Pakistan State Oil Report free essay sample

We are committed to leadership in energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based | * 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 practice| Values Excellence We believe that excellence in our core activities emerges from a passion for satisfying our customers needs in terms of total quality management. Our foremost goal is to retain our corporate leadership. Cohesiveness We endeavor to achieve higher collective and individual goals through team. This is inculcated in the organization through effe ctive communication. Respect We are an Equal Opportunity Employer attracting and recruiting the finest people from around the country. We value contribution of individuals and teams. Individual contributions are recognized through our reward and recognition program. |   | Integrity We uphold our values and Business Ethics principles in every action and decision. Professional and personal honesty, dedication and commitment are the landmarks of our success. Open and transparent business practices are based on ethical values and respect for employees, communities and the environment. |   | Innovation We are committed to continuous improvement, both in New Product and Processes as well as those existing already. We encourage Creative Ideas from all stakeholders. | Corporate Responsibility We promote Health, Safety and Environment culture both internally and externally. We emphasize on Community Development and aspire to make society a better place to live in. History 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’s 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’s 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. Human Resource Development became one of the main priorities on the company’s agenda under this corporate reform. It is due to this effective implementation of corporate reform and consistent application of the best industrial practices and business development strategies, that PSO has been able to maintain its market leadership in a highly competitive business environment. PAKISTAN STATE OIL COMPANY Our Products Motor Gasoline Kerosene High Speed Diesel Light Diesel Oil Furnace Oil Lubricants Associated Companies Following are the details of PSOs associated Companies: NAME| SHARE HOLDING %| 1. ASIA PETROLEUM LIMITED| 49%| 2. PAK GREASE COMPANY LIMITED| 22%| Asia Petroleum Limited (APL) APL was incorporated in Pakistan as an unlisted public limited company on July 17, 1994. The Company has been principally established to transport â€Å"Residual Fuel Oil† (RFO) to the Hub Power Company Limited (HUBCO) at Hub, Balochistan. For this purpose, the Company laid an underground oil pipeline starting from Pakistan State Oil Company Limited’s (PSO) Zulfiqarabad terminal at Pipri to HUBCO at Hub. Pak Grease Manufacturing Company (Private) Limited (PGMCL) PGMCL was incorporated in Pakistan on March 10, 1965 as a private company. The principal activity of the Company is to manufacture and sell petroleum grease products. | | Code of conduct * Giving illegal/unreasonable direction to others| * Unjustified/Unauthorized absenteeism| * Using influence or external pressure for promotion, transfer or induction| * Unsatisfactory/negligent performance| * Conduct that violates decency and morality| * Smoking at non-designated areas | Theft of any of the properties/assets of Company| * Breaking of safety regulations| * Habitual resting/sleeping in office timings| * Breach of privacy and/or trust| * Bullying/intimidation/uncalled for behavior/mental and gender harassment| * Misusing confidential information/record| * Discrimination on basis of caste, creed, religion amp; gender | * Falsification of records| * Undue patronage/Nepotism (Favoritism)| * Offering/Accepting Bribes and Gifts| * U sing office timings and/or resources for personal use| * Intentional damage to Company property| Mishandling/misusing Company resources and property| * Reporting on duty drugged or intoxicated| * Hooliganism in inside/outside Criminal/Offensive activity| * Activities bringing disrepute to company| * Inappropriate public comment and/or rumour mongering| * Use or possession of arms and explosivesMarketing amp; Distribution| PSO possesses the largest distribution network in the country comprising of 3,689 outlets out of which 3,500 outlets serve the Retail sector and 189 outlets serve our bulk customers. Out of the total of 3,689 outlets, 1,691 Retail and 167 Consumer Business outlets have been upgraded with the most up-to-date facilities as per the visualization of the New Vision Retail Programme. PSO also operates 31 company-owned and company-operated (Co-Co) sites serving the retail sector. Co-Co sites are flagship stations which combine high levels of supervision and top quality products to maintain the highest level of efficiency, service and customer care. These sites act as benchmark for all other retail outlets. In addition to retail customers more than 2,000 industrial units, business houses, power plants and airlines are being fueled by PSO. Acquisition of Products|   The automotive sector is the main consumer of Motor Gasoline (Mogas) and High Speed Diesel (HSD) whereas Furnace Oil (FO) is marked for power plant usage. To meet the supply deficit of the country, PSO imports Mogas, HSD, JP 1 and FO as and when required. The total import of black and white oil in Pakistan last year was 12. 4 million metric tons and PSO had the lion’s share of this import with 11. million metric tons which came to over 90% of the total fuel imports of the country. Other than product imports, PSO acquired 1. 