Previous Post On Wednesday, July 19, 2006
In the U.S., four of the US's largest ExxonMobil distributors have teamed up to form a new lubricant firm. They are Chicago-based Boncosky Oil Co.; Commercial Ullman Lubricants Co. of Ohio; Lubricant Technologies LLC, which is active in the Carolinas and Georgia; and Young Oil Co. of South Florida. They have announced plan to consolidate operations and form a new company namely, PetroLiance LLC.
By combining the resources of all four companies, PetroLiance will be, by far, the largest ExxonMobil distributor in each of the market in which it operates, according to Kevin McCarter, who will serve as the organization's chief executive.
My own business experience bears out that this type of distributorship merger would not be viable in Asian countries, especially the Chinese market. Obviously, it's true that the general unwillingness of most Chinese companies to think long term is pervasive in Asia. I also have found this be true with respect to some traditional industries such as oils, and lubricants. This contrasts with the prevalent western view that they have longer view in conducting businesses. However, based on this business case, I cannot simply concluded that Chinese companies do not have business strategy, though they certainly do not used to hired a strategy consultant as BP or other Fortune 500 firms do, they have their own strategy in conducting businesses, they just simply run their businesses based on contingency view. Moreover, as Chinese businessmen gain business experience and as their confidence in the staying power of Chinese capitalism increases, i strongly believe their thinking will become more long term as well.