Total Parco

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Submitted To

Sir Bilal Javed

Faculty of Management Studies

COMSATS Institute of Information & Technology

Lahore, Pakistan

Spring 2010

COMSATS Institute of Information Technology Lahore.

ACKNOWLEDGEMENT

All praises and thanks for God who is source of all knowledge and wisdom and

endowed to mankind who bestowed us with a potential and ability to contribute a drop

material to the existing ocean of knowledge.

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We are extremely grateful to all individuals who provided us available information

during our Project. Special thanks to our teacher and the management of TOTAL who

took keen interest in the completion of our final. Many thanks to all our group members

who gave us knowledge so that we had implemented in this project.

MISSION STATEMENT

What is Mission Statement?

A mission statement is a brief statement of the purpose of a company, religious group or

organization. Mission Statement should include following:

Purpose and values of the organization

What are the responsibilities of the organization towards these "clients"

What are the main objectives supporting the company in accomplishing its mission

Mission Statement of TOTAL

The Total brand is essentially concerned in building a relationship of care and trust with its

customers. By focusing on the 'Corporate Social Responsibility' Campaigns the company istrying to associate itself with the attributes of care and trust. As a socially conscious

corporate entity TOTAL Parco has been actively involved in community welfare projects.

It is our care for the community that drove our "Drive Safe" campaign and an HSE/ road

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awareness campaign for children based on a specially designed character "TOTAL Road

Champ."

We are strategically dedicated to meeting the challenges faced by all our businesses whendeveloping natural resources, protecting the environment, integrating our operations into

host country cultures, and dialoguing with civil society.

COMPANY PROFILE

What is Company Profile?

Details of a company.

Company Profile of TOTAL

TOTAL is multinational company which is here in Pakistan for marketing but

internationally it is working in both direction, means up streaming and down streaming. In

international market it is 4th largest company of petroleum and lubricants.

In Pakistan

Got registered in 2001 and started its working in 2002.A Joint venture with Parco (Pak Arab Refinery Company)

60% Share owned by TOTAL and 40% by Parco.

Parco is working in up streaming and TOTAL is for down streaming.

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In Pakistan they have got more than 175 petrol pump stations.

More than 5000 employees working under the umbrella of TOTAL PARCO

PAKISTAN(Ltd.)

They have captured 8% of the market shares in just four years.

TOTAL Parco Pakistan Limited (TPPL), a joint venture between TOTAL S.A. - The

world's fourth largest Oil Company and Pak Arab Refinery Limited (PARCO) the biggest

and the most modern refinery in Pakistan, started its operations in 2001.

TOTAL Parco is setting up a modern network of state-of-the-art Retail Stations of

International standards all over Pakistan. TOTAL Parco, now with over 175 Retail Stations

has plans to add 36 new stations each year till 2015. As the fastest growing oil marketingcompany in Pakistan, we live by our motto, "Total Care, Total Trust" leading to unmatched

customer service where YOU come before anything else!

TOTAL Parco has been at the forefront of taking new initiatives in the Oil Industry. It haspioneered the concept of Mobile filing stations in order to effectively cater to the need of

the far-flung rural customers by providing them with quality diesel at their doorstep. It also

became the first Oil Marketing Company to launch 90 RON unleaded petrol in Pakistanunder the brand name of Hi-Super without any additional cost to the customer.Strict

adherence to health safety and environment standard is an integral part of TOTAL Parco's

corporate culture.

HIERARCHYWhat is Hierarchy?

Hierarchy of a management in an organization

Hierarchy of TOTAL

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CORPORATE STRUCTURE

What is Corporate Structure?

The Corporate Structure diagram shows the parent company, Essential Innovations

Technology Corporation, and all subsidiaries affiliated.

Corporate Structure of TOTAL

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CORPORATE CULTURE

What is Corporate Culture?

Corporate culture is that it is an energy field that determines how people think, act, and

view the world around them.

Corporate Culture of TOTAL

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To maintain our performance over the long term, we are striving to develop a solid

corporate safety culture.

A safety behavior guideline was issued in late 2004 to encourage individual employees to

embrace this culture and to strengthen the commitment of management. Now available toall operational managers, dedicated HSE training programs facilitate experience sharing onboth technical and HR matters.

A shared safety culture is gradually developing in all areas:

To further enhance technological risk management, Group units are harmonizing

their indicators and technical standards. Management meetings are becoming morewidespread to validate serious industrial accident reports and near-miss analyses.

To continue to improve operational risk management, safety tours have become a

common practice in most units. The Cray Valley resin business has LeadershipTours, Petrochemicals has Senior Tours and at Refining & Marketing safety tours are

conducted by members of the Management Committee every two years. This type of

presence in the field is encouraged across the management chain at all of oursubsidiaries.

Since road transportation safety is not only the responsibility of drivers, management'sorganization of trips and rounds has also been reviewed. Initiatives include route

optimization, the installation of event data recorders in vehicles and risk analyses for routes

that pose specific problems.

Our managers constantly demonstrate their commitment to setting a good example in orderto motivate their teams. Pursuing this approach is the only way we will succeed in lowering

the risk tolerance levela key factor in disseminating a strong safety culture across Total.

MANAGEMENT FUNCTIONSWhat Are Management Functions?

There are four management functions:

Planning, Organizing, Locating and Controlling

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Management Functions of TOTAL

The four functions of management are:

The base function is to: Plan

It is the foundation area of management. It is the base upon which the all the areas ofmanagement should be built. Planning is done by administration to assess; where thecompany is presently set, and where it would be in the upcoming. From there an

appropriate course of action is determined and implemented to attain the companys goals

and objectives

Planning is unending course of action. There may be sudden strategies where companies

have to face. Sometimes they are uncontrollable. You can say that they are external factors

that constantly affect a company both optimistically and pessimistically. Depending on theconditions, a company may have to alter its course of action in accomplishing certain goals.

This kind of preparation, arrangement is known as strategic planning. In strategic planning,

management analyzes inside and outside factors that may affect the company and soobjectives and goals. Here they should have a study of strengths and weaknesses,

opportunities and threats. For management to do this efficiently, it has to be very practical

and ample.

The subsequent function is to: Organize

The second function of the management is getting prepared, getting organized.