75 million metric tons from various refineries based in Pakistan in order to cater to our market needs. Storagepso possesses the largest storage capacity in the country. The company’s infrastructure stretches from Karachi to Gilgit. With 9 installations and 23 depots located across the coun try PSO’s storage capacity of approximately a million metric tons represents 74% of the total storage capacity owned by all the oil marketing companies. |   |   Product Movement| 😠 PSO uses three mechanisms for the movement of POL products namely, tank lorries (road), tank wagons (railways) and pipelines. We currently have a total fleet of 8,595 tank lorries out of which 2202 tank lorries are New Vision tank lorries which are complying with the latest ADR standards and are equipped with pilferage proof tracker systems. With the commencement of operations of the White Oil Pipeline Project (WOPP) from Karachi to Mehmood Kot via Shikarpur and the MFM (Mehmood Kot/Faisalabad/Machikey) pipeline, the supply pattern for white oil from Karachi has switched from tank lorries to pipelines. PSO is present as a partner in this project and holds a 12% equity share in this venture. | Lubes Manufacturing amp; Sales| PSO is steadily progressing in the field of lubricants. With state-of-the-art Lubricants Manufacturing Terminal (LMT) located in Korangi Industrial Area, Karachi we are catering to a number of sectors including automotive, Hi-street and industrial consumers through the provision of sectors including automotive, Hi-street and industrial consumers through the provision of products. PSO Quality Assurance Department comprises of the following PSO Quality Assurance PSO’s quality assurance system is there to give all its stakeholders the confidence in the quality of fuel through strict specifications and procedures. It’s a procedure under which we ensure that all products and services being offered are of quality Quality Management System The goal of Quality Management System (QMS) Support is to ensure that all the activities of departments come under the scope of QMS for their effective monitoring and continuous improvement and focusing the needs and requirements of our internal and external customers for successful business operations. In view of above PSO QA department provides technical and consultative support to various PSO departments in the company for the implementation and Monitoring of World class Quality Management System Standard ISO 9001:2008 QMS through development of documents, conducting Internal Quality Audits and arrange Training sessions for Employee awareness and development on QMS implementation sequentially to enhance the quality of work, functional practices and Customer Satisfaction Support on Quality Management System * | * Technical Support to departments for QMS. | * | * Gap Analysis for QMS| * | * QMS Internal Quality Audit| | * Training on ISO 9001 Standard amp; Internal Auditing| * | * Implementation for Certification| PSO and Ethical Practices; | Health Safety amp; Environment| Environment, Health and Safety management are at high priority for responsible companies and PSO is no exception. The company is committed to maintaining a safe, healthy and sustainable environment wherever we o perate – for our people, our customers, our partners and contractors and the community at large. † Beyond leadership in the provision of energy to the nation, PSO’s broader goals envision: * A cleaner, greener, healthier Pakistan Enabling a safer environment for the PSO family and those whom we serve. * Making a difference today for a secure tomorrow HSE Mission Statement Pakistan State Oil Co. Ltd. is committed to manage health, safety and environmental (HSE) matters as an integral part of the business which includes employees, customers, business partners, contractors and the community at large. To assure the HSE integrity of our processes and facilities we will continue to strive for improvement by implementing the HSE Management System and further, by adhering to the following principles: Compliance We ensure that our stakeholders will comply with all applicable laws, regulations, and standards and implement programs and procedures. In order to progress from Good to Great, everyone working for the company is responsible to implement the HSE program, policy and procedures. Prevention We will further improve on our management systems with the intent to prevent activities and/or conditions that endanger the human health and safety and strive to minimize the impact of our business operations on the environment. Communication We will communicate our commitment to our employees, contractors and customers and seek their full cooperation in meeting our HSE goal through various events and programs. Continuous Improvement We will seek opportunities to continuously improve the effectiveness of our HSE Management System by not only planning, performing, measuring and improving it but also by identifying, assessing, managing hazards, impacts and risks from our activities and services. Moreover, we will identify areas for improvement through comprehensive HSE audits and effective analysis of near misses/incident reporting system 1. Prevention of Occupational Sickness Whenever a business like PSO involves certain issues of risky work conditions or the industry has some health issues, then it is legally required that protection or safety be offered by the organization to the employees who are working for them. The organization and the industry are bound to protect the employees working for them. The government requires these organizations to address these work conditions carefully. If for example an employee is injured when he was at work, or if the health of an employee is adversely affected by the working conditions; then the organization is bound to provide appropriate compensations as well as protection and safety elements to the employees at work. At PSO such issues are also dealt with diligently. For example for the managerial employees working at PSO’s headquarters, temperature of 21? C is maintained at all times throughout the year. The organization controls the temperature all the year round, irrespective of the prevailing weather. This helps the employees to feel more comfortable and increases their motivation, performance and drive to work better and achieve their goals. 