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INTRODUCTION OF SHELL
HISTORY OF SHELL: The shell brand name enjoys a 100 – year history in this part of the world,dating back to 1899 when Asiatic Petroleum,the far eastern marketing arm of two companies:shell Transport Company and Royal Dutch Petroleum Company began importing kerosene oil from Azerbaijan into the sub continent.even today,the legacy of the past is visible in storage tank carrying the date – 1898.

The documented history of Royal Dutch Shell Plc in Indo – Pakistan dates back to 1903 when partnership was struck between the Shell Transport & Trading company and the Royal Dutch Petroleum company to supply petroleum to Asia. In 1928,to enhance their distribution capabilities,the marketing interest of Royal Dutch Shell plc and the Burma oil company limited in india were merged and Burma shell oil storage & distribution company of india was born.after the independence of pakistan in 1947,the name was changed to the Burma Shell oil distribution company of pakistan.in 1970,when 51 % of the shareholding was transferred to pakistani investors,the name changed to Pakistan Burma Shell(PBS) limited.The shell and the Burma groups retained the remaining 49 % in equal proposition.in february 1993,as economic liberalisation began to take root and the Burma divvested from PBS,shell petroleum stepped into raise its stake to 51 %.The year 2001 – 02 have seen the shell petroleum company successively increasing its share,with the group now having a 76 % stake in shell pakistan ltd(SPL).

WHAT SHELL OFFERS

SHELL FOR BUSINESS:
Shell prides itself on supplying your company with the quality proucts and customer service you have come to expect over the years.

WELCOME TO SHELL CARD PAKISTAN:
With a large network os shell stations and services the Shell card will help you keep your business moving. You’ll always have an up-to-date, accurate picture of your fuel costs. plus you won’t have to waste time and resources on unnecessary administration. whether your fleet is large or small, you’ll have tighter control and better management information, to help reduce admin and drive down your fleet cost.

WHERE CAN I USE MY CARD?:
Shell card is welcomed at over 160 shell service stations throughout Pakistan.

AVIATION:
Shell being the worldwide market leader in aviation fuel supply, shell Pakistan has maintained a strong commitment to the aviation field in the country.

EXPLORATION AND PRODUCTION IN PAKISTAN:
Shell has been active in exploration and production (E & P) activities in Pakistan since 1994 in onshore and offshore areas of Pakistan. shell’s offshore interests are managed and operated by Shell Development & Offshore Pakistan B.V.Its interests are managed by Kirthar Pakistan B.v.Both of these companies are wholly owned subsidiaries of Royal Dutch/Shell group.

TRANSPORT LUBRICANTS:

Shell’s products and services range for the commercial transport industry provides protection against engine wear and vehicle downtime, keeping your equipment on the road.

INDUSTRY:
At shell, we combine our leading technology, product innovation and proven experience to deliver solutions that optimize our customer’s productivity. our innovative products and expert services meet the specific needs of industry, improving business practices and performances. we deliver global solutions tailored for fluids, environment, maintenance, energy and many other areas of industry.
• • • •

AUTOMOTIVE POWER SHELL MYSELLA XL SUGAR

THE MARKET SHARE OF SHELL
A t the moment shell pakistan has a market share of about 40 % to 45 % in pakistan.it is trying hard to become the market leader in pakistan. COMPARISON OF 2009 FINANCIAL RESULTS WITH 2008 FINACIAL RESULTS

Full year Downstream CCS earnings were $258 Million compared to $5309 million in the full year 2008. Earnings included a net charge of $1682 million related to identify items,compared to a net charge of $435 million in the full year 2008. Downstream CCS earnings compared to the full year year 2008 were significantly impacted by the weak global economy,and reflected substantially reduced oil products refining and market earnings.in addition earnings werte impacted by asset impairments;redundancy and re structuring provisions and non-cash pension charges, which were partly offset divestment gains and lower operating costs. oil products sales volumes decreased by 6 % compared to 2008,mainly because of lower B2B volumes, partly offset by increased retail sales volumes. during 2009 oil products sales volumes were impacted worldwide by lower demand as consequence of the weak global economy. Industry refining margins for the full year 2009 decresed by 9 % as compare to 2008. Refinery availability was 93% in 2008 and in 2009 it is decreased to 91%. Chemicals sales volumes decreased by 10 % compared to full year 20008. Chemical manufacturing plant availability decreased to 92 %,some 2 5 lower in the full year 2008.

PROBLEMS IN SHELL PAKISTAN

1-INVENTORY MANAGEMENT PROBLEM:
THERE IS INVENTORY MANAGEMENT PROBLEM WITH SHELL PAKISTAN. THE INVENTORY OF SHELL PAKISTAN IS TOO HIGH AS COMPARED WITH THE INDUSTRY RATIOS.

