PROPOSALS

Course: Business Communication (5002)

Dated: 01/04/2021
Submitted To: Ms. Ayesha Imran
Submitted By: Muhammad Waqas
Roll No. CC506500
Level: MSC Administrative Sciences
Semester: Autumn-2020
Acknowledgements
Innumerable thanks to “The Almighty Allah”, the merciful and the source of all knowledge and
wisdom. Who bestowed upon me health, thoughts, talented teachers, opportunities and power of
communication and Darud on His Prophet Muhammad (SAW), who gave me enough courage to
complete this task? Words are few in honor of Chairman, Department of Education, Allama Iqbal
Open University Islamabad, for his support and facilitation on the right time to complete my
research work.
I owe heartiest gratitude and deep sense of obligation to may supervisor, Allama Iqbal Open
University Islamabad for her consistent encouragement, constructive criticism, inspiring guidance,
ever friendly and loving attitude and immense cooperation at various stages whenever I needed
her guidance without which this piece of research would not have been accomplished.
It is a great privilege for me in record my hearties and my sincere thanks to my class fellows for
their energetic cooperation and help in this study. It is a great pleasure for me to record my
profound appreciation to my friends, who in true sense of words are a precious blessing of Allah
for me. I whole heartedly acknowledge them for their sincerity, affection, support and guidance.
Last but not least, I am grateful from core of my heart to my loving parents and their financial and
interpersonal support who always pray for my health and brilliant future. I wish to thank to
everyone who helped me a lot to make this work reality.
Abstract
Business communication proposals for the most part an informational presentation, the ultimate
goal of the proposal. It can outline the details of a project proposal or design, document and analyze
experimental results, advocate a course of action based on available data, and verify and assess the
results of other formal studies. A business communication proposal offers a number of advantages
for the reader and the researcher, all of which hinge on its basic characteristics.
My topic is to present a business proposal on any of the company, therefore I had select PSO,
Pakistan State Oil Company works as a largest oil distribution company in Pakistan. In the research
process, it has been found that the potential is available in the oil products like Lubricants etc. in
the overall Pakistani market. PSO has the ability to work nationwide and it may start its own plant
for refinery and packaging purpose to increase the overall turnover. The detailed working and
research of the proposal is discussed below.

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 Table Of Contents
1. Introduction to the topic ...................................................................................................................... 3
Types of proposals .................................................................................................................................. 3
Proposal request (RFP)............................................................................................................................ 3
Bid invitation (IFB)................................................................................................................................... 3
Information request (RFI) ....................................................................................................................... 3
Proposal for formal application .............................................................................................................. 4
Unsolicited proposal ............................................................................................................................... 4
Formally solicited proposals ................................................................................................................... 4
Informally solicited business proposal.................................................................................................... 4
Managing business proposals ................................................................................................................. 4
The Process of Proposal Management ................................................................................................... 5
2. Practical Study of Organization: ......................................................................................................... 5
i. Introduction of Organization: ....................................................................................................... 5
ii. Segmentation, Targeting and Positioning of Proposal ................................................................. 6
iii. Reason for opportunity: ............................................................................................................... 7
iv. Promotion: .................................................................................................................................... 7
v. Distribution: .................................................................................................................................. 7
vi. Project Area: ................................................................................................................................. 8
vii. Proposed Business Status: ............................................................................................................ 8
viii. Project Capacity: ........................................................................................................................... 8
ix. Applicable Economic Size: ............................................................................................................ 9
x. PRODUCTION PROCESS: ............................................................................................................... 9
3. SWOT Analysis: ............................................................................................................................... 10
i. Strength:...................................................................................................................................... 10
ii. Weakness: ................................................................................................................................... 10
iii. Opportunities: ............................................................................................................................. 10
iv. Threats: ....................................................................................................................................... 10
4. Conclusion & Recommendations: .................................................................................................... 10
5. References ......................................................................................................................................... 11

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1. Introduction to the topic
A term of business proposal is a written offer from a seller to a prospective buyer. Business
proposals are often a key step in the complex sale process i.e., whenever a buyer considers more
than price in a purchase.
A proposal puts the buyer’s requirements in a context that favors the seller’s products and services
and educates the buyers about the capabilities of the seller in satisfying their needs

Types of proposals

There are three distinct categories of business proposals:

 Formally solicited
 Informally solicited
 Unsolicited
Solicited proposals are written in response to published requirements, contained in a request for
proposal (RFP), request for quotation (RFQ), invitation for bid (IFB), or a request for
information (RFI).