Management organizes all its resources well before in hand to put into practice the courseof action to decide that has been planned in the base function. Through this process,

management will now determine the inside directorial configuration; establish and maintain

relationships, and also assign required resources.

While determining the inside directorial configuration, management ought to look at the

different divisions or departments. They also see to the harmonization of staff, and try tofind out the best way to handle the important tasks and expenditure of information within

the company. Management determines the division of work according to its need. It also

has to decide for suitable departments to hand over authority and responsibilities.

The third function is to: Direct

Directing is the third function of the management. Working under this function helps the

management to control and supervise the actions of the staff. This helps them to assist thestaff in achieving the companys goals and also accomplishing their personal or career

goals which can be powered by motivation, communication, department dynamics, and

department leadership.

Employees those which are highly provoked generally surpass in their job performance and

also play important role in achieving the companys goal. And here lies the reason whymanagers focus on motivating their employees. They come about with prize and incentive

programs based on job performance and geared in the direction of the employees

requirements.

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It is very important to maintain a productive working environment, building positive

interpersonal relationships, and problem solving. And this can be done only with Effective

communication. Understanding the communication process and working on area that need

improvement, help managers to become more effective communicators. The finesttechnique of finding the areas that requires improvement is to ask themselves and others at

regular intervals, how well they are doing. This leads to better relationship and helps themanagers for better directing plans.

The final function is to: Control

Control, the last of four functions of management, includes establishing performancestandards which are of course based on the companys objectives. It also involves

evaluating and reporting of actual job performance. When these points are studied by the

management then it is necessary to compare both the things. This study on comparison of

both decides further corrective and preventive actions.

In an effort of solving performance problems, management should higher standards. They

should straightforwardly speak to the employee or department having problem. On thecontrary, if there are inadequate resources or disallow other external factors standards from

being attained, management had to lower their standards as per requirement. The

controlling processes as in comparison with other three, is unending process or saycontinuous process. With this management can make out any probable problems. It helps

them in taking necessary preventive measures against the consequences. Management can

also recognize any further developing problems that need corrective actions.

Effective and efficient management leads to success, the success where it attains the

objectives and goals of the organizations. Of course for achieving the ultimate goal and aim

management need to work creatively in problem solving in all the four functions.Management not only has to see the needs of accomplishing the goals but also has to look

in to the process that their way is feasible for the company.

MANAGEMENT SKILLS

What are Management Skills?

The Skills which Management should posses.

Management Skills in TOTAL

Management skill being practiced in TOTAL PARCO is:

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Coaching

Mentoring

Communication

Public Speaking

Manage Conflict

As according to Robert Katz identified three managerial skills that are essential to

successful management: technical, human, and conceptual. TOTAL PARCO is practicingthese skills as well:

Technical skill involves process or technique knowledge and proficiency. Managers use

the processes, techniques and tools of a specific area.

Human skillinvolves the ability to interact effectively with people. Managers interact andcooperate with employees.

Conceptual skill involves the formulation of ideas. Managers understand abstract

relationships, develop ideas, and solve problems creatively. Thus, technical skill deals withthings, human skill concerns people, and conceptual skill has to do with ideas.

A manager's level in the organization determines the relative importance of possessingtechnical, human, and conceptual skills. Top level managers need conceptual skills in order

to view the organization as a whole. Conceptual skills are used in planning and dealingwith ideas and abstractions. Supervisors need technical skills to manage their area ofspecialty. All levels of management need human skills in order to interact and

communicate with other people successfully.

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As the pace of change accelerates and diverse technologies converge, new global industries

are being created (for example, telecommunications). Technological change alters thefundamental structure and calls for new organizational approaches and management skills.

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TYPE OF PLANNING

What are the Types of Planning?

Strategic Planning

Marketing Planning

Operational Plan

Type of Planning in TOTAL

TOTAL is doing all three types of planning.

Strategic Planning: To bring the entire community together working toward the same

future vision of success in the context of its core values

Marketing Planning: To serve as a management tool to create a system that will help the

company analyze, plan and deliver products and services that meet the needs of its various

target markets; lead with its strengths; and create an identity that differentiates it from

competitors

Operational Plan: To operationally set the vision and mission of the company through

specific work plans that lead to shared responsibility and accountability and fulfillment of

specific planning goals.

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TYPE OF CULTURE

What is the Type of Culture?

A set of common understandings around which action is organized, finding expression in language

whose nuances are peculiar to the group.

Type of Culture of TOTAL

A safety behavior guideline was issued in late 2004 to encourage individual employees to

embrace this culture and to strengthen the commitment of management. Now available to

all operational managers, dedicated HSE training programs facilitate experience sharing on

both technical and HR matters.

A shared safety culture is gradually developing in all areas:

To further enhance technological risk management, Group units are harmonizingtheir indicators and technical standards. Management meetings are becoming more

widespread to validate serious industrial accident reports and near-miss analyses.

To continue to improve operational risk management, safety tours have become a

common practice in most units. The Cray Valley resin business has LeadershipTours, Petrochemicals has Senior Tours and at Refining & Marketing safety tours are

conducted by members of the Management Committee every two years. This type of

presence in the field is encouraged across the management chain at all of our

subsidiaries.

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VIEW OF MANAGEMENTWhat is View of Management?

View of management towards risks related to company

View of Management in TOTALOur policy is designed to reduce risks by implementing preventive and protective measures,

integrating our urban facilities more seamlessly into the surrounding environment, and

preparing for emergency situations to lessen the impact of potential accidents.

Our technological risk management process can be represented by a three-tiered pyramid,

whose base consists of fundamental skills that are continuously measured and checked.

The base represents our skills in designing and operating industrial facilities, while thesecond tier highlights the various control processes. Based around safety management

systems, the top tier ensures overall consistency and assessment of the efficiency and

effectiveness of the risk management process.

Technological risk management strategy

Managing risks through fundamental skills

The key safety drivers are using technical standards and applying safety engineering rules

for facility design, ensuring compliance with and improving operating procedures,

managing employee skills and performing effective maintenance and inspection.With this in mind, a Group Safety Guideline on safety-critical operations was issued in

2006. It recommends diligent coordination and planning, additional supervision during the

work and the preparation of appropriate emergency procedures for these operations.Enhancing the skills of employees in charge of operating facilities is also a part of the risk

management process. We increasingly use simulation resources that enable employees to

train themselves on new facilities and maintain their skills through practice with existingprocesses.

