SIDRA KHALID

CASE ANALYSIS

Company name

INTRODUCTION OF BYCO
Byco is Pakistans emerging energy
companies engaged in the
businesses of oil refining, petroleum
marketing, chemicals manufacturing
and petroleum logistics.
Headquartered in Karachi, we are
serving our mission to fulfill the
energy demand within and beyond
borders

 The company also operates 254 retail

outlets. In addition, it provides bulk
storages services of petroleum
products.
The company was formerly known as
Bosicor Pakistan Limited.
Byco Petroleum Pakistan Limited was
incorporated in 1995 and is based in
Karachi, Pakistan.
It carries out the refining and
production of petroleum products.

 The company refines crude oil into various

saleable components such as high speed
diesel, liquefied petroleum gas (LPG),
motor spirits, lubricants, high octane
blending components, kerosene, jet fuels,
furnace oil and naphtha.
The company's product portfolio includes
Light Petroleum Gas, Light straight Run
Naphtha, Heavy Naphtha, Kerosene, High
Speed Diesel, Furnace Oil, Jet Fuel-1, and
Jet Fuel-4 It also sells its products in the
United Arab Emirates, Taiwan, Oman, India,
and Afghanistan

REMARKABLE HISTORY
Byco held Long Service Awards and
the Safety Awards ceremony.
Dec 2012, the first ever oil tanker
berthed at its newly-established deep
sea Single Point Mooring (SPM)
facility constructed by BTPL.
Petroleum Pakistan Limited built the
largest capacity StoraByco ge Tanks
in the country.

OWNERSHIP STRUCTURE

CORPORATE STRATEGY
Manufacturing of a wide range of
petroleum products with the
objective to achieve sustainable
productivity, profitability and high
standards to address the
environment, health and safety
requirements.

CURRENT
STRATEGIC
DIRECTION

VISION

Our vision is to bea leading energy

company through delivering the core
business, achieve sustainable
productivity and profitability to
deliver a superior shareholder return.

MISSION
Our mission is to proactively invest
in the development of
infrastructure, in order to become a
single source supply chain for
meeting the economys energy,
petroleum and petrochemical needs
thereby providing the best possible
return to all our stakeholders.

VALUES
Byco values are the guiding principles that define how it conducts its
business and what it stands for as a company. This includes:

Setting high standards of care for environment, health and safety.

Investment in human capital, offer competitive employment terms and
provide safe and congenial working environment and an equal
opportunity for all our employees.
Entail human resource development and promotes openness,
professionalism, teamwork and trust.
Enhancing value addition, implementing conservation measures and
growth up-gradation through addition of newer generation technologies.
Credibility, goodwill and reputation earned through ethical practices,
honesty, integrity and respect for people.
Safeguarding of shareholders' interest and providing them with a
consumer rate return on equity is an integral part of our business ethics.
These values are the basis of our commitment to operate as a
sustainable energy company.

COMPETITORS OF BYCO:
PSO
SHELL
CALTEX etc

BYCO PESTEL Analysis

According to (Byco), Macro environmental analysis is

find out the external forces that affect accompany to
produce and sell, which are consisted of Political,
Economic, Social, Technological, Legal and
Environmental factors that affect externally a
business.
Political Analysis:
Political factors refer to government policy such as
the degree of intervention in the economy. This might
include trading policies, lobbying, inter-countries
relations, and that can affect the business.
Economic Analysis:
Economical factors that might affect a business can
be world economy or national economy of the
environment where the business is running

Technological Factor:
Technology is another environmental and external
force that affects a business. In case of Byco, as we
can see on many sources of information, such as
websites and newspapers, we can find out Byco has
the advantage of having advanced technology in
deep water exploration of the oil.
Legal factor:
Legal factors are those legislations that affect a
business, such as employment law, anti-trust law and
etc.
Environmental factor:
Environment is very important and environmental
activists are playing more important roles in the
business. Sometimes the environmental activist can
put pressure to the government and make new
legislations

INTERNAL FACTOR EVALUATION MATRIX

Weaknesses

Weight

Rating

W.Sco
re

high loan rates are possible

0.08

0.16

Marketing operations lost $95 million in

second quarter

0.15

0.45

stop drilling new gas wells in US

continent.

0.05

0.10

decrease in revenue.

