LONG REPORT PROJECT

LONG REPORT PROJECT

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. 3

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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 is trying 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

LONG REPORT PROJECT 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 when developing 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. 5

LONG REPORT PROJECT 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 marketing company 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 has pioneered 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 Pakistan under 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.

HIERARCHY
What 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 8

LONG REPORT PROJECT 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 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 harmonizing their 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 Leadership Tours, 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.

Since road transportation safety is not only the responsibility of drivers, management's organization 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 order to 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 FUNCTIONS
What Are Management Functions? There are four management functions: Planning, Organizing, Locating and Controlling

LONG REPORT PROJECT 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 of management should be built. Planning is done by administration to assess; where the company 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 the conditions, 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 so objectives 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 course of 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 to find 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 the staff 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 why managers 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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LONG REPORT PROJECT 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 finest technique 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 the managers for better directing plans. The final function is to: Control Control, the last of four functions of management, includes establishing performance standards 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 the contrary, 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 say continuous 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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LONG REPORT PROJECT 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 practicing these skills as well: Technical skill involves process or technique knowledge and proficiency. Managers use the processes, techniques and tools of a specific area. Human skill involves the ability to interact effectively with people. Managers interact and cooperate with employees. Conceptual skill involves the formulation of ideas. Managers understand abstract relationships, develop ideas, and solve problems creatively. Thus, technical skill deals with things, human skill concerns people, and conceptual skill has to do with ideas. A manager's level in the organization determines the relative importance of possessing technical, 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 dealing with ideas and abstractions. Supervisors need technical skills to manage their area of specialty. 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 the fundamental 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 harmonizing their 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 Leadership Tours, 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 MANAGEMENT
What is View of Management? View of management towards risks related to company View of Management in TOTAL Our 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 the second 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 existing processes. 16

LONG REPORT PROJECT 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 own requirements, 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 been confirmed. Safety Management Systems Deployment and auditing in accordance with externally-recognized protocols at sites presenting 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. These analyses 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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LONG REPORT PROJECT 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 preventive measures 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 situations requires 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-scale crisis 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, living conditions 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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LONG REPORT PROJECT 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, and controlling 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, and situations vary and change over time. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. Contingency Approach of TOTAL Total have created contingency approach as follow: Behavioral scientist: create a climate which 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 the product 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 will do so by focusing on the world market as a single unit. In these situations, adopting an

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LONG REPORT PROJECT 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, water and 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) 2) 3) 4) Appreciate the value of a goal setting program Decide on the goal you wish to set Ensure you are excited by your goal Document your Goal The process of writing your goal does appear to have some elements of magic 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 feeling of 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) 6) 7) 8)

Ensure your goal is well formed Identify the evidence that enables you to know when you have achieved your goal Identify your first step 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 achieve 9) 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 and working 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 that arise 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 an employee 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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LONG REPORT PROJECT Goal setting, planning and organizing. In order for you to achieve long term goals and commit to strategies for substantial 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 the team 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. How well 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 should encourage 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 the cooperation. A manager is the middle person in between the top management level and the team 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 and decide 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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LONG REPORT PROJECT 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 the necessary tools and resource. They feel secure if the management puts priority on health, safety and cleanliness issues. You satisfy customers by giving good quality of service or product and take care of 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 on which we perform work and conduct ourselves. Core values of TOTAL Total is dedicated to setting the benchmark not only for business and financial performance, 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 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. Values

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LONG REPORT PROJECT 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 OECD Guidelines 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 preface to 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 Good Corporation 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 of our 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 civil society stakeholders.

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LONG REPORT PROJECT 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 W O T Strength Weakness Opportunity 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 threatened by 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 petrochemicals Growing 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 buying power. 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 of HI 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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COMPETITIVE FORCES
What is Competitive Forces? Competitive Forces are the one which stand as a competitor against organization. Porters 5 competitive forces are:

Competitive forces of TOTAL 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 gives them a finish product like Hi-Super for sale purpose. Market Intermediaries The persons which help any company to sell there products like they number of facilities like carriage, which means to supply the petrol at there petrol pumps. Customer There are five types which are as fallows provide require

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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)] (CNG,Diesel)

Indirect

Primary Premier (PSO), Super Unleaded (Shell)] Publics

Secondary Attock, Asskar

These are those entitles which are not the part of the company but they with the grooming of company. Publics for TOTAL are as fellows: Standard Chartered Media Income Tax Department Employees 29

groom

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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 employees with 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 the service 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 by specialists. 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 the companys operation in two broad geographic areas the North American sector and the international sector, which includes the Pacific Rim, the European Community, 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-mentioned methods in departmentalization.

DYNAMIC ENVIRONMENT
What is Dynamic Environment? Dynamic Environment is an environment that can affect the way processes are running and will 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 customer value 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 gives them a finish product like Hi-Super for sale purpose. Market Intermediaries

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LONG REPORT PROJECT The persons which help any company to sell there products like they number of facilities like carriage, which means to supply the petrol at there 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 is no government customer for TOTAL e) International TOTAL does not export its petrol 3. Competitors provide require

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

Indirect

Primary Premier (PSO), Super Unleaded (Shell)] 4. Publics

Secondary Attock, Asskar

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LONG REPORT PROJECT These are those entitles which are not the part of the company but they with the grooming of company. Publics for TOTAL are as fellows: Standard Chartered Media Income 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 reluctant while 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 HI Super 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 about product. groom

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BCG MATRIX
What is BCD Matrix?