2. Prevention of Accidents. No matter what the business environment is like, each and every business entity has to prepare and be proactive regarding any accidents that may or may not happen at work. They need to prepare and equip their employees working for them for the worst. They need to educate their employees regarding the hazardous working environment and conditions; so that they are mentally and physically fit to face the adverse situations at work. An example of this could be the fire extinguishers, buckets, water hoses and other fire extinguishing equipment provided to all the petrol pumps by PSO. All the employees of such facilities are given training to brush up their fire fightingskills. For example: A fire drill was arranged by the HSE Department at PSO House at 11:45 a. m. on Monday, December 11, 2006. Following the fire alarms, which were sounded on all floors, an announcement was made on the public address system to evacuate the PSO House. An orderly drill was executed and all PSO employees, including the top management, as a result 700 employees were evacuated within 4 minutes and were assembled outside the PSO House premises. The local fire brigade and ambulance promptly responded. Fire drills are part of health, safety and environment (HSE) measures that have been adopted by Pakistan State Oil and are conducted at periodically to keep the employees aware of the state of safety. . Prevention of Environmental Pollution: If the pollution produced by the business damages the external environment, then the government has the right to restrict its functioning or impose restrictions on the business. If the work pollution is spreading within the organizational facility, and it damages the health of the employees or an employee gets hurt due to it. Then, the employer will have to pay o r compensate the families of the employees, if the employees are injured or damaged during work hours. An excellent example of the prevention of environmental pollution would be that of Oil water separation PSO has become the first oil marketing company to embark upon a project to meet the National Environment Quality Standards (NEQS) and reduce the pollutant loads on the effluent discharged from PSO retail outlets. Servicing of motor vehicles generates contaminated effluent, which ultimately gets discharged in the sewerage system. This effluent is found non-compliant with NEQS, which stipulates criteria of the limits for liquid effluent parameter. The installation of oil water separation system would make the retail outlets environmentally compliant and will be helpful in reducing pollution. HSE Vision Environment, Health and Safety management are at high priority for responsible companies and PSO is no exception. The company is committed to maintaining a safe, healthy and sustainable environment wherever we operate – for our people, our customers, our partners and contractors and the community at large. â€Å"Safety is our priority and it is our belief that all accidents are preventable. Our first aim is excellence in HSE performance in all PSO businesses. † Beyond leadership in the provision of energy to the nation, PSO’s broader goals envision: * A cleaner, greener, healthier Pakistan * Enabling a safer environment for the PSO family and those whom we serve. * Making a difference today for a secure tomorrow. Characterization of HSE: HSE  is intangible in nature. It is an intangible asset of an organization like image and good will are. HSE lead to better image and goodwill of the organization. It creates a positive image of the organization and business. A company may have the maximum knowledge and hard work, yet it may lag behind just because it does not have the right attitude. This attitude comes from realizing what is important ethically, environmentally and morally. HSE is a part of this realization. A company’s behavior, attitude, safe occupational practices and procedures, and environment matters significantly. For example, if you are a good driver and you follow the traffic rules, then that is your positive behavior. You will not get into trouble because you will never break rules and chances are you will never get hurt due to any rash driving antics. Healthy and positive behavior and attitude always leads to a positive outcome. Changing HSE trends in the Industrial sector: * Quality Certification gaining importance, such as ISO 9000 amp; 14001 etc. * Legislative environmental pressures are increasing. * Financial losses resulting from accidents increased. HSE Policy of PSO: The HSE policy is as follows: The health of its employees, its contractors, its customers and the public is protected. All its activities are carried out safely. Environmental performance meets legislative requirements. To implement HSE Policy, Pakistan State Oil Company