final..2

INTERNSHIP REPORT AT QALCO-MARKETING/SALES EXECUTIVE

1

Table of Contents:

Page

No

Executive Summary ………………………………… 2

Industry Profile …………………………………. 3-5

Company Profile …………………………………. 6-11

Company Business Processes …………………………………. 12-27

Company Departmental Functions ………………………………….. 28-32

SWOT Analysis …………………………………... 33-35

Identification of Problem ……………………………………. 36-37

Recommendations and Suggestions ……………………………………. 38-39

Conclusion …………………………………….. 40

Bibliography ……………………………………… 41

|


2

Executive summary

Increasing globalization, new products, services and innovative marketing have

resulted in a very market savvy consumer. The production-based success

philosophy of marketers has now been replaced by a customer oriented

philosophy. Competition have become intense, the sector will witness severe

competition which may lead to price war company should concentrate on doing

meaning full adverting in electronic and print media , more advertisement is

electronic media with clear vision and target , weekly and monthly advertisement

about QALCO lubricants in local and national news paper. Banners and print

advertisement should be increased, more schemes should be given to distributors,

retailers/ dealer and mechanics and consumers.

The QALCO lubricants blending plant is the first of its kind in the State of Qatar,

and is owned by Qatar Industrial Services Establishment (QIS). The Chairman

and Chief Executive Officer of QIS is Sheikh Sultan Bin Jassim Bin Mohamed

Al-Thani. The USD 15 million plant is situated within the port area of Mesaieed

Industrial City, which is approximately 40 kms. South of the capital, Doha,

constructed on fenced land leased from the Qatar General Petroleum Corporation

(QGPC).

|


3

Pakistan's Strong And Vibrant Lubricant Industry

Pakistan remains a welcoming country and a highly lucrative and vibrant market

for lubricant producers as the consumption patterns have largely been favorable to

the marketers in the recent past - especially because of the ever growing number

of vehicles and the massive demand of power generators in Pakistan. Such is the

demand that the number of exiting lubricant procures do not produce enough

products to cater for the local market demand.

The existing gap in meeting the local increasing demand has left a yawning gap

which has allowed some of the world's top lubricant producer to enter the

Pakistan market -which is often considered the most lucrative and profitable in the

POL category.

The overall demand of lubricant products in Pakistan stands around 300,000

liters, only half of which is met through local production. The other half is

inevitably filled through imports from various parts of the world. And the demand

has not been stagnant and indeed has witnessed a sharp surge in the recent past,

Making the market more competitive with every passing day.

Moreover, power sector is an important contributor towards the lubricant demand,

other than the automobile industry. With the power sector reforms likely to take

shape in the near term and a large number of IPPs to be added to the national grid,

the demand is expected to increase at a rapid pace going forwards, making more

room for the other big players from around the world to increase and strengthen

their presence in Pakistan’s high demand market.

|


4

Not everything is rosy about the lubricant business though, as the local procurers

often cite the high import tariffs and smuggling of lubes as two major loopholes in

the system, which need to be addressed on priority basis, if the lubricant industry

is to be strengthened.

Lubricant sales in FY11 by and large remained flat when compared to the

corresponding period last year, registering a meager growth of 0.88 percent. There

was not a significant change in the sales mix either, as the market share gradient

remained virtually unchanged in comparison to FY09 with SPL having the lion's

share of 27 percent, closely followed by CPL and PSO at 19 and 17 percent

respectively, in the domestic lubricant market off-take.

Heavy duty trucks and long route automobiles remained the core to lubricant sales

as Heavy duty Engine Oil remained the highest volume lube variant in the product

basket claiming 41 percent market share, according to the latest statistics revealed

by the Oil Companies Advisory Committee (OCAC). Passenger Car Motors Oil

(PCMO) and Industrial Oil followed with identical shares of 22 percent each, not

much different to the previous year’s numbers.

A vertical analysis of the company market share provided by the OCAC shows a

considerable jump in Pakistan state Oil's (PSO) market share, which increased by

300 basis points. PSO's gain turned out to be SPL's and CPL's loss, the market

share of which dipped by 200 and 300 basis points, respectively.

|


5

Domestic lube products continued to dominate the market, as evident by an

overwhelming share of 98 percent in the overall ales, while the other 2 percent

gap was filled by imported lubes. National Refinery Limited, being the only

domestic base oil source, produced 177,916 tons of lubes during FY10, which

was nearly 7 percent higher than the corresponding period last year.

