Pakistan State Oil Company Limited

PAKISTAN STATE OIL COMPANY LIMITED

SUBMITTED BY: SHAMIM

MUHAMMED JUNAID SALMA OBAID NIDA SHAHEEN IMTIAZ HUSSAIN SIRAJ SALEEM

INTRODUCTION

PSO is the oil market leader in Pakistan enjoying over 79% share of Black Oil market and 58% share of White Oil market. It is engaged in import, storage, distribution and marketing of various POL products, including HSD, Fuel Oil, Jet Fuel, Kerosene, LPG, CNG and petro-chemicals.

HISTORY OF PSO PSO, the largest oil marketing company in Pakistan (with a market share of 65 %), was formed in 1976 through the merger of Pakistan National Oil, Premiere Oil, and ESSO. PSO operates more than 3,800 retail outlets, including more than 830 New Vision Retail Outlets that offer, besides the usual gas-station services, an Internet kiosk, car wash, and other amenities. The Government of Pakistan, which owns about 54% of PSO, plans to privatize it.

VISION To excel in delivering value to customers as an Innovative and dynamic energy company that gets to the future first.

ROAD MAP OF PSO

FOUR FUNCTIONS OF MANAGEMENT

PLANNING Planning sets the stage for the others by providing a sense of direction. It is a process of setting objectives and determining how to best accomplish them.

PLANNING  Before investing on extremely expansive technology, need & justification should be reviewed without any biases & group think.

 Research for development of Bio- Fuels & alternate energy resources needs revolutionary steps to be taken.

Long-term Planning After careful and through due diligence, PSO management set long-run Planning for the company, specially indicating its future direction as an energy solution company rather than only an oil marketing company.

Long-term Planning

 Retain market leadership in all key products.  Establish PSO as a brand of choice for customers.  Utilize all available resources optimally.  Fulfill corporate social responsibilities

ORGANIZING  Organizing is the process of arranging people, task and other resources to accomplish the goal of an organization.

ORGANIZING  Time & work load management needs serious and unbiased analysis.  Job responsibilities and authorities delegation needs a realistic review & implementation.  Lowest cost operations and assured access to longterm and cost effective supply sources.

ORGANIZING  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.  High ethical, safe, environment friendly and socially responsible business practices.

ORGANIZING It is pertinent to add here that PSO management has effectively spread its Vision and Mission to all employees and inculcated the Shared Values because without employee participation with clear cut future direction.

ORGANIZING The management strongly believes in contemporary management concepts and best practices as they can result in performance improvement, In addition, they also help PSO to anticipate changing business environment and gear it up to cope with adverse scenarios.

LEADING Leading is the process of inspiring others to work hard to accomplish important tasks and achieve the strategic goals.

Categories And Types Of Leaders Leadership is a quality a person may have. Exercise of leadership can be categorized as either actual or potential: Actual - giving guidance or direction. Potential - the capacity or ability to lead.

Categories And Types Of Leaders Leadership can have a two aspects:  Formal aspect (as in most political or business leadership) or an  Informal one (as in most friendships).

Transformational Leadership Assumptions:  People will follow a person who inspires them.  A person with vision and passion can achieve great things.  The way to get things done is by injecting enthusiasm and energy.

Leadership In PSO Leadership in PSO has specific focus on managerial leadership. Muhammad Abdul Aleem serves as a Managing Director and Member of Management Board of Pakistan State Oil Company Ltd. Previously, Mr. Aleem served as a Senior Executive Vice President of Finance at Pakistan Telecommunication Co. Ltd. He served as the Chief Financial Officer of Pakistan International Airlines Corporation. He served as a Director of Pakistan Refinery Ltd.

Leadership In PSO the company revamped its retail operations, upgrading its facilities and further expanding its network. A growing number of the group's retail shops also featured modern convenience stores. PSO also launched a system of pre-paid fuel cards, a public service in a country where cash was often in short supply.

CONTROLLING Controlling is the process of measuring performance and taking corrective action to ensure desired results. This process is used to make sure that plans are achieved.

CONTROLLING Controlling is the process of measuring performance and taking corrective action to ensure desired results. This process is used to make sure that plans are achieved. It reflects gaps in planning, organizing, leading and contributes to unjustified bourdons on remaining employees in any department.

Structure  Revamped the entire organizational architecture by implementing Matrix Management.  Introduced Business Unit concept, each BU is responsible for sales volumes, profitability and investments.  Reduced unnecessary layers making PSO lean and flexible.

Business Structure of Organization

SWOT ANALYSIS Strength: Opportunities: • Well established infrastructure • Largest retail network • Sole supplier of IPPs / Hubco

Weaknesses:

• Deregulation • Globalization • Diversification

Threats:

• Dilapidated retail network with • Global externalities • low thru put per outlet • Products substitution • Obsolesces, improper controls • Induction of new players

CONCLUSION At PSO, all planning efforts are focused on converting the company into a total solutions energy company with leading presence in both upstream and downstream sectors. This distant vision of the present management envisages PSO as an important regional player in its fields of activity.

Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.