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Safety management systems

Total deploys safety management systems (SMS) based on industry-recognized

organizational principles and best practices. Each unit tailors its SMS to its ownrequirements, which entails defining a safety policy and objectives, deploying resources,

measuring performance and adjusting action plans.

The proportion of Total sites presenting technological risks that are periodically audited in

accordance with externally-recognized protocols increased to 83% from 76% during 2007.

In addition, our target of virtually 100% coverage of these sites by 2009 has beenconfirmed.

Safety Management Systems

Deployment and auditing in accordance with externally-recognized protocols at sitespresenting risks

Risk analysis and risks reduction measures

Our measures aim to reduce risks to as low as reasonably practicable. Risks are analyzed

during the project design stage for new facilities, or when significant changes are made to

existing facilities. These analyses are periodically reassessed for all operated sites.As part of this process, Group Safety Guideline No. 8 is the formal statement of our risk

analysis methodology and is applied across the businesses. At end-2007, this method had

been used to perform new risk analyses for most Seveso-classified Total sites in France,

including storage facilities, refineries, petrochemical plants and fertilizer factories. Theseanalyses are also used to prepare the Technological Risk Prevention Plans introduced by

the French Act of July 30, 2003.

This type of analysis is gradually being extended to all of our sites worldwide. Exploration& Production introduced it at all its facilities through a rule issued in November 2007. It

goes without saying that the guideline applies immediately to all new projects.

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Feedback

Feedback is one of the most effective ways of improving safety. It consists of reporting

and sharing information on accidents so that everyone can learn from them.

After each serious accident or near-miss incident, a Safety Feedback Notice is prepared,describing the circumstances and consequences, analyzing the causes and making practical

recommendations. Our operational teams use these notices to determine what preventivemeasures might apply.

Sometimes, the lessons learned from an accident are so wide-ranging that they also result in

Group-wide action plans.

Emergency preparedness

Total may find itself confronted with a wide array of emergency situations, such as natural

disasters, industrial accidents, or security threats. The management of such situationsrequires a high level of coordination among all units and the fast response of a

multidisciplinary network of skills. We have therefore set up a three-tier organization:

Emergency Preparedness Organization

Exercises that test the organizational process in view of improving it also contribute to our

emergency preparedness. In addition to the regular drills conducted by the sites, large-scalecrisis simulation exercises are carried out, involving all three tiers of the crisis management

organization and, where possible, outside emergency services.Another new theory took shape suggesting that inequalities in incomes, rights, livingconditions and access to resources drove poverty. At the same time, the concept of

sustainable development, a watchword today, was gaining ground.

Towards a more professional system

Capability, a poverty reduction tool

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From growth to sustainable human development

CONTINGENCY APPROACH

What is Contingency Approach?

A contingency Approach is alternative way of doing business when established routines are

disrupted. The contingency approach to management is based on the idea that there is no

one best way to manage and that to be effective, planning, organizing, leading, andcontrolling must be tailored to the particular circumstances faced by an organization.

Managers have always asked questions such as:

What is the right thing to do?

Should we have a mechanistic or an organic structure? A functional or divisional structure?

Wide or narrow spans of management?

Tall or flat organizational structures?

Simple or complex control and coordination mechanisms?

Should we be centralized or decentralized?

Should we use task or people oriented leadership styles?

What motivational approaches and incentive programs should we use?

The contingency approach to management (also called the situational approach) assumes

that there is no universal answer to such questions because organizations, people, andsituations vary and change over time. Thus, the right thing to do depends on a complexvariety of critical environmental and internal contingencies.

Contingency Approach of TOTAL

Total have created contingency approach as follow:

Behavioral scientist: create a climatewhich is psychologically motivating;

Classical management approach: create a new incentive scheme;

Contingency approach: both ideas are viable and it depends on the possible fit of

each solution with the goals, structure and resources of the organization.

TOTAL need not be concerned with differences between a third world nation and an

industrialized one when it comes to gasoline since consumers in both nations use theproduct in the same ways. Therefore, management should adopt a geocentric orientation

and employ a worldwide marketing strategy. Because such firms are very dependent on

foreign sales, they will have a strong desire to be a significant international player and willdo so by focusing on the world market as a single unit. In these situations, adopting an

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geocentric attitude will allow them to develop a competitive advantage in the world market

by becoming a low cost producer. The synergy achieved by combining a volume

maximization generic strategy with a geocentric management orientation and employing a

worldwide marketing strategy should lead to high financial performance.

Industrial and Financial

Continue to grow our production profitably

Step up development of LNG and heavy oil, our fastest-growing segments

Adjust to the new world energy environment, where oil and gas prices are high and

new competitors are emerging, and to changing demand

The Future of Energy

Invest and innovate to meet constantly growing oil and gas demand

Enhance the energy efficiency of our processes

Help to diversify energy sources

Improve our customers energy use

Social and Community Uphold and promote basic human rights wherever we operate

Ensure the safety of our employees and neighbors

Deploy a human resources policy whose cornerstones are fairness, diversity and

employee dialogue

Respect neighboring communities and contribute to their development

Environment

Combat climate change by reducing greenhouse gas emissions and devising new

solutions, such as CO2 capture and sequestration

Reduce the impact of our production and transportation operations on the air, waterand soil

Reduce the noise, visual and olfactory disseminates caused by our operations

Maintain biodiversity

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APPROACH TO SETTING GOALS

What is Goal Setting?

Goal Setting is your path to tap into the power of goal setting for both business and

personal goal setting.

Approach to setting goals used by TOTAL

The Steps to Achieving Great Goals

1) Appreciate the value of a goal setting program

2) Decide on the goal you wish to set3) Ensure you are excited by your goal

4) Document your Goal

The process of writing your goal does appear to have some elements ofmagic about it. This is because the process of documenting your goal does a

number of very positive things for you.