Limited will * Comply with relevant laws and regulations. *   Ensure that required Health, Safety and Environment Standards and Procedures are developed and established. Ensure that all its activities are carried out in accordance with Companys Health, Safety and Environment Standards and Procedures. Set demanding targets and measure progress to ensure continuous improvement in Health, Safety and Environment performance. Require every employee to exercise personal responsibility in preventing harm to themselves, to others and to the environment. Provide appropriate Health, Safety and Environment training / information to all employees, contractors and others who work with the company Ensure provision of safe working environment. Promote awareness and give due recognition to performance in the area of Health, Safety and Environment. HSE INITIATIVES * Being a responsible corporate citizen, PSO realizes that success of business financial performance and sustainability depends on the environment in which it operates. Accordingly we strive to strike an efficient balance between financial, social and ecological performance. Being a responsible corporate citizen, PSO realizes that success of business financial performance and sustainability depends on the environment in which it operates. Accordingly we strive to strike an efficient balance between financial, social and ecological performance. Health, safety and environment form our corporate objectives. * Today all our 3,700 retail outlets across the country dispense environmental efficient fuels at no additional cost to our customers. These fuels play a vital role in reduction of exhaust emissions that result in less pollution and greener environment. There are fifteen (15) Mobile Quality Testing Units in operation which ensure consistent quality of products being supplied to our consumers. Recently, PSO adopted water tool developed by World Business Council for Social Development (WBCSD) to optimize the use of water resources by PSO. | HSE Management System at PSO:The HSE and quality department work together and create policies that they maintain and control from time to time through regular audits. These two departments form HSE policies and practices and then dispatch them to each and every department to review and understand. Each department is then required to understand, implement and control these policies and practices in their respective departments. Internal audits are conducted by the HSE department to ensure that all the HSE policies are being adequately followed by all departments at PSO. | HSE Policies PSO is committed to maintaining a safe, healthy and sustainable environment wherever we operate – for our people, our customers, our partners and contractors and the community at large. † The company aims to protect people’s health, ensure zero injuries and avoid r minimize any environmental impact that can happen due to its products and processes. We are committed to achieving these goals through HSE Management System that are well in placed and being followed in true spirit and the compliances are done in relation with the relevant laws and regulations. Thus we strongly strive for continuous improvement. The commitment to HSE always comes from Top Management and thus Our Mana ging Director amp; CEO is responsible for enacting this policy and giving HSE equal priority with all other business issues Our commitments are to Seek zero harm to our people and minimal impact on the environment through our business operations and relevant activities * Conduct HSE Audit and reviews the safety implications of our activities in PSO facilities. | | * Minimize the consumption of energy and to dwell Alternative Energy Resources in the best interest of Nation. | | * Ensure the occupational health and Safety of our Employees and other allies during our Operational activities. | | * To achieve these commitments we have developed, implemented and maintained effective management systems and processes that enable us to:| * | | | * Identify, assess and manage hazards, impacts and risks from our activities and services. | * | | * | * Meet and, where appropriate, exceed applicable legal and other requirements| * | | * | * Set, achieve and report against objectives and targets t o demonstrate continual performance improvement| * | | * | * Identify areas for improvement through comprehensive HSE Audits and near miss / incident reporting system and then mitigation provided through investigation. HSE Steering Committee| Objective:| Provide clear directions for the improvement and sustainability of HSE Management System to promote HSE culture. Also monitoring HSE policy compliance and dealing with non-compliance issues. Review HSE performance of all company business entities and resource allocation where required. | Function: | To oversee HSE related matters arising out of the activities and operations of PSO and the impact of those activities and operations on employees, contractors and the communities in the area of operation. |   | | Composition:| The committee comprises of Managing Director, Deputy Managing Directors, General Manager (HSE amp; QA) and DGM (HSE). This ensures top management’s commitment towards HSamp;E. |   | | Methodology: | The Committee meets at least once in a quarter. Senior General Managers, General Managers and Deputy General Managers will be opted in committee for their relevant HSE matters on as and when need basis. It may also require any employee of the company to attend the meeting for the purpose of making presentations or participating in discussion