Assignment no.

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Title: Shell Pakistan
Course: Introduction to Management
Submitted by: Group No. 3
Submitted to: Miss. Ghina
Semester: 3rd
Group Members:
Saman Naeem BBA-22-42
Ayesha Yaseen BBA-22-96
Malika Ilyas BBA-22-66
Malika Khan BBA-22-14
Shehzeen Fatima BBA-22-44
Eisha Kanwal BBA-22-48

THE WOMEN UNIVERSITY MULTAN

Institute of Management Sciences

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 Table of Content

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1-Introduction:
 Brief Introduction of Company:
Shell is a multinational energy corporation (oil and gas company) that employs about
90,000 people (about the seating capacity of the Los Angeles Memorial Coliseum) across more
than 80 countries. Together, they provide more and greener energy solutions, driving
advancement. Every day, they provide services to over 30 million patrons (about the population
of Texas) at about 46,000 retail service stations. BG Group, Shell Polymers, Shell Catalysts &
Technologies, and 133,281 other LinkedIn members who have identified Shell or one of its
companies as their current place of employment. Shell is the second largest company in the
world, one of the six gas super majors, active in every oil and gas industry
Headquarters: England's London Chemicals are a specialty.

 Vision Statement: Their bold goal is to rank among the world's most inclusive and
diverse organizations. a location where all individuals—including staff members, clients,
partners, and suppliers—feel highly appreciated, cherished, and a part of the community.
As their 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 demand in a responsible
way”
 Mission Statement: Shell Pakistan Limited (SPL) wants to work with the people of
Pakistan to jointly create an environmentally friendly future by being a reliable and
creative partner. SPL aims to create business choices that exhibit social, environmental,
and economic responsibility.
Manager of Shell in Islamabad said:

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 “Our aim is to meet the energy need of our society in ways that are economically, socially and
environmentally viable now and in the future.”

 Goals and Objectives:

_OBJECTIVES: Their inclusion plan considers every single person. for customers to favorably
impact their inclusive culture. Disability, Race & Ethnicity, and Gender Including and
facilitating, releasing a route map, and guiding principles that were developed through numerous
interactions with coworkers. Being open and honest with information and observations.
-Goals: Shell wants to fuel progress by offering increasingly environmentally friendly energy
options. believing that the demand for energy, especially gas and oil, would continue to be driven
for years to come due to rising living standards among a growing worldwide population.
Simultaneously, the world is moving toward a low-carbon energy system to address climate
change.
 Product and Servicing Line:
Shell Pakistan provides a wide range of non-fuel retailing services, high-quality lubricants that
are of the latest technology, and a selection of fuels, including Shell V-Power, Super Unleaded,
and diesel, on our forecourts. On the other hand, they provide services to their customers:
▫ Petrolium
▫ Gas
▫ Oil Change
▫ Convenience store

2- Organizational structure:
 Organizational design:

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  Mechanistic Organization:
Shell relates to mechanistic structure because it is a very rigid and formalized organization. Uses
mechanistic structure that is characterized by high complexity and centralization, since it has
many employees, it is formalized. Shell_ a combination of a stable environment and low
complexity leads to low uncertainty for the organization, nature of the environment they face
permits them to centralize their organization.
 Modern Organization:
In the early 20th century, Shell collaborated with singers Bing Crosby and Sammy Davis Jr. to
integrate music in visual and auditory communications. In 2015, Shell introduced the "Sound of
Shell," a sonic identity that embodies the brand's ideals and spirit as a forward-thinking
enterprise advancing sustainable energy development, in collaboration with British soundtrack
composer Tom Howe.
 Bounded:
"Bounded" as used by Shell designates an entity that operates inside predetermined bounds and
is subject to legal and regulatory requirements.

