...TotalFinaElf POINT OF VIEW: I choose the point of view of the CEO of the TotalFinaElf Philippines, Inc. OBJECTIVES: - To increase its market share in the oil industry. - To be one of the well-entrenched players in the oil industry in the Philippines. - To be able to generate profits, and start recovering from losses, by 2002. PROBLEM: How will TPI ensure its survival in the Philippine market, given the different environmental forces in the country such as a seemingly saturated market with well-entrenched players and a deregulated oil industry? AREAS OF CONSIDERATION: A. Company Background TotalFinaElf Company is originally called Total S.A. Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world. Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and international crude oil and product trading. Total is also a large-scale chemicals manufacturer. The company has its head office in the Tour Total in the La Défense district in Courbevoie, near Paris. The company was founded after World War I after the French Prime Minister Raymond Poincaré rejected the idea of forming a partnership with Royal Dutch Shell in favour of creating an entirely French oil company. At Poincaré's behest, Col. Ernest Mercier enlisted the support of ninety banks and companies to found Total on 28 March 1924...
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...UK operating performance We achieved strong sales growth in the year with stores open more than one year increasing their sales by 8.9%. Of this, 4.8% was due to an increase in the volume of products sold and 4.1% was due to inflation. The trend in existing stores sales growth is shown in Chart 1. On this measure, we continue to outperform the industry average. Sales from new stores continue to be encouraging, with all formats - superstores, compact, Metro and Express - trading in line with our expectations. New stores (after allowing for closures) contributed 10.9% to our overall sales growth. For the year ahead, we expect a further useful contribution despite a smaller opening programme weighted towards the year end. Our total UK sales increase was 19.8%.This contributed to the estimated rise in our market share from 12.0% to 13.6% (see Chart 2). The market continues to be highly competitive. Our ongoing commitment to offer customers excellent value for money has meant we have reduced selling prices on many products.Through managing improvements in our sales mix, better buying and more efficient sourcing we have been able to limit the impact of reduced prices on gross margins which fell by only 0.2%. We have continued our drive to improve the productivity of all areas. This has helped us to finance the significant improvements we have made to checkout service and more labour intensive departments such as pharmacies. As a result, UK wages as a percentage of sales reduced by...
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