It ensures you focus on exactly what your goal is, not just a general feelingof what it is

Having a documented goal is a permanent record of your goal so that

You are consistently pursing the one goal

You have a future record against which to measure your progress

The process of converting your goal from thought to words engages more of

your brain and clarifies the instructions you give to your unconscious mind

5) Ensure your goal is well formed

6) Identify the evidence that enables you to know when you have achieved your goal7) Identify your first step

8) Your ecological check: Ensure that achieving your goal fits into your life and the

cost of achieving your goal is not too great for the benefit you achieve9) Identify and remove any blockages

10) Visualise your goal

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GLOBAL PERSPECTIVE

What is Global Perspective?A viewpoint of an organization globally. An organizations global view.

Global perspective of TOTAL

Curbing climate change and diversifying future energy sources to support economic

development

Total is committed to meeting growing energy demand while consistently acting as a

responsible corporate citizen.

RESPONSIBILITY OF MANAGERS

What is Responsibility of Managers?

Duties and tasks managers perform.

Responsibility of managers

Managers are responsible to supervise and take charge of the activities and productivity of

their workers. They play an important role in managing the performance of their staff.

They are also involved in employee selection, career development, succession planning andworking out compensation and rewards. They are responsible for the growth and increase

in the organizations' finances and earnings.

Decision making.

A manager makes organizational decisions and handles a variety of problems thatarise on a daily basis. You have to identify the problems, create choices and

alternative courses of actions.

The daily routine of making decisions include determining how to approach anemployee who is not performing or lacking progress and how to bring about

change to the organization and its team.

It involves thinking and planning out strategies on how to improve quality and

also being cost conscious and effective.

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Goal setting, planning and organizing.

In order for you to achieve long term goals and commit to strategies forsubstantial earnings, you have to communicate the vision of the company to your

subordinates. You break down and clarify the goals that each team or individual

have to perform and assign work schedules and strategies.

Having goals and planning out the directions allow for effective time management

and saves cost and resources.

Guiding and giving directions.

Your role as the head of an organization is to guide and give direction so that theteam can perform effectively. You offer on the job coaching, training and support.

In order for individuals to meet the needs and objectives, they may need extra

input, information or skills.

Empowering others.

The performance of your team depends on your abilities to empower them. Howwell a person performs depends on his motivation. Your task is to encourage and

coach others to improve themselves and the quality of their work. You need to

instill in them the desire to excel and accept responsibility and self-management.

Communication and people skills.

As the boss, your ability to develop trust and confidence, resolve problems and

issues will result in a productive, goal oriented work group. You shouldencourage your team to ask for help, get involved and participate.

Practice empathy and respect their personal values, opinions and ideas. Listen and

respond and offer praises and encouragements when they make progress. By

doing that you will enhance their self-esteem and they will offer you thecooperation.

A manager is the middle person in between the top management level and theteam that reports to him. He has to ensure that communication is smooth and

conveyed clearly to avoid misinterpretations and dissatisfaction.

Evaluating and analyzing.

You need to have the capacity to evaluate and examine a process or procedure anddecide on the best choice to produce an outcome. You look at the importance,

quality and values and then taking the best approach.

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You are also expected to track the progress of each individual's activities and

effectiveness, review them and offer feedback and counseling.

Provide satisfaction among the staff and the customers.

Staffs are happy when they know that their supervisors provide them with thenecessary tools and resource. They feel secure if the management puts priority onhealth, safety and cleanliness issues.

You satisfy customers by giving good quality of service or product and take careof their needs.

Being an exemplary role model.

Managers who set high standards or goals and achieve them are great leaders by

examples. The ability to tolerate stress and remain poise under job pressures and

still maintain a high activity and energy level are contagious.You should set the example by being accountable for your own activities and

performance. Work harder on your personal growth and you will become a

respected and efficient leader.

CORE VALUES

What is Core Values?

The core values of an organization are those values we hold which form the foundation onwhich we perform work and conduct ourselves.

Core values of TOTAL

Total is dedicated to setting the benchmark not only for business and financialperformance, but also for compliance with the most demanding standards of corporate

social responsibility. Accordingly, we are continuing to develop a proactive ethical process

to support the ability of all internal and external stakeholders to express our values.

Totals Values

Total is home to widely diverse identities and cultures that share our core values:

Professionalism.

Respect for employees.

Ongoing concern with safety and environmental protection.

Contributing to the development of host communities.

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Sharing our ethical principles

In all host countries, Total makes sure that our employees are familiar with, share and apply

ethical principles based on our core values of respect and integrity. The Ethics Committee

deploys a methodical approach set out in the Code of Conduct, which is directly inspired by

such reference documents as the Universal Declaration of Human Rights, the OECDGuidelines for Multinational Enterprises, the United Nations Global Compact and the

fundamental conventions of the International Labour Organization (ILO).

Disseminate

Available in 16 languages, the Code of Conduct continues to be deployed. Underscoring

how important the Code is to senior management, Christophe de Margerie wrote a prefaceto it. Tailored to local conditions or specific businesses, in 2007 the Code was the baseline

inspiration for the Integrity Guide and the Fundamental Corporate Responsibility Principles

for Purchasing.

Educate

In 2007, the Ethics Committee and Universit Total held seven dedicated seminars in

Angola, China, Indonesia, Nigeria, Cameroon, the United States and France that were

attended by nearly 500 managers. The Ethics Committee also delivered 26 presentations at

management meetings, business seminars and training sessions.

Advise

In 2007, the Committee directly handled 25 referrals and provided advice in 13 cases,mainly dealing with integrity or employee-management issues. The small number of cases

reflects the fact that employees usually take up their problems with their supervisor or local

human resources manager.

Assess

We use an assessment method comprising 84 evidence points and developed by GoodCorporation to ensure that the Code of Conduct is being properly applied. Six units were

assessed and three reassessed in 2007. A new process for assessing newly created

subsidiaries was tried out in early 2008.

Corporate Social Responsibility

As a global leader in the energy and chemicals industries, Total is fully aware of its

corporate social responsibility, which is assumed through an assertive sustainable

development process, based on constructive dialogue, discussion and direct application ofour ethical values.

Proactive policies are in place in the areas of safety, environmental stewardship, preparing

for the future of energy, human resources management, and open dialogue with civilsociety stakeholders.

