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Petrol Case

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MC1-009-I PETROL Original written by professor Pablo Pedro Melero Perlado at IE Business School. Original version, 14 January 1998. Last revised, 27 May 2008. Published by IE Business Publishing, María de Molina 13, 28006 – Madrid, Spain. ©1998 IE. Total or partial publication of this document without the express, written consent of IE is prohibited. A company specializing in the distribution and sale of petroleum products is studying opening up a branch in Taraland, a new emerging market located in the antipodes. Given the significant investment required in ports, pipelines and service stations, the Board of Directors believes that a better understanding of future demand in the market and the variables affecting it is essential …show more content…

RPI: retail price index. (1) Values expressed in currency of each year. Source: Taraland Statistical Institute (T.S.I.) 1 IE Business School PETROL MC1-009-I He has also acquired some official forecasts from the Taraland Prospective Institute (T.P.I.) concerning the development of these variables over the coming year, indicating, although Pepe doesn’t know why special emphasis has been placed on this point, that as Taraland is an emerging market, there is no possibility of any of the variables becoming saturated in the year in question. Hypothesis: Percentage variations in variables in year 21 compared with year 20 Petrol Price Bus fares DPC No. tourists Total petrol-engine vehicles Population: 3.50% 1.50% 1.80% -1.00% 2.00% 0.115% Back in his hotel, after a few attempts on his PC, Pepe thinks that some

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