0.13

0.52

Skilled work force

0.17

0.51

technology

0.19

0.76

Customer loyalty

0.18

0.72

expansion

0.05

0.1

Total

1.00

strengths

3.32

Opportunities

Weigh Ratin
g
t

Weighted
Score

Increase usage for energy

0.15

0.60

Increasing price of energy

0.12

0.36

Increasing propensity of people to

spend

0.10

0.30

Increasing mobility of labor,

capital and technology

0.09

0.36

Demand shifts for renewable

0.10

0.30

energy

Threats
6

Depletion of natural energy

resources

0.11

0.22

PSO is rivalry in the industry

0.08

0.32

Regulations restricted excessive

emission of CO2

0.07

0.28

The credit crisis and volatile

commodity prices

0.10

0.30

OPEC restrictions, civil wars and

hurricanes.

0.08

0.16

10

COMPETITIVE PROFILE MATRIX

BYCO
PSO
Critical success factors

weight

Ratin
g

Scor rating
e

score

Advertising

0.20

0.12

0.60

Product quality

0.10

0.30

0.20

Management

0.07

0.28

0.21

Financial position

0.10

0.20

0.30

Customer loyalty

0.05

0.30

0.15

Global expansion

0.20

0.60

0.80

Market share

0.09

0.27

0.36

Logistics

0.15

0.45

0.45

Production capacity

0.04

0.60

0.16

Total

1.00

3.12

3.23

RATIO ANALYSIS
Ratio Analysis is a form of Financial
Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in
several key areas. The ratios are categorized as
Short-term Solvency Ratios, Debt
Management Ratios, Asset Management Ratios,
Profitability Ratios, and Market Value Ratios.

LIQUDITY RATIOS
0.7

0.6

0.5

0.4

0.3

0.2

0.1

CURRENT RATIO

QUICK RATIO

CASH RATIO

PROFITABILITY RATIO
20%

10%

0%

-10%

-20%

-30%

-40%

-50%

-60%

-70%

ROA

ROE

GROSS PROFIT MARGIN

EFFICIENCY RATIOS
90

80

70

60

50

40

30

20

10

ACCOUNT RECEIVABLE TURN OVER

ACCOUNT RECEIVABLE IN DAYS

ACCOUNTS PAYABLE IN DAYS

SOLVENCY RATIOS
6

TIME INTEREST EARNED RATIO

DEBT TO EQUITY

DEBT TO TOTAL ASSET

INVESTORS RATIO
2.00

1.00

EPS
0.00

-1.00

-2.00

-3.00

-4.00

-5.00

-6.00

DFL
DFL

EPS

DIVIDEND YEILD

STRENGTH

Increase profitability and revenue

Monetary assistance provided
Reduced labor costs
Barriers of market entry
Different technology
Best quality petrol

SWOT ANALYSIS
Byco announced completion of the country
largest oil refinery installation. This newly
commissioned petroleum Refinery has an
installed refining capacity of 120, 000 barrels per
day.
Petroleum Pakistan Limited built the largest
capacity Storage Tanks in the country.
The success of Byco industrial lubricants are due
to their international quality and customer care,
said by Tausef Bari, Chairman Faisalabad Dry Port

The strength of Byco industrial lubricants is in its

high product quality.
The state of the art lab facility backed by sales
services and technical support to its customers .
Byco Petroleum Pakistan Limited have captured the
market share lost by the PSO.
Byco Petroleum Pakistan Limited (BYCO) announced
a substantial increase in net sales of 281 percent
over the nine-month period ended March 31, 2013.
Byco Industries Incorporated (BII) has identified great
potential and opportunities in energy sector in this
region and has invested in related businesses in
Pakistan and United Arab Emirates.
ERP (SAP) software is used together the information.

WEAKNESSES
investments in research and
development
Unknown
costshigh loan rates are possible
future profitability may decline due
to instable
economic conditions
Costs of environmental hazards
Not well known brand

CHALLENGES
CURRENT CHALENGES OF HR
Extending capacity from 30,000
barrels to 115,000 barrels.
Search for organization fitted
employee not job fitted.
Recruit more than 300 employees.
Time period 2 to 3 months.

Biblography
http://www.brecorder.com/fuel-a-ene
rgy/193:pakistan/1167779:byco-organ
ises-seminar-on-industrial-lubrican
ts/?date=2015-04-01
http://www.thenews.com.pk/Todays-N
ews-6-237380-PSO-denies-allegation
s-of-misleading-customers
http://www.byco.com.pk/index.php?
option=com_content&view=article&i
d=22&Itemid=55
www.byco.com