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Since a few years, the Group publishes annually a special report entitled Sharing our

Energies, that details its corporate social responsibility (CSR) performance and initiatives.

SWOT ANALYSIS

What is SWOT analysis?

S Strength

W Weakness

O Opportunity

T Threats

SWOT of TOTAL

Total is a France-based integrated oil and gas company. With presence in more than 130

countries, Total is engaged in all the sectors of petroleum industry including, upstream,

downstream and chemicals. The companys vertically integrated operations give it

significant competitive advantage. However, the companys operations could be threatenedby political and economic instability in regions such as Africa and the Middle East, where

it operates a large chunk of its exploration and production Activity.

Strengths

o Vertically integrated operations

o Strong downstream presence in Europe

o Stable financial results

Weaknesses

o Declining hydrocarbon production

o Declining revenues from North American and Far East and

o rest of the world markets

Opportunities

Upgrading refining base

Increasing demand for petrochemicalsGrowing global demand for energy

Threats

o Geopolitical instability

o Rising petrochemical capacity in the Middle East

o Natural disasters

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EXTERNAL ENVIRONMENT

What is External Environment?

Environment outside organization

External environment of TOTAL

Cultural Forces

Living styles of the people some time affect the product like buyingpower. In Pakistan people do not have strong buying power so they feel

reluctant while buying HI Super.

Natural Forces

As petroleum is a natural resource so the shortage of raw petroleum

in the world market increases the price of HI Super.

Technological Force

Technology like CNG and coming ETHONOL can affect the sale ofHI Super so this must not be neglected at any cost.

Political Forces

In country like Pakistan political environment is not stable so that can

effect the decision of the company about the product high tariff.

Economic Forces

Increase in the inflation rate also effect the sale of the product like

Hi Super is now a days very costly to general public.

Demographic Forces

The study of human population in terms of size, density, location,

age, gender, race, occupation and other effect the decisions of the company

about product.

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Consumer

o General public is the main consumer of the HI Super Petrol.

Business

o The main business customers of the TOTAL are Petrol Pumps Owners.

Reseller

o TOTAL have not given the permission to any other to sell there petrol

instead of the petrol pumps owners.

Government

o TOTAL still have not any contract with any government departments so

there is no government customer for TOTAL

International

o TOTAL does not export its petrol

Competitors

Direct [Premier (PSO), Super Unleaded (Shell)] Indirect(CNG,Diesel)

Primary Secondary

Premier (PSO), Super Unleaded (Shell)] Attock, Asskar

Publics

These are those entitles which are not the part of the company but they groom

with the grooming of company. Publics for TOTAL are as fellows:Standard Chartered

Media

Income Tax Department

Employees

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DEPARTMENTALIZATION

What is Departmentalization?

Departmentalization refers to the process of grouping activities into departments.

Departmentalization of TOTAL

Total is being using Functional, Product, Customer, Geographic and Process

Departmentalization.

Functional departmentalization

Grouping activities by functions performed. Activities can be grouped according

to function (work being done) to pursue economies of scale by placing employeeswith shared skills and knowledge into departments for example human resources,IT, accounting, manufacturing, logistics, marketing, and engineering. Functional

departmentalization can be used in all types of organizations.

Product departmentalization

Grouping activities by product line. Tasks can also be grouped according to a

specific product or service, thus placing all activities related to the product or theservice under one manager. Each major product area in the corporation is under

the authority of a senior manager who is specialist in, and is responsible for,

everything related to the product line. For example, Hi-Super, CNG etc.

Customer departmentalization - Grouping activities on the basis of common

customers or types of customers. Jobs may be grouped according to the type of

customer served by the organization. The assumption is that customers in each

department have a common set of problems and needs that can best be met byspecialists. The sales activities in an office supply firm can be broken down into

three departments that serve retail, wholesale and government accounts.

Geographic departmentalization - Grouping activities on the basis of territory. If an

organization's customers are geographically dispersed, it can group jobs based on

geography. For example, the organization structure of Coca-Cola has reflected thecompanys operation in two broad geographic areas the North American sector

and the international sector, which includes the Pacific Rim, the EuropeanCommunity, Northeast Europe, Africa and Latin America groups.

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Process departmentalization

Grouping activities on the basis of product or service or customer flow. Because

each process requires different skills, process departmentalization allows

homogenous activities to be categorized. For example, the applicants might need

to go through several departments namely validation, licensing and treasury,before receiving the drivers license.

Owing to the complexity of tasks and the competitive environment in which

organizations operate, they often use a combination of the above-mentionedmethods in departmentalization.

DYNAMIC ENVIRONMENT

What is Dynamic Environment?

Dynamic Environmentis an environment that can affect the way processes are running andwill behave in future. In other words its a continuously changing environment. In other

words it is external environment that include micro and macro environment.

Dynamic environment of TOTAL

Environment

Marketing management job is to built strong customer relationship by creating customervalue and satisfaction but management can not do this alone number of factors are involve

which affect the environment of the company

There are two types of Marketing Environments.

1. Microenvironment

2. Macroenvironment

Microenvironment

1. Suppliers

Suppliers are those bodies which provide the raw material or finish goods. In this

prospective TOTAL have its own major supplier knows as Parco which givesthem a finish product like Hi-Super for sale purpose.

Market Intermediaries

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The persons which help any company to sell there products like they provide

number of facilities like carriage, which means to supply the petrol at there require

petrol pumps.

2. Customer

There are five types which are as fallows

a) Consumer

General public is the main consumer of the HI Super Petrol.

b) Business

The main business customers of the TOTAL are Petrol Pumps Owners.

c) Reseller

TOTAL have not given the permission to any other to sell there petrol instead of

the petrol pumps owners.

d) Government

TOTAL still have not any contract with any government departments so there isno government customer for TOTAL

e) International

TOTAL does not export its petrol

3. Competitors

Direct [Premier (PSO), Super Unleaded (Shell)] Indirect(CNG,Diesel)

Primary Secondary

Premier (PSO), Super Unleaded (Shell)] Attock, Asskar

4. Publics

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These are those entitles which are not the part of the company but they groom

with the grooming of company. Publics for TOTAL are as fellows:

Standard Chartered

MediaIncome Tax Department

Employees

Macro Environment

1. Cultural Forces

Living styles of the people some time affect the product like buying power.

