Part # 2

1. Company Description
Company Name: Pakistan Petroleum Limited

Type of Business Structure: Corporation

Founder: Government of Pakistan

Location: Karachi, Sindh, Pakistan

Management Team:

Moin Raza Khan Abid Ashfaque Malick

Managing Director & Chief Executive Officer General Manager Partner-operated Assets
Dr. Fareed Iqbal Siddiqui Farooq Ahmed Mahmood
Deputy Managing Director, Technical Services General Manager Procurement
Syed Ehtesham Ahmad Fazal Hussain Gaffoor
Chief Financial Officer Head of Corporate Planning
Khalid Raza Mohammad Ahmed Kauser
Deputy Managing Director, Assets Operations General Manager Information Technology
Sohaib Qadar Munir Hasan Ali
General Manager Legal & Commercial General Manager Internal Audit
Syed Firasat Shah Muhammad Afzal Siddiqi
General Manager Exploration (Frontier) General Manager Human Resources

Company History:

Pakistan Petroleum Limited (PPL), the pioneer of country's natural gas industry, has been a leading
player in the energy sector since the mid-1950s. In addition to supplying crude oil, Natural Gas Liquid
and Liquefied Petroleum Gas, PPL as a major supplier of natural gas currently contributes over 20 % of
the country's total natural gas supplies.

The company's history is based on the formation of a joint venture in June 1950 with the United
Kingdom's main shareholding in the discovery, exploration, development and production of oil and
natural gas resources by the Burmah Oil Company, BOC.

In September 1997, the BOC re-funded and sold its capital to the Government of Pakistan (GoP) from
the Exploration & Production (E&P) sector worldwide.

Subsequently, in June 2004, the government reduced its holdings by an initial public offer, which was
further reduced by a 12 % stake of government workers with the launch of Benazir Employees Stock
Option Scheme (BESOS) in August 2009. GoP recently further depreciated its 5 % stake in the PPL via
Secondary Public Offering in 2014, representing around 3.55 % of the total paid-up equity.

Currently share holdings of PPL are divided as follows:

Government – 68 %
PPL’s Employment Empowerment Trust – 7 %

Private Investors – 25 %

PPL has gained 100 % shareholding from MND E&P Limited in England and Wales. The name of the
company has been changed to PPL Europe E&P Limited.

2. Vision, Mission and Values

Vision: (Current)

To achieve energy self-sufficiency for Pakistan, by becoming the most successful and efficient discoverer
and producer of oil and gas.

Analysis:

 Limited to Pakistan. They should think of as globally.

To achieve energy self-sufficiency by becoming the most successful and efficient discoverer and
producer of oil and gas globally

Mission: (Current)

To serve the people of Pakistan in an area critical to their economic development by employing, training
and developing the best people available and empowering them to deliver extraordinary results while
insisting that they conform to the highest standards of professional and ethical conduct.

Core Values: (Current)

 Value Creation: We are thought leaders for fresh ideas and agile execution. We ensure excellence in
all spheres of performance.
 Respect: We value our people and ensure a safe working environment. Our people recognize and
respect individual differences and collaborate for high performance.
 Integrity: We are honest, ethical and fair. Others trust us to honor our commitments.
 Serve the Nation: We think about tomorrow and act today – in our workspace and in our
communities.
 Empowerment: We act with courage, challenge the status quo and find new ways to grow our
company and each other.

Vision: (Proposed)

Mission: (Proposed)
Core Values: (Proposed)

Part # 3
1. PEST Analysis:
Political:

Pakistan petroleum act 2012 gives best incentives for exploration and production companies. More
over being a state owned Public Sector Company. There is no major influence of political scenario on PPL
despite oil and gas prices determined by the government of Pakistan. Security challenges do exist, but
are manageable by the company.

