Economics Assignment: Case Analysis of Trinity Petroleum Services

Question

Task: Economics AssignmentTask description
The first research task is divided into two sections.

In Section 1, you will present a background of your chosen organisation and your research topic of interest.

Research Topic – How can service stations in Far North Queensland reduce electrical costings.

Context Organisation- Trinity Petroleum Services (TPS) operates 17 fuel stations across Far North Queensland. Current competitors are becoming more environmentally aligned with customers wants and needs plus saving on costs due to solar panels and better cooling units (fridges, freezers and air cons). As the industry changes with more economic vehicles, hybrids, and full electric vehicles, Trinity Petroleum currently has no interest in change, holding site performance and consumers back.

Company website - https://www.trinitypet.com.au

TPS does not own any of the service station sites but have long standing leases on the buildings and good repour with the lessor.

In Section 2 you will conduct a review of published material in the academic and industry/business literature.

Answer

Section 1
Introduction
This report briefly highlights the details and facts about the Trinity Petroleum Service; it provides information about the background structure and the foundation of the company, the type of industry or organization it is, and the challenges and competition it has faced in the economic sectors like proper sales of a product, retailing problems, applying proper marketing strategies, etc. The problems and issues faced by the company like the shortage of workers and employees, management problems, business set-up, and environmental issues are also briefly highlighted. The company is also facing many issues from its competitors because there have been many other companies in this sector. This report has taken the support of many source materials like journal articles, news reports, and website articles. The main purpose of this report is to give the actual information about the background structure of the Trinity Petroleum Service and the problem and issues faced and caused by it. There are a clear identification and examination of the issues and the research problems in this report. The meaning and importance of the research are also included in this report. It is very much important because it will provide genuinely and verified information about the organization.

Description of the business context
This report provides information about the petroleum company named Trinity Petroleum Services, which is one of the biggest producers and distributors of Mobil fuels and lubricants. This company operates 17 fuel stations across Far North Queensland and produces different types of petroleum products for a wide range of industries that includes the aviation industry, agricultural industry, shipping industry, and mining industry (Trinity Petroleum Service, 2020). It is one of the oldest petroleum industries in Australia, it was founded in 1987, and since then, it has grown into one of the leading producers and distributors of petroleum products (Trinity Petroleum Service, 2020). Even after being one of the biggest producers of Mobil fuel, TPS is facing many challenges from its competitors; because there have been many other fuel distributors in the country, but over time they are becoming more and more environmentally aligned with the wants and needs of the customers. They are also saving their work cost by using sustainable methods of a power source like solar energy, wind energy, etc. With the change of industries, over time, more and more economical vehicles, hybrids, and fully electric vehicles have entered the market; this has very much affected the sales of petroleum products. As many companies have shifted their methods of working, TPS has not shown any kind of interest in changes, holding site performance and consumers back.

Research problem or issue
The problem or issue that will be highlighted in this research is based on the extent to which service stations in Far North Queensland can reduce costing of electricity. In today’s competitive business environment, it has become essential to become environmentally aligned with the needs and wants of the customers (Graybeal, Franklin, and Cooper, 2018). Therefore, the problem or issue with this research is that it has to consider the overall Far North Queensland’s service stations' environmental strategies along with the justification of further investigation requirement.

Research aim
The aim of this research is to analyze the ways by which service stations in Far North Queensland can reduce electrical costing with the growing emphasis on environmental alignment.

Research questions:
1. What are possible ways to reduce electricity costing for service stations in Far North Queensland?

2. What are the economic and environmental benefits of using solar panels?

3. What is it necessary for Trinity Petroleum Services (TPS) to hold site performance and consumers back along with change?

Key definitions of terms
Solar panels: This comprises numerous individual solar cells where the layers are composed of phosphorus and silicon.

Cost-competitiveness: This refers to a service or product that is cheap as compared to its similar services or products.