In Pakistan people do not have strong buying power so they feel reluctantwhile buying HI Super.

2. Natural Forces

As petroleum is a natural resource so the shortage of raw petroleum in the

world market increases the price of HI Super.

3. Technological Force

Technology like CNG and coming ETHONOL can affect the sale of HISuper so this must not be neglected at any cost.

4. Political Forces

In country like Pakistan political environment is not stable so that can effect

the decision of the company about the product high tariff.

5. Economic Forces

Increase in the inflation rate also effect the sale of the product like Hi Super

is now a days very costly to general public.

6. Demographic Forces

The study of human population in terms of size, density, location, age,

gender, race, occupation and other effect the decisions of the company aboutproduct.

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BCG MATRIX

What is BCD Matrix?

BCG Matrix of TOTAL

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THE 4 PS

What are the 4 Ps?

4 P's of Marketing is the combination of product, price, place (distribution), and promotion.

4 Ps of TOTAL

PRODUCT

As our company name is TOTAL and our PRODUCT name is HI-SUPER

As the name of HI-SUPER show positive perception about the product like its high

Quality and its unique featuresServices

TOTAL provide many services to there customers and build a good relationship

With them TOTAL provide services like Tyre shop

Tuck shop

Car wash

And free oil change

The Product Concept means of new innovations in the product as TOTAL have made its

petrol more refined up to 86 Rons which is the unique feature of TOTAL. This is the only

reason that TOTAL is engaged with product concept.

Our company offers following products for their consumers.

Hi-Super

Hi-Octane

Diesel

CNG

Lubricants

There are three levels of product

Core Benefits

Actual Problems

Augmented Product

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Core benefits

In this level the marketers usually have to define that what the buyer really wants to buy.

The core benefits of our product Hi-Super are to fulfill the need of fuelling.

Actual Product

Our actual product Hi-Super has strong brand name and provides better Quality and it is

designed to provide following features i.e.

Hi Speed

Quality

Better Mileage

Augmented Product

TOTAL decided to develop a product attached with some services, quality level and

which has strong brand name for this purpose they have there following services at their

filling stations:

Tuck Shop

Tyre Shop

Car Wash

Waiting Room

Free Oil Change

Credit Card acceptance

Consumer Products

Consumer products are products and services bought by final consumers for personal

consumption.

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Marketing Consideration for consumer Products

Convenience

ShoppingSpecialty

Unsought

TOTAL HI SUPER lies in Convenience

Because of:

Frequent use

Little planning

Little comparisonConvenient locations

Mass PromotionWide Spread DistributionLow Customer involvement

The Purchase Behavior is Variety Seeking

Industrial products

Products bought by individuals and organizations for further processing or for use in

Conducting a business.

Our products are used in many industries like Auto industry and Agricultural industry etc

PRICE

FACTORS TO CONSIDER WHEN SETTING PRICES

Internal Factors

External Factors

Internal Factors

Marketing Mix Strategy

Some companies deemphasize price and use other marketing tools to create non pricepositions. As our companys products are mostly dependent upon the international markets

decisions. So we can say that our company deemphasize price and it used to use other

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marketing tools to make .So As the following factors effect the prices while setting the

prices

Such as if the product is positioned on non price factors such as decisions about quality,promotion, and distribution strongly affect the prices.

COSTS

Costs set the floor for the price that the company can charge. The company wants to charge

the price that both covers all its costs for producing distributing and selling the product anddelivers a fair rate of return for its costs for its effort and risks.

As TOTAL PARCO is a joint venture between these two companies with 40% to 60%

shares in which TOTAL is working in down streaming while PARCO is engaged in upstreaming and so the prices of our oils are decided on the basis of the companys own costs

which are spent by the TOTAL PARCO PAKISTAN. These costs consists of the

Following costs which are incurred by our company

Ex refining pricesExcise Duty

Company & dealer Margin

Inland freight

Equalization marginPetroleum Development

Lavvy & sales Tax

ORGANIZATIONAL CONSIDERATION

In oil companies as price is a key factor .So the companies must have a pricing departmentto set the best price or to help others in setting prices. So as the PRCO is a oil provider

company to TOTAL so there is a marketing department in which the best prices of oils are

settled which covers all of the costs which are incurred by the company. So that theTOTAL PARCO PAKISTAN could be able to provide best prices .The ongoing prices of

oils are selected by the Government in which the companys all costs and profit margins

used to be covered. SO they are unable to charge more than the ongoing and implemented

prices.

External Factors

The Market and Demand

Before setting prices, the marketers used to understand the relationship between demand ofthat product and price. Demand relationship varies for different types of markets and how

buyers perception effects the price decision.

Pricing In different Types Of markets

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Under Pure Competition

PLACE (DISTRIBUTION)

Companies can distribution channels to make product and services available to customers itdifferent ways. In case of TOTAL Hi-Super TOTAL is following two channels for theresupply.

1. Producer2. Retailer

Product is prepared by the producer (Parco Pakistan) and sells the same to retailers which

are known as Filling Station Owners. Retailer retains their margins and sells the product to

the final consumer.

PROMOTION

Our product lies in the market of pure competition because there are number of buyers and

sellers of our products and our products are being almost daily used and for these types of

products the behavior of the consumer is variety seeking. The seller of our products cannotcharge more than the ongoing prices. They dont pay any much attention on marketing and

research development because the marketing research a, product development, pricing,

advertising and sales promotions play a little or no role while settlement of the prices ofthese products. But as far as our company TOTAL is concerned the company is unable to

charge more than the markets ongoing prices but they are not paying much attention onresearch and development department. but they are promoting its products with little bit

campaigns like drive safe campaigns and the pubic service messages their advertisementand they are as well as engaged in societal marketing concepts. Thus the marketers of our

product dont pay much attention on the marketing strategy.

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RESEARCH AND DEVELOPMENT

What is Research and Development?

Research and Development done by and organization for continuous improvement.

R & D of TOTAL

Research and development challenges for TOTAL can be defined along four main lines:

o knowledge of the resources and their quality, mainly oil and gas, but also for

biomass and renewable energies;

o competitiveness, renewal and quality of products, including the ability to meet

market needs, their life cycle and their impacts;

o efficiency, reliability and duration of production facilities, notably their energy

output;

o Environmental challenges with regard to water, air and soil on production sites, and

the future of residual gases such as carbon dioxide.