Industrial lubricant oil is the fastest growing sub segment within the lubes

industry, with the segment sales reaching 40672 tons during FY10, nearing

Passenger Car Motor Oil. With the level of projected expansion in the power and

electricity generation, it is tipped to go beyond the passenger cars segment in no

time. The current status of the total number of blending plants in Pakistan has

reached to 42, in addition to 27 reclamation plants, according to the OCAC

report.

A problem currently been faced by Pakistan's lubricant industry is the smuggled

product from Iran which is hampering the local industry. The government has

largely remained inactive in this regard despite calls from the industry players to

resolve the long standing issue.

The industry players are optimistic about the future as lubricant business is

considered a high margin business and often acts as the savior for refineries, who

otherwise have very low profit margins on other products. In fact, having lube in

the product arm is an advantage that other s in the industry crave for. The industry

demand is only seen going up in the coming few years, so it is al good for the lube

makers.

|


6

Company Profile

Vision:

To be a World Class brand known for caring and delighting the customers

with high quality products and innovative services following best practices.

Mission:

To deliver the Best Quality of products and services with best practices and

ensuring total customer satisfaction.

Introduction of QALCO Company:

The QALCO lubricants blending plant is the first of its kind in the State of Qatar,

and is owned by Al-Alfia Holding. The Chairman and Chief Executive Officer of

Al-Alfia Holding is Sheikh Sultan Bin Jassim Bin Mohamed Al-Thani.

The USD 15 million plant is situated within the port area of Mesaieed Industrial

City, which is approximately 40 kms. South of the capital, Doha, constructed on

fenced land leased from the Qatar General Petroleum Corporation (QGPC). The

Local construction company, Petroserv Limited, professionally built the

plant.Base oil storage tanks are connected to Berth 10 at Mesaieed Port by two

pipelines of six inch and four inch diameter respectively.

|


7

These are buried along their lengths, terminating in tow chambers at the berth.

The six inch line is for base oils, while the four inch line will be used at a later

date for oilfield related chemicals. The base oil storage are is contained within a

bund wall, and incorporates five storage tanks with existing capacity of 6,000

tones. Additional tank age is planned. All tanks have level indicators, feeding

information to the main program for the computerized Automated Batch Blending

system.

.

There are five blending kettles installed inside the main building, with a total

capacity of 60 cubic meters. All are fitted with mechanical agitators and internal

heating coil. Hot oil is used as the medium for heating the tanks, with Thermax

equipment installed.

Blending is by Automated Batch Blending (ABB), with Allen Bradley

computerized equipment. This is controlled from one main computer,

programmed with all formulations, and connected to bulk raw material supplies

and blending tanks. The plant can be mechanically operated through pre-set flow

meters if required. Master fill equipment from the United Kingdom is in place for

drum, pail and small pack filling. There are four finished product storage tanks,

with a total capacity of 120m3, for later filling and road tanker bulk deliveries.

A modern laboratory, which includes atomic absorption equipment, supports and

complements the plant. Contract work is already undertaken for outside

companies.

|


8

All QALCO products are blended to SAE, API and ISO standards and ASTM

laboratory tested. Stringent quality control and quality assurance procedures are in

place. The Company is committed to health, safety and care of the environment.

The blending of lubricants generates no waste. QALCO use top-quality virgin

base oils and additives from Lubrizol, the large American Company, which also

supplies many international oil companies. The close association QALCO enjoys

with Lubrizol places QALCO and the forefront of technical advancement. The

QALCO objective to become an integral part of the Qatar industrial mix and play

a part in the development of the country has been met. QALCO supports local

industry, and has been successful in a number of government tenders. The

company continues building and extensive customer base in the retail and

commercial sectors of the market, having already gained an enviable reputation

for technical support.

QALCO has become an active in exports, and countries to date include Saudi

Arabia, Bahrain, Jordan, Yemen, Lebanon and Pakistan. The corporate web site

qalco.net continues to generate numerous inquiries from interested parties.

|


9

The Group

Qatar Lubricants (QALCO) is owned by Qatar Industrial Services Establishment

(QIS). It is situated within the port area at Mesaieed, built on land leased from

Qatar Petroleum. It is the first and only lubricant’s blending plant in the state of

Qatar, with undertakings given that no further licenses will be granted for similar

projects.