BCG Matrix of TOTAL

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 features Services 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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LONG REPORT PROJECT 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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LONG REPORT PROJECT Marketing Consideration for consumer Products Convenience Shopping Specialty Unsought

TOTAL HI SUPER lies in Convenience Because of: Frequent use Little planning Little comparison Convenient locations Mass Promotion Wide Spread Distribution Low 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 price positions. 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 37

LONG REPORT PROJECT 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 and delivers 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 up streaming 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 prices Excise Duty Company & dealer Margin Inland freight Equalization margin Petroleum Development Lavvy & sales Tax ORGANIZATIONAL CONSIDERATION In oil companies as price is a key factor .So the companies must have a pricing department to 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 the TOTAL 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 of that 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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LONG REPORT PROJECT Under Pure Competition

PLACE (DISTRIBUTION) Companies can distribution channels to make product and services available to customers it different ways. In case of TOTAL Hi-Super TOTAL is following two channels for there supply. 1. Producer 2. 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 cannot charge 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 of these 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 on research and development department. but they are promoting its products with little bit campaigns like drive safe campaigns and the pubic service messages their advertisement and 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 of DME (Di-Methyl- Ether) production, the Groups commitment in direct production processes and CTL (Coal-to-Liquids) processes to convert coal into liquid hydrocarbons. This business segment is also committed in power generation (the means to improve output) and CO2 capture in power plants.

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LONG REPORT PROJECT 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 the future, 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 developing processes 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 with engraving, 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 new properties: 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, notably using 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 requires both 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 their representatives 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 and security 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 has been 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 expanded to 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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LONG REPORT PROJECT 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 a world-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 Chemicals o Specialties

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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.............................................................................................................5 HIERARCHY...........................................................................................................................6 CORPORATE STRUCTURE..................................................................................................7 CORPORATE CULTURE.......................................................................................................8 MANAGEMENT FUNCTIONS..............................................................................................9 MANAGEMENT SKILLS.....................................................................................................11 TYPE OF PLANNING...........................................................................................................14 TYPE OF CULTURE.............................................................................................................15 VIEW OF MANAGEMENT..................................................................................................16 CONTINGENCY APPROACH.............................................................................................19 APPROACH TO SETTING GOALS....................................................................................21 GLOBAL PERSPECTIVE.....................................................................................................22 RESPONSIBILITY OF MANAGERS..................................................................................22 CORE VALUES.....................................................................................................................24 SWOT ANALYSIS................................................................................................................26 EXTERNAL ENVIRONMENT.............................................................................................27 COMPETITIVE FORCES.....................................................................................................28 DEPARTMENTALIZATION................................................................................................30 DYNAMIC ENVIRONMENT...............................................................................................31 BCG MATRIX.......................................................................................................................34 THE 4 PS...............................................................................................................................35 Hi-Octane............................................................................................................................35 Diesel..................................................................................................................................35 CNG....................................................................................................................................35 Lubricants...........................................................................................................................35 There are three levels of product............................................................................................35 Core Benefits......................................................................................................................35 Actual 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........................................................................................................................36 Our actual product Hi-Super has strong brand name and provides better Quality and it is . 36 designed to provide following features i.e.............................................................................36 Hi Speed..............................................................................................................................36 Quality ...............................................................................................................................36 Better Mileage ...................................................................................................................36 Augmented Product................................................................................................................36 TOTAL decided to develop a product attached with some services, quality level and .......36 which has strong brand name for this purpose they have there following services at their . 36 filling stations:........................................................................................................................36

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LONG REPORT PROJECT Tuck Shop...........................................................................................................................36 Tyre Shop............................................................................................................................36 Car Wash.............................................................................................................................36 Waiting Room.....................................................................................................................36 Free Oil Change .................................................................................................................36 Credit Card acceptance.......................................................................................................36 Consumer Products.................................................................................................................36 Consumer products are products and services bought by final consumers for personal.36 consumption......................................................................................................................36 Marketing Consideration for consumer Products..................................................................37 Convenience ......................................................................................................................37 Shopping ............................................................................................................................37 Specialty .............................................................................................................................37 Unsought.............................................................................................................................37 TOTAL HI SUPER lies in Convenience ...............................................................................37 Because of:..........................................................................................................................37 Frequent use .......................................................................................................................37 Little planning ....................................................................................................................37 Little comparison................................................................................................................37 Convenient locations .........................................................................................................37 Mass Promotion .................................................................................................................37 Wide Spread Distribution ..................................................................................................37 Low Customer involvement ..............................................................................................37 The Purchase Behavior is Variety Seeking........................................................................37 Industrial products..............................................................................................................37 Products bought by individuals and organizations for further processing or for use in..37 Conducting a business. ....................................................................................................37 RESEARCH AND DEVELOPMENT...................................................................................40 EMPLOYEES SATISFACTION..........................................................................................42 CONCLUSION.......................................................................................................................42 Reference................................................................................................................................44 Contents..................................................................................................................................45

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