These challenges are addressed in synergy rather than competitively. The approach varies

according to the different business segments.

Main focus of business segment R&D

Exploration & Production

Upstream R&D has a number of themes, including:

o Seismic data acquisition and processing;

o Digital simulation and characterization of reservoirs (such as low permeability or

very deep reservoirs), sour gas processing and chemical conversion of gas;

o oil recovery in operated reservoirs and issues connected to heavy oil recovery are

two major concerns which led the Group to increase the Research budget;

o CO2 capture and geological storage in depleted gas reservoirs the subject of a

major new project in France.

Gas & Power

The main R&D themes concern energy conversion: new technical options for LNG

terminals, new processes for GTL (Gas to Liquids), notably including the emergence ofDME (Di-Methyl- Ether) production, the Groups commitment in direct productionprocesses and CTL (Coal-to-Liquids) processes to convert coal into liquid hydrocarbons.

This business segment is also committed in power generation (the means to improveoutput) and CO2 capture in power plants.

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For renewable energies, major themes for R&D concern possible evolutions of photovoltaic

technology with the new cell generation and power generation from biomass. TOTAL also

entered into a partnership in wave power.

Refineries

For refining and marketing, TOTAL is preparing to include in its activities resources of thefuture, whether from non-conventional oil or from first or second biomass generation.

TOTAL is also developing new high performance fuels, additives and lubricants adapted

to the market, car manufacturers and energy. This business segment is also developingprocesses and catalysts, considered as two major R&D drivers, to improve productivity and

reduce environmental impacts.

Petrochemicals

In Petrochemicals, R&D is directed toward the discovery of new resources from gas, coal

or renewable energies and also the improvement of the energy efficiency of the facilities, as

well as the development of new specialized polymers, the products of the future.

Specialties

Atotech is part of the rapid global development of microelectronics, dealing withengraving, brasing and electroplating technologies. Hutchinson is innovating in the field of

clean production technologies connected to thermoplastic products and attractive systems

for major clients. Bostik is focusing its research and innovation program on developing

functional adhesives that do more than just assemble parts into a whole but also offer newproperties: better acoustics for building and transport applications and recyclability and

compostability for hygiene and packaging applications. Bostik and Cray Valley-Sartomer

are working on the development of new products derived from clean technologies, notablyusing biomass resources.

Environment

Controlling and reducing the environmental impact of its activities is a challenge common

to the whole Group, such as the reduction of gas emissions, the reduction of water

contamination to comply with the European water framework and the REACH directives,as well as the reduction of greenhouse gas emission whether through

the improvement of energy efficiency or efforts leading to carbon capture and

sequestration.

R&D organization

TOTALs management is considering the Groups research and development trends and the

optimal organization of the Research Department to adapt to a new context that requiresboth a strong research in all business segments as well as improved cross-disciplinary

cooperation. Within the framework of a change in the management, this movement led to a

reorganization of this Department which now reports directly to the Groups Management.The Group has 22 major R&D centers worldwide and developed

Approximately 500 active partnerships with other industrial groups, university research or

special research institutes.

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EMPLOYEES SATISFACTION

What is Employee Satisfaction?

To what extent employee are satisfied and how organization is treating them.

Employees satisfaction at TOTAL

Our human resources policy is based on fundamental principles and reflects the diversity

of social, cultural and legal environments in our host countries. Employees and theirrepresentatives deserve to play an important role in the company, which is why we nurture

constructive employee relations in Europe and worldwide.

In non-OECD countries, Total promotes employee dialogue in line with local legislation,helping to create appropriate representative organizations. Examples include:

Cameroon: At Total E&P Cameroon, the Committee of Wise Men, elected by

employees, regularly provides input on issues affecting the subsidiary.

Nigeria: A Joint Consultative Committee addresses working conditions, safety andsecurity issues, logistics services for employees and other welfare issues.

Indonesia: Total E&P Indonsie provides the SPNTI union with space and facilities

and has authorized five hours a month of meetings during working hours.

An employee satisfaction survey was introduced in 2000 to garner input from employees

around the world and identify opportunities for improvement. Since 2005, the survey hasbeen conducted every two years. The findings are reported to employees through local

recaps and posted on the intranet. In 2007, the scope of the Total SURVEY was expandedto include smaller or recently integrated operations as well. More than 51,000 employees

from 238 units in 80 countries were surveyed, with a response rate of 61%. The overall

satisfaction level is 74%. In addition, 73% of our employees report that their work gives

them a sense of personal accomplishment.

CONCLUSION

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Total is a multinational energy company committed to leveraging innovation and initiative

to provide a sustainable response to the growing energy demand.

The fourth largest publicly-traded integrated international oil and gas company* and aworld-class chemicals manufacturer, Total operates in more than 130 countries and has 96,

400 employees.In addition to conducting our business according to the highest standards of professional

behavior, we maintain an ongoing commitment to transparency, dialogue and respect for

others.

TOTAL are strategically dedicated to meeting the challenges faced by all our businesses

when developing natural resources, protecting the environment, integrating our operations

into host country cultures, and dialoguing with civil society.

Totals Businesses are:

Upstream: Finding, producing and distributing oil and natural gas

o Exploration & Production

o Gas & Power

Downstream: Refining and marketing quality products

o Refining

o Marketing

o Trading & Shipping

Chemicals: Innovating to enhance the quality of life

o Base Chemicalso Specialties

43
http://www.total.com/en/group/activities/upstream/upstream_872.htmhttp://www.total.com/en/group/activities/upstream/exploration_production/http://www.total.com/en/group/activities/upstream/gas_power/http://www.total.com/en/group/activities/downstream/downstream_831.htmhttp://www.total.com/en/group/activities/downstream/refining_8934.htmhttp://www.total.com/en/group/activities/downstream/Marketing_8942.htmhttp://www.total.com/en/group/activities/downstream/trading_shipping_829.htmhttp://www.total.com/en/group/activities/chemicals/chemicals_830.htmhttp://www.total.com/en/group/activities/chemicals/petrochemicals_5542.htmhttp://www.total.com/en/group/activities/chemicals/specialties_chemicals_826.htmhttp://www.total.com/en/group/activities/upstream/upstream_872.htmhttp://www.total.com/en/group/activities/upstream/exploration_production/http://www.total.com/en/group/activities/upstream/gas_power/http://www.total.com/en/group/activities/downstream/downstream_831.htmhttp://www.total.com/en/group/activities/downstream/refining_8934.htmhttp://www.total.com/en/group/activities/downstream/Marketing_8942.htmhttp://www.total.com/en/group/activities/downstream/trading_shipping_829.htmhttp://www.total.com/en/group/activities/chemicals/chemicals_830.htmhttp://www.total.com/en/group/activities/chemicals/petrochemicals_5542.htmhttp://www.total.com/en/group/activities/chemicals/specialties_chemicals_826.htm