The Plant, of modern design, utilizes the computerized Automated Batch

Blending (ABB) system. All equipments is to the highest industry standards. A

base oil tank farm of 6,000 tonnes capacity has the advantage of the tank age

linked to excellent deep water berthing facilities by two dedicated pipelines. The

plant has a design capacity of 20,000 tonnes per annum per single shift. The US $

16 million plants was built on a turnkey basis by international specialist

contractors in collaboration with local construction company.

A state-of-the-art laboratory complements the plant with the latest equipment,

including atomic absorption. Qualified and experienced chemists check all

lubricant output daily and external analysis work is also undertaken. Submissions

have been made to the Department of Consumer Affairs (Ministry of Finance,

Economy & Commerce) which should lead to accreditation; thus Government

work. This sector potential will be developed to the maximum.

Before operations began, a technical services agreement was considered and

discussed in detail with a number of international oil companies from U.S.A,

France, U.K and Italy. It was finally decided to work closely with Lubrizol, the

large American oil additives company. This not only gave immediate access to

the latest industry techniques, but also flexibility and independence allied to

substantial cost saving.

|


10

The Lubricant’s market in any county is very competitive, Qatar is no exception.

For decades, major international lubricant supplier has been represented by well

established local agents. Other market factors include products from G.C.C,

exporters which are duty free while others a bare 4%, QALCO, therefore, faced a

hostile marketing situation with traditional built-in-resistance to a newcomer.

The corporate marketing strategy was to enter the retail automotive market with

basis products whilst, at the same time, increasing product credibility in the

commercial sector as the product range was extended and new additives were

received. The industrial sector was defined as predominantly Ministers and large

Government organization being supplied by tender.

QALCO obtained a health share of this market sector by product excellence,

advertising and promotion activity in spite of fierce competition and imports of

low specification products. QALCO continues to work with the Department of

Consumer Protection, Ministry of Finance, Economy and Commerce, on the

establishment of a Qatar Lubricants Standard aimed at eliminating substandard

imports and upgrading market criteria.

The use of high quality virgin base oil with Lubrizol additives enabled QALCO to

qualify for a number of American Petroleum Institutes’ (API), Service

Classifications. Additionally, QALCO has been granted important approvals from

Daimler-Chrysler and Volvo. Other submissions arebeing processed. By offering

its products for testing under controlled conditions followed by used oil analysis,

QALCO usage approvals were granted by numerous organizations. These

include:-The Ministry of Electricity and Water (MEW), The Interior Ministry,

Qatar Armed Forces, Government Sand Plant, NODCO (QGPC),U.S. Military.

QALCO followed up its success in obtaining significant approvals by winning

competitive tenders. Accepted tenders include:- Ministry of Municipal Affairs and

|


11

Agriculture, Interior Ministry, Qatar Fuel Additives Company (QAFAC), Qatar

Steel Company (QASCO), Qatar Armed Forces (QALCO appointed main

lubricants supplier), Government Sand Plant, Qatar Sand Plant, Qatar Sand

Treatment Plant, Hamad Medical Corporation, Qatar Telecom (Q-tel).

QALCO has established a reputation for unmatched technical support and liaison

with customers thus ensuring correct choice and applications of lubricants.

Coupled with trouble-shooting and service planning, QALCO’s initial objectives

to become an indispensable part of the industrial mix has been achieved. A very

satisfactory market share has been secured in a relatively short period of

operation, QALCO’s products are second to none in the industry and fully

supported by technical representatives and engineers – new and appreciative

customers include Doha International Airport and Chiyoda Corporation.

|


12

Business Process

Quality:

It is QALCO policy to market only products which are produced to SAE, API and

ISO standards and ASTM tested. This is made possible by a close relationship

with Lubrizol, the American Additives Company, and facilities available in the

well equipped laboratory at the QALCO plant, where equipment such as atomic

absorption is included. QALCO warrant products to be of genuine quality and

free from defects, either in material or workmanship. Any complaints receive

immediate attention, and a visit by QALCO technical personnel.

