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Eco Gas Station and Convenience Store Report

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Updated: Dec 21st, 2018


The ECO gas stations is a start up business that will deal with the supply of petroleum products, other fuels as well as the sale of consumer products in a convenience store located within the gas station. The company hopes to establish one station and then increase the number of stations with time. The company will sell both the non renewable fuels and the renewable fuels.

This will enable the gas station market itself as a green station and thereby attract more customers. The petroleum industry is one of the most lucrative industries in the world as it drives the economies of most nations. Petroleum is widely used in the industrial and transport sectors. Also, as people turn to use the renewable sources of energy such electric charging and biogas, it is imperative that futuristic station adds these extra services.

The ECO station will also house a convenience stall that will sell consumer goods as well as fast foods. Though the industry is highly lucrative, there is very high competition as many stations have been set up. It is therefore prudent that the appropriate market entry strategies as well as competitive strategies be set up to ensure that the stations gains a significant market share, earns profits, attract and maintain customers.

Description of the Organization

The gas station will perform the following main functions:

  • Fuel filling services: This is one of the most common services that the station will provide. All the convectional petroleum products such as diesel, gasoline, petrol will be dispensed using state of the art fuel dispensers.
  • Lubricants: The station will sell lubricants which are pivotal in ensuring that the engine runs smoothly.
  • Lube center: The business will have a station where tires sales and repairs will be done
  • Car service center: The station will have a car servicing center where preventive maintenance services can be carried out
  • Car wash: The station will have a car wash where vehicles can be cleaned.
  • Convenience store: The gas stations will have a shop that will sell fast moving consumer products and fast foods.
  • Renewable energy services: The station will also offer renewable energy fuels such as electric car charging systems among others.

The Organization Name

The name of the organization will be called ECO fuel station

The Organization Goals and Objectives

The main organizational goals are:

  • To start and operate a profitable business in the fuel service sector
  • To ensure that customers are well satisfied with the services provided
  • To gain at least 10% of the total market share within the first three years of operations
  • To set up the gas stations in other areas
  • To establish a recognizable brand in the provision of fuel services
  • To ensure that the company has a good corporate culture and the customers and employees are well satisfied.

Main strategic issues

For the successful operations of the organization, there are a number of issues that need to be addressed and factored in the strategic plan.

Construction of the gas stations: One of the main issues will be the construction of the gas station. This is one of the first strategic issues that need to be addressed. The construction will be expected to last for a period of one year. It is expected that the construction will follow the defined project management plan that will guide the contractors from the beginning to the completion of the buildings. The construction process will entail the identification of an appropriate site, leasing the land, development of the project management plan, tendering the constructions works, evaluation of the contractors, selection of the best contractors, executing the project and commissioning the finished project. During all these stages, proper monitoring must be done.

Employee: The other strategic issue is the employees. It is imperative that the organization hires qualified employees that can satisfy the customer’s needs.

Customer satisfaction: This is also another main issue. Customers must be satisfied by the services provided.

Market entry: since the company is in the initial stages, it is imperative that proper market entry strategies are formulated. This is a major strategic issue as the company sustainability is pegged on the ability of the company to attract and maintain customers.

Good leadership and management style: For the success of the business, it is necessary that good leadership and management tactic are adopted. The organization should promote a strong organization culture, hire qualified management staff and ensure workers are motivated and trained.

Organization mission

“The ECO gas station aims at providing high quality services to our valued customer’s at the most cost effective price so as to ensure that customers and employees are satisfied”

Vision statement

“To become a leading petroleum products supplier and service provider as well as establishing a brand as the most cost effective company in the petroleum industry through the provision of high quality and affordable services.

The Organization Core Values

For the organization to succeed in its initials and later stages, it is necessary to set out the core values that the company will adhere to. The ECO company core values are outlined below:

  • Customer focus: The main aspect of the company is to ensure customers are satisfied. This will ensure that the company captures most and retains most of the market.
  • Employee satisfaction: The Company will ensure that their employees are well motivated and satisfied so that they can provide quality services to their esteemed customers. The workers will be trained regularly and motivated so as to ensure there are retained.
  • Financial stability: The Company will ensure that there are enough financial resources to run their activities.
  • Responsiveness: The Company will respond to all issues raised by the stakeholders of the business. Complains and comments from customers, employees, management and the general public will be critically assessed and promptly responded to.
  • Adapting Innovation: The Company will ensure that they adopt new innovations and technologies in the service sector so as to improve their services, reduce costs and make their services more efficient.
  • Continuous improvement: there will be continuous improvement of the services provided by the company.

