2011

Principles of Management

Submitted by: Aatika Ahmed Rabail Qureshi Rabia Akram Shan-e-Zehra Submitted to: Mr. Abdullah Patoli Dat of Submission:

CONTENTS
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COMPANY OVERVIEW

Pakistan State Oil Company Limited, namely PSO was found in 1976, as a result of amalgamation of the former oil marketing companies. As the largest oil marketing company of Pakistan, PSO is engaged in the storage, import, distribution and marketing of Petroleum products, petrochemicals, Aviation and Bunker fuels, LPG and CNG dominates the countrys fuel and energy needs. Since its inception in 1976 the company has been meeting more than 70% of the countrys fuel needs. PSOs 3805 outlets all across the country markets more than 12 million tons of fuel products annually. This network is supported by PSOs 28 storage facilities with a capacity of more than 800,000 tons .PSO took a major step in improving its distribution facilities by acquiring 12% equity in the 800km long Karachi-Mehmoodkot White Oil Pipeline. As part of PSOs policy of providing better customer services, it has embarked upon its New Vision retail development program. Equipped with the most modern facilities like Electronic dispensing units, auto car wash, convenience stores, internet facilities and business centers, these sate of the art designed stations provide greater customer confidence and a friendlier environment. As a manifestation of PSOs greater customer focus PSO 24hr customer service has been launched where customers can lodge their queries and suggestions about various PSO products and services. Being the largest of the three marketing companies in Pakistan, PSO has consistently maintained an edge over its competitors Shell and Caltex. With an overall market participation of over 72% in 1997-98, it sold 6.244 million tones of petroleum products during the half year ended December 31st, 1999 against 5.633 million tones sold during the corresponding period last year, showing an increase of 10.8%. Continuous growth PSO continues to expand its physical, technical and marketing resources to meet the requirements of the country .To keep pace with growth, PSO has maintained International Collaborations to import latest technology. These are: 1. Castrol (UK) Blending and marketing of lubricants in Pakistan 2. Air Total (France) Technical and Commercial agreements in Aviation Services 3. Exxon Chemicals (Singapore) Petrochemical Business And Technology.

M I S SI O N ST AT EM ENT

To ensure availability and security of sustainable supply of oil and gas for economic development and strategic requirements of Pakistan and to coordinate development of natural resources of energy and minerals.
Strategy to achieve mission

To adopt an integrated approach for promoting exploration and fast track development of oil, gas and mineral resources. To deregulate and liberalize and privatize oil, gas and mineral sector through structured reforms. To attract private investment and to establish credible institutions for facilitating the development of petroleum and mineral sector. To develop technical professional human resources. To optimize existing energy delivery infrastructure oil and gas pipelines. To reduce imported fuel oil consumption with indigenous gas by optimally balancing the gas availability and supplies from local and imported resources.

OUR VISION

Market leader providing the highest quality petroleum products and services to its customers Professionally trained, 'high quality, motivated workforce, working as a team in an environment which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development Lowest cost supplier with assured access to long term supplies Sustained growth in earnings in real terms Highly ethical company; good corporate citizen

PSOS STANDING IN THE OIL INDUSTRY

It would not be wrong to say that PSO enjoys a strong brand image in the market. On the basis of this brand image we can have an idea about the ranking and positioning of Pakistan State Oil Company in the industrial sector. PSO has been serving the entire industrial sector in Pakistan since 1971. As positioning of company within market is a means to target a customer. So we can say that Pakistan State Oil is no doubt having the useful and simplest tool to the marketers in the industrial sector. The importance of the PSO in industry is due to the fact that it always launches a product according to specific requirements of a particular industry. So in this way Pakistan State

The importance of Pakistan State Oil in the industry becomes obvious when we talk about the different industrial products which they are offering in the market. The most popular products of Pakistan State Oil which are used in bulk amounts by the industrial are: kerosene oil, furnace oil, lubricants and diesel. PSO is the largest lubricants marketing company in Pakistan. The major industries consuming PSOs products are: sugar mills, steel mills, edible oil mills, independent power plants (IPPs) and paint industry. The importance of Pakistan State Oil to the sugar mills is due to the fact that they are offering furnace oil and lubricants for the protection and safety of their machinery and Plants. Pakistan State Oil is now offering Doorstep PSO lubricants delivery i.e. free lube delivery anywhere you want. Whether you are a PSO industrial consumer, lube shop agent, or customer. You can now have PSO lubricants delivered at your doorstep, this service is totally free of cost anywhere. Pakistan State Oil has a complete range of automotive lubricants. Some of these are used in the steel industry. These lubricants makes it possible that the machinery and plants can work more efficiently as they reduces The friction prevents all the barrier to the performance .The above statement is no doubt true Pakistan State Oil is totally committed to quality and excellence and its lubricants department is ISO 9002 certified for testing and processing facilities of all automotive lubricants. Pakistan State oil Company Limited also supplies imported or local chemicals to various industries. Among these industries the paint industries and edible oil mills are important consumers of industrial chemicals. These chemicals are tauline, benzene, hexane and solvent oil. Edible oil mills which may be called ghee mills are using hexane. Lubricants and chemical department remains in the activity of launching new products for the benefits of industries and to attract the new industrial consumers. Pakistan State Oil makes it possible by extending lube testing and advisory services to all customers to drive maximum benefits from its products. In other words we can say that the importance of Pakistan State Oil in the industry is due to the fact that it is a public limited company. Therefore, it is offering its specially designed products to the Independent Power plants (IPPs) which includes army, railways and WAPDA. Army uses PSO products for the refueling of tanks. So the ranking of Pakistan State Oil Company according to the Divisional Manager is defined as:

SWOT ANALYSIS

STRENGHTS

WEAKNESS

Strong market base Government support Well established network of retail outlets Strong infrastructure of laboratories to test product quality Good marketing budget to promote products

Dilapidated retail network Lack of assured supply sources Obsolescence Improper control Quota based hiring Circular debt

Deregulation, Globalization upstream/downstream integration and diversification

Global externalities, Availability of products substitutes Entrance of new players

OPPORTUNITIES

THREATS

STRENGHTS