Comparative Analysis on CITGO, Racetrac and Delek Holding Inc
Analysis of RaceTrac
The demand for energy in the US has increased overtime, and the predictions have it that it will continue soaring. The companies dealing in the energy sector have also had an accelerated growth. RaceTrac established in 1934, has grown to become Georgia’s third private energy dealing company, employing more than 5000 employees in the four states it operates. The organization also operates more than 330 RaceTrac stores in four states. Its growth has been attributed to the ability of the organization to respond to market changes and trends. For example, it was the first organization to introduce self service gas in Alabama and Georgia and the pay-at-the pump system (RaceTrac, 2012).
The organization operates on a customer focus model, where they focus on establishing better means and methods that can facilitate the organization to serve the customers better. The organization has established a theme named the “RaceTrac Way”, which acts as the organization’s guide operations. The main objective of the theme is to ensure focus on the clients, ensure profitability of the organization and create fun for the clients when operating at their stations (Longwell, 2003). Previously the organization operated on a theme of being the convenience store of choice and still it holds the theme but the mission has changed to making people’s lives simple and more enjoyable.
The organization operations are mainly focused on ensuring the focus on customer where it treats its clients as guests. The organization also operates a 24/7 system for various products such as coffee. The organization has also established various partnerships with other organizations, which share the same vision as the organization. For example, the Michael J. Fox Foundation for Parkinson’s research is one of the organizations the firm has established partnership (Moran & Cowart, 2012).
It operates as a fully owned subsidiary of PDV America and mainly engages in petroleum products refining, transportation, marketing and distribution. The organization has primarily established its operations in USA east of the Rocky Mountains. The success of the organization has been attributed production and distribution of diverse products insulating the organization from adverse market conditions. Since its establishment in 1910, CITGO has grown to become major petroleum products supplier in the US. The organization employs more 4000 employee directly and more than 100,000 indirectly in its vast network (CITGO, 2012). The organization has embraced technology in its operations by developing state-of-the art refining network, and it’s among US top ten refineries.
CITGO has also established an expansive distribution system comprehensively established through a combination of pipeline and product terminals. The organization has established a network, which consists of 380 equity and no-equity terminals, which stretches in every state east of the Rocky Mountain. Therefore, a comparison of RaceTrac and CITGO shows that RaceTrac specializes in the supply of petroleum products, as well as operating store where they operate. On the other hand, CITGO specialize in refining of petroleum products and supplying them to final retailers such as RaceTrac.
The organization is also committed to the community in which it operates in its efforts to ensure social responsibility. For example, in 2005, the organization established a program, which was aimed at distributing heating oil used by the poor communities at a discounted price to help poor communities especially during the winter seasons (CITGO, N/A). The organization has also played an imperative role in providing relief for the peoples affected various tragedies that have affected the United States. The organization also provides various supports to the communities such as education support and support for peoples suffering from various conditions such as people suffering from neuromuscular disease (CITGO, 2006).
The two organizations face various similar challenges in their operations such the increased volatility of the oil prices, in the global market. In addition, there has been various challenges arising from increased environmental and safety regulations, which might affect the operation of the organizations (Yemin, 2013). However, the future outlook of growth for increased and improved operations of the organizations is great based on the trends and predictions that demand for petroleum products is bound to increase.
Delek Holdings Inc is a diversified energy organization engaged in the refining, marketing and logistics and retailing and supply chain business operating in more than eight states. The firm produces more than 140,000 barrels in a day in its fully owned refineries, in Arkansas, El Dorado, Texas and Tyler. The organization has established a steady supply chain and logistics operations, which supplies and transports and sell products on whole sale basis. The organization has also established strategic partnerships with various organizations in its supply chain and selling (Stone, 2013). The retail segments of the organization operates in more than 384 selling oil products, as well as operating various other business such as fast foods. The organization has established partnership in its logistics with organizations such as Brentwood Tenn (Fort Mill Times, 2013). Therefore, the organization operations are similar to those of CITGO and RaceTrac. The organizations face similar challenges such as changing regulatory environment and the volatile global oil prices, which affect their operations. In Delek the logistics department gathers and transport crude oil and the refined products in the southeast of United States and Texas. The retail department operates under the name MAPCO express and operates, which is one of the leading operators in southeast of United States (Delek, 2013).
CITGO. (2012). CITGO Compay Profile CITGO Petroleum Products. Texas: CITGO.
CITGO. (2006). CITGO Story. Tenessee: CITGO.
CITGO. (N/A). Go With CITGO Grow With CITGO. CITGO.
Delek. (2013). Delek. Retrieved May 4, 2013, from http://delekus.com/
Fort Mill Times. (2013, April 25). Delek Logistics Partners, LP Declares Quarterly Cash Distribution. Retrieved May 3, 2013, from Fort Mill Times: http://www.fortmilltimes.com/2013/04/25/2646783/delek-logistics-partners-lp-declares.html
Longwell, H. J. (2003). The Future of Oil and Gas Industry: Past Approaches, New Challenges. World Energy , 100-104.
Moran, A., & Cowart, L. (2012). Right on The Trac- How doing things ‘The RaceTrac Way’ helped in the launch of newest prototype. Atlanta: RaceTrac.
RaceTrac. (2012). RaceTrac Inc Company profile. Georgia: RaceTrac.
Stone, M. (2013, April 23). Bullish Moving Average Cross by Delek US Holdings (DK). Retrieved May 4, 2013, from http://www.fnno.com/story/moving-average-crossovers/331-bullish-moving-average-cross-delek-us-holdings-dk-auto-generated
Yemin, U. (2013). Energy & Infrastructure. Retrieved May 5, 2013, from Delek Group: http://www.delek-group.com/Holdings/EnergyInfrastructure/DelekUS.aspx