Business Strategy: Running a Gas Station

Powerful Essays
Edgar, my cousin, is always thinking of the next business idea. His next business idea includes buying to gas stations. He believes that both gas stations would be profitable and allow revenue for him to increase. After recently reading an article named “$4-a-Gallon Gas Fueling Fears for Recovery” I decide to research the market in terms of supply and demand, elasticity, costs of production, pricing, and normal or economic profit or loss. In order to help my cousin Edgar I would like to provide him with the most informed advice possible.
Owing to the fact that the crude oil prices have increased over the years, attempting into this business appears profitable. According to an online blog, people are facing extraordinary high prices of gasoline recently, and they are drained. American’s spending patterns have changed which have caused us to get used to higher prices of gasoline. Evaluations show that the demand from the Asia is increasing everyday leading to higher prices. Knowing these outcomes seems like a good option to invest in gas stations which have convenience stores. Although there might be chances that the shift in consumption patterns might take people away from gas stations due to driving less. The convenience stores can also hurt due to the fact that American will now have to budget more of their money to fuel costs. These changes might lead the economy to a situation where there is a very slow growth in consumption.
Opening up a gas station requires a handsome investment, which is why it makes sense to study the past performances of the gas demand and supply in the United States. Along with studying the past performances of the gas demand and supply it is also wise to find out the predicted changes in the consumption. Also it makes sense to put a little thought on how the macroeconomic variables have been performing in the country and how they are supposed to perform, so that a complete assessment could be made before suggesting anything.



References: Blanchard, Olivier, and Jordi Gali. 2007. “The Macroeconomic Effects of Oil Shocks: Why Are the 2000s So Different from 1970s.” NBER Working Paper No. 13368. Brown, Stephen P.S. 2006. “Making Sense of High Oil Prices: A Conversation with Stephen P.A. Brown.” FRB Dallas Southern Economy, Issue 4, July/August, pp. 8-9. Dahl, C. & Duggan, T. 1998. Survey of Price Elasticity from Economic Exploration Models of US Oil and Gas Supply. Journal of Energy Finance & Development, Volume 3, pp. 129‐169 Epsey, M Ponce, M. & Neumann, A. 2013. Elasticities of Supply for the US Natural Gas Market- Unpublished manuscript O’Brien

You May Also Find These Documents Helpful

  • Good Essays

    Gas Stations

    • 681 Words
    • 3 Pages

    Do Gas Stations cause soil pollution? Soils are extremely important parts of every ecosystem. They are a home to many microbes and provide vital nutrients to the plants that live in them. pH is the measure of acidity or alkalinity of a solution, and most organisms have a very small range of pH values in which they can survive. 7 is considered neutral, lower than 7 is acidic (lemon juice, rain water) and above 7 is basic (bleach, soap). Lots of urban areas are dependent on car transportation,…

    • 681 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Gas Station Feasibility

    • 1236 Words
    • 5 Pages

    I. Management Aspect A. Form of the Business Ownership The Gassoline station is a partnership form of business that is owned by five persons and managed by two persons, namely Mr. Neil Aldin Dano, and Mr. Mark Anthony Fabian, Mr. Mico Quimbao, Mr. Daweng Zerpe and Mr. Arnel Espinosa. B. Nature of the Business The gassoline station will be offering the following petroluem and lubricant products; Petroluem: Unleaded Deisel Auto-Lpg Lubricants: C. Location The Gassoline stattion will…

    • 1236 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Mis on a Gas Station

    • 3459 Words
    • 14 Pages

    MANAGEMENT INFORMATION SYSTEM ON A GAS STATION A case study presented to Mr. Panfilo Actub In partial fulfilment for the degree Bachelor of Science in Business Administration By: Llegunas, Kristine Mabale, Cherry Ann Maceda, Jebbie Mahinay, Gezeil Monsanto, Nichelle Joy May 2013 “A world without Oil Industry is a world with no life....” INTRODUCTION Management Information Systems are one of the major tools available to business managers for achieving operational excellence…

    • 3459 Words
    • 14 Pages
    Powerful Essays
  • Good Essays

    Our Gas Station

    • 521 Words
    • 3 Pages

    Manappallil Mrs.Scanlon Narrative Remembering essay Our Gas Station Almost 10 years ago, my dad put some money into a share for a gas station to help my uncle out. So I guess it's our family business and in whatever way we can help, we should help out. My grandfather works there like every day and some times he needs help with carrying things. I come with him to the store and once we get to our gas station, I arrange everything in the little storage room with my grandfather's help…

    • 521 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Gas Station Management

    • 5734 Words
    • 23 Pages

    INTRODUCTION A. Nature of the Project The proposed business is a service and product provider which will serve the needs of the customer. This proposed business will be named as FBM Gasoline Station which derived from the family name of the co-owners, the Fernandez, Boiser and Maningo. The proposed business is a corporation. The project will engage in variety of fuel product such as Super Premium, Regular, Diesel and Kerosene. It is primary used for gasoline in automobile, trucks…

    • 5734 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    service gas station will possibly face. External Opportunities and Threats In this portion of our analysis, we will use our opportunities to overcome our threats. Of course, every business will have threats that they will need to prevail over. This is why we strongly believe that our marketing plan will certainly be prosperous. We will first look at our potential threats and see how easily we can reduce those threats with our opportunities. The biggest threat in almost every business today…

    • 742 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Gas Station Uml Diagram

    • 941 Words
    • 4 Pages

    Gas Station Project * Main * My Books * C/C++ Programs * Java Programs * Perl/PHP/Ruby Programs * Team Projects * Various Projects Program Description This was a semester-long project from my software engineering class at UNO. The goal of this project was to create a gas station management software package using the classic waterfall development lifecycle. Some of the requirements that needed to be met were: the ability to control gas pumps, keep track of in-store…

    • 941 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    looking down you see that your gas tank is on E, so you tell your friends that your heading to the gas station. You get to the gas station fill up your tank, maybe get a couple of snacks then you check out. You are what the gas station workers call customers. Not only are you just any old customer, but you belong in a category just like everyone else that comes into the gas station. There are many different types of people in this world, and working at a gas station you interact with all of them.…

    • 1083 Words
    • 5 Pages
    Good Essays
  • Better Essays

    need that will be satisfied is that my gas station will have gasoline, diesel, and a service station to get the repairs or inspections they will need to have. There will be a free air pump, so they can have the option of filling up their tires. I will also have coffee, snacks and different beverages the customer can purchase as well, so they can also fuel up their bodies as well for the ride they are going to make. The product will be unique by my station having a self service, but also a full…

    • 2914 Words
    • 12 Pages
    Better Essays
  • Good Essays

    Running a Business

    • 649 Words
    • 3 Pages

    Within the world of business there are rules, laws, and structures that must be followed in order to start, run and maintain a business. In the course book entitled Contemporary business, we look to chapter five to learn the much needed skills for organizing both small and large businesses and on chapter six we gain the knowledge and skills needed to start a business. Small businesses today are the majority and the norm. Small businesses contribute to our struggling economy by creating new jobs,…

    • 649 Words
    • 3 Pages
    Good Essays