Assignment # 01

Submitted To:
Ms. Fatima Saman Qaisar

Submitted By:
Sara Khurshid Azka Anjum Ahmed Khalid Ali Abbas Abdul Hanan 10-4932 10-4945 10-4900 10-4900 10-4926

Date: 10th September, 2013

National University of Computer and Emerging Sciences (NU-FAST) Lahore

Pakistan State Oil

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

Mission:
We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on: 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 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

Evaluation:
In the first two lines, PSOs mission statement talks about the Products and Services it provides. The mission statement contains the Self-Concept as it talks about its strength; leadership in energy market through competitive advantage. In the first point we see the companys Concern for Employees. Such an environment, as described above, will lead to the Survival, Growth and Profitability of the company. The second point mentions Lowest cost operations or in other words the Technology of the company. The third point mentions Survival, Growth and Profitability and the fourth mentions the Public Image.

Identification of Stakeholders and their claims

Every business has its social dimensions or Corporate Social Responsibility (CSR) - which has become an integral part of businesses today. Having become the largest oil marketing company in the nation, PSO has not overlooked the expectations of its stakeholders, and realizes its national and moral obligations

National University of Computer and Emerging Sciences (NU-FAST) Lahore

3 ever so strongly. With a strong sense of corporate social responsibility, PSO believe in making a difference in lives - a difference that is able to permeate the very fabric of society towards uplifting the economic well-being of the people wherever they are. PSO has come a long way from being a government department in early 1970s to where it is today as a major corporate heavyweight on Pakistan Stock exchanges. It has now made itself synonymous with community contribution. Major Stakeholders are as follows:

Shareholders Customers Employees Creditors Directors Society Competitors Government International Organizations

Major Stakeholders Concerns: Negatively Affected Environment Shareholders Benefit Proposals from various Stakeholders Suppliers Trust and Benefit

Shareholders They expect that all the decisions taken by the company helps them to earn financial benefit. Customers Customers require best services to be provided to them and want company to introduce environmental friendly products. Due to increasingly customers concerns about pollution and environmental damage, require cleaner, more efficient fuels such as bio fuel. PSO introduced Green Station Concept in 2007, furthermore, to provide customers with efficient and quick services auto car wash system has been installed at all outlets.

National University of Computer and Emerging Sciences (NU-FAST) Lahore

4 Employees Employees are major assets for any company. PSO is paying special attention to its human resource department and is doing investments for training, skills development and performance management. Employees require that there should be transparency in recruiting and bonuses should be given according to their performance. Furthermore, PSO arranges different recreational activities as well for mental and physical wellbeing of their employees as well as to promote social activities. Creditors The creditors are attributed to Government agencies. The credit risk is around Rs. 55 million as reported in 2012. The creditors expect to receive their payments well on time, PSO attempts to control the credit risk by minimizing the costs and monitoring credit exposures. Competitors PSO has 59.2% and 80.1% share in white and black market oil respectively. Major competitors include Shell, Caltex, Total and Admore. To compete in growing pressures, PSO gains their customers by providing low cost products but effective in use. Government The Pakistan State Oil company is public sector organization and pays taxes of Rs. 2.42 billion annually. International Organizations Internationally stakeholders of PSO are World Economic Forum (WEF) World business Council

PSO continue to do philanthropic activities and provide services in education, health care and community building which entails activities for women empowerment, children welfare and relief efforts during and after natural calamities have emerged. Society These are some of the main contributions done by the company. Education Health Sector Community Buildings o o Children Welfare Women Empowerment

National University of Computer and Emerging Sciences (NU-FAST) Lahore

5 o o o Sports Development Heritage Preservation Relief Activities

Helping out the charity institutions that needs assistance

All these objectives are of very much importance to PSO as they evaluate all the proposals given out by the stakeholders and in order to make every stakeholder important for the Corporation.

National University of Computer and Emerging Sciences (NU-FAST) Lahore

Shell
Vision:
To be the Top Performing and Most Admired Refinery in Asia

Mission:
To continuously deliver shareholder value by: Manufacturing and supplying oil products and services that satisfy the needs of our customers Constantly achieving operational excellence Conducting our business in a safe, environmentally sustainable and economically optimum manner Employing a diverse, innovative and results-oriented team motivated to deliver excellence

Evaluation:
The very first line of the mission statement talks about delivering value to shareholder, or in other words Profitability. The first point mentions the Products and Services being delivered to the customers. The second point talks about operational excellence or in other words the Technology of the company. The last two points tell about the companys Public Image and Concern for Employees

Identification of stakeholders and their claims

Stakeholder is a person or entity who has concerned or interest in something especially in a business. Stakeholders are further classified in various divisions. Major stakeholders of shell oil are as follows Shareholders Employees Suppliers Customers Local communities

National University of Computer and Emerging Sciences (NU-FAST) Lahore

The rest of the stakeholders are government, business communities, other oil companies, media and NGOs. Shareholders: Shareholders provide a sizeable part of the capital required to set up and run the business. Shareholders choose a board of directors to represent them and provide a direction to the company. Directors create the business strategy and are responsible for implementing the strategy. Each year directors must produce a report for shareholders which are presented at Annual General Meetings of shareholders. Employees: Shell employs over 100,000 people worldwide working at various work levels. As stakeholders employees are influenced by Shell but also affect how Shell operates. The employees' standard of work and commitment to health and safety and excellence is vital in order to keep Shell as a leader in the energy field. Mistakes can be costly in terms of reputation and the livelihood of other employees.

A priority at Shell is to respect people. It seeks to provide its staff with good and safe working conditions and competitive terms of employment. This has a positive influence on employees as it keeps them safe and motivated.
Suppliers:

Suppliers are stakeholders and are Shell's partners in the chain of production - for example, in bringing petrol from the oil well to the petrol pump. Shell has a number of core values that are central to everything it does. Shell's reputation depends on making sure that its business actions reflect these core values.
Customers: Without customers a business would not exist. Shell objective is to win customers. Customers want value for money which involves providing the highest quality fuels at competitive prices. Increasingly customers, concerned about pollution and environmental damage, require cleaner, more efficient fuels such as bio fuel. Shell responds to changes in customer views and seeks to anticipate future customer expectations. It aims to help customers use less energy and emit less CO2. Shell products include fuels and lubricants for all forms of transport such as cars, ships, airplanes and trains. Shell has a set of global environmental standards/expectations for all of its companies. These include: managing greenhouse gases, energy efficiency, control of waste and the impact on water.

National University of Computer and Emerging Sciences (NU-FAST) Lahore

8 Local communities: Local communities living close to oil refineries have raised concerns over their safety. Shell seeks to overcome these fears and earn the trust of people by taking all the necessary safety measures. This includes operating the plant safely and making people aware of plans and emergency procedures. Shell, in its commitment to improve the wellbeing of local communities, has created local partnerships. It has provided health facilities and supported the development of local schools and universities. One of Shell's initiatives is Shell LiveWire - an online community for young entrepreneurs wanting to start a business. It provides information and resources (such as free guides) to help young people turn ideas into business reality.

National University of Computer and Emerging Sciences (NU-FAST) Lahore