purpose of this paper was to analyze the strategic management module of Juwel
Energy is a privately Ghanaian-owned Company authorized by the National
Petroleum Authority (NPA) to function as a Bulk Distribution Company (BDC).
paper has considered the Porters five forces which are the five competitive
forces that shape any industry, and helps determine an industry’s weaknesses
and strengths. I.e. the threat of substitute products and services, suppliers’
bargaining power, customer bargaining power, industry competition and threat of
a thorough analysis of the competitive environment of Juwel was done. The PESTEL
Analysis tool was used in examining how successful Juwel will be and its
position in the industry, other external factors were examined. The Political,
Economic, Socio-Cultural, Technological, Environment and Legal variations in
Juwel’s business environment were examined.
the corporate strategy currently being pursued by Juwel was espoused
considering Juwel’s high end strengths and considering weak ends and turning
the weak ends around for a competitive-edge foe the Company.
recommendations for future strategic direction for Juwel were made as the way
forward for Juwel to achieve its objectives and being the best in the industry
as it so desires.
MISSION AND OBJECTIVES
Energy (hereinafter referred to as “Juwel”) is Energy is a privately Ghanaian-owned
Company authorized by the National Petroleum Authority (NPA) to function as a Bulk
Distribution Company (BDC). The core
function of a BDC is to first of all import and distribute petroleum products and crude oil into Ghana or
re-export to neighboring countries by following appropriate legislation. The
main customers of the BDCs are the Oil Marketing Companies (OMCs) who are mainly
engage in the operations of the filling stations or retail stations throughout
trades in gasoline, gasoil, light gasoline, marine gas oil, jet fuel, mining
gas oil, Premix fuel, cracked fuel oil, etc. There is an increasing domestic and
international demand monthly for gasoline and gasoil which is approximately
135,000 m3 and 95,000 m3 respectively.
Tema Oil Refinery (TOR) has capacity to supply about 45% of this total
demand through its crude oil refining process. The 55% balance is supplied by BDCs through imports.
proceeded to operate in its own capacity in 2012??.
promotes strategic alliances and seeks constantly to challenge the status quo
so as to provide unique value to both internal and external stakeholders
through the trade, storage and distribution of fuels.
is an entrepreneurial business, responding rapidly to new growth possibilities
and opportunities in the downstream industry. Juwel has a simple structure that
enables it to stay fixated, acclimatize swiftly to modification and fuel growth
to make impact.
is an ambitious company that believes in seizing every opportunity towards
growth and having the best as a way of addressing the needs of the industry and
its clientele base. This is captured in its slogan, “creating solutions, our
the leading downstream market company in Ghana that has redefined effective
thinking, combining strategic partnerships with sustainable and profitable
growth and aided in value adding policy development.
is to create sustainable customer value and build trust with our customers so
that they choose our products and services time and time again. We shall commit
ourselves wholly to the following:
customer expectations via service excellence.Acquisition
and development of strategic partnerships in the Downstream.Sustainable
shareholders’ value appreciation.Consistently
challenging the status quo & improving in the area of operational thinking.Human
in the areas of safety & regulatory standards.
of JUWEL ENERGY LIMITED
Downstream market leader.
With the rise of many BDC’s in Ghana, Juwel
through its strategic management model seeks to be
the leader in the
downstream market with a competitive advantage. By doing this, Juwel seeks to capture,
a significant percentage of the petroleum products market share in the country
and create a unique niche in the downstream industry as the best market leader.
200 retail sites via strategic
The main clients of the BDCs are the
Oil Marketing Companies (OMCs) who are primarily engaged in the operations of
the retail/filling stations. Juwel wishes to form strategic alliances with the
over 100 OMCs and over 1500 retail sites in Ghana for the supply of its top
quality petroleum products. Juwel further seeks to liaise, cooperate and
collaborate with the Association of Oil Marketing Companies which is the
governing body of the OMCs.
Launch depot plus jetty
There is an urgent need for the construction of more
Storage Depots due to the dearth of petroleum product storage facilities in Ghana
and West Africa. For this reason, Juwel plans on building its own Tank Farm for
its imported products. The tank farm
would also serve as a warehouse for the storage of petroleum products as well
as create business through providing storage facilities for other oil trading
$38.1m cumulative Profit After Tax
in first 5 years.
Juwel seeks to convert its profits
into free cash is very important for any company as it is the cash, which is
going to add value to the shareholders. Juwel seeks to reach at Cummilative PAT
of $38.1m in its first 5 years by comparing with the cumulative cash flow from
operations (CFO) for the same period to assess whether the company is able to
convert its profits into free cash.
Best team in the industry
Juwel believes that investing in its team eventually creates
sustainable business. Juwel fosters an environment where all our team members
have a sense of belonging and are allowed the room to be creative and achieve
their full potential. Juwel is committed to meeting the maximum criteria of
corporate citizenship, by shielding the health and safety of its employees and
and making a positive impact on the communities around it.
West African presence.
As part of Juwel’s business
development strategy, Juwel intends to obtain a Petroleum Product Export
licences to enable the company distribute and export petroleum products in
large quantities in the country and to the Sahelian countries, notably, Burkina
Faso, Mali and Niger and throughout the West African Sub-region. Opportunities
abound in this area of petroleum product marketing as the demand for such
services is very high in Ghana and the neighbouring landlocked countries.