Ongoing technical support from QALCO is an integral part of initial and after

sales service.

|


13

Environment:

Protection of the environment is paramount objective of QALCO and it takes

maximum care in storing , handling , production and delivery of all it products.

The blending of lubricant product generates no waste.

It is a stick requirement that not petroleum products should enter sewers and

natural waterways nor be allowed to soak into the ground. Municipal or

Governmental regulations should be strictly adhered to. Advantage should be

taken of any service available for the collection of the used lubricants.

|


14

Safety:

Petroleum industry standard protective clothing, mandatory first aid know-how

and availability are strongly recommended against potential hazards. Routine

procedures in the case of accident misuse, spillage and disposal should be firmly

in place at any handling location.For any work involving lubricating products, the

following general precautions and actions are recommended (in addition relevant

product MSDS should be carefully studied

Useful Do’s and Dont’s.

Direct skin contact with petroleum products should be avoided. However,

should skin contact occur, the products should be removed immediately with

Disposable Wipes only.

Do wash hand and arms before eating and on finishing work.

Do use protective hand cream where possible

Do get first-aid for all cuts and scratches

Do keep the work area clean.

Do clean up any spilled products immediately.

Do follow appropriate operating procedures

Don’t ever put oil rags or tolls in the pockets of overalls or clothing.

Don’t use petroleum products to remove oil or grease from the skin. Use

waterless hand cleaner or soap with clean towel.

|


15

.

Storage:

Qalco products’ manufacturing process is overseen at every stage to achieve

technical excellence. The process is designed to ensure the products reach the

customer in pristine condition. Care in handling and storage after delivery will

ensure they remain so. Storage outdoors is not recommended and, where

necessary, should be of the shortest duration noting the following:

Bungs must be tightly sealed.

Drums should be laid on their sides with the bungs facing 3 and 9 ‘O’

clock respectively.

Standing drums should be covered

Bungs should be carefully wiped before opening to ensure removal of any

foreigh matter which could lead to contamination.

Low or high extremes of temperature should be avoided where products

are stored.

The storage are should be clean and free from dust

All products should be clearly labeled /sign written to avoid confusion.

|


16

Distribution:

"Development of export market has played a major role in Qalco`s success, with

setting up of a professional distributor network in many parts of the world".

|


17

The Manufacturing Process

Lube oil is extracted from crude oil, which undergoes a preliminary purification

process (sedimentation) before it is pumped into fractionating towers. A typical

high-efficiency fractionating tower, 25 to 35 feet (7.6 to 10.6 meters) in diameter

and up to 400 feet (122 meters) tall, is constructed of high grade steels to resist

the corrosive compounds present in crude oils; inside, it is fitted with an

ascending series of condensate collecting trays. Within a tower, the thousands of |


18

hydrocarbons in crude oil are separated from each other by a process

called fractional distillation. As the vapors rise up through the tower, the various

fractions cool, condense, and return to liquid form at different rates determined by

their respective boiling points (the lower the boiling point of the fraction, the

higher it rises before condensing). Natural gas reaches its boiling point first,

followed by gasoline, kerosene, fuel oil, lubricants, and tars.

Sedimentation

The crude oil is transported from the oil well to the refinery by pipeline or tanker

ship. At the refinery, the oil undergoes sedimentation to remove any water and

solid contaminants, such as sand and rock, that maybe suspended in it. During this

process, the crude is pumped into large holding tanks, where the water and oil are

allowed to separate and the contaminants settle out of the oil.

Fractionating

Next, the crude oil is heated to about 700 degrees Fahrenheit (371 degrees

Celsius). At this temperature it breaks down into a mixture of hot vapor and liquid

that is then pumped into the bottom of the first of two fractionating towers. Here,

the hot hydrocarbon vapors float upward. As they cool, they condense and are

collected in different trays installed at different levels in the tower.

In this tower, normal atmospheric pressure is maintained continuously, and about

80 percent of the crude oil vaporizes.

