AIOU 8522 Solved Assignment Spring 2021

Topic: Optimal Allocation of Social Resources

Practical study of the organization

Pakistan State Oil (PSO)

Pakistan State Oil (PSO), is that the nation’s largest energy company, and is presently engaged within the promoting and distribution of assorted political leader product as well as Motor gas (Mogas), High Speed Diesel (HSD), chamber Oil (FO), Jet Fuel (JP-1), Kerosene, CNG, LPG, Petrochemicals and Lubricants. additionally to those product, we have a tendency to conjointly import different product supported their demand patterns.

Marketing & Distribution  

PSO possesses the biggest distribution network within the country comprising of three,689 shops out of that three,500 shops serve the Retail sector and 189 shops serve our bulk customers. Out of the whole of three,689 shops, 1,691 Retail and 167 client Business shops are upgraded with the foremost up-to-date facilities as per the visualisation of the New Vision Retail Programme. 

PSO conjointly operates thirty one company-owned and company-operated (Co-Co) sites serving the retail sector. Co-Co sites ar flagship stations that mix high levels of supervising and high-quality product to keep up the very best level of potency, service and client care. These sites act as benchmark for all different shops.

In addition to retail customers quite two,000 industrial units, business homes, power plants and airlines are being oil-fired by PSO. 

Acquisition of product

 The automotive sector is that the main client of Motor gas (Mogas) and High Speed Diesel (HSD) whereas chamber Oil (FO) is marked for powerhouse usage.

To meet the provision deficit of the country, PSO imports Mogas, HSD, JP one and field officer as and once needed. the whole import of black and white oil in West Pakistan last year was twelve.4 million metric tons and PSO had the lion’s share of this import with eleven.2 million metric tons that came to over ninetieth of the whole fuel imports of the country. apart from product imports, PSO nonheritable one.75 million metric tons from varied refineries primarily based in West Pakistan so as to cater to our market wants.  


PSO possesses the biggest storage capability within the country. The company’s infrastructure stretches from city to Gilgit. With nine installations and twenty three depots situated across the country PSO’s storage capability of roughly 1,000,000 metric tons represents seventy four of the whole storage capability in hand by all the oil promoting corporations.

 Product Movement

PSO uses 3 mechanisms for the movement of political leader product specifically, tank lorries (road), tank wagons (railways) and pipelines. we have a tendency to presently have a complete fleet of eight,595 tank lorries out of that 2202 tank lorries are New Vision tank lorries that ar compliant with the most recent ADR standards and are equipped with larceny proof huntsman systems. With the commencement of operations of the White line Project (WOPP) from city to Mehmood Kot via Shikarpur and therefore the MFM (Mehmood Kot/Faisalabad/Machikey) pipeline, the provision pattern for white oil from city has switched from tank lorries to pipelines. PSO is gift as a partner during this project and holds a 12-tone system equity share during this venture. 

Lubes producing & Sales 

PSO is steady progressing within the field of lubricants. With progressive Lubricants producing Terminal (LMT) situated in Korangi Industrial space, city we have a tendency to are job to variety of sectors as well as automotive, Hi-street and industrial customers through the availability of sectors as well as automotive, Hi-street and industrial customers through the availability of product.

Practical study of the organization with relevance problems 

Optimal Allocation of Social Resources in PSO 

PSO is that the oil market leader in West Pakistan enjoying over seventy nine share of Black Oil market and fifty eight share of White Oil market. it's engaged in import, storage, distribution and promoting of assorted political leader product, as well as Mogas, HSD, Fuel Oil, Jet Fuel.

Kerosene, LPG, CNG and petro-chemicals. This blue chip company, the winner of "Karachi stock market prime corporations Award" and a member of World Economic Forum, has been a well-liked topic of case studies in West Pakistan and abroad supported its radical company turnaround over the previous few years.

Being one among the undefeated corporations PSO offer high thought to the wants of its neutral and atmosphere. {the company {the company} contains a firm belief that its sensible name is connected with the nice corporate behaviour. that the company considers company Social Responsibility as a crucial consider its every day coping with stakeholders. thus within the perspective of CSR the corporate has its distinctive policies that embody its efforts to make such associate degree atmosphere during which every and each individual has the civil rights in achieving business success. the corporate needs to enhance the economic conditions of West Pakistan by job creation, business engagement and philanthropic gift. except for it the corporate conjointly includes the policies of nurturing the atmosphere, convenience of health care and academic facilities to the community.

The corporate citizenship activities embody the installation of the traffic signals all told the main cities and cities within the country. In providing equal instructional opportunities to the voters PSO has provided scholarships to meritable and meriting, business management and engineering student at prestigious universities like GIK Institute of bailiwick & Technology, Topi, NWFP; Institute of Business Administration, Karachi, Sindh; the Quaid-i-Azam University, Islamabad; University of Engineering & Technology, Khuzdar, Baluchistan; and therefore the geographic area University, Lahore. 

