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Assignment Of Managerial Economics. Submitted To: Sir Farman sb. Submitted By: Group A.

DEPARTMENT OF BUSINESS ADMINISTRATION BAHADUIN ZAKARIYA UNIVERSITY SAHIWAL CAMPUS.

Rabia Rafique

(MBS-10-01) (MBS-10-)

Shugufta Tahira Muhammad Majid Fakhar Abbas

(MBS-10-) (MBS-10-45) (MBS-10-61)

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 and provides 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 need that filling station, whose monthly sales are less than( 500000) liters. Up till now about 50 pumps are renovated in deferent cities of Pakistan.

Shell has got 14 depots in different areas of Pakistan. Shell has strong distribution channels. Their market size is very large. Therefore, marketing staff is very efficient and their main 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 to its customers while launching a new product such as Helix super and Helix Lubricant etc.It was also the first company to introduce the concept of Mobile Training Unit (MTU) for the purpose of training the workers and introducing quality and quantity control units, which check the quality and quantity of motor gasoline at various filling stations. Innovative use of technology is the key to other possible opportunities related to remote 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 2010 from 2011. As of June 2010, the company's long-term debt was 63.90 million Pakistan Rupees and total liabilities (i.e., all monies owed) were 6.68 billion Pakistan Rupees. The long-term debt to equity ratio of the company is very low, at only 0.01. As of June 2010, the accounts receivable for the company were 2.45 billion Pakistan Rupees, which is equivalent to 14 days of sales. This is slightly higher than at the end of last year, when Shell Pakistan Limited had 12 days of sales in accounts receivable. Research and development strategy deals with product and process innovation and improvement. Shell spends on research and development more than most in the other companies to differentiate the performance of its products to its competitors. Shell provides the training facility to their labor and management to create the good relation to their employees. Shell Company also motives its employees and provides different incentive on their good performance Operation of the company is based on continues improvement is the acknowledgment that workers experiences and knowledge can help to show production problem and contribute towards tightening variances and reducing error. Shell design and mange high-class information system that improve the productivity and decision-making. In organization information may be collected, stored and synthesized in such manner that answers important operational and strategic questions. Information system is one of the strength of the organization. It provide aid in environmental scanning and in controlling activities, it can also used as a weapon in gaining competitive advantage.

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

Real GDP Growth Rate (2000E): 1.8% (2001E): 2.3% Inflation Rate (2000E): 15.6% (2000E): 11.1% Current Account Balance (2000E): -$3.5 billion Merchandise Trade Balance (2000E): -$3.0 billion Total External Debt (2000E): $38.5 billion Major Trading Partners: United States, Japan, Germany, United Kingdom, and Saudi Arabia Major Export Products: Raw cotton and textiles; rice; leather manufactures Major Import Products: Petroleum; machinery and transport

Product mix is the set of all 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 as compare 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: Time/Date: Net Change: % Change:

1971.00Rs 12:19 BST 22-SEP-11 -98.00 -4.74

Day Open: Day Volume: Year High: Year Low:

2018.00 1,498,881 2377.10 1762.00

Shell Pakistan Limited reported sales of 63.63 billion Pakistan Rupees (US$1.06 billion) for the fiscal year continuing June of 2011. This represents an increase of 76.2% versus 2010, when the company's sales were 36.12 billion Pakistan Rupees.. While Shell Pakistan Limited enjoyed a sales increase of 76.2%, the other companies saw smaller increases: Shell Pakistan 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.