3-Organizational Culture:
 Strong Culture:
Shell is a sizable corporation with a vast workforce that views its workers as an asset. The goal
of the Shell organizational culture is to foster a healthy work environment, and the corporation is
always improving to meet this goal. The organization promotes risk-taking, creativity, justice,
teamwork, and communication. Shell's corporate culture is characterized by an open-door policy
that encourages feedback from all employees.
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Characteristics of Shell’s organizational culture:
 Innovation (Risk Orientation)
 Attention to Detail (Precision Orientation)
 Emphasis on Outcome (Achievement Orientation)
4-Diversity Management:
 Motivational Policies and Strategies:
▫ Healthcare plans, employee support programs, flexible work schedules, incentives, share
plans, automobile allowances, and allowances for the London market are just a few of
Shell's Motivational strategies.
▫ Recruiting graduates and students, seasoned professionals, technical and non-technical
staff, recruiting through tenders, and outsourcing personnel are some Recruitment
strategies.
 Type of work source:
Human Resources.
People-oriented individuals will find a stimulating work environment in Shell's human resources
careers. HR provides a wide range of work opportunities across a broad spectrum of
specializations.
 Job Design:
Inclusion and diversity
o Shell is committed to fostering an environment where everyone may succeed. because the
talent of today is more varied than it has ever been. A diverse workplace is essential for
fostering innovation, talent development, and retention.
o This idea guides their approach to working with employees who have impairments,
ensuring that they are provided with an opportunity to realize their full potential and
develop into the boundary-pushing innovators of the future.
o At Shell Pakistan provides a gender-neutral workplace where everyone has an equal
chance to advance, thrive, and grow. By expanding pool of female talent, the Career
Comeback Program is a significant step closer to Shell's goal of fostering an inclusive
workplace. This program guarantees a smooth transition for women to (re)start their
careers through tailored growth plans and expanded learning.
 Managing Employees (Cross-culture employees and Diversity groups):
Numerous social groups and support networks have been developed by Shell. These networks
enable employees to interact, exchange ideas, and encourage one another to realize their full

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potential. They contribute to the establishment of an accepting and respectful environment within
the organization.
Shell's diversity and inclusion culture is shaped by several networks, including the Shell African
Network, the enable Network for employees with impairments, the Women's Network at Shell,
and many more.
 Employees Rewarding Program:
Outstanding workers who have made a difference and added value for Shell Pakistan through
their hard work are awarded MD performance awards at the end of the year. Shell gives
appreciation certificates and awards to its top workers.

 SAP IT: Shell Pakistan now has the option to use SAP processes into their company. A
lavish celebration was planned to honor the SAP IT team's labor of love and dedication.
 Employee Pay Assessment: The most significant factor in determining a worker's pay is
their educational background. A lower grade employee in the same or a separate
department could make more money than a person in an immediately higher grade.
Shell to motivate employees.
 Employee Appraisal
 Intrinsic Awards
 Employee Involvement
 Skill-based Pay Plans
 Flexible Benefits
 Benefits programs
 Training provision
 Time off and time out
 Our diverse global community
 Sports and social activities.
 Listening to our employees.

5-Strategic Management Analysis:

 SWOT Analysis:
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The quality and quantity of motor gasoline at Shell's gas pump are routinely inspected by a team
dedicated to quality and quantity management.
 Strength:
 By agreeing to develop the first large-scale gas-to-liquids plant in history, Shell solidifies
its position as a market leader in the gas and power industries.
 Shell is promoting its products in an efficient manner. It places a lot of emphasis on
advertising and other marketing strategies.
 Shell offers timely delivery to its gas stations. One of its strongest points is its HRM
practices; its incentive-based programs inspire staff members.
 The shell provides their customers with the appropriate care.
 Shell features an international standard fuel pump. Staff are kept informed on a wide
range of topics by mobile training units, covering the most critical environmental and
health and safety issues.
 Shell allocates a substantial sum to their promotional endeavors.
 Every tanker is equipped with unique anti-tamper seals to guarantee that only premium
fuel is transported to all company locations.
 Weaknesses:
At the gas stations, they do not have enough seating or shade because customers who come for
car washes and oil changes have trouble with this.
The fueling station lacks a suitable drainage system, and employee empowerment is minimal.
Shell employs eight regional retail managers to monitor petrol pump activities throughout
Pakistan; nonetheless, this number is insufficient to address all issues.

 Opportunity:
 Compared to its rivals, Shell has continued its record of introducing innovative
innovations. The mobile training unit, the quality and quantity unit, the minimarket
(select), Jet (Rainbow), and the oil change are some examples. Lubricants (Rumila
C.D.X.) Helix provides Shell with the chance to keep these facilities in good working
order.
 Individuals' views are evolving, and they prefer digital pumps. Thus, they ought to
upgrade their gas pumps. Shell has the chance to join the desirable market as well.
 Because of its solid financial standing, Shell can take advantage of new opportunities to
gain market share in the CNG industry.