on need basisProduct Stewardship| At PSO we recognize that as product manufacturers and marketers we must take on responsibilities to reduce the environmental footprint of our products. Environmental product stewardship at PSO fostered product and market innovation, and provided customers with more value at less environmental impact. These initiatives included the launch of Green-XL diesel which reduces black smoke dramatically due to special green additive, enables quick start ups and minimizes exhaust emissions that results in less pollution amp; greener environment. The reduction in black smoke translates into improved power amp; efficiency for the consumer. Apart from the environment friendly fuels, PSO also became the first and only OMC to introduce ethanol blended fuels at its COCO outlets in Karachi, Lahore and Islamabad. . Energy Conservation Measures * Environment Safety Measure| * Consumer Safety Measures| * Workplace Safety| * Employee Well Being| * Other Intiatives * Energy Conservative Measures| 1. Green Stations PSO has initiated â€Å"Green Stations† throughout the country. The purpose is to develop environmental friendly retail outlets. At green stations, the IN and OUT signs which were previously on KESC have now been replaced with reflective ones. Also the tube lights of blue bars are now being replaced with the light emitting diodes (LEDs). These initiatives resulted in 75% reduction in power consumption. |   | 2. Solar Energy System PSO believes in promoting projects based on renewable energy. In this regard PSO initiated a project of installing solar energy system at its retail outlet which is also declared as Green Station by PSO. The purpose of this project is to utilize natural resources to generate electrical energy without damaging the environment. The system generates 50 KWH energy every day, which caters to almost 37 % of the total lighting load of the outlet for 11 hours per day. The installation of solar system has resulted in saving 18 MWH of electrical energy in a year. |   | | 3. Windmill Windmill is another initiative of PSO for promoting renewable energy projects. The windmill is installed at Buffer Oil Terminal (BOT) that utilizes wind and generates electrical energy. This system caters office lighting load, which is 87 % of the total office lighting load, for 8 hours. After installation of windmill, PSO saves electrical energy of 7. 92 MWH in a year. | | Environment Safety Measures:| | Gas Leakage Detection System at CNG Stations As per Oil Gas Regulation Authority’s (OGRA) requirement, approximately all PSO (company and dealer operated) CNG stations have a gas leakage detection system installed. This ensures prevention of any fire or other related hazards on the respective stations. |   | Installation of Oil Water Separator at Retail Outlet PSO installed state of the art oil water separator at its company operated retail outlet. The purpose of this installation is to reduce the liquid affluent discharge from the car servicing area to the public drainage system. Prior to the installation of oil water separator, it was found from the test result that the sample of discharge contained 3530 mg/l of oil and grease which has been reduced to 10 mg/l which is 99 % reduction. PSO has further plan to install automatic car servicing facility along with the oil water separator to limit the effluent discharge from the cars to the drainage system which is another step of preventing environment. | | Consumer Safety Measure:| Brake Fluid Testing Failure of brake fluid can cause the failure of brake system, which could be a cause of accident resulting in threat to human lives and at the same time to the environment. Having consumer safety at the core of PSO’s operations, the company provides facility to its customers for brake fluid testing. This test is conducted free of cost at our retail outlets through our network of Mobile Quality Testing Units. Through the test results customers are informed about the status of the brake fluid and guided accordingly. | | Work place Safety Measure:| | Intelligent Fire Detection System PSO, being the company that gets to the future first remain abreast with the latest inventions not only in providing systems that ensure customer health but also in the systems that ensures the safety of PSO’s Assets and its Human Resource. Keeping this vision in consideration, PSO has opted for state of the start Intelligent Fire Detection System for the head office and for other PSO facilities. The purpose is to detect the fire at its early stage and the purpose is not confined with detection but it also identifies the exact location where fire has actually broken out. | Employee Wellbeing Measure:| Water Filter As mentioned earlier, PSO gives due importance to its employees at every level. A step towards the employees’ wellbeing is the installation of water filter plant at PSO facilities i. e. terminals, depots, aviation stations, LPG plants, blending plants and retail outlets. There are three main sources of drinking water supply at PSO facilities;|   | 1. Ground Water 2. Local Water Supply System 3. Tankers| | The drinking water sample is collected for testing at laboratory. Ground water is tested once a year for microbial amp; chemical constituents while piped amp; non-piped system of supply is checked bi-annually for microbial constituents and once in year for chemical constituents. | Other Intiatives:| | 1. HSE Champion A behavioral remodeling program by the name of HSE Champion had been developed and launched. 