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Reference

MISSION STATEMENT

http://www.parco.com.pk/index.php?option=com_content&view=article&id=174&Item

COMPANY PROFILE

http://www.parco.com.pk/index.php?option=com_content&view=article&id=162&Itemid=223

HIERARCHY

http://www.totalparco.com.pk/lub/lubpakistanparco.nsf/VS_OPM/

GLOBAL PERSPECTIVE

http://www.acronymfinder.com/Total-Parco-Pakistan-Limited-%28Pakistan%29-%28TPPL%29.html

SWOT ANALYSIS

https://www.researchandmarkets.com/reportinfo.asp?report_id=578003

RESEARCH AND DEVELOPMENT

http://www.totalparco.com.pk/lub/R&D

BCG MATRIX

http://www.totalparco.com.pk/lub/lubpakistanparco.nsf/VS_OPM/THE 4 PS

http://www.totalparco.com.pk/lub/lubpakistanparco.nsf/VS_OPM/163252A90503471FC125743C0042B14

E?OpenDocument

VIEW OF MANAGEMENT

http://www.google.com.pk/#hl=en&source=hp&biw=1024&bih=631&q=management+view&aq=f&aqi=g

2g-m8&aql=&oq=&gs_rfai=&fp=c4ef4ebbe35c98d0

MANAGEMENT SKILLS

http://www.mce-ama.com/Total-management_Workshops.aspx

TYPE OF PLANNING

http://bzupages.com/attachments/18597d1282367075-report-parco-bzupages.com-.pdf

CORE VALUES

http://www.parco.com.pk/index.php?option=com_content&view=article&id=162&Itemid=223

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Contents

ACKNOWLEDGEMENT ........................................................................................................3

MISSION STATEMENT .........................................................................................................4

COMPANY PROFILE .............................................................................................................5HIERARCHY ...........................................................................................................................6

CORPORATE STRUCTURE ..................................................................................................7CORPORATE CULTURE .......................................................................................................8MANAGEMENT FUNCTIONS ..............................................................................................9

MANAGEMENT SKILLS .....................................................................................................11

TYPE OF PLANNING ...........................................................................................................14

TYPE OF CULTURE .............................................................................................................15VIEW OF MANAGEMENT ..................................................................................................16

CONTINGENCY APPROACH .............................................................................................19

APPROACH TO SETTING GOALS ....................................................................................21GLOBAL PERSPECTIVE .....................................................................................................22

RESPONSIBILITY OF MANAGERS ..................................................................................22

CORE VALUES .....................................................................................................................24SWOT ANALYSIS ................................................................................................................26

EXTERNAL ENVIRONMENT .............................................................................................27

COMPETITIVE FORCES .....................................................................................................28

DEPARTMENTALIZATION ................................................................................................30DYNAMIC ENVIRONMENT ...............................................................................................31

BCG MATRIX .......................................................................................................................34

THE 4 PS ...............................................................................................................................35Hi-Octane ............................................................................................................................35

Diesel ..................................................................................................................................35

CNG ....................................................................................................................................35

Lubricants ...........................................................................................................................35There are three levels of product ............................................................................................35

Core Benefits ......................................................................................................................35Actual Problems .................................................................................................................35

Augmented Product ............................................................................................................35

Core benefits ...........................................................................................................................36

In this level the marketers usually have to define that what the buyer really wants to buy.............................................................................................................................................. 36

The core benefits of our product Hi-Super are to fulfill the need of fuelling...................36

Actual Product ........................................................................................................................36Our actual product Hi-Super has strong brand name and provides better Quality and it is . 36

designed to provide following features i.e.............................................................................36Hi Speed ..............................................................................................................................36Quality ...............................................................................................................................36

Better Mileage ...................................................................................................................36

Augmented Product ................................................................................................................36

TOTAL decided to develop a product attached with some services, quality level and ....... 36which has strong brand name for this purpose they have there following services at their .36

filling stations: ........................................................................................................................36

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Tuck Shop ...........................................................................................................................36

Tyre Shop ............................................................................................................................36

Car Wash .............................................................................................................................36

Waiting Room .....................................................................................................................36Free Oil Change .................................................................................................................36

Credit Card acceptance .......................................................................................................36Consumer Products .................................................................................................................36Consumer products are products and services bought by final consumers for personal .36

consumption. .....................................................................................................................36

Marketing Consideration for consumer Products ..................................................................37Convenience ......................................................................................................................37

Shopping ............................................................................................................................37

Specialty .............................................................................................................................37

Unsought .............................................................................................................................37TOTAL HI SUPER lies in Convenience ...............................................................................37

Because of: ..........................................................................................................................37

Frequent use .......................................................................................................................37Little planning ....................................................................................................................37

Little comparison ................................................................................................................37

Convenient locations .........................................................................................................37Mass Promotion .................................................................................................................37

Wide Spread Distribution ..................................................................................................37

Low Customer involvement ..............................................................................................37

The Purchase Behavior is Variety Seeking ........................................................................37Industrial products ..............................................................................................................37

Products bought by individuals and organizations for further processing or for use in ..37

Conducting a business. ....................................................................................................37RESEARCH AND DEVELOPMENT ...................................................................................40

EMPLOYEES SATISFACTION ..........................................................................................42

CONCLUSION .......................................................................................................................42Reference ................................................................................................................................44

Contents ..................................................................................................................................45

Total Parco

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