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Project by
SYED ZEESHAN HAIDER MUHAMMAD NADIM IKHTIAR KHAN M TAYYAB FIDA

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introduction

Pakistan State Oil is the Pakistans energy sector.

market

leader

in

The

company has the largest network of retail outlets to serve the automotive sector and is the major fuel supplier to airlines, railways, power projects, agriculture sector and armed forces. company takes pride in continuing the tradition of excellence and is fully committed to meet the energy needs of today and rising challenges of tomorrow.
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The

Cont
Pakistan

State Oil is the largest oil marketing company in the country. is currently engaged in storage, distribution and marketing of various Pakistan Oil Limited (POL) products. companys currently market share of 82.3% in the black oil market and 59.4% share in the white oil market.

PSO

The

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history
Pakistan

state oil company limited (PSO) was established in 1976. the 1980s into the 1990s the company control of the Pakistan retail fuel market reached as high as 85 percent. April 1988, PSO placed was under the management of Tariq Kirmani, brought in from outside the government.

Through

In

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Cot
During

the 1990s, however, Pakistani Government launches the series of liberalization and deregulation efforts. the meantime, PSOs sales have boomed, toping PKR 312,515 million by the end 2006. This has placed PSO as Pakistan Leading Corporation, and provided a strong platform for growth into the future.

In

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Vision and mission

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

MISSION
The mission of PSO is to provide the highest quality petroleum products and services to their customers, based on

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

market leadership an all key products.

Maximize

shareholders wealth by sustainable growth in earnings. in alternate energy business

Diversification

(COAL/CNG).

Acquire

take in gas distribution companies. PSO as a brand of choice of customer.

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Established

PRODUCT NAME
E10Gasoline HOBC Premium/PG HSD LDO SKO

Products of Pso and its prices

RETAIL SALE
85.39 106.78 87.89 98.82 86.78 89.24

DIRECT SALE
85.39 106.78 87.89 98.82 0.00 0.00

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LPG PRICES IN PAKISTAN

CITY
Lahore Rawalpindi Faisalabad Peshawar Gujranwala Bannu Karachi Hyderabad

GAS PRICES
Rs. 1475/Rs. 1400/Rs. 1534/Rs. 1390/Rs. 1475/Rs. 1430/Rs. 1416/Rs. 1357/-

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AREA
PSO

working in all over the Pakistan and it operate 3,612 retail outlets. more than 1,600 new vision retail outlets that offer, an internet kiosk, car wash and other amenities. services given in different cities like Islamabad, Lahore, Rawalpindi, Quetta, Peshawar, Karachi etc.

Including

These

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Competitors of pakistan state oil

DIRECT COMPETITORS
Shell Total Caltex Attock Refinery Ardmore PARCO

INDIRECT COMPETITORS
LPG CNG Illegal Agencies

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Market share of PSO with other competitors

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Centralization decentralization

and

The PSO petroleum company is owned by government of Pakistan therefore it has a centralized system. Whole of the orders are delivered by the top management. All the decisions are taken by the top management.

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Swot analysis

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Strength

PSO have large number of depots and installation so it has increased profitability. The increase in profitability is due to its market which is its main strength. State Oil is largest oil marketing company in Pakistan. State Oil has strong retail department.
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Pakistan

Pakistan

Cont
Weakness

Due to their bigger market structure they have to keep up with the structure, so there magnitude of loss also bigger. Pakistan State Oil has difficult to obtain government approval for brand financing. The operating expense of a company is also very high.

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Cont
Opportunities There are certain opportunities which PSO can avail:
To To

increase more retail outlets. expand the ATM facility and electronic car wash.

Explore

the non-retail market to increase the profitability.

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To

Cont
Threats

Existing competitors like Shell, Total, Caltex and Attock Petroleum. 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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Organization structure

PSOs corporate structure has evolved into a matrix, which has divided a companys major operations into independent activities supported by the financial, legal and other services. The country has been divided into 14 division, each division is a self operating company and responsible for handling the matter of its perspective area. By the end of 2006, the Agency division and Lube Sales of PSO were merged with retail division. And new division will also been added which is known as PSO CARDS.
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Area of improvement

Supervision of work. Chances of corruption. Proper check of financial records. Availability of oil as promised by the company. New machines.

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How to improve

The human resource department should employee more people in the supervision department so that can have the proper check and balance on the flow products and subsidies. check and balance of the stock departments should be done by the superior authority as to avoid manipulation in the products by taking them illegally out of the business.
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Proper

conclusion
From

the upper facts and figures we can conclude that PSO is the largest market occupying company in Pakistan . It enjoys Govt support. But except its all strength and opportunities it has to maintain its standard by adopting latest technology and advance mechanism to cop up with the today's challenges.

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recommendation
It

should start new schemes like Free oil change or oil change at discounted price, so that its customers get more attracted should keep on improving the quality of the lubricants and fuels so that it increases its customers. should increase its social contribution on different events and world days that will help PSO to attain its prominent position among its competitors.
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PSO

PSO

Cont

PSO can improve its sales further by offering customer benefits programs like carwashes and meeting the service needs of vehicles at retail level which satisfy the customer. PSO should contribute to the forestation and environmental protection activities at gross root level will enhance brand image of PSO. PSO can install big screens on various station in big cities which can be used for showing latest news of stock exchange rates and can also serve as a mean of advertisements for their multiple products which the customer more attract.
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THAN K YOU!
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