Majid Summry -Final (1)

8/4/2019 Majid Summry -Final (1)

1/6

1

Assignment

Of

Managerial Economics.

Submitted To:Sir Farman sb.

Submitted By:

Group A.

DEPARTMENT OF BUSINESSADMINISTRATION

BAHADUIN ZAKARIYA UNIVERSITYSAHIWAL CAMPUS.


2/6

2

Rabia Rafique (MBS-10-01)

(MBS-10-)

Shugufta Tahira (MBS-10-)

Muhammad Majid (MBS-10-45)

Fakhar Abbas (MBS-10-61)


3/6

3

Shell Pakistan Ltd.Executive Summary

There are no more than oil industries at the time of independence in Pakistan. The

total requirement of oil was only 0.4 million tons. After this there are few foreign and local

companies working in this region. These are Burma oil Caltex and Attock refinery. After

independence Burma oil discovered the Sui Gas in Baluchistan. In 1976 PSO was established.

Shell Pakistan is multinational company working in many countries of the world.

Shell is superior brand name with a 100 year history in this region infect the company is still in

possession of fuel storage tank from 1899. The mission of Shell Pakistan Ltd is (every can be

sure of shell). The objective of shell is to provide better services satisfy the customers andprovides the better information. The policy is to make better and effective decision making. The

strategic management involve in Shell Company.

Shell Pakistan is divided into five functional areas i-e Retail Commercial

operations finance and Human Resources .The organizational culture of shell is based on

commitment of the top management for quality employees local community innovation

and performance .Shell has established 2502 petrol filling station in different areas of Pakistan

Shell has got 14 depots in different areas of Pakistan.

Shell Pakistan limited 2010 gross profit margin of 29.70%was better than all three

comparable companies the worker in the organization have very handsome salaries .Our task in

the organization is to determine how the organization is operating in different regions and the

total value of consumption oil in the country .The aim to collect bank details is to make the

system updated.

In SWOT analysis there are certain opportunities and strengths that the

organization is availing, but there is also certain weakness that the organization bearing due to

some internal and external factors.

Shell has established 2502 petrol filing station in different areas of Pakistan. But

now the company is trying to reduce the number of petrol filling station because they do not needthat filling station, whose monthly sales are less than( 500000) liters. Up till now about 50

pumps are renovated in deferent cities of Pakistan.


4/6

4

Shell has got 14 depots in different areas of Pakistan. Shell has strong distributionchannels. Their market size is very large. Therefore, marketing staff is very efficient and theirmain objective is satisfying the customer and people have the brand loyalty.

Shell is considered to be the market leader in innovation. It was the first company

to get legal approval to operate Mini-Market. It was the first among its competitors to introduce(rainbow) jet wash and (Proserv) branded oil change facility. It provides suggestive literatures toits customers while launching a new product such as Helix super and Helix Lubricant etc.It wasalso the first company to introduce the concept of Mobile Training Unit (MTU) for the purposeof training the workers and introducing quality and quantity control units, which check thequality and quantity of motor gasoline at various filling stations.

Innovative use of technology is the key to other possible opportunities related toremote gas reserves that remain stranded due to the prohibitive cost of development.

During the 12 months ending 6/30/10, earnings per share totaled 30.12 Pakistan

Rupees per share. Thus, the Price / Earnings ratio is 5.48. Earnings per share fell 18.7% in 2010from 2011. As of June 2010, the company's long-term debt was 63.90 million Pakistan Rupeesand total liabilities (i.e., all monies owed) were 6.68 billion Pakistan Rupees. The long-term debtto equity ratio of the company is very low, at only 0.01. As of June 2010, the accounts receivablefor the company were 2.45 billion Pakistan Rupees, which is equivalent to 14 days of sales. Thisis slightly higher than at the end of last year, when Shell Pakistan Limited had 12 days of sales inaccounts receivable.

Research and development strategy deals with product and process innovation andimprovement. Shell spends on research and development more than most in the other companiesto differentiate the performance of its products to its competitors.

Shell provides the training facility to their labor and management tocreate the good relation to their employees. Shell Company also motives its employees andprovides different incentive on their good performance Operation of the company is based oncontinues improvement is the acknowledgment that workers experiences and knowledge canhelp to show production problem and contribute towards tightening variances and reducing error.Shell design and mange high-class information system that improve the productivity anddecision-making. In organization information may be collected, stored and synthesized in suchmanner that answers important operational and strategic questions. Information system is one ofthe strength of the organization. It provide aid in environmental scanning and in controllingactivities, it can also used as a weapon in gaining competitive advantage.

Currency: Pakistani RupeeAverage Exchange Rate (20/1/02): U.S.$1 = 85.5 rupeesGross Domestic Product (GDP, market exchange rates, 2000E): $52.1 billion


5/6

5

Real GDP Growth Rate (2000E): 1.8% (2001E): 2.3%Inflation Rate (2000E): 15.6% (2000E): 11.1%Current Account Balance (2000E): -$3.5 billionMerchandise Trade Balance (2000E): -$3.0 billionTotal External Debt (2000E): $38.5 billion

Major Trading Partners: United States, Japan, Germany, United Kingdom, and Saudi ArabiaMajor Export Products: Raw cotton and textiles; rice; leather manufacturesMajor Import Products: Petroleum; machinery and transport

Product mix is the set ofall the products offered for sale by a company. The

structure of product mix has both breadth and depth. Its breadth is measured by the number of

product line carried and its depth by the variety of sizes, colors and models offered within each

product line. Thus the two main products which Shell Pak. offers are fuel and lubricants. These

have further classifications in various constituents which form the product line. At the moment

Shell Pak. has a market share of about 30% to 40% in Pakistan. This has been gown down ascompare to the last Five years where its market share was 45% to 50%. The reason of loosing the

market share is the increasing number of other "OMCs'". But the company is still trying hard to

become the market leader in Pakistan. For this purpose it is taking the following steps.

Price: 1971.00Rs Day Open: 2018.00

Time/Date: 12:19 BST 22-SEP-11 Day Volume: 1,498,881

Net Change: -98.00 Year High: 2377.10% Change: -4.74 Year Low: 1762.00

Shell Pakistan Limited reported sales of 63.63 billion Pakistan Rupees (US$1.06billion) for the fiscal year continuing June of 2011. This represents an increase of 76.2% versus2010, when the company's sales were 36.12 billion Pakistan Rupees.. While Shell PakistanLimited enjoyed a sales increase of 76.2%, the other companies saw smaller increases: ShellPakistan Limited currently has 608 employees. With sales of 63.63 billion Pakistan Rupees(US$1.06 billion), this equates to sales of US$1,742,581 per employee.
http://production.investis.com/shll/shel/rdsa/shareprice/


6/6

6

Documents

Majid Summry -Final (1)