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    Petron Research

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    Alfie Ulep
    Petron Corporation faced major challenges when the Coronavirus pandemic hit in 2020. Demand for petrol and other oil-based products plummeted as lockdowns and travel restrictions took effect. This deeply affected Petron's global trade processes. To cope, Petron activated its Business Contingency Plan, drastically reducing retail outlets, distribution centers, and non-core operations. It also targeted emerging Asian markets like Malaysia, Thailand, Vietnam, and the Philippines for their growth potential. Going forward, Petron plans to expand exploration abroad and leverage its strengths in refining, petrochemicals, and marketing in countries like Indonesia, Thailand, Vietnam, and Malaysia.

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    Petron Research

    Uploaded by

    Alfie Ulep
    94 views2 pages
    Petron Corporation faced major challenges when the Coronavirus pandemic hit in 2020. Demand for petrol and other oil-based products plummeted as lockdowns and travel restrictions took effect. This deeply affected Petron's global trade processes. To cope, Petron activated its Business Contingency Plan, drastically reducing retail outlets, distribution centers, and non-core operations. It also targeted emerging Asian markets like Malaysia, Thailand, Vietnam, and the Philippines for their growth potential. Going forward, Petron plans to expand exploration abroad and leverage its strengths in refining, petrochemicals, and marketing in countries like Indonesia, Thailand, Vietnam, and Malaysia.

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    Petron Corporation faced major challenges when the Coronavirus pandemic hit in 2020. Demand for petrol and other oil-based products plummeted as lockdowns and travel restrictions took effect. This deeply affected Petron's global trade processes. To cope, Petron activated its Business Contingency Plan, drastically reducing retail outlets, distribution centers, and non-core operations. It also targeted emerging Asian markets like Malaysia, Thailand, Vietnam, and the Philippines for their growth potential. Going forward, Petron plans to expand exploration abroad and leverage its strengths in refining, petrochemicals, and marketing in countries like Indonesia, Thailand, Vietnam, and Malaysia.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    94 views2 pages

    Petron Research

    Uploaded by

    Alfie Ulep
    Petron Corporation faced major challenges when the Coronavirus pandemic hit in 2020. Demand for petrol and other oil-based products plummeted as lockdowns and travel restrictions took effect. This deeply affected Petron's global trade processes. To cope, Petron activated its Business Contingency Plan, drastically reducing retail outlets, distribution centers, and non-core operations. It also targeted emerging Asian markets like Malaysia, Thailand, Vietnam, and the Philippines for their growth potential. Going forward, Petron plans to expand exploration abroad and leverage its strengths in refining, petrochemicals, and marketing in countries like Indonesia, Thailand, Vietnam, and Malaysia.

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    of 2

    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

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