and
guarantee steady operations. In January 2016, the company announced that it was fully operational.
Threats ▪ It's possible that Bond holders won't be able to reinvest at a comparable rate of return. ▪ The
company's operations and future prospects could suffer if it doesn't react promptly and efficiently to
product substitutions or government-mandated product formulas. Political Factor/s: ▪ Political unrest,
terrorist attacks, armed conflict, or modifications to legal or administrative frameworks in the
Philippines or Malaysia could destabilize the situation and have a detrimental impact on the Company.
Economic Factor/s: ▪ The poor growth rates and global economic volatility in the Philippines, Malaysia,
and other countries may have a detrimental impact on the business and sales of the company. Social
Factor/s: ▪ The Company depends on senior management, and experienced, competent, and skilled staff
and its operations and growth prospects could be affected if it is unable to keep them on board.
Technological Factor/s: ▪ With growing speed and access, Petron Refining must pay particular attention
to the growth and improvement of user experience. This has the potential to dramatically change how
customers use the Oil & Gas industry. Environmental Factor/s: ▪ Natural disasters, man-made disasters,
and power outages could significantly interrupt the company's operations. Legal Factor/s: ▪ The Petron
Corporation upholds the highest ethical standards and unwavering integrity. V. Market Analysis (based
on market structure where the firm belongs) A. Product and Major Competing Product(s) and firms •
Automotive Fuels • Automotive Lubricants • Gear and Transmission Oils • High Temperature Protection
• Industrial Petroleum Products • Marine Lubricants • Motorcycle Lubricants • Petron Gasul •
Polypropylene • Biaxially Oriented Polypropylene • Cast Polypropylene • Injection • PP powder • Raffia
• Thermoform Their products include Blaze 100 Euro 6, XCS, Xtra Advance, Turbo Diesel and Diesel Max.
Major Competing Products include: LPG: Brent Gas, Regasco, Phoenix Super LPG, Solane, Castrol
Motorcycle oil, 4T Moto Tech, Lubrita 5w-40, Mobil super moto Major Competing firms include: 1.
Pilipinas Shell 2. Chevron Philippines 3. Phoenix Petroleum 4. SeaOil Philippines Inc. 5. Unioil Petroleum
Philippines Inc. 6. Liquigaz Philippines Corp. 7. Insular Oil Corp. 8. Jetti Petroleum Inc. 9. SL Harbor Their
products include Blaze 100 Euro 6, XCS, Xtra Advance, Turbo Diesel and Diesel Max. B. Pricing Strategies
The Company has undertaken a number of strategic projects such as the RMP-2 (Refinery Master Plan)
aimed at improving operational efficiency and profitability and increase in market reach through the
expansion of the Company's service station network. Petron Corporation continued their efforts to
improve efficiency and manage costs in their supply chain and other key areas. The Bataan refinery met
its target for processing efficiency and did better than target for operational availability. Petron had
significantly lower crude freight costs compared to the other refineries in the country, sustaining a
historical trend. Petron's main competitive advantage relies on a cost leadership strategy. The company
can utilize economies of scale and produce products at a low cost and, as a result, offer products at a
lower selling price than that of its competitors. Petron uses pricing strategies such as Going Rate Pricing
which they set the price of its products and services inline with the competitor's price or it’s based on
the market price. C. Non- Price competition Strategies Industry leader Petron Corporation is taking
customer delight to a new level with the promise of giving motorists the “best day of your life” through
world-class products, quality service, as well as exciting rewards and privileges. These brand values are
at the core of the company’s ‘Best Day at Petron’ marketing campaign for the rest of the year. Offering
one-stop convenience, you can do more than just gas up at Petron service stations. With more than 100
partner-merchants, you can withdraw from ATMs, buy snacks or refreshments from Treats or San Mig
Food Ave, avail of a check-up for your vehicle, buy lubes, or dine at a food outlet before heading back to
the road. Also doing their best to help you have the “best day of your life” are, of course, the Petron
service crew, who will not only fill up your fuel tank but also clean your windshield, throw out your
trash, check your tire pressure, and top up your fluid levels, to make sure that your trip is enjoyable and
worry-free. Also doing their best to help you have the “best day of your life” are, of course, the Petron
service crew, who will not only fill up your fuel tank but also clean your windshield, throw out your
trash, check your tire pressure, and top up your fluid levels, to make sure that your trip is enjoyable and
worry-free. Petron Value Card, a special rewards and privilege card for motorists, allows you to earn