The remaining 20 percent of the oil is then reheated and pumped into a second

tower, wherein vacuum pressure lowers the residual oil's boiling point so that it

can be made to vaporize at a lower temperature. The heavier compounds with

higher boiling points, such as tar and the inorganic compounds, remain behind for

further processing.

|


19

Filtering and solvent extraction

After further processing to remove unwanted compounds, the lube oil that has

been collected in the two fractionating towers is passed through several ultrafine

filters, which remove remaining impurities. Aromatics, one such contaminant,

contain six-carbon rings that would affect the lube oil's viscosity if they weren't

removed in a process called solvent extraction. Solvent extraction is possible

because aromatics are more soluble in the solvent than the lube oil fraction is.

When the lube oil is treated with the solvent, the aromatics dissolve; later, after

the solvent has been removed, the aromatics can be recovered from it.

Additives, inspection, and packaging

Finally, the oil is mixed with additives to give it the desired physical properties

(such as the ability to withstand low temperatures). At this point, the lube oil is

subjected to a variety of quality control tests that assess its viscosity, specific

gravity, color, flash, and fire points. Oil that meets quality standards is then

packaged for sale and distribution.

|


20

|


21

Quality Control

Most applications of lube oils require that they be non resinous, pale-colored,

odorless, and oxidation-resistant. Over a dozen physical and chemical tests are

used to classify and determine the grade of lubricating oils. Common physical

tests include measurements for viscosity, specific gravity, and color, while typical

chemical tests include those for flash and fire points.

Of all the properties, viscosity, a lube oil's resistance to flow at specific

temperatures and pressures, is probably the single most important one. The

application and operating temperature range are key factors in determining the

proper viscosity for an oil. For example, if the oil is too viscous, it offers too

much resistance to the metal parts moving against each other. On the other hand,

if it not viscous enough, it will be squeezed out from between the mating surfaces

and will not be able to lubricate them sufficiently. The Saybolt Standard

Universal Viscometer is the standard instrument for determining viscosity of

petroleum lubricants between 70 and 210 degrees Fahrenheit (21 and 99 degrees

Celsius). Viscosity is measured in the Say bolt Universal second, which is the

time in seconds required for 50 milliliters of oil to empty out of a Saybolt

viscometer cup through a calibrated tube orifice at a given temperature.

The specific gravity of an oil depends on the refining method and the types of

additives present, such as lead, which gives the lube oil the ability to resist

extreme mating surface pressure and cold temperatures. The lube oil's color

indicates the uniformity of a particular grade or brand. The oil's flash and fire

points vary with the crude oil's origin. The flash point is the temperature to which

an oil has to be heated until sufficient flammable vapor is driven off so that it will

flash when brought into contact with a flame. The fire point is the higher

temperature at which the oil vapor will continue to burn when ignited.

|


22

Products

GASOLINE ENGINE OIL

Qalco Eco Oil

QALCO Eco

Multigrade MO

QALCO Motor Oil

Motor Oil HD

Multi Duty HD

Premium Motor Oil

Super Motor Oil

|


23

QALCO MT Super

Super Max XLT

Super Max XLT

Supreme All Season

Super Outboard Motor Oil

DIESEL ENGINE OIL

QALCO Super Diesel HDX

Diesel XL

Super Special

Diesel Special

Turbo Diesel

Diesel XL

QALCO Diesel HDX

Super Diesel Oil

Super Diesel HT Oil

Super Diesel DMB

Super Diesel Advance

Super Diesel MAX

|


24

Universal UHP

HYDRAULIC OILS

Hydraulic S Oil

Hydraulic 37

Hydraulic Oil AW

Hydraulic HD 10W

Hydraulic HD 10W Plus

Hydraulic VHI 68

Hydraulic VHI 77

QALCO Hydraulic AW 68 Synthetic

COMPRESSOR OIL

Compressor Oil SS

MARINE OILS

Super Diesel Oil M (Marine)

Marine HTO

Marine MDF

|


25

TURBINE OILS & CIRCULATING OILS

Turbine Oil

Turbine Oil T

GEAR OIL & TRANSMISSION FLUIDS

QALCO Gear Oil

Super Gear Oil

Super Gear Oil

EPHD Gear Oil

Super Gear ZP Oil

Super Gear ZX Oil

Super Gear ZX Oil

Super Gear ZX Oil

Syntech GL 460

Syntech GL 680

ATF TX-2

ATF TX-3

Transmission TDT

Syntholube GX Series

|


26

GREASE (Auto & Industrial)