Economical:

The energy sector dominates the overall economic structure of Pakistan. The competition in E&P
(exploration and production) sector has increased in few years due to depleting reserves, refinements in
regulations, macroeconomics and oil price fluctuations. PPL is very aggressive in dealing with these
challenges and to maintain their progress in growth and development PPL’s business development team
is continually working on evaluating and capturing new opportunities in the business and reserve
acquisition.

Social:

The company is connected with its social surroundings through major CSR like developing health care
centers and schools for children’s of its workers and local communities.

Other CSR programs includes education opportunities, healthcare, infrastructure development and
socio-economic uplift of disadvantageous communities living in or near their operating fields and also
other cities. This may increase the willingness and loyalty of the work force.

Technological:

Advancement in technological field in PPL has allowed exploration in difficult circumstances where PPL
partners with other groups to ensure new discoveries in the area. Other technologies like security
management and risk mitigation system works in monitoring, managing remotely, and consistent
performance.

Overall PPL is open to accept the technological challenges with high professional team and becomes first
to acquire the advanced technologies in the region. PP has a separate technological department and its
staff comprises of petroleum engineers ready to answer the emergency situations.

Legal:

Pakistan has high regulation in the oil and gas sector. PPL is very responsive to these regulations and any
change in them. Its commercial and legal affairs department is actively involved and Company is
represented in at all meetings arranged by legislatures, ministries and authorities.
It also plays its part in creating awareness for legal issues related for example there was a workshop on
the company’s act 2017 which was attended by participants from legal human resource and internal
audit departments.

Ecological:

PPL has been the reliable foundation and developed infrastructure for providing clean and safe energy
through exploration of natural resources and have best health and safety practices and constraining the
ecological impression of its operations. Most practices being certified by the appropriate departments.

2. Porter’s Five-Forces Model: (Read Book)

Strength Industrial Profitability

Porter’s 5 Forces
High Medium Low High Medium Low
Rivalry Among Competing
Firms
Potential Entry of New
Customers
Potential Development of
Substitute Product
Bargaining Power of Suppliers
Bargaining Power of
Consumers

3. EFE Matrix:

4. CPM:

5. Recommendation:
 There is a strong hierarchical culture in PPL even though there is an open door policy; it is important
to replace the open door policy with no door policy. Leadership behind closed doors always creates
an impression of distinction among them and people sitting in cubes. It’s very important to create an
environment where there is no intimidation and allows free flow of ideas.

 As of national culture, criticism is rarely taken positively. In PPL, teams and collaborative work is
encouraged but because of our national attitude, criticism by employees is not appreciated at all. It
is important that when issues arise in teams it should not be buried down rather it should be taken
as learning opportunity.

 Hiring should be based on how applicants fit with your organizational culture. The organizational
culture of PPL demands very hardworking and result producing individuals. During hiring, seeing
 professional degrees and experience are not enough, employee aptitude and abilities should be
checked.

 The department executives should appraise and reward the employee performance in best possible
way in that period of time. It is not necessary to wait for annual day to reward them.

 Give regular feedback to employees so that they align the performances accordingly.

 Rewards should not only be given to employees who has high achievement but also be given to
employees who has helped executives in decision making by appraising them.

 Identify the employees who are not willing to adapt change and coach them.

 In PPL formal training sessions are conducted almost every week, it is also necessary to create
opportunities of informal learning so that employees will be more engaged in their jobs and be more
interactive with their team members. This help to increase job satisfaction among the employees.

 Managers need to become leader and they should demonstrate that they buy into organization core
beliefs. It is also necessary for the CEO to remain in contact with its employees as much as possible
and be vigilant about changes in the culture of organization.

 Present challenges and opportunities for development to your employees and be quick to give their
career progression.

 PPL should accommodate people who have high potential but require flexible timings. In Pakistan
there is no such concept of flexible timings, telecommuting and compressed workweeks are not
practiced but organizations who give such opportunities help to on board individuals who can bring
diverse potential to organization. It is also important to provide these opportunities to ranks and not
to executives only.