The Swot Analysis

For the company to become effective and to gain competitive advantages there is need to formulate appropriate market entry strategies that will ensure that customer are attracted to the services provided by Eco gas station. In order to formulate these strategies, the evaluation of the strengths, weaknesses, opportunities and threats was carried out. The SWOT analysis will enable the company to evaluate both the internal and external forces that exists so as to develop appropriate market entry strategies. The results of the SWOT analysis are tabulated in table 1 below

Positive forces Negative forces
Strength Weaknesses
  1. The business strategy developed will enable the company gain a significant market share
  2. Diversification through provision of more services is expected to increase the sale volume and drive profits high.
  3. Well established business goals, objectives and strategies
  4. The company will strive to build a good corporate culture so that employees and customers are satisfied.
  5. The hiring of well trained staff members will ensure customer satisfaction and increase in profits.
  6. The use of high tech service equipment is expected to attract more customers.
  7. The company expects to offer innovative services (automated fuel services) that will reduce service costs, improve the supply chain and ensure high profits are generated through reduction of costs.
  8. The stations will also supply fuel to industries in addition to fueling cars.
  9. The incorporation of convenience stores will increase the profitability of the business
  1. There is lack of enough financial resources to support all the strategies to gain competitive advantages
  2. Lack of well established distribution channels for the supply of fuels and other products be sold
  3. The business is at the initial stages meaning that scale of operation is low hence they don’t enjoy economies of scale
  4. There are no established buildings that can be used by the company
  5. Lack of properly trained staff members
Opportunities Threats
  1. The market is highly liberalized and hence more companies are joining the market. This makes it easy for the organization to penetrate their industry
  2. Fuel trade is highly lucrative with the demand exceeding the supply.
  3. There is a conducive market environment that favors trade
  4. Advances in the technological sector are likely to bring new products that will reduce cost, increase efficiency and result to customer satisfaction
  5. The business will be situated at an appropriate location so as to ensure that customers can easily access our services
  6. There is a very large market for petroleum products and the additional services offered at the station
  1. Fossil fuels have been found to cause environmental pollution and in the future, these may be replaced by renewable energy sources
  2. There is the threat of the already existing companies and the multinational companies which have well established supply network, enjoy economies of scale and this may impede on our business goals
  3. The existence of well established companies with good distribution strategies and service centers pose a big challenge to the establishment of our business

From the SWOT analysis, it can be seen that the gas station company has the following main issues that should be addressed in the strategic planning process

  • The company is a startup organization and is faced by limited amount of capital to finance their operations
  • There are no established distributions channels
  • Need to train workers
  • Lack of equipments and buildings to house the station
  • Need to respond to the threat posed by large and small competitors
  • Need to satisfy customers and the employees

Strategic Planning Process

After the analysis of the internal and the external business environment and the formulation of the mission and vision of the Eco gas station. The strategies were developed. The balanced scorecard method was used. In this method, the company’s activities are aligned according to the vision and mission of the company. This process has four main measures, these are

  • Financial
  • Customer
  • Internal business process
  • Growth and learning


The sections outline the main financial goals and objectives that the company is set to achieve. These include:

  • Gaining 10% of the total market share within the first five years of operation
  • Ensuring and yearly increase in the sales volume and profits
  • Raising the capital base of the company
  • Issuing of shares (long term objective)


The main initiatives to be undertaken to ensure financial stability are:

  • The retention of 50% of the total profits. This money will be used to expand the business
  • The company will solicit short and long term loans at a suitable interest rate so as to finance the expansion process
  • The company will invest heavily on marketing as well as sales and promotions so as to create customer awareness, increase the sales volume and subsequently increase the profit margins.
  • The company will adopt innovative services such as the use of automated fuel dispensers so as to reduce the operations cost. The supply chain will be evaluated and improved regally so as to ensure that there are no shortages and the procurement costs are reduced.