QALCO MP Grease

QALCO Moly Grease

QALCO EP Grease

QALCO High Temp

Lithplex EP Grease

SPECIALTY PRODUCTS

QALCO Syntech BB

Super Tractor Oil Universal

RR Loco IV

Lynsol D

Performance Oil

Performance Oil SW

Performance Oil

Performance Oil HVI

Therm Z Oil

Therm ZX Oil

Performance ND

|


27

QALCO Mould RSO Oil

Rock Drill Oil

QALCO SL 1

ATF TX-A

Bearing Greases 41

Brake Fluid HD

Compressor Oil SS

Eurol Lithex 1300 EP

GASTECH 440

QALCO Glycol Water Mixture

HOF D 80

HOF Fluid 2

Patricia KOE 32

POLYLUB(R) HVT 50A

Premium Motor Oil

QALCO Syntech AA

Renolit FEP

KNITT Plus 2022

|


28

CNG OIL

QALCO Natural FG

Spindle Oil 10

Glycol Water Mixture

Super Diesel GL Oil

Topaz HMF

Urethyn M

Urethyn MP

Topaz HMF (12 TBN)

|


29

Department Function Analysis

Every organization is made up of different department. Each department

contributes to the running of the business. QALCO international consists of the

following major departments. The production department is responsible for

converting inputs i.e the crude oil into outputs which are the Lubricant oils in case

of Qalco Ltd. through the stages of production processes. The Production

Manager is responsible for making sure that raw materials are provided and made

into finished goods effectively. He makes sure that work is carried out smoothly,

and supervises procedures for making work more efficient and more enjoyable.

There are five production sub-functions at Qalco ltd.

Production And Planning

They will set the standards and targets at each stage of the production process.

The quantity and quality of products coming off a production line will be closely

monitored. In liason with the sale department, the production department forecasts

targeted sales of Lubricants and hence, an appropriate production plan is

formulated.

Purchasing Department

This department will provide the materials, components and equipment required.

An essential part of this responsibility is to ensure that stocks arrive on time and

are of good quality. The production plan once formulated, would help the

purchase department to pace orders of crude oil and else related raw materials.

|


30

The Stores Department

The stores department are responsible for stocking all the necessary tools, raw

materials and equipment required to service the manufacturing process of

lubricant production.

Human Resource Department

The role of Human resource department is in charge of recruiting, training, and

the dismissal of employees in an organization. Recruitment and selection, training

programs are held by the HRD to improve the employees skills, as well as to

motivate them.

The workforce required by the business in the future. Failure to do this could lead

to too few or too many staff or staff with inappropriate needs.

Dismissal is where a worker is told to leave their job due to unsatisfactory work

or behavior.

Redundancy is when the business needs to reduce the number of employees

either because it is closing down a branch or needs to reduce costs due to falling

profits. It may also be due to technological improvements, and the workers are no

longer needed.

|


31

Marketing Department

These are the main section of the market departments:

Sales department is responsible for the sales and distribution of the

products to the different regions.

Research & Department is responsible for market research and testing new

products to make sure that they are suitable to be sold.

Promotion department decides on the type of promotion method for the

products, arranges advertisements and the advertising media used.

Distribution department transports the products to the market.

Finance Department

Book keeping procedures: Keeping records of the purchases and sales

made by a business as well as capital spending.

Preparing Final Accounts :Profit and loss account and Balance Sheets

Providing management information managers require ongoing financial

information to enable them to make better decisions.

Management of wages: The wages section of the finance department will

be responsible for calculating the wages and salaries of employees and

organizing the collection of income tax and national insurance for the

Inland Revenue.

Raising Finance: The finance department will also be responsible for the

technical details of how a business raises finance e.g. through loans, and

|


32

the repayment of interest on that finance. In addition it will supervise the

payment of dividends to shareholders.

Accounting Department

Most people don’t realize the importance of the accounting department in keeping

a business operating without hitches and delays. That’s probably because

accountants oversee many of the back-office functions in a business as opposed to

sales. Typically, the accounting department is responsible for the following

Cash collections: All cash received from sales and from all other sources

has to be carefully identified and recorded, not only in the cash account

but also in the appropriate account for the source of the cash received. The

accounting department makes sure that the cash is deposited in the

appropriate checking accounts of the business and that an adequate

amount of coin and currency is kept on hand for making change for

customers.