27 employees of PSO House has been hand picked by HSE Team and Managing Director distributed badges among them in the Ceremony. A behavioral remodeling program titled HSE Champion was launched on March 25, 2010 aiming to inculcate PSO’s commitment to health, safety and environment. As a first step, this program is being executed at PSO House and then will be replicated at other locations accordingly. 27 Employees stationed at PSO House have been hand picked by HSE Team as HSE Champions from management and non-management staff. The chief guest of the launching ceremony was Managing Director, Mr. Irfan K. Qureshi who presented HSE Champion Badges to the Champions. The Managing Director encouraged the Champions and all others to cooperate and add value to the project. DGM (HSE) and Manager (HSE) stressed on the importance of this program as a first step towards taking safety and health to the next level and urged every one to join hands together to make this program a success. HSE Champions shall be ambassadors for HSE. They shall promote HSE agenda and objectives among fellow employees. They shall also communicate unsafe conditions and unsafe acts to HSE Team on regular basis. HSE Team shall review performance of each HSE Champion and shall include new HSE Champions on as and when required basis|   | 2. HSE Session for Spouses of PSO Employees HSE Team took the initiative to impart HSE awareness among families of PSO employees to ensure safe and healthy homes. The session was aimed at being both interactive and informative and the objective was met through active participation of all. Knowledge was transferred both ways due to the interactive nature of the session. A detailed presentation was delivered by Manager (HSE) followed by Q/A sessions. |   | 3. Awareness Session on Ergonomics T amp; OD along with HSE Department organized a series of awareness sessions on ergonomics on 14th Dec 2010 for the employees. Dr. Tahir Baig Barlas (OHSE Consultant) renowned Occupational Health and Safety expert was the trainer. â€Å"Ergonomics is the science of studying how people interact with their working environment. At PSO House most employees are working on their workstations using computer and its accessories. Computers by default are an ergonomic challenge, with keyboards in particular being a major issue, and many people who work heavily on the computer experience repetitive stress injuries as part of their work. Reducing disability, discomfort, and pain as a result of such injuries is important in many workplaces†. |   | 4. Defensive Driving Training at PSO House Training for defensive driving was held at PSO house. Drivers were encouraged to share their experiences and concerns in this session. This session was very useful according to drivers. Executive HSE imparted the training to drivers. In total, 19 drivers participated in this training session. The purpose of conducting this session is to educate and inculcate the basic safety measures that have to be taken while drivingCUSTOMER SERVICE DEPARTMENT PSO has recently set up a dedicated service department that is major step towardscompany’s overall objective of becoming a customer-oriented company. Located at the company’s head office in Karachi the CSD is the first point of contact for the customers on day to day concerns and provides centralized customer service across PakistanTrained and professional staff attends to and solves the customers concerns andcomplaints quickly and effectivelyPUBLIC AFFAIRS/PUBLIC RELATIONS DEPARTMENT (PRD)The major function of the PRD is to ensure the projection of the company’s image as the country’s premier public sector organization and conscientious citizens. This is achieved by highlighting positive stories about the company in the media. Other functions of the department include event media management speech writing and keeping Managing Director and the company hierarchy informed. The department also tackles press queries and sets up interviews of the Managing Director with the media. It also coordinates with the brand management and other departments in the planning of events press conferences workshops seminars etc. The department is also involved in giving banners and tackling adds requests not related to advertisements campaign. The department personnel are also involved in the preparation of the annual report and writing of articlesPSO Loyalty CardPSO Loyalty Card is a novel concept that PSO had introduced in the fuel market. The PSO Loyalty Card is a mileage card enabling the customers to earn Loyalty Points every time they come for fuelling at PSO through their personalized PSO Loyalty Card. This is a unique offer from PSO to its customers in return for their trust and confidence in PSO, Pakistans largest Oil Marketing Company, for fuelling their vehicles. A major problem faced by PSO is the misconception in people’s mind that the oil used by shell is imported and of better quality, as shell is a foreign company in Pakistan. Although the sources are same but still shell is also aware of this fact and is exploiting it. PSO should do something about it like printing brochures that could explain people about the only sources available in Pakistan, emphasizing upon the fact that no oil is coming to Pak istan from any direct abroad sources. * Caltex basically has some control over the market because of the lubes it sells and the profit margin on lubes is much higher than on petrol. But as PSO and CASTROL have come together to make the right combination of â€Å"Top two together† they can overcome this problem as well. *   PSO has done very well in the financial sector, since its new vision