School Of Economics & Business Administration

MSc in Management

2009/2010

Coursework in Management of Organizations

Pr. Constantinos S. Katsikeas

Presented by

Gkoutsidou Maria - Anastasia

Kaintari Evangelia

Kousopoulos Fotios

Tevdoradze Nino

Votsari Eleftheria

BUSINESS PLAN

EKO A.B.E.E.

Vision:

Be the 1st choice of the customer and Emphasize on: • the quality of products and

services;• the growth and development of

human resources;• the return at the shareholders;• the environment;• social responsibility.

BUSINESS PLAN

EKO A.B.E.E.

Mission:• Be a model company;• Offer advanced products and services;• Fulfill the needs and priorities of the

customers;• Ameliorate the gains – shareholders;• Invest on employees – working

environment;• Collaborate efficiently with companies

collaborators;• Efficient function – innovative, safe &

environmental friendly substructures.

BUSINESS PLAN

EKO A.B.E.E.

• Gas stations;• Lubricants;• Industrial sales;• Liquid gas;• Maritime sales;• Air sales;• Exports.

BUSINESS PLAN

EKO A.B.E.E.

Establishing in whole Greece liquid gas and gas stations

Turnover….

• Urban centers• Islands• Mountain areas

• Basically expanded in south-east Europe

• Existing in 9 countries (Albania, Bosnia, Bulgaria, Georgia, Greece, Cyprus, Montenegro, Serbia, FYROM);

• Use of International language• Differentiation in product• Good price/quality relation

BUSINESS PLAN

EKO A.B.E.E.

Economic : 2008 was a year of global financial crisis.The crisis erupted in the financial sectorand spread to the real economy driving the global economy into recession;• The price of crude oil type Brent presented with exceptional variations with successive

record prices between 144,23 USD/Bbl and 33,66 USD/Bbl (2008);• High inflation - average 4,2 %;• Fall of global and domestic oil market - average 1,9 %.

Legal aspects:Domestic economic activity is induced by rules and restrictions resultingfrom its participation in European Union and agreements in the framework of WTO.• Tax increase on mineral oils• Limit in retail prices for certain months in certain places.

Technological aspects:The company deals with marketing of petroleum products and it doesn’tproduces products. It uses technology in terms of transportation of oil andthe customer service (automated refill) logistics . ???

BUSINESS PLAN

EKO A.B.E.E.

The industry :

• EKO (acquired BP’s Ground Fuels business activities in Greece +1200 service stations, +13.72% market share ) 31% market share;

• Motor Oil (acquired Shell +700 service stations, +13.06%market share ) 23% market share;

• Aegean Oil;

• Jetoil;

• Elin;

• Revoil;

• ETEKA;

• Silk Oil;

• Cyclon Hellas;

• Dracoil.

BUSINESS PLAN

EKO A.B.E.E.

BUSINESS PLAN

EKO A.B.E.E.

The market : Market composition: • Individuals;• Companies;• Government.

Customer Buying habits:• Premium Unleaded 95• Crude Oil (BRENT)• Heating oil.

Existent Competitor’s Products :• Unleaded• Heating oil.

BUSINESS PLAN

EKO A.B.E.E.

BUSINESS PLAN

EKO A.B.E.E.

There is a big possibility of explosions in the gas stations, warehouses and tank-tracks which may cost loss of human lives and environmental pollution.

• Leading market share;• Acquisition of BP’s ground fuels

business in Greece which strengthened the leading position in retail;

• Presence : 2500 retail stations;• Well perceived brand name;• High quality fuels and lubricants;• Country-wide coverage;• Strong logistics infrastructure;• Strong financial position.

BUSINESS PLAN

EKO A.B.E.E.

• Increase market share through; acquisitions of independent retailers;

• Upgrade the retail network and expand it;

• Development of non-fuel retail sales;

• Development of motorway service; station network;

• The consumption of petroleum; products;

• Potential use of natural gas by automobiles.

• Worldwide economic crisis;• Decreasing worldwide oil demand

and oil production;• Fluctuation in the prices of crude oil;• Fluctuations in foreign currency rates• Changes in supply and demand• Changes of weather conditions• Government monitoring in the prices• Dependence from suppliers• National regulatory regime can effect

profitability;• There is a certainty that earth’s oil

resources are adequate until 2030.

BUSINESS PLAN

EKO A.B.E.E.

• Strengthening of its leader position in oil market in GREECE through differentiation;

• Increase presence in areas with high demand;

• Upgrading quality of service;• Increase brand value by the customer;• Optimization of operating facilities.

EKO ABEE still ranks first in the internal (17,0 %), international (33,0 %) and total oil market (22,0 %) in Greece

BUSINESS PLAN

EKO A.B.E.E.

BUSINESS PLAN

EKO A.B.E.E.

Differentiated Fuel KINITRONFuels EKO KINITRON differ from common fuels because ofhigh technology and multiple action, namely:

Detergent:• cleans and maintains the cleanliness of the intake

valves and injectors;• gradually improves performance;• economy in fuel.

Reducing friction:• reduces friction / enhances the action of the

lubricant;protects against damage;

• improves performance; • economy in fuel.

Reducing Corrosion

BUSINESS PLAN

EKO A.B.E.E.

EKO- Greece: 2500 fuel stations (2008) are efficiently dispersed all over Greece (remote areas, islands, mountain areas)

Product-price differentiation

BUSINESS PLAN

EKO A.B.E.E.

• TV ads;• Radio spots;• Printed ads;• Collaborations with; National Bank of Greece,

Kerosun, DIRENT OPERATING LEASING S.A., 3E, TUI S.A. , ETHEL S.A., UNILEVER S.A., GERMANOS S.A;

• Sponsorships;• Commerce of liquid gas, mineral oil, food,

drinks, newspapers, magazines;• Establish shops in the gas stations in whole

Greece (restaurants, car wash or car fixing).

BUSINESS PLAN

EKO A.B.E.E.

Research & Development:Increase in administered petrol stations with merger or

acquisitions.

Production Capacity and Supply Chain implications:

• Refineries of Aspropirgos, Elefsina and Thessaloniki;• 13 storage facilities and distribution fuels;• 23 filling stations in main airports;• 1 unit of production and packaging lubricants;• 1.245 petrol stations of total 8.000 in Greece.

Financial Resources:• High profitability of previous years; …………..• Keep operating expenses and reduce storage cost.

Human Resources:• 674 permanent staff (personnel changes from parent

company);• Continuous training and education of the staff.

BUSINESS PLAN

EKO A.B.E.E.

• Strengthen the hegemonic position of the company due diversification, and increase the companies trademark within Greek society;

• Increase the number if new gas stations at the regions of high demand and profitability;

• Perfect the quality of service in gasoline stations; • Decrease the cost of storage and transportation of the

products; • Perfect the building and production facility maintenance

performance; • Readjustment of function of negative and unprofitable

enterprises; • Perfect the company competition; • Control over everyday expenses.

BUSINESS PLAN

EKO A.B.E.E.

• Retained revenue; • Shares; • Loans.

• Difficulties with raising funds due to the economic crises in terms of investment and reducing profit;

• Fluctuation in foreign currency rate; • Legal or governmental barriers; • Unexpected threats like force majeure

BUSINESS PLAN

EKO A.B.E.E.

• Head office in Athens and other offices in various parts of country;

• 680 permanent staff and seasonal workers during summer.

• Measure of improvement of quality and performance;

• Increase in financial statements, as sales, revenue, profitability, efficiency and etc;

• Market researches on client satisfaction and brand positioning.

•