EXTERNAL ENVIRONMENT For the analysis of external environment following are important factors (PEST): Political legal forces
Economic forces Socio cultural forces Technological forces POLITICAL FORCES: In Pakistan there are rapid changes of Government since poison. Each government that came in power condemned the planning work done by the precious government. The slow development due to political instability but now the present government is very stable to grow because govt. is providing incentives to different industries. LEGAL FORCES: Legal component consists of legislation that has been passed. This component prescribes rules or laws that all members of society must follow e.g. labour policy, employees social security scheme 1965 Partnership Act 1932 company 1984.
ECONOMIC FORCES: In Pakistan GNP is 5.41 and inflation rate is very high which is 12.7. The balance of payment position in Pakistan is -3.5%. The employment rate is 34.94 million. ECONOMIC OVERVIEW Currency: Pakistani Rupee Average Exchange Rate (20/1/02): U.S.$1 = 60.5 rupees Gross Domestic Product (GDP, market exchange rates, 2000E): $52.1 billion Real GDP Growth Rate (2000E): 1.8% (2001E): 2.3% Inflation Rate (2000E): 15.6% (2000E): 11.1% Current Account Balance (2000E): -$3.5 billion Merchandise Trade Balance (2000E): -$3.0 billion Total External Debt (2000E): $38.5 billion Major Trading Partners: United States, Japan, Germany, United Kingdom, and Saudi Arabia
Major Export Products: Raw cotton and textiles; rice; leather manufactures Major Import Products: Petroleum; machinery and transport
SOCIO CULTURAL FORCES: In Pakistan population is increasing and social values are also changing so the demand of fuel consumption is also increasing. People are coming from rural areas to cities and their life style and values are also changing. They are using modern technology like care, motor cycle for traveling. Pakistan's attempt to raise the living standards of its citizens has meant that economic development has largely taken precedence over environmental issues. Unchecked use of hazardous chemicals, vehicle emissions, and industrial activity has contributed to a number of environmental and health hazards, chief among them being water pollution. Much of the country suffers from a lack of potable water due to industrial waste and agricultural runoff that contaminates drinking water supplies. Poverty and high population growth have aggravated, and to a certain extent, caused, these environmental problems.
TECHNOLOGICAL FORCES: Pakistan environment regarding the technology is not very advance due to the lack of resources. Natural gas, because of its environmental qualities, efficiency, and technological advances are going to play an increasingly important role in meeting demand for clean energy. TASK ENVIRONMET Customer Supplier Labor component
Competitors Government CUSTOMER: Our customers are high class, low class and also middle class, because every class is used petrol for consumption. SUPPLIER: Our suppliers are Pakistan refinery, National refinery and Attock refinery and Dhodak refinery.
LABOUR COMPONENT: Labour is frequently available in Pakistan because of high unemployment rate. So skilled and unskilled persons are available at lower wages rate. COMPETITORS: Major competitors of Shell are PSO with petrol pumps and Caltex with petrol pumps. But Shell Pakistan Limited operates in the Petroleum refining sector. Shell Pakistan Limited also compete with three other petroleum refiners in Asia
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Chennai Petroleum Corporation Limited National Refinery Limited Mangalore Ref & Petrochemicals Limited
INTERNAL ENVIRONMENT