period and will continue with the pace. Innovations and up to dating of the outlets in accordance with the needs of the changing world is a very important step towards both marketing and financial prosperity. * The other problem faced by PSO because of the competition is that the land acquiring at old or new places the bid gets too high that the land acquired becomes too expensive. PSO is becoming better day-by-day and after privatization the modifications   and changes they are expected to bring    SWOT Analysis A situation (SWOT) analysis is critical to the creation of any strategic plan. The SWOT analysis begins with a scan of the external environment. Organization must examine their situation in order to seek opportunities and monitor threats. Sources on info rmation include customers (internal or external), supplier, government (local, state, international) professional or trade association (convention and exhibition), journal and reports (scientific, professional and trade) Strengths . Market Share of 70% is one the main strength of PSO. 2. Company reputation in the industrial sectors adds the strengths for PSO. 3. Product quality is also strength especially in industrial sector. 4. Service quality like plastic cards and non-fuel activities adds the value. 5. Distribution amp; Fleet network, which covers 81% country retail network, is the key edge on PSO its competitors. 6. Promotional activities add value in brand awareness and attraction of new customers. 7. Innovation like Auto Car Wash helps PSO to differentiate with its main competitors. . Storage capacity, which holds 80% of total storage capacity of the country, is also key advantage over its competitors. 9. Technical skills in Fleet management are strength for PSO. 10. Visionar y, capable leadership adds value to PSO strength like their NVRO operations. 11. Financial Stability with strong reserves, paid-up capital adds the trust of stakeholders. 12. Product line width adds long range of products for more revenue opportunities. 13. Castrol brand affiliation with PSO adds strength in terms of brand awareness. 14. Relations with Government one of the key strength of PSO in order to get legal protections. Weaknesses 1. Lost amp; Dissatisfied customers are major weakness of PSO as they are causing the perception of inefficient PSO. 2. Old retail outlets are major weakness for PSO as they are not enough capable to compete the Shell, Caltex or Total outlets. 3. Untrained staff at outlets is causing inefficient services. 4. Quality assurance is not so effective to build the image of â€Å"Quality amp; Quantity†. Opportunities 1. Afghanistan’s Market is the biggest opportunity for OMCs in Pakistan. . De-regularities of Oil industry in Pakistan add the opportunity to fill the deficiency in few sectors of petrochemicals markets. 3. Export Opportunities of Black Oil Products is also adding the  Ã‚  Ã‚  Ã‚  Ã‚   opportunities by exporting Black Oil products, which is facing downfall due to the introduction Gas Oil. 4. Industrial amp; Trade growth in Pakistan is also the opportunity for P SO as they are adding revenues in Power sector that is the major customer of PSO. Threats 1. Risk of forward integration of Supplier is the key threat for PSO and other OMCs in Pakistan. As the example, the PARCO who is one of the main POL product suppliers to OMCs adopt the forward integration strategy by introducing its own OMC with its new business alliance TOTAL and named its OMC as TOTAL- PARCO. 2. Risk of Diversification in technology is also a key threat for PSO as due to new technology used in industrial sector is causing decline in particular POL products. 3. Substitutes in Black Oil Market are causing a solid reason for the declining trend in Black Oil Products, which is major threat for PSO CONCLUSION AND RECOMMENDATIONS PSO has been the market leader ever since it started operating with number of products delivering to its customers and providing satisfaction at all levels. PSO has keen interest in maintaining its relationship with corporate clients and other stake holders. PSO is engaged in providing health and safety to its employees and their families ranging from top management to pump attendants. Making sure each customer is satisfied and returns to PSO outlets with a smile and keeping positive image in mind. Pakistan state oil (PSO) is the largest company of Pakistan not only in the field ofoil marketing but also otherwise. It has been included in Asia’s top 1000 companies and thus is surely a pride for Pakistan. Although up till now it is Govt owned but it is about to be privatized in a month or so. As expected after privatization the company would be further more prosperous and generative in terms of revenues. * PSO certainly has a competitive advantage over all it’s competitors because of thevast network of it’s outlets all over Pakistan but at the same time a great deal ofresponsibility is required by them as they are not only an oil marketing companybut they have some responsibilities towards the people of Pakistan. Take an example of a PSO outlet in Chitral, while deciding to undertake thisproject or not the feasibility report rejects the idea of building it but being a Pakistani socially responsible company if even one public transport bus goes there then they have to build a petrol station over their. * PSO has been very innovative and successful since it realized the compet ition has actually started after SHELL came and acquired the market share from PSO. But after coming up with all those â€Å"new vision† outlets, PSO has proved to be never far behind.