EXECUTIVE SUMMARYThepurpose of this paper was to analyze the strategic management module of JuwelEnergy is a privately Ghanaian-owned Company authorized by the NationalPetroleum Authority (NPA) to function as a Bulk Distribution Company (BDC).Thispaper has considered the Porters five forces which are the five competitiveforces that shape any industry, and helps determine an industry’s weaknessesand strengths. I.e. the threat of substitute products and services, suppliers’bargaining power, customer bargaining power, industry competition and threat ofnew entrants.
Further,a thorough analysis of the competitive environment of Juwel was done. The PESTELAnalysis tool was used in examining how successful Juwel will be and itsposition in the industry, other external factors were examined. The Political,Economic, Socio-Cultural, Technological, Environment and Legal variations inJuwel’s business environment were examined.Further,the corporate strategy currently being pursued by Juwel was espousedconsidering Juwel’s high end strengths and considering weak ends and turningthe weak ends around for a competitive-edge foe the Company.Finally,recommendations for future strategic direction for Juwel were made as the wayforward for Juwel to achieve its objectives and being the best in the industryas it so desires. .
VISION,MISSION AND OBJECTIVESIntroductionJuwelEnergy (hereinafter referred to as “Juwel”) is Energy is a privately Ghanaian-ownedCompany authorized by the National Petroleum Authority (NPA) to function as a BulkDistribution Company (BDC). The corefunction of a BDC is to first of all import and distribute petroleum products and crude oil into Ghana orre-export to neighboring countries by following appropriate legislation. Themain customers of the BDCs are the Oil Marketing Companies (OMCs) who are mainlyengage in the operations of the filling stations or retail stations throughoutthe country. Juweltrades in gasoline, gasoil, light gasoline, marine gas oil, jet fuel, mininggas oil, Premix fuel, cracked fuel oil, etc. There is an increasing domestic andinternational demand monthly for gasoline and gasoil which is approximately135,000 m3 and 95,000 m3 respectively. Tema Oil Refinery (TOR) has capacity to supply about 45% of this totaldemand through its crude oil refining process.
The 55% balance is supplied by BDCs through imports.Juwelproceeded to operate in its own capacity in 2012??.Juwelpromotes strategic alliances and seeks constantly to challenge the status quoso as to provide unique value to both internal and external stakeholdersthrough the trade, storage and distribution of fuels.Juwelis an entrepreneurial business, responding rapidly to new growth possibilitiesand opportunities in the downstream industry. Juwel has a simple structure thatenables it to stay fixated, acclimatize swiftly to modification and fuel growthto make impact.
Juwelis an ambitious company that believes in seizing every opportunity towardsgrowth and having the best as a way of addressing the needs of the industry andits clientele base. This is captured in its slogan, “creating solutions, ourpassion”.VisionTo becomethe leading downstream market company in Ghana that has redefined effectivethinking, combining strategic partnerships with sustainable and profitablegrowth and aided in value adding policy development.MissionOur missionis to create sustainable customer value and build trust with our customers sothat they choose our products and services time and time again. We shall commitourselves wholly to the following:Surpassingcustomer expectations via service excellence.
Acquisitionand development of strategic partnerships in the Downstream.Sustainableshareholders’ value appreciation.Consistentlychallenging the status quo & improving in the area of operational thinking.
Humancapital development.Compliancein the areas of safety & regulatory standards. Objectivesof 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 thedownstream market with a competitive advantage.
By doing this, Juwel seeks to capture,a significant percentage of the petroleum products market share in the countryand create a unique niche in the downstream industry as the best market leader. 200 retail sites via strategic partnerships.The main clients of the BDCs are theOil Marketing Companies (OMCs) who are primarily engaged in the operations ofthe retail/filling stations. Juwel wishes to form strategic alliances with theover 100 OMCs and over 1500 retail sites in Ghana for the supply of its topquality petroleum products. Juwel further seeks to liaise, cooperate andcollaborate with the Association of Oil Marketing Companies which is thegoverning body of the OMCs. Launch depot plus jettyThere is an urgent need for the construction of moreStorage Depots due to the dearth of petroleum product storage facilities in Ghanaand West Africa. For this reason, Juwel plans on building its own Tank Farm forits imported products.
The tank farmwould also serve as a warehouse for the storage of petroleum products as wellas create business through providing storage facilities for other oil tradingcompanies. $38.1m cumulative Profit After Tax in first 5 years.Juwel seeks to convert its profitsinto free cash is very important for any company as it is the cash, which isgoing to add value to the shareholders.
Juwel seeks to reach at Cummilative PATof $38.1m in its first 5 years by comparing with the cumulative cash flow fromoperations (CFO) for the same period to assess whether the company is able toconvert its profits into free cash. Best team in the industryJuwel believes that investing in its team eventually createssustainable business. Juwel fosters an environment where all our team membershave a sense of belonging and are allowed the room to be creative and achievetheir full potential. Juwel is committed to meeting the maximum criteria ofcorporate citizenship, by shielding the health and safety of its employees andand making a positive impact on the communities around it.
West African presence.As part of Juwel’s businessdevelopment strategy, Juwel intends to obtain a Petroleum Product Exportlicences to enable the company distribute and export petroleum products inlarge quantities in the country and to the Sahelian countries, notably, BurkinaFaso, Mali and Niger and throughout the West African Sub-region. Opportunitiesabound in this area of petroleum product marketing as the demand for suchservices is very high in Ghana and the neighbouring landlocked countries.