Leadership challenge in GAS Co - Essay Example

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This paper shall discuss the thesis that: Technological imperatives that are backed by mandatory regulations tend to radically alter the competitive environment of a firm, creating serious challenges that effective strategic leadership must be ready to definitively address…
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Download file to see previous pages 5.2. Many car manufacturers have begun to convert their product designs to run on greener alternatives than petroleum fuels. 5.3. Cars and land vehicles using the green technologies will be in mass production by 2015 (three years from this report), in increasing volumes every year, pursuant to mandatory provisions in international agreements and EU directives. 5.4. At present, GAS Co. is still aggressively expanding its conventional gasoline stations which, while offering biofuels, are still designed primarily for petroleum fuels; there are no special design or system considerations yet for alternative fuels. 5.5. The firm’s executives still loyally pursue the original strategy of their parents to pursue the petroleum business which is its present competency; no new competencies are being developed beyond ethanol gasoline (E85). 6. Strategy to overcome the challenge to the leadership 6.1. The present leadership must resolve to break away from its traditional strategy and consider gaining new competencies in the alternative technologies. 6.2. Aggressive construction of refilling stations should be suspended, pending new designs pursuant to the new competencies. 6.3. Environmental scanning should be conducted to determine the technologies most likely to be adopted in their franchise areas. 6.4. Massive reorientation of R&D and engineering designs, followed by HRD, training, and operations, should follow the decision as to what innovative technologies to adopt. 6.5. New franchise contract should be revised and existing franchises renegotiated in accordance with the proposed technical changes. 7. Conclusion The leadership should assess the new technical, regulatory, and business environment and articulate their company strategies and plans to ensure the firm’s...
The organization upon which this discussion shall centre is a petroleum company which, for confidentiality purposes upon the company’s request, this study shall be designated as GAS Co. The firm’s business is the wholesale and retail distribution of petroleum fuel and lubricant products. The firm is based in an emerging Asian economy, and presently has some 500 retail stations located throughout the Southeast Asia and Pacific region, and about 30 depots that store quantities of downstream petroleum products (i.e., diesel, kerosene, unleaded, ethanol (E85), and premium gasoline). GAS Co. began in 1978 as a family corporation which offered mass storage facilities for petroleum and petrochemical based products; it then expanded into providing wholesale supply of petroleum products to industrial and manufacturing clientele. Thereafter it entered into a partnership with one of the world’s leading suppliers of lubricant additives, which enabled the company to undertake its own research and development in lubricants. Not long thereafter, when the downstream oil industry was deregulated by the national government, GAS Co. took the bold step of being the first local petroleum retailer to establish its line of refilling stations. It is now the leading local petroleum retailer in the country, and continues to expand by franchising its fuel refilling stations, which it began in the 1990s. ...Download file to see next pagesRead More
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