points each time you fuel up. Accepted in over 1,000 participating stations nationwide, Petron Value
Card allows you to save your cash and pay for your gas with points earned. It also gives you discounts on
Petron products, and exclusive deals and promos from partner establishments. At the Petron mega-
stations, there are exclusive members-only restrooms for Petron Value Card holders. For your peace of
mind, you also get essential motorist protection on the road with the extra assurance of personal
accident insurance coverage, free 24-hour towing, and roadside assistance. The Petron Value Card app,
which you can download for free on your smartphone, provides details about promos and services at
your fingertips for added convenience. D. Marketing Strategies The Corporation intends to leverage on
its leading market position and extensive retail and distribution network in the Philippines to maximize
its revenue and margin potential. Petron Corporation started adding eco-friendly petroleum on their
products line like Petron Blaze 100 Euro 6 that exhibit care to nature. They also adopt the use of
renewable energy concepts by expressing interest in putting-up electric vehicle charging stations. The
company offers timely promotions that can catch the attention of the primary target market. They were
able to dominate the petroleum market share in the Philippines and maintain to be the lead by
expanding scope of operation. It’s also included in their strategy the unique selling proposition which
emphasizes that their product is Filipino made that is why it can keep up with every Filipino motorist.
Other marketing strategies of Petron’s include reliable gas stations that everyone trusts, service stations
that have clean and accessible restrooms, food stores and other shops, offers loyalty rewards program,
constant advancement of technologies for better performance and changing customer preference
toward a much eco-friendly source of energy. VI. Corporate Social Responsibility (to which SDG does it
contribute?) Petron Corporation was named as the country’s leading oil refining and marketing
company, they continuously aspire to be socially responsible corporate citizens. Thus, the company
integrates sustainability and corporate social responsibility (CSR) programs into every aspect of their
business. Through Petron Foundation Inc. (PFI), their CSR arm, fuel various initiatives that address
national concerns in essential areas such as education, environment, health and human services,
livelihood and other advocacies in partnership with the communities, local and national government
units, like-minded organizations, and the employee-volunteers. Ultimately, their goal is to contribute to
a brighter future for Filipinos by fueling H.O.P.E. (Helping the Filipino Children and Youth Overcome
Poverty through Education). The oil and gas industry has a crucial role to play in achieving the SDGs
because it has the potential to have an impact on many of the goals' target areas, both positively and
negatively. Oil and gas corporations may make a substantial contribution to the SDGs' attainment both
on their own and in association with other parties like communities, governments, and civil society
organizations. A number of the fundamental problems that the SDGs aim to address, including climate
change, environmental degradation, population relocation, economic and social inequality, armed
conflicts, and elevated health risks, have generally been attributed to the oil and gas industry. The oil
and gas sector has the capacity to support all 17 SDGs by increasing its positive effects and reducing its
negative ones.By enabling access to inexpensive energy, opening up job possibilities, fostering the
development of skills, increasing tax revenues, and enhancing infrastructure, responsible oil and gas
production may promote both economic and social development. VII. Conclusion and Learnings The
vision of this company is what drives the Petron Corporation to improve all aspects of its operations.
With its perceptive mission, it helps the company to develop specific performance objectives while
taking into application its corporate strategies. Petron Corporation’s organizational structure guides the
prominent people to the company’s goals and objectives. This is relevant to its strategic position as each
specific action needs to be executed accordingly by the company's expertise to come up with the best
result. With the organizational structure, it directs the company’s employees to be focused on their
respective tasks bearing in mind the company’s goals. Petron Corporation is just like any other business
that faces turbulence in its operation. But despite challenges on the production side, this company is
quick to adapt to the market situation as it took steps to maintain its efficiency and profitability while
ensuring a stable and reliable fuel supply. Above all, this company is promoting the best interest of all
its stakeholders and making plans while taking into consideration the community and environment.