INSTITUTE OF BUSINESS AND TECHNOLOGY (BIZTEK)

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

Vision and mission statement
Sumaira

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VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

NAME: SUMAIRA MOIZ BM-25509 COURSE: STRATEGIC MARKETING MANAGEMENT DATE OF SUBMISSION: 24-05-12 ASSINGMENT # 01 SUBMITTED TO: SIR KHALID JAMIL ANSARI

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

INTRODUCTION:
The creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on January 1st; the government took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL).Soon after that, on 3rd June 1974, Petroleum Storage Development Corporation (PSDC) came into existence. PSDC was then renamed as State Oil Company Limited (SOCL) on August 23rd 1976. Following that, the ESSO undertakings were purchased on 15th September 1976 and control was vested in SOCL.The end of that year (30th December 1976) saw the merger of the Premier Oil Company Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO).After PSO is inception, the corporate culture underwent a comprehensive renewal program which was fully implemented in 2004. This program over the years included the revamping of the organizational architecture, rationalization of staff, employee empowerment and transparency in decision making through cross functional teams. This new corporate renewal program has divided the company is major operations into independent activities supported by legal, financial, informative and other services. In order to reinforce and monitor this structural change, related check and balances have been established by incorporating monitoring and control systems. BACKGROUND REPORT: Pakistan State Oil Company Limited is one of Pakistans largest companies which posted an after tax profit of Rs. 4.2 billion this year. For nearly two decades PSO had held the reigns of market leadership when it c a m e t o l u b r i c a n t s . Y e t i n 1 9 9 4 , w h e n the government announced a new petroleum policy in which lubricants w e r e d e r e g u l a t e d , P S O f a i l e d t o r e a c t a n d m a n a g e t h e challenges of the free market conditions. It did not expand its stagnant product lines, and t h e g r o w i n g consumer needs were met instead by its closest competitors, Shell and Caltex. I n 2 0 0 0 , P S O u n d e r w e n t a c o r p o r a t e r e s t r u c t u r i n g , a n d t h u s b e g a n i t s transformation process that has seen it restored as market leader in POL products, and has regained significant confidence in its lubricants division. The following highlight the changes brought on for lubricants during the transformation process: 1. T h e f o r m a t i o n o f a c o m p l e t e v a l u e c h a i n u n d e r t h e n e w b u s i n e s s u n i t concept. 2. Extension of product line. 3. Technical seminars conducted for dealers. 4. Improved customer services BUSINESS SCOPE: Business we are in: The provision of the highest quality petroleum products and services to customers. Specific Region: 3,800 retail outlets (stations) scattered all over Pakistans geography Lubricants manufacturing plants in Korangi and Kemari

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

Who are we serving? Automobile owners High-Street distributors What are we offering? High quality grades of lubricants The worlds leading brand of motor oils: Castrol How are we achieving our goals? Integrated value chain Strong marketing capabilities Largest retail network Business we are not in: Engine parts manufacturing2

SWOT ANALYSIS OF PSO: STRENGHT:

.Pioneered quick oil change service Speedy Sole licensee of Castrol Lubricants Initiated free lube delivery service Mobile Quality Testing Unit Largest retail distribution network 3800 retail outlets Integrated Value Chain

WEAKNESS:
.Semi-bureaucratic system Slow decision making Bad product positioning Lower perceived quality Lack of trust with dealers Failed promotional scheme ( Jeet Hee Jeet, 2004)

OPPORTUNITY:
.Privatization prospect Use of the success of Castrol to reposition consumer perceptions of National Company offerings Pioneers of innovation in industry

THREATS:
Induction of new player: Total Global Externalities Global rise in petrol prices All competitors have strong international backing from worldwide operations

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

VISION: The Vision of Pakistan State Oil is as follows: To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first. Mission Statement The existing Mission of the company is: We are committed to leadership in the energy market through a competitive advantage in providing the highest quality petroleum products and services to our customers based on. A professionally trained, high-quality, motivated workforce that works as a team in an environment which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development. The lowest-cost operations and assured access to long-term and cost-effective supply sources. Sustained growth in earnings in real terms. Highly ethical, safe, environment-friendly and socially responsible business practices. . Improved Mission Statement We are committed to leadership in the energy market of Pakistan through a competitive advantage in providing the highest quality petroleum products and services to our retail and industrial customers based on: -quality, motivated workforce that works as a team in an environment which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development.

of quality management.

-cost operations and assured access to long-term and cost-effective supply sources. Sustained growth in earnings in real terms.

-friendly and socially responsible business practices. Strategic Objectives The existing strategic objectives of Pakistan State Oil are as follows: Maximize profitability in the Lubricants business through segmented marketing and brand promotion. Explore potential markets for the export of fuels and lubricants.

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

Expand the PSO Cards Business by enhancing the customer base, efficient distribution and brand partnership.

-fuels and expand the gaseous fuels business. mp the C-store network; introduce Quick Service Restaurants and develop strategic alliances with local and international franchises. Revamp organizational structure and various functions in line with the best corporate practices. Streamline systems and procedures in accordance with the changing business environment.

through effective system development, training, inspections and audit. Reinforce quality assurance by acquiring the ISO 9000 quality management certification of various departments, and expansion of MQTU network

KEY FINDINGS:
1. A clear and compelling vision of PSO gives the organization firm purpose. It enables a PSO to effectively galvanize action through the company. 2. PSO develop an effective services strategy, PSO clearly define which clients and business problems to address. 3. An analysis of the benchmark data showed that strategic, vision and mission clarity and communication throughout the company are critical to success when everyone in company understand the vision, mission and strategy of PSO achieves higher growth rates and exhibits more confidence in its leadership. 4. PSO success depends on attracting, hiring.retaining and motivating a highly skilled workforce. 5. PSO to be more effective and efficient because PSO must deploy right resource at the right time, on the right type of project. 6. PSO increase its revenue and profitability while satisfying customers.

VISION AND MISSION OF PSO (PAKISTAN STATE OIL)

CONCLUSION:
PSO vision, mission and value are the global oil and gas industry's premier facilities and communications provider. PSO has achieved this vision:

work to world-class standards focus always on customer satisfaction

respect the environment and be sensitive to the communities in which we work promote and reward on merit In addition to a network of outlet, PSO has key features that enable company to deliver a highly responsive and cost-efficient service to their customers - the world's leading integrated, independent and national oil companies. PSO has three times the number of retail outlets that Shell has, and six times that of Caltex. However, the trend is opposite when it comes to high-street distributors. Out of the 3866 outlets, more than 50 are Coco sites, (Company Owned and Company Operated). PSOs Sustainable Competitive Advantage is their association with Castrol. Castrol is the worlds leading manufacturer of the highest quality grade of motor oils, and PSO has garnered the license to solely mix and market their lubricants under the Pakistan State Oil mantle. Lead time in manufacturing and marketing. Lowest cost operator. Corporate emphasis on pioneering innovation.

RECOMMENDATIONS:

PSO needs to curtail the resources spent on developing new sites, and in turn invest in optimizing its distribution network, (more is better is not necessarily the best strategy). PSO needs to capitalize on their larger retail network by offering long-term discount schemes to its dealers. The major gap in PSOs distribution network is that there is little trust between the company and its dealers.
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VISION AND MISSION OF PSO (PAKISTAN STATE OIL)