Accountants balance the checkbook of the business and control who has

access to incoming cash receipts Cash payments (disbursements): In

addition to payroll checks, a business writes many other checks during the

course of a year — to pay for a wide variety of purchases, to pay property

taxes, to pay on loans, and to distribute some of its profit to the owners of

the business.

The accounting department prepares all these checks for the signatures of

the business officers who are authorized to sign checks. The accounting

department keeps all the supporting business documents and files to know

when the checks should be paid, makes sure that the amount to be paid is

correct, and forwards the checks for signature.

|


33

Procurement and inventory: Accounting departments usually are

responsible for keeping track of all purchase orders that have been placed

for inventory (products to be sold by the business) and all other assets and

services that the business buys — from postage to forklifts.

A typical business makes many purchases during the course of a year,

many of them on credit, which means that the items bought are received

today but paid for later. So this area of responsibility includes keeping

files on all liabilities that arise from purchases on credit so that cash

payments can be processed on time.

The accounting department also keeps detailed records on all products

held for sale by the business and, when the products are sold, records the

cost of the goods sold.

The accounting department may be assigned other functions as well, but

this list gives you a pretty clear idea of the back-office functions that the

accounting department performs. Quite literally, a business could not

operate if the accounting department did not do these functions efficiently

and on time. To do these back-office functions well, the accounting

department must design a good bookkeeping system and make sure that it

is accurate, complete, and timely.

|


34

SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the

first stage of planning and helps marketers to focus on key issues. Once key issues

have been identified, they feed into marketing objectives. It can be used in

conjunction with other tools for audit and analysis, Porter's Five-Forces analysis.

It is a very popular tool with marketing students because it is quick and easy to

learn.

Strengths:

Qalco is a multination company.

Qalco is having product innovation as it frequently introduces new

products according to the requirements of its consumer.

The whole company is fully computerized.

The Qalco industry oil clients are also users the of the Qalco motor Oil

because of strong relations

Quality is granted because it oil in bottle at it main factor in Qatar so no

mixing can be done.

Promotional activities add value in brand awareness and attraction of new

customers.

Qalco is having good competitive skills.

|


35

Weaknesses:

Lost and dissatisfied customers of Qalco are major weakness as they

are causing the perception of inefficient.

No retail outlets is also a major weakness as they are not enough capable

to compete the Shell, Caltex or total .

Falling behind in Research and Development.

Less developed website.

Plagued with internal problems

Vulnerable to competitive pressures

Opportunities:

Add some complementary products in the future.

It is likely in the future that the organization is going to expand the

business and enter into the new market.

Increase the financial resources or increase the market share.

Introducing the new product having the features that are very first in the

market i.e. not in any other product offered by any competitor.

There is faster market growth.

|


36

Threats

The biggest threat for Qalco is the well established companies such as

Total , Zic, Pso,

Adverse government policies i.e. government may increase the taxation

rate on the products offered to the customers.

Growing competitor pressures can be proved as threat to the survival of

the organization.

Buyer’s needs and tendencies may change and they are not fully satisfied

by the existing products and may switch to the other products offered by

the competitors.

Availability of the product.

|


37

Identification Of Problems

Qatar lubricant is growing its market share in Pakistan but still there is a

lot of challenges they have to face to be a market leader. Few of the

problems which were noticed are the following.

Most of the large volume buyers are brand loyal so it is very difficult to

target those customers so special activated should be conducted so that the

people get aware of the qualities of the Qatar lubricants products at a large

scale which is not being done.

Automotive lubricants buyer have high bargain power because they have

large number of choice to choose the product from their suiting cost is,

there are less cash discounts on the purchase of large volume as compared

to their major competitor Zic Oil.

Qalco auto motive should improve distribution network and to provide

distributors, retails/dealers and mechanics with more profitable

schemes ,their current distributors have the capital but they still have a

weak coordination with centre which effects the supply chain.

There is no Adverting in electronic and print media.

Banners and print advertisement need to be increased to aware of the

company, more schemes should be given to distributors, retailers/ dealer,

and mechanics and consumers.

Should invest more capital and find effective distributors.

Company official should visit retailer/dealers regularly so far only sales

executives have more interaction with the retailers.

|


38

Weak product shuffling.

