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    Nguyễn Dũng
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    The client, a large oil and gas company, has noticed declining profits over the past year and asked for factors contributing to this and ways to alleviate it. The business has two segments, gas stations with traditionally lower margins and convenience stores with higher, and some customers only use one or the other. While the number of stations and stores has remained constant, the client's convenience store prices are higher than competitors which may be impacting sales and profits.

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    The client, a large oil and gas company, has noticed declining profits over the past year and asked for factors contributing to this and ways to alleviate it. The business has two segments, gas stations with traditionally lower margins and convenience stores with higher, and some customers only use one or the other. While the number of stations and stores has remained constant, the client's convenience store prices are higher than competitors which may be impacting sales and profits.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    10 views2 pages

    Case 2 - Retail

    Uploaded by

    Nguyễn Dũng
    The client, a large oil and gas company, has noticed declining profits over the past year and asked for factors contributing to this and ways to alleviate it. The business has two segments, gas stations with traditionally lower margins and convenience stores with higher, and some customers only use one or the other. While the number of stations and stores has remained constant, the client's convenience store prices are higher than competitors which may be impacting sales and profits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Case 2 | Retail

    Date: 29/01/2023

    GAS STATION

    Prompt:
    Our client is a large oil and gas company with branches all over the United States. Over the
    past year or so (2011-2012), they have noticed a decline in profits. What factors may be
    contributing to this and what can they do to alleviate the situation?

    The business has 2 segments: gas/filling station and convenience store


    ● Gas station segment traditionally lower profit margin
    ● Convenience store traditionally higher profit margin
    Some customers shop at the gas stations only. Some shop at the stores only and some go
    to both on the same trip.
    The number of our client’s gas stations/stores has remained constant in the past 3 years.
    Our client’s gas stations’ revenues are within industry average, but prices of items in their
    convenience stores are higher than those of major competitors.

    Exhibit 1: U.S.A. average gas and oil prices, 2008-2012


    Exhibit 2: Breakdown of sales and costs by segment

    Exhibit 3: Consumer demand by segment

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