Service stations: This is a place that is equipped for automobile servicing through the selling of oil and gasoline along with providing repair equipment, service, etc.

Thought leaders: This refers to a person who offers insight and guidance about a specific society, industry, or company (Rob, 2018). Overall, a thought leader possesses a positive reputation for helping others with their insight and knowledge.

Significance of the research
The significance of this research is based on the fact there will be an emphasis on reducing electricity costing for service stations, which is becoming an essential component in the modern business environment. With the passage of time, people are becoming more conscious and aware of the importance of environmentally friendly business practices (Queensland Government, 2018). In the service stations industry, the companies are implementing measures that are helping them to establish sustainable business practices and achieve long-term growth. The pace of disruption in service stations is rapid as the industry is facing changes with full electrical vehicles, hybrids, and more economical vehicles. Therefore, this research will gain tremendous significance by analyzing the service station sector in Far North Queensland and its measures on electrical cost reduction.

Section 2
Area or field of research
This research area falls within the broad topic of environmental sustainability by reducing electricity consumption in service stations. In Far North Queensland, the service stations are emphasizing becoming more environmentally aligned where the needs and wants of the customer are considered through cost-saving due to solar panels and efficient cooling units such as air conditioners, freezers, and fridges. Based on this approach, Trinity Petroleum Service (TPS) that have long-standing leases on their buildings along with a good reputation with the lessor, is hesitant in terms of implementing change, holding consumers back, and site performance. Therefore, this research falls under the broad topic category of environmental sustainability, and the employees of the company can be tremendously motivated through sustainable means of business practices.

Current and classic knowledge about the area of problem and interest
With the growing area of emphasis on the problem and interest in the topic of electricity cost reduction, there is adequate classic and current knowledge (Sorrell, 2015). In order to coordinate the integrated charging station operation, there is a requirement for control algorithm and optimization. The control algorithm is based on real-time optimization results. Reducing electrical costing in business activities has always been consistently discussed to improve efficiency in business operations. People have always speculated about the potential benefits of reducing electricity costing on business activities, and there have several types of research in the past based on this area of problem and interest. As per the existing scenario, the cost of electricity supply changes minute by minute in Australia, and thus there is a tendency to switch to solar panels for obtaining a renewable and cheap source of electricity. TPS has been facing tremendous competition as several of its competitors have aligned with environmentally friendly measures, and the classic knowledge of disruption reflects the importance of adapting to the latest trends and changes.

Concepts and theories
In this research of electricity cost reduction of service stations, the theory of corporate sustainability can be used. Corporate sustainability theory refers to the approach of creating stakeholder value based on the long-term implementation of a business strategy (Camilleri, 2017). The competition in the service station of Far North Queensland has led to the companies implementing the theory of corporate sustainability based on the four pillars of social, human, environmental, and economical. With the increasing emphasis on saving expenditure and implementing eco-friendly measures for providing better cooling units, the electricity utilization aligned with solar panels is gaining tremendous prominence based on the theory of corporate sustainability. The main concept of making a business cost-efficient along with being effective is based on cutting down expenses that can potentially lead to sustainability.

Based on this particular research, the Stakeholder Theory is also applicable as the environmental alignment of service stations in Far North Queensland is focusing on the customer needs and wants to be based on the changes with increasing economic vehicles, hybrids, and fully electric vehicles. By considering the interest of stakeholders or the customers, the service stations in Far North Queensland have started using the stakeholder theory so that the stakeholder engagement can be maximized. The concept of stakeholder theory is based on the view of capitalism that emphasizes the interconnected relationships between customers and businesses by arguing that a company must create value for all the stakeholders (Stakeholder Theory, 2018).