Company lacks organizing for mechanics to promote Qalco as a brand and

make them learn about Qalco and its advantages.

Pamphlets and social proof actives lack.

Increasing prices of all products on regular bases is observed and Qalco

should act aggressively to increase customers based in the market in that

we have served

Sales forces should be improved to cover a market in a better way, most of

the sales executives have conflict and their problems should be resolved

and more incentives should be given.

No retail outlet of Qalco in the known area.

|


39

Suggestions

Qatar lubricant is growing its market share in Pakistan but still there is a

lot of challenges they have to face to be a market leader. Few of the

suggestions and recommendation which might help them are the

following.

Company should concentrate on doing meaning full adverting in

electronic and print media.

More advertisement is electronic media with clear vision and target.

Weekly and monthly advertisement about Qalco in local and national

news paper.

Banners and print advertisement should be increased

More Schemes should be given to distributors, retailers/ dealer, mechanics

and consumers.

Open Qalco Retail outlet.

Improve the service .

Retailers and Dealers:

More cash discounts on the purchase of large volume .

More margin should be given along the credit.

Yearly points schemes should be introduced.

Crash cards schemes should be there for the whole year

Some company official should visit retailer / dealers regularly.

|


40

Mechanics:

Company should be organize for machanics to promote qalco as a brand

and make them learn about qalco and its advantages .

Free gifts should be given at the time of camp to make them interested to

attend it

This will instill a feeling of promoting qalco as a brand

Customers scratch card scheme for the customers should be continue

Free pamphlets should be distributed to make them aware of all the

products of the company

Recommendation exclusive for the business development:

Castrol is increasing prices of all products on regular bases we have

observed that because that there are people for Castrol which shows the

people do spend for Castrol because of its quality and their product image,

being a multination company Qalco also have a good image and quality

products .

This is the time in Qalco should act aggressively to increase customers

based in the market in which is observed.

Retailors/distributors should be given priority and should be provided

with good promotion schemes advertisement should also be take care of.

Sales forces should be improved to cover a market in a better way.

Contract a social media marketing company for electronic media support

and build social proves.

|


41

Make a Capability department for the idea generation for the promotion

and attractive schemes.

Conclusion

It was a great experience working in Qalco lubricants since it was my first

experience to make a report on marketing. This provided me the opportunity to

have close look into the business activities. This explored my academic activities

understanding of the corporate business and industry conditions, ability to work

with others in an actual business environment. It improved my oral observational

presentation skill, interpersonal skills and communication skills. I came to know

how to communicate in the business world and attitudes of personnel and I got

confidence to move in the practical field.

During this short spam I have analyzed that In order to increase market shares the

company should increase its distributors. In other way to increase the market

share is that they can be made to switch Qalco brand by offering prices lower then

the competitors offering gifts and incentives .Quality is also major factor during

selection and buying of the lubricants .It should be continuously improve and is

its grade also must be improve depending on the technology growth as the

technology the automobile sector is continuously changing so its quality and

grades should improved dynamically according to technology. The market shares

can be increase by setting Qalco garage and should be available in the major cities

and by implementing this in present market .

|


42

Bibliography

http://www.qalco.net/

http://www.facebook.com/QALCO/info

http://www.zawya.com/company/profile/1001079/Qatar_Lubricants_Company/

http://www.mic.com.qa/mic/web.nsf/web/mic_qalco_berth6

http://www.oilandgaspages.com/details.php?

p=1&i=11706&c=757&cmp=QATAR%20LUBRICANTS%20CO.%20LTD.

%20(QALCO)

http://www.mic.com.qa/mic/web.nsf/web/mic_businesses

|

http://www.mic.com.qa/mic/web.nsf/web/mic_businesses

http://www.oilandgaspages.com/details.php?p=1&i=11706&c=757&cmp=QATAR%20LUBRICANTS%20CO.%20LTD.%20(QALCO)



http://www.mic.com.qa/mic/web.nsf/web/mic_qalco_berth6

http://www.zawya.com/company/profile/1001079/Qatar_Lubricants_Company/

http://www.facebook.com/QALCO/info

http://www.qalco.net/

final..2

Documents

lubricant demand

local market demand

local increasing demand

pakistan market

pakistans high demand

vibrant market

lubricant producers

number of exiting lubricant