2-LESS EARNING BEFORE INTEREST AND TAX(E.B.I.T):
SHELL PAKISTAN HAS LESS( E.B.I.T) TO COVER INTEREST CHARGES THAT IS WHY IT IS USING VERY MINUTE LONG TERM DEBT AS COMPARED TO INDUSTRY RATIOS.

3-COST OF GOODS SOLD IS TOO HIGH:
THE COST OF GOODS SOLD OF SHELL IS TOO HIGH AS COMPARED TO OTHERS.

4-GROSS PROFIT MARGIN IS LESS:
THE CONCERNED OF SHELL PAKISTAN IS TOWARDS THE EQUITY FINANCING AS COMPARED TO THE INDUSTRY.SO GROSS PROFIT MARGIN IS LESS.

5-NET PROFIT NOT SATISFACTORY:
THE NET PROFIT OF SHELL PAKISTAN IS NOT SATISFACTORY AND THEY HAVE HUGE INVESTMENT IN ASSETS AS COMPARE TO OTHERS IN THE INDUSTRY.

6-NET PROFIT AFTER TAX IS ALSO NOT SATISFACTORY:

THE NET PROFIT AFTER TAX OF SHELL PAKISTAN IS NOT SATISFACTORY AND THEY HAVE HUGE INVESTMENTS IN EQUITY FINANCING AS COMPARED TO THE INDUSTRY.

7-GOVERNMENT POLICIES ALSO AFFECTS SHELL:
PETROLIUM SECTOR HAS TO FAR BEEN A BUREAUCRATIC NETWORK WITHOUT ACTIVE PARTICIPATION OF THE PRIVATE SECTOR.THE FORMULATION OF POLICY WAS THE GOVERNMENT SOLE PREROGATIVE.ON THE IMPLEMENTATION SIDE INSTEAD OF CARRYING ALONG PRIVATE SECTOR AS A PARTNER IN THE FIELD IT WAS ONE SIDE GOVERNMENT’S DICTATED POLICY AND DECISIONS.THE CASE IN POINT IS PAK IRAN REFINERY PROJECT,WHICH WAS DRAGGING ON FOR MORE THAN A DECADE.PERHAPS,THIS PROJECT WILL BE OFF THE GROUND.

8-NO NEW REFINARY SET BY THE GOVERNMENT:
NO NEW REFINERY WAS SET TIP SINCE 1978 ALTHOUGH THERE WERE MANY PROPOSALS TO THIS EFFECT.

9-TOO MUCH DEPENDENCE ON INTERNATIONAL PRICES:
SHELL IS TOO MUCH DEPENDENT ON INTERNATIONAL OIL PRICES WHENEVER INTERNATIONAL PRICES INCREASED,INPUT COST ALSO INCREASED.

RECOMMENDATIONS INVENTORY SHOULD BE CONTROLLED PROPERLY.

EBIT SHOULD BE IMPROVE TO COVER INTEREST CHARGES.

COST OF GOODS SOLD SHOULS B REDUCED AND THEY HAVE 2 CONTROLL THEIR INPUT COST.

THEY HAVE TO INCREASE GROSS PROFIT MARGINS BY PROPERLY USE OF RESOURCES.

GOVERNMENT SHOULD ALSO TAKE PVT.SECTOR ON BOARD

NEW REFINERY SHOULD BE MADE SO THAT INPUT COST CAN BE REDUCED.

GOOD CORPORATE IMAGE SHOULD BE CREATED,COPMAIONGNS SHOULD BE RUN TO WIN OVER THE PUBLIC.

TOO DEPENDANCE ON INTERNATIONAL OIL PRICES,SO THEY HAVE 2 SEARCH ALTERNATIVES E.G SWITCH TO COAL.

QUESTIONAIRE:
Dear Responder: Students of “Organizational Development are conducting the survey on “Mis Allignments in Shell”. You are therefore requested to kindly spare 10 minutes to fill this form. It is requested that please read the questionnaire properly and mark only one question.

Age:

Gender:

1-how long since you are working in shell?

2-Did u receive welcome mail from your top management when

you join?

. . . . .

Yes

.

No

3- Are you satisfied with the current technology?

Yes

.

No

4-Are you satisfied with the management behavior?

Yes

.

No

5-Does working conditions of the organization are good?

Yes

. .

No

6-Does employees supports each other?

Yes

No

7-Does international oil prices effects your input cost?

.

Yes

.

No

8-Does proper equipments are provided to you?

.

yes

.

No

9-Does employees feel save while working in yough conditions?

.

Yes

.

No

10-Does rewards are satisfactory?

.

Yes

.

No

11-Does company provides them life insurance?

.

Yes

.

No

12- Does training is provided when new technology comes?

. .

Yes

.

No

13-Do you feel pride while working in shell?

Yes

.

No