SHELL PAKISTAN LTD

Course: Strategic Management

Group Members:

Erum Aslam

Rehana Ruman

Nida Bano

Shahzaib Asif

Submitted to: SIR FARUKH ASLAM

 INTRODUCTION OF SHELL PAKISTAN LTD.

Shell Pakistan Limited (SPL) is a subsidiary of Royal Dutch Shell Plc. and has been in South
Asia for over 100 years. Shell’s flagship business in Pakistan is the downstream retail marketing
company, Shell Pakistan Limited, which has interests in downstream businesses including retail,
lubricants and aviation. Shell Pakistan has a primary listing on Karachi Stock Exchange. It is also
listed on Lahore and Islamabad Stock Exchange. SPL is the largest lubricant marketing company
in Pakistan with over 20% share of the total lubricant market in the country. SPL’s lubricant
business is the second most profitable within Shell’s Global Lubricant portfolio. The business is
focused on sales of key Shell brands (Rimula, Helix & Advance) to high street traders and the
transportation sector as well as heavy-duty brands to industrial customers and power sector
customers.

Vision Statement
To be the market leader and deliver the best value to their; stake holders. As the manager said:
“Our vision is to reinforce our position as a leader in the oil and gas industry in order to
provide a competitive shareholder return while helping to meet global energy demand in a
responsible way”.

Mission Statement:
Manager of Shell in Islamabad defined the mission statement of Shell Petroleum Pakistan as:
“Our aim is to meet the energy needs of society, in ways that are economically, socially and
environmentally viable, now and in the future.”

Our Values
In achievement of shell’s vision and fulfilling its mission, the company shall operate on the
following core values.
 Honesty
 Integrity
 Respect
 STEEPLE ANALYSIS

SOCIO CULTURAL FORCES:

In Pakistan population is increasing and social values are also changing so the demand of fuel
consumption is also increasing. People are coming from rural areas to cities and their life style
and values are also changing. They are using modern technology like care, motor cycle for
traveling. Pakistan's attempt to raise the living standards of its citizens has meant that economic
development has largely taken precedence over environmental issues. Unchecked use of
hazardous chemicals, vehicle emissions, and industrial activity has contributed to a number of
environmental and health hazards, chief among them being water pollution. Much of the country
suffers from a lack of potable water due to industrial waste and agricultural runoff that
contaminates drinking water supplies. Poverty and high population growth have aggravated, and
to a certain extent, caused, these environmental problems.

TECHNOLOGY FACTOR:
Pakistan environment regarding the technology is not very advance due to the lack of resources.
Natural gas, because of its environmental qualities, efficiency, and technological advances are
going to play an increasingly important role in meeting demand for clean energy. The company
faces the high costs to purchase the technologies from abroad that helps them to efficient their
operations and help them to deal with the carbon emissions.

ECONOMICAL FACTORS:
Currently, world is facing the major issue in oil industry. Due to shortage of ooil resources in the
world, the oil industry in Pakistan is facing the cost increment. The cost of production of shell’s
products will increased, ultimately, the prices of oil and lubricants are also increased.

ENVIRONMENTAL FACTORS:
Environmental factors comprises of weather and climate factors that may influence the
operations of the company. Since, shell belongs to crude oil industry. Shell has invested highly in
manufacturing of fuel and it currently, one of the most carbon intensive company in Pakistan.
The recent research shows that natural reserves of crude oil are declining thatswhy, company
may face scarce of resources in near future, this is the issue which the company is facing now.
POLITICAL FACTORS:
The government in Pakistan is not stable, the level of corruption of government officials is
increasing day by day, the policies are not able to tackle the situations. Illegal import and
smuggling of oil is affecting the sales of company. The company is facing high taxes becaue of
the increased tax rates. The company may face challenges in order to cope with the policies of
government.

LEGAL FACTORS:
Legal component consists of legislation that has been passed. This component prescribes rules or
laws that all members of society must follow e.g. labor policy, employees’ social security
scheme 1965 Partnership Act 1932 company 1984.

The legal forces are not able to control the import and export of illegal oil. The company is
facing sales decline because of the failed legal sources in Pakistan.

ETHICAL FACTORS:
Shell Pakistan is operating with all the ethical elements in their company. They don’t offer
employment to the minors (18 yrs.). They pay the minimum labor wages to their employees.
Their core values describe honesty, integrity and respect for all of their stakeholders. They are
also working to reduce the impact of carbon emissions.