Research method and methodologies
Research methods refer to the schemes, algorithms, procedures, and steps that are used for research purposes. Therefore, all the methods that are used by a researcher while conducting a research study are termed research methods. Research methodologies, on the other hand, refer to the systematic way of solving a problem that is the main objective of the research. For this research study, primary research has been used by conducting surveys on Trinity Petroleum Services (TPS) and its competitors based in Far North Queensland regarding the measures implemented to tackle the changing customer needs and wants. In addition to that, the primary research conducted also analyzed the benefits of using solar panels by service stations. The survey questions consisted of the options based on the potential benefits that a service station is acquiring by implementing or not implementing cost-saving measures based on electricity consumption.

The data collection was done by online surveys that sent an email to the proposed participants about the significance of the study for future purposes. All the participant companies had an option to not disclose certain aspects if they think it may hamper the privacy of their business strategy. The survey was consistent about asking about the changes or implementations that the company feels were required along with the potential financial and strategic benefits being attained.

Evidence of work by ‘thought leaders’
Sustainable business practices have become an integral component of the modern era as people are becoming more concerned and aware of the environmental impact of business operations. The electricity costing is a major burden for the majority of the business sectors, and TPS is facing the same burden due to the increased demand for better cooling units.

According to Bhukya and Basak (2014), the world marketed consumption of energy is expected to increase by 33% from 2010 to 2030, and this is a major cause of concern that is putting emphasis on the need for using renewable sources of electricity. According to Blakers, Lu, and Stocks (2017), it has become essential to consider the practicalities of supplying Australia’s electricity from sources from renewable energy. There is a prediction that by 2030, the majority of the electricity in Australia will come from renewable sources of energy, and for service stations, it has become extremely challenging to remain sustainable by fulfilling the changing needs and wants of customers by using solar panels that are also cost-effective. According to Ram et al. (2018), despite the positive momentum achieved by the renewable energy sector, there are significant challenges that need to be emphasized upon by the global community in terms of analyzing issues dealing with the external cost of power generation. A service station requires an enormous supply of electricity, and thus it has become crucial to adopt cost-efficient means of electricity production such as solar panels that is turning out to be a major game-changer in terms of electricity cost reduction. Overall, finance and technology are two strong determinants of future business prospects, and for service stations in Far North Queensland, the financial aspect with the same are divided into fixed and variable maintenance expenditures.

Contrasting perspectives
Based on the primary research analysis, it is observed that there is a variance in the conceptualized selves, and the perspectives presented through this research are sustainability, financial aspect, customer needs, and environmental alignment. Since the main objective of this research was to analyze the learning outcomes, so the findings might differ based on the required perception. TPS, as one of the leading service stations in Far North Queensland, has been compared with its competitors to analyze the benefits that the competitors are obtaining based on the emphasis on customer needs and wants along with electricity cost reduction due to utilization of solar panels. In the previous studies conducted in the same field, there has been a lack of evidence in the field of electricity cost reduction, especially for service stations. In Australia, the aspect of generating electricity through solar panels has gained tremendous prominence over the last few years, and thus there is a widespread benefit that is already being enjoyed by several companies.

There are various steps that a business organization can take to reduce energy consumption, and it will be improper to judge the benefits only on one possible aspect. The perception of the benefits can vary from company to company as the goal of companies usually differs. It has thus become essential for service stations to assess and monitor the facility level of energy consumption that can create a positive image in the minds of the people. The customers in today’s world are emphasizing economic vehicles, fully electric vehicles, and hybrids, and this is causing a major risk in the sustainability of service stations. The rapid changethat is associated with consumers’ taste does not solely rely on the environmental alignment but also on various other factors such as ease and convenience. Overall, the main disagreement on the theme of this topic is that there is no mentioning of the assurance in the sustainability of service stations that can be accompanied by the utilization of solar panels.