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  Shell has dominated the industry because of innovation, which makes it easy to gain the
trust of customers.
 Threats:
 Smuggling of gasoline from Iran into Baluchistan is one of the biggest challenges to the
firm.
 If these tactics are not outlawed, a sizable portion of the market is made up of fake oil.
 will have a catastrophic impact on sales
 PSO provides services in lucrative locations as well. Shell is charging a few phases more
than its rival. Caltex and PSO have fierce competition for Shell.
 Entry of new businesses into the refinery industry.
 PEASTL Analysis:
 Political Factors:
1-Government Stability: Shell operates globally, and political stability in host countries is
crucial for its operations.
2-Regulatory Environment: Changes in government regulations, especially in the energy
sector, can impact Shell's operations.
3-Geopolitical Risks: Political tensions or conflicts in regions where Shell operates can affect its
supply chain and operations.
 Economic Factors:
1. Global Economic Conditions: Shell's financial performance can be impacted by downturns
or variations in the global economy, which can also influence the demand for energy products.
2. Currency Exchange Rates: Because Shell works with a variety of currencies, changes in
exchange rates may influence its bottom line.
 Social Elements:
1. Public Perception: The public's perception of Shell's social and environmental responsibility
affects the company's image.
2. Social Trends: Shell's business tactics may be impacted by shifts in customer preferences,
such as a move toward cleaner energy sources.
 Technology Factors:
1. Technological Advancements: The energy sector's exploration, extraction, and production
operations can be impacted by technological advancements.

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2. Renewable Energy technology: Shell's long-term investment and business strategy may be
impacted by the advancement of renewable energy technology.
 Legal Factors:
1. Environmental restrictions: Shell's operations may be impacted by strict environmental
restrictions, which also mandate adherence to emission limits.
2. Legal Challenges: Lawsuits or legal challenges pertaining to environmental matters or other
facets of its business operations may have an impact on the company's finances and reputation.
 Environmental Elements:
1. Climate Change Concerns: Growing public awareness and concern about climate change
could result in more stringent laws and influence Shell's commercial strategy.
2. Trends in Renewable Energy: As the need for renewable energy sources grows, it may have
an impact on Shell's business diversification and investment choices.
 Strategic Evaluation: BCG Evaluation:
♦ Star:
 In Shell's BCG matrix, the strategic business unit for financial services is a shining star.
Shell receives a sizable portion of their revenue from this SBU. The product that
produces the most sales out of Shell's product portfolio is the Number 1 brand Strategic
business unit, which is also a star in the BCG matrix.
 Shell has a 20% market share in this area, making its Number 2 brand Strategic business
unit a shining star in the company's BCG matrix. In this category, it leads the market as
well. In the next five years, the category is predicted to increase at a pace of 5%,
indicating that the market growth rate is anticipated to stay high.
♦ Cash Cows:
 In Shell's BCG matrix, the strategic business unit for supplier management services is a
money maker. Shell has a large market share, but as businesses manage their suppliers
internally rather than outsourcing, the market is shrinking. It is advised that Shell cease
all additional investment in this company and continue to run this important business unit
for as long as it continues to turn a profit.
 In Shell's BCG matrix, the Number 3 brand strategic business unit is a money maker. In
its category, this product holds a 25% market share, demonstrating its innovation. In this
category, Shell is the market leader as well. It ought to make research and development
investments to innovate the brand. This will make this stable revenue source a star and
aid in the growth of the category. A rise in Shell sales would be the total gain.
♦ Question Marks:

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  In Shell's BCG matrix, the strategic business unit for local foods is represented by a
question mark. It is suggested that Shell allocate resources towards research &
development to generate novel features. This product development plan will make sure
that this important business unit becomes profitable.
 In Shell's BCG matrix, the Number 4 brand strategic business unit is represented by a
question mark. But over the last five years, this important business segment has been
losing money. Research and development teams' attempts at innovation have also been
unsuccessful. Divestment is the suggested course of action for Shell to stop any more
losses.
 In Shell's BCG matrix, the strategic business unit for confectionery is represented by a
question mark. Shell does not, however, have a large market share in this desirable sector.
Low reach and inadequate distribution of Shell in this market sector are the cause of the
low sales. It is advised that Shell pursue market penetration, pushing to increase the
number of stores carrying their product. By doing this, Shell will guarantee higher sales.
♦ Dogs:
 The strategic business unit for confectionery is shown by a question mark in Shell's BCG
matrix. Shell's market share in this lucrative industry is small. The reason for Shell's low
sales in this market area is its limited reach and insufficient distribution. It is
recommended that Shell continue to seek more outlets to stock their product to enhance
market penetration.
 In Shell's BCG matrix, the strategic business unit for the Number 5 brand is represented
by a dog. For this important business segment, the company's profitability is likewise
negative. It is advised that Shell invest enough in the company to turn it into a cash cow.
In Shell's BCG matrix, the strategic business unit for synthetic fiber goods is represented
by a dog. It has a market share of less than 5%. To minimize additional losses, Shell is
advised to liquidate this critical business unit.
 In Shell's BCG matrix, the strategic business unit for artificially flavored products is a
dog. People's awareness of health issues has grown, they are now avoiding artificial
flavors. The best course of action for Shell is to return this item.

