A survey of the operations of service stations in the oil industry using terry hill frame work models

Abstract

The oil industry in Kenya has over the years witnessed tremendous changes and growth. It started in 1899 with sales of Kerosene and has developed to what it is today. The developments have seen introduction of various grades of fuel and lubricants in the market to address customer requirements. The industry throughout the world has seen better times in terms of its profitability and enjoyed better times for pricing. However, due to effects of political turmoil and economic effects contribution margins have continued to drop and thus affect sharr holder returns. The Kenyan market has not been left behind in this respect. As times have changed so have the companies in order to address the profitability and returns from the business. In this respect therefore the oil companies have devised operations management concepts that would help them win orders in the market and therefore sustain them in business. The study examined these strategies that help businesses win orders and evaluated them to categorize which ones were order winners and which order qualifiers. Only fifty company stations replied to the questionnaires and on this basis the sample was thought adequate to give a representative indication of the results sought. Data analysis done act ually did come up with indications of these strategies. It was found out that none can stand-alone and therefore a combination of them yields best results e.g. Cost, quality and new product development. These however need qualifiers in terms of location, speed of service etc. Recommendations have also been made for further study as thought that may expand the knowledge base on this subject.