Gaps in the research
The results from the primary research reflect that there is not adequate information that possesses the ability to draw a conclusive recommendation for the research questions. The first research question that is based on finding out the possible ways to reduce electricity consumption is not properly asked on the survey question, and this is causing major concern in the effectiveness of the research findings. In addition to that, the findings also lack substantial evidence that can help service stations in countering the challenges associated with customer needs and wants regarding eco-friendly and cost-effective measures (Business Ethics, 2018). There is also a comparison gap in the research as the ability of the service stations has not been taken into consideration, which is a major drawback. The setting of the survey did not create a scope of additional information gathering, particularly given the fact that the topic is base on environmental sustainability and customer satisfaction. There are several missing links in the research as the research method solely focused on gaining the service stations’ perspective regarding the use of efficient cooling units and solar panels for reducing electricity cost. Overall, the data collected for the research, despite being the latest, lacked the aspect of the goals and vision that service stations are aspiring for because of the growing importance of electric vehicles and hybrids.

Conclusion
In the end, it can be conceded that in future researches, there is a need for organizing more specific research that will emphasize the aspects of service stations reducing electrical costing. There lies tremendous scope in this topic of research as the future of service stations is under tremendous risk with the increasing emphasis on electric vehicles and hybrids.

References
Bhukya, P. and Basak, D. (2014). Energy Saving Technologies in Industries- An overview. [online] ijsrp.org. Available at: http://www.ijsrp.org/research-paper-0414/ijsrp-p2880.pdf [Accessed 23 Mar. 2021].

Blakers, A., Lu, B. and Stocks, M. (2017). 100% renewable electricity in Australia. Energy, [online] 133(1), pp.471–482. Available at: https://www.sciencedirect.com/science/article/pii/S0360544217309568 [Accessed 23 Mar. 2021].

Business Ethics (2018). Sustainability: Business and the Environment – Business Ethics. [online] Opentextbc.ca. Available at: https://opentextbc.ca/businessethicsopenstax/chapter/sustainability-business-and-the-environment/ [Accessed 23 Mar. 2021].

Camilleri, M.A. (2017). Corporate sustainability and responsibility: creating value for business, society and the environment. Asian Journal of Sustainability and Social Responsibility, [online] 2(1), pp.59–74. Available at: https://ajssr.springeropen.com/articles/10.1186/s41180-017-0016-5 [Accessed 23 Mar. 2021].

Graybeal, P., Franklin, M. and Cooper, D. (2018). Describe Trends in Today’s Business Environment and Analyze Their Impact on Accounting. [online] Opentextbc.ca. Available at: https://opentextbc.ca/principlesofaccountingv2openstax/chapter/describe-trends-in-todays-business-environment-and-analyze-their-impact-on-accounting/ [Accessed 23 Mar. 2021].

Knight Frank (2019). Service Station Market Overview. [online] content.knightfrank.com. Available at: https://content.knightfrank.com/research/902/documents/en/resinsight170228-4493.pdf [Accessed 23 Mar. 2021].

Queensland Government (2018). The benefits of an environmentally friendly business | Business Queensland. [online] Qld.gov.au. Available at: https://www.business.qld.gov.au/running-business/environment/environment-business/benefits [Accessed 23 Mar. 2021].

Rob (2018). What is a Thought Leader? [online] Thought Leadership Lab. Available at: https://thoughtleadershiplab.com/what-is-a-thought-leader/ [Accessed 23 Mar. 2021].

Sorrell, S. (2015). Reducing energy demand: A review of issues, challenges and approaches. Renewable and Sustainable Energy Reviews, [online] 47(1), pp.74–82. Available at: https://www.sciencedirect.com/science/article/pii/S1364032115001471 [Accessed 23 Mar. 2021].

Stakeholder Theory (2018). About | Stakeholder Theory. [online] stakeholdertheory.org. Available at: http://stakeholdertheory.org/about/#:~:text=Stakeholder%20Theory%20is%20a%20view [Accessed 23 Mar. 2021].

Trinity Petroleum Service (2020). Welcome to Trinity Petroleum. [online] www.trinitypet.com.au. Available at: https://www.trinitypet.com.au/ [Accessed 23 Mar. 2021].