6-Green Management Activities:

 To facilitate the switch to lower-carbon electricity and fuel sources, Shell is in favor of
the implementation of government-led carbon "pricing" systems that provide a significant
tax on CO2 emissions.
 Shell Pakistan has implemented an energy project in Basti Bullah Baloch, a small village
in Southern Punjab; in collaboration with the National Rural Support Program (NRSP) to
help address the local needs of the community. Households in the village did not have

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 reliable access to electricity, and reliance on solid fuel and traditional cooking practices
would expose women to harmful emissions, leading to respiratory diseases.
By setting up a solar powered tube-well and flourmill, introducing two types of solar
lanterns and an electricity box to households, and environmentally friendly cooking stoves,
the lives of 435 families and their needs for energy have changed.
 Avoiding spills
Spills of product or oil harm the environment, putting Shell workers and nearby communities in
jeopardy. We are making a lot of effort to ensure that our facilities are professionally designed,
safely operated, inspected, and maintained to prevent hazardous material spills and leaks.
 Air caliber
Fossil fuel production and use have an impact on air quality; therefore, efforts have been made to
improve driver fuel efficiency and provide customers with more efficient transportation fuels.
Additionally, try to lower operational air pollution by minimizing emissions of sulfur dioxide,
nitrogen oxide, and volatile organic compounds.

7-CSR and Impact on Society:

What does Shell consider to be sustainability?
Shell outlines its plan in Powering Progress to hasten the company's transition to net-zero
emissions. Its purpose is to include sustainability in their company plan.
Taking Care of Business Socially (CSR):
Social Programs: As part of its CSR efforts, Shell usually supports health, education, and other
social concerns in the community.
Sustainable Practices: To reduce its adverse effects on society, the corporation may choose to
implement sustainable and ethical business practices.
The Sustainability Initiative of Shell Lubricant
Shell's strategy goal is to supply "More and Cleaner Energy" by advancing a strong
environmental agenda in each of its markets. Innovation, collaborations with various sectors, and
improving people's lives and capacities within society are driving forces behind initiatives that
accelerate this goal. Our customers are the center of our business operations.
Impact:
1-Economic Repercussions:
Employment: Shell directly employs people in its businesses and through its supply chain, which
helps to create jobs.

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Economic Development: Both locally and nationally, the company's operations support the
development of the economy in the areas in which it works.
2-Effect on the Environment:
Carbon Emissions: The mining and processing of fossil fuels release carbon emissions into the
atmosphere, which may have a negative impact on the climate and the ecosystem.
Investment in Renewable Energy: To diversify its energy portfolio and address environmental
concerns, Shell has made investments in renewable energy sources like biofuels, wind, and solar.
3-Effect on Society:
Community Development: Shell frequently works on infrastructure, healthcare, and education
initiatives in the regions in which it operates.
Health and Safety: The company's activities influence the well-being of the communities it
serves as well as the health and safety of its workers.
4-Innovation and Technology:
Technological Development: Shell's research and development expenditures result in the energy
sector's technological improvements.
5-Controversies and Criticisms:
Environmental Concerns: Shell has experienced criticism for its involvement in oil spills and
environmental degradation in specific places.
Human Rights: Business's observance of human rights has come under close examination,
particularly in the regions in which it works.

8-Conclusion:
Shell Pakistan's current objectives include planning to invest $10–15 billion between 2023 and
2025 to assist the development of low-carbon energy alternatives, aiming to reach nearly zero
methane emissions by 2030, 50% reduction in total emissions from Scope 1 and 2 by 2030; 6-8%
and 9-12% reductions in the carbon intensity of the energy products they sell by 2023 and 2024,
respectively. Shell is an oil and gas business that strives to minimize the effects of its projects
and operations on the environment and society. To comprehend and address stakeholders' issues,
Shell carries out assessments and interacts with them. To lessen its influence, enhance the quality
of the land and water, and help the community, Shell also collaborates with organizations
dedicated to development and the environment. The economies of the nations in which we
conduct business as well as the individuals and companies we collaborate with gain from Shell's
operations. About 3% of the energy used in homes, businesses, and transportation worldwide is
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supplied by Shell. Shell is dedicated to upholding human rights and having a positive social
impact1. They collaborate closely with communities to comprehend and resolve their issues1.
Shell supports regional economic expansion in the nations in which it conducts business1. By
generating new employment opportunities and enticing nearby companies to join their supply
chain, they mitigate their negative effects on people.
Lastly, in our knowledge Shell has decide to exit Pakistan, Britain, Germany, and Netherlands
due to its plan of reduce its balance sheet gearing which soared to 26 percent following the BG
deal (Merging with BG its once a rival) which in many ways must be beneficial to it. The
strategy was to enhance and empower the organization.

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