The role of PSO is once more toward building social image and ignoring truth conception of CSR particularly keeping visible  management practices and environmental issues there's no info created obtainable on PSO web site and its annual reports. 

Privatization Commission has finalized all the arrangements to open initial public giving (IPO) of West Pakistan crude oil restricted (PPL) shares from July nineteen, 2004 weekday to July twenty two, 2004 (Thursday. The supply can stay open for four days throughout banking hours at the Government’s selling price of Rs 55/=.This was explicit  in, “Hand Out” of the Commission here Sat. the value for PPL commercialism are inclusive  of the transfer fee and so no extra transfer fee would be charged to the subscribers.

This is the fifth company when NBP, OGDCL, SSGC and PIAC whose shares ar being offered to the final public through the Capital Market. The Commission’s, “Hand out” adds that it's one among the big corporations within the oil & gas exploration and production sector and is that the owner of the Sui Gas fields.

The Privatization Commission has approved the withdrawal of PPL shares through a suggestion of sale of 100% (68.58 million) of the company’s issued shares to the final public with inexperienced shoe possibility of extra five-hitter shares just in case of over subscription. Applications are amused in multiples of five hundred shares solely. 

Preference in allocation are given to the tiniest candidates for five hundred shares for a complete investment of Rs. 27,500/= whereas this can directly profit the little investors and can conjointly facilitate in broadening the investor base and lend extra strength to the market.

The privatization Commission has suggested the investors to open their individual accounts at the Central repository Company (CDC) for receiving the shares early. individuals choosing physical shares would wish a minimum of one additional month to be able to sell their shares.

It has additional been suggested that just in case of joint Center for Disease Control and Prevention accounts, the candidates will apply up to a minimum of 4 applications. Such candidates are needed to submit separate applications for every or joint account holder in conjunction with genuine  copy of NIC of the person. they're needed to connect genuine  copy of recent NIC in conjunction with form. 

The application forms to be acceptable for subscription of the shares of the corporate shall either rubber stamp of brokers with brokers code or plain applications i-e with none rubber stamp of the brokers. 

Data assortment strategies 

Data are collected by completely different books of social control political economy, mentioned by manager PSO, Lecture notes, annual reports of PSO. 

SWOT Analysis 


As it's a government in hand company PSO contains a terribly massive network wherever it provides oil product. 

Even although it's 2 competitors it's the biggest market share.

It conjointly has the biggest distribution and storage network to satisfy the wants of its customers.

It has immeasurable finances because it may be a government in hand company and conjointly provides product to its major customers on credit basis.

PSO sets costs of crude oil product, being a government in hand market leader.


There may be a lack of internal control as there ar several shops and it's troublesome to stay a check on all.

PSO is over used. this can be thanks to the actual fact that it's a government primarily based organization.

While creating selections PSO has got to take into account the govt. policies.

The structure style is extremely sophisticated thus it's troublesome to form economical, timely and fast selections.

The main downside seen was of inter-departmental conflicts. There ar too several conflicts, that cause poor performance in some areas. These show poor co-ordination and improper communication. 


It was a really sensible expertise to figure in PSO because it is that the leader in crude oil product.

All the departments do glorious work on their own making certain the nice name of PSO.

The workers is extremely cooperative and extremely useful.

All the team is extremely dedicated towards its work that was a really nice factor to ascertain.

PSO has worked laborious to succeed in to the current commonplace.

The expertise of operating there was terribly helpful.


Overall coordination of PSO ought to be redoubled.

Its promoting of lubricants ought to be improved.

Inter- division conflicts ought to be finished.

Team work ought to be promoted because it is crucial for the nice operating of any organization.

The lower workers ought to have higher coordination with its subordinates.

A restful atmosphere ought to be ensured, because it can persuade be a lot of helpful.

PSO ought to vie totally with its competitors as mere negligence may result in loss of market share.


Krugman, Paul R.; Maurice Obstfeld (2003). "Chapter 6: Economies of Scale, Imperfect Competition and International Trade". International political economy Theory and Policy (6th erectile dysfunction.). p. 142. 

 parliamentarian Phillips (2005). rating and Revenue improvement. Stanford Press. p. 74. ISBN 978-0-8047-4698-4. 

Peter Belobaba; Amedeo Odoni; Cynthia Barnhart (2009). the world Airline business. John Wiley & Sons. p. 77. ISBN 978-0-470-74472-7. 

William M. Pride; O. C. Ferrell (2011). Foundations of promoting, 5th ed.. Cengage Learning. p. 374. ISBN 1-111-58016-2.

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