WHAT WERE THE CHALLENGES, ISSUES, PROBLEMS ENCOUNTERED BY THE COMPANY IN GOING

GLOBAL/INTERNATIONAL IN TRADING?

Petron Corporation faced a major challenge when the Coronavirus pandemic hit in 2020. Its business
model, which heavily relied on fuel distribution and retail stores, suddenly changed due to government
lockdowns and travel restrictions. As a result, demand for petrol and other oil-based products
plummeted (Petron, 2020). The trade process of importing raw crude from their source countries to
distributing the final product from their refinery in the Philippines to their outlets across the globe was
deeply affected. Despite having extensive reserves, the company found it difficult to keep up due to the
sudden decrease in demand for its products.

WHAT WERE THE SOLUTIONS DONE BY THE COMPANY TO SOLVE THESE PROBLEMS?

In order to cope with the changing environment, the company needed to take drastic measures to
remain viable. It activated its Business Contingency Plan to cope with the crisis due to the pandemic in
which the company drastically reduced the number of its retail outlets, eliminated a number of its fuel
distribution centers, and closed down some of its non-core business operations. These cuts were
necessary for their immediate survival however, the long-term implications of these decisions are as yet
unknown. This was one of the critical risk-taking chances they had to take (R.S. Ang, 2020).

3. WHAT WERE THE EMERGING MARKETS THE COMPANY CHOOSES TO OPERATE PENETRATE?

Particularly, Petron Corporation targets Asian markets for their potential for growth due to more
efficient and cost-saving operational policies. Its current operations include Malaysia, Thailand, Vietnam,
and the Philippines as a wise move of expanding its marketing effort within its existing territories. Its
range of products is tailored for the needs of the local market and its services are designed to maximize
efficiency.

4. WHAT WERE THE UPCOMING PLANS OF THE COMPANY IN THE NEAR FUTURE FOR EXPANSION OF ITS
OPERATION?

To ensure its future growth, Petron Corporation plans to focus its investments on two core objectives.
Firstly, the company aims to expand exploration abroad so as to tap into new opportunities for growth.
It has identified various countries in the Asian region that could offer prospective prospects for Petron’s
business. For instance, it sees potential prospects in Indonesia, Thailand, Vietnam, and Malaysia. In
doing so, Petron Corporation seeks to not only widen its geographic footprint, but also fully leverage its
strengths in refining, petrochemicals, and marketing presence to bring value to these countries as stated
in the company’s mission and envisioned future.

REFERENCES:

https://www.petron.com/news/petron-reports-lower-revenues-for-q1-2020-amidst-coronavirus-
pandemic/

https://www.bworldonline.com/corporate/2021/03/19/351402/petron-still-needs-to-address-low-fuel-
consumption-demand-ang/

https://www.petron.com/who-we-are