pakistan state oil 12

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SYED ZEESHAN HAIDER

MUHAMMAD NADIM

IKHTIAR KHANM TAYYAB FIDA

Project by


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Pakistan State Oil is the market leader inPakistans energy sector.

The company has the largest network of retail

outlets to serve the automotive sector and is themajor fuel supplier to airlines, railways, powerprojects, agriculture sector and armed forces.

The company takes pride in continuing thetradition of excellence and is fully committed tomeet the energy needs of today and risingchallenges of tomorrow.

introduction


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Pakistan State Oil is the largest oil marketingcompany in the country.

PSO is currently engaged in storage, distribution

and marketing of various Pakistan Oil Limited(POL) products.

The companys currently market share of 82.3% in

the black oil market and 59.4% share in the whiteoil market.

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Pakistan state oil company limited (PSO) wasestablished in 1976.

Through the 1980s into the 1990s the company

control of the Pakistan retail fuel market reachedas high as 85 percent.

In April 1988, PSO placed was under the

management of Tariq Kirmani, brought in fromoutside the government.

history


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During the 1990s, however, Pakistani Governmentlaunches the series of liberalization andderegulation efforts.

In the meantime, PSOs sales have boomed, topingPKR 312,515 million by the end 2006. This hasplaced PSO as Pakistan Leading Corporation, andprovided a strong platform for growth into thefuture.

Cot


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VISIONTo excel in delivering value to customers as an

innovative and dynamic energy company that getsto the future first.

MISSION

The mission of PSO is to provide the highestquality petroleum products and services to theircustomers, based on

Lowest cost operations and assured to long-term andcost effective supply sources.

Vision and mission


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Retain market leadership an all key products.

Maximize shareholders wealth by sustainable

growth in earnings.

Diversification in alternate energy business(COAL/CNG).

Acquire take in gas distribution companies.

Established PSO as a brand of choice of customer.

objectives


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PRODUCT NAME RETAILSALE

DIRECTSALE

E10 Gasoline 85.39 85.39

HOBC 106.78 106.78

Premium / PG 87.89 87.89

HSD 98.82 98.82

LDO 86.78 0.00

SKO 89.24 0.00

Products of Pso and itsprices


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CITY GAS PRICES

Lahore Rs. 1475/-

Rawalpindi Rs. 1400/-

Faisalabad Rs. 1534/-

Peshawar Rs. 1390/-

Gujranwala Rs. 1475/-

Bannu Rs. 1430/-

Karachi Rs. 1416/-

Hyderabad Rs. 1357/-

LPG PRICES IN PAKISTAN


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PSO working in all over the Pakistan and it operate3,612 retail outlets.

Including more than 1,600 new vision retail

outlets that offer, an internet kiosk, car wash andother amenities.

These services given in different cities like

Islamabad, Lahore, Rawalpindi, Quetta, Peshawar,Karachi etc.

AREA


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DIRECT COMPETITORS INDIRECT COMPETITORS

Shell LPG

Total CNG

Caltex Illegal Agencies

Attock Refinery

Ardmore

PARCO

Competitors of pakistanstate oil


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Market share of PSO with othercompetitors


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The PSO petroleum company is owned bygovernment of Pakistan therefore it has acentralized system. Whole of the orders aredelivered by the top management. All thedecisions are taken by the top management.

Centralization anddecentralization


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Swot analysis


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Strength

PSO have large number of depots and

installation so it has increased profitability. Theincrease in profitability is due to its marketwhich is its main strength.

Pakistan State Oil is largest oil marketingcompany in Pakistan.

Pakistan State Oil has strong retail department.


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Weakness

Due to their bigger market structure they have to keepup with the structure, so there magnitude of loss also

bigger.

Pakistan State Oil has difficult to obtain governmentapproval for brand financing.

The operating expense of a company is also very high.

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Opportunities

There are certain opportunities which PSOcan avail:

To increase more retail outlets.

To expand the ATM facility and electronic car wash.

Explore the non-retail market to increase theprofitability.

To increase the number of tuck shops and services

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Threats

Existing competitors like Shell, Total, Caltex and AttockPetroleum.

Government policies also threat for the Pakistan state oil.

Instability in politics of country.

New licensed emerging competitors like Admore, Parco,Askar etc.

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PSOs corporate structure has evolved into a matrix,which has divided a companys major operations intoindependent activities supported by the financial, legaland other services.

The country has been divided into 14 division, eachdivision is a self operating company and responsible forhandling the matter of its perspective area.

By the end of 2006, the Agency division and Lube Salesof PSO were merged with retail division. And newdivision will also been added which is known as PSOCARDS.

Organization structure


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Supervision of work.

Chances of corruption.

Proper check of financial records.

Availability of oil as promised by the company.

New machines.

Area of improvement


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The human resource department shouldemployee more people in the supervisiondepartment so that can have the propercheck and balance on the flow productsand subsidies.

Proper check and balance of the stock

departments should be done by thesuperior authority as to avoidmanipulation in the products by takingthem illegally out of the business.

How to improve


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From the upper facts and figures we can concludethat PSO is the largest market occupying companyin Pakistan . It enjoys Govt support. But except itsall strength and opportunities it has to maintain its

standard by adopting latest technology andadvance mechanism to cop up with the today'schallenges.

conclusion


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It should start new schemes like Free oil change oroil change at discounted price, so that itscustomers get more attracted

PSO should keep on improving the quality of thelubricants and fuels so that it increases itscustomers.

PSO should increase its social contribution ondifferent events and world days that will help PSOto attain its prominent position among itscompetitors.

recommendation


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PSO can improve its sales further by offering customerbenefits programs like carwashes and meeting theservice needs of vehicles at retail level which satisfythe customer.

PSO should contribute to the forestation andenvironmental protection activities at gross root levelwill enhance brand image of PSO.

PSO can install big screens on various station in bigcities which can be used for showing latest news ofstock exchange rates and can also serve as a mean ofadvertisements for their multiple products which thecustomer more attract.

Cont


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YOU!

pakistan state oil 12

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