Proposal request (RFP)

RFPs provide specific details of what the customer wants and sometimes include indications for
preparing the proposal, as well as the evaluation process the customer will use to evaluate the offer.
Customers issue RFPs where their needs can be met with products or services that are commonly
available. RFIs are issued to suit vendors who are interested in providing services / products for
specific needs. Based on the response to RFI, detailed RFP is provided to qualified vendors by an
organization that it believes can provide the required services. Suggestions that respond to RFPs
are usually less than 10 pages and sometimes up to 1,000 pages, excluding cost data. Request for
quotation (RFQ)
Customers issue RFQs when they want to purchase large quantities of goods and the price is not
the end of the matter - for example, if availability or delivery or service is a consideration. RFQs
can be described in detail, so suggestions written to RFQs may be longer but are usually much
shorter than the RFP proposal. RFQ recommendations contain cost data, with brief histories
addressing customer issues, such as quality control.

Bid invitation (IFB)

Customers issue IFBs when you buy something, such as construction. The requirements are
detailed, but the main consideration is price. For example, a customer offers building plans that
contractors can bid on. These proposals may be longer but the greater length comes from cost
estimates and detailed schedules.

Information request (RFI)

In some cases before the customer issues an RFP or RFQ or IFB, the customer will issue a Request
for Information (RFI). RFI’s goal is to acquire “marketing intelligence” in terms of which
products, services, and vendors are available. RFIs are used to formulate final RFPs, RFQs, and
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IFBs, so potential vendors are very careful in responding to these requests, hoping to create a final
legal application for their products or services.

Proposal for formal application

Legally requested proposals are often the result of negotiated discussions between the seller and
the potential buyer. The customer is interested enough in a product or service to request a
suggestion. Usually, the customer does not ask for competitive proposals from other vendors. This
type of suggestion is known as a single source proposal. There are no legal requirements for
response. But they prefer good product quality.

Unsolicited proposal

Unsolicited suggestions are marketing brochures. They are always common, with no direct link
between customer needs or specific needs. Vendors use them to present a product or service to a
potential buyer. They are often used as "leave-backs" at the end of initial customer meetings or
"empowerment" at trade shows or other public meetings. It is not intended to close the sale, just
introduce the possibility of sale.

Formally solicited proposals

1. Requirements Matrix, which matches customer requirements with the paragraph and page
numbers of where those requirements are addressed in the proposal
2. Executive Summary, which outlines the primary benefits of the vendor's solutions to the
customer's requirements
3. Technical Volume, which demonstrates how each requirement will be met
4. Management Volume, which describes how the program will be managed
5. Cost Volume, which provides all costing data, as well as implementation plans and
schedules

Informally solicited business proposal

1. A description of the seller's capabilities or products

2. A discussion of key issues
3. A description of the buyer's specifications and how they will be met
4. The cost of the offering
5. A schedule for delivery of the products or services
6. Proof of prior experience i.e. Testimonials from previous customers, Descriptions of
previous project

Managing business proposals

Managing proposals poses a huge challenge for marketing and marketing teams. Many
established management systems are not ready to deal with the wide range of problems
associated with the production and delivery of proposals. In these cases, organizations often rely
on disbursements by appointing a proposal manager to support their proposal development
needs.
pg. 4
The Process of Proposal Management

Proposal management is an inherently collaborative process. It often consists of the following

basic roles and responsibilities:
 Creator – responsible for creating and editing content.
 Editor – responsible for tuning the content message and the style of delivery, including
translation and localization.
 Publisher – responsible for releasing the content for use.
 Administrator – responsible for managing access permissions to documents and files, usually
accomplished by assigning access rights to user groups or roles.
 Consumer or viewer – the person who reads or otherwise takes in content after it is published
or shared.

Increasingly, the term proposal management is used to suggest that participation in the proposal
process is more important than just the marketing team, and should also affect those involved in
marketing, legal, and marketing.
Some authors refer to key sections in the proposal management process using color codes to
indicate landmark reviews, for example black hat reviews. The Association of Proposal
Management Professionals (APMP) refers to the black hat review as an independent review of
strategies and suggestions that may be passed on by competitors. According to Carl Dickson of
the Capture Planning website, a review of black hats should tell the organization which competitors
are stronger in their weak spots and which ones are weaker where they are strong, so it can also be
used to determine if working with one rival organization can be a viable proposal. Other colors are
used in relation to groups: the pre-writing review review is sometimes referred to as the "Pink
Team", the official review can be called the "Red Team", and the term "Golden Team" indicates a
previous post review. Dickson notes that these terms are not defined consistently.
Accompanying the process of managing the proposal is the decision of whether to send a bid,
which is supported by a catch-up plan.
There is also a tendency to use suggestion management software, which allows users to create
suggestions quickly and easily, collaborate with team members, track and analyze customer
engagement.
2. Practical Study of Organization:
i. Introduction of Organization:

The creation of Pakistan State Oil (PSO) can be

traced back to the year 1974, when on January 1st; the
government took over and merged Pakistan National
Oil (PNO) and Dawood Petroleum Limited (DPL) as
Premiere Oil Company