These strategic goals will be monitored and evaluated through: checking the sales books and establishing the trends and also noting the profit margins to ensure that there is a desirable upward trend.


The satisfaction of the customers want is very imperative in the overall success of the business. There are various strategies that have been developed so as to ensure that the customer needs and wants are met.


  • Ensure that the services provided are of high quality
  • Ensure that the customers are given after sale services. After sales service comes in the form of offering free assistance, checking the general engine condition for cars, checking oil and coolant levels, cleaning the windscreen of the vehicle , delivering fuel to corporate client and offering free technical advice
  • Carry out period reviews on the service process and ensure continued improvement of the rendered services
  • Respond to all the complaints and issues brought by the customer. The response should be timely and should address the customer and restore his confidence
  • Improvement of the communication between the company and the customer.
  • Ensure that the number of customers , as recorded in the sales record increases by 5% per annum


It is crucial that a critical evaluation of the customer perception be carried out. In order to evaluate the customer satisfaction, a questionnaire will be issued to the customers as they come to access our services. Through the questionnaire, the customer’s perception will be evaluated and the necessary change made. The company will also establish a website that links with the social media so as to monitor and respond to feedback from customers.

Internal Business Process

This is the third element of the strategic plan. The main objectives of the business are to improve the distributions channels of the company, ensure better management of the suppliers, improve the services offered by the station, diversify the business so as to increase the sales volume and profit, improve the communication channels and adopt innovation so as to drive the operations costs down.


The main strategies to be adopted so as to improve the business process are

  • Ensure that the supply chain is reviewed yearly and methods of increasing its efficiency formulated
  • Evaluate the cost of services offered by the station for a period of 6 months and establish areas where operations cost can be reduced
  • Develop other businesses within the service station such as the convenience stores, lube center and servicing centers.
  • Adopt innovation that will reduce the operation cost, these include the use of automated fuel dispensers that don’t require an attendant
  • Adopt better methods of communications such as the use of internet and mobile phones during communication.

Learning and Growth

This is the fourth strategy. It is important to ensure that employees and managers are trained and motivated to work. The main objectives of the Eco gas station with regards to growth are; to develop and train workers, to ensure that workers are retained by the firm, ensure that the workers and management work as a team and to motivate the employees.

Initiatives /strategies

The main strategies to be used are:

  • Ensure that the organization trains at least 5 employees annually
  • The remuneration packages of every employee should be reviewed upwards every year
  • Employees with key skills should be identified and their skills developed
  • Carry out team building activities and training for all employees including the management team

Strategies to Gain Competitive Advantages

There are many strategies that the station can use so as to gain competitive advantage over the current competitors. These strategies are imperative for a firm seeking to enter into an already flooded market. The main strategies to be adopted include:

  • Price reduction: the price of petroleum products will be reduced and set at a price lower than the competitors. It is hoped that the customer will use the station due to cheaper prices.
  • Offering after sale services: after sale services include free engine check up, cleaning the car windscreen, dusting the car mirrors and giving free advice
  • Quality of service: The station will ensure that the services provided are of high quality so as to attract more customers. It is important that timely service delivery is done.
  • Improving the service: The organization will use innovative services so as to reduce cost. It is expected that the use of better operational services will reduce the cost of dispensing petroleum and the organization can reduce the fee levied to the customer and become the market leader in terms of pricing.
  • Brand development: The organization should create a perception that they are the best in terms of provision of quality services at a cost effective price.
  • Management of the suppliers and procurement process: proper procurement planning of petroleum product is necessary to ensure the the fuel cost are low. The company should ensure that they engage qualified suppliers who provide fuel at the right time and quantity
  • Diversification of products: The service station will have several stores dealing with different products. In-addition to fuel sale, the gas station will have a car servicing center, a convenience store where drivers can buy personal effects, foods, and drinks among others. This will ensure that the company’s profit margin is not affected by the failure of the main business.
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