Case Study Client Situation
Pacific Strategy was engaged by a multinational oil and petroleum retailer to assist with a strategy review for the client's Convenience Retail group.
The review was a major strategic initiative for the client at a time when the retail fuel market was dominated by two players and the overall market was under heavy scrutiny from government regulators and the general public.
Approach
Pacific Strategy and the client formed a joint team with the responsibility of developing and delivering a five year strategy for the Convenience Retail group.
- The review had five areas of focus:
- Industry analysis & benchmarking
- Option development and review
- Option enablers (M&A opportunities)
- Option prioritisation
- Organisation review
- Once detailed analysis was completed, four to five strategic options became apparent - the project team developed each of these further and presented recommendations to the Retail Leadership Team for consideration.
Impact
- The major impact of the strategy review was a significant reduction in cost, in particular labour and overhead costs.
- A fundamental change in philosophy was recommended in relation to the organisation's labour model (at site) and (overhead) support structure. The result was significant refinement (incl. headcount, activities, bonus structure) to bring the organisation closer in line with internal and external benchmarks.
- The client's network portfolio was also re-balanced to remove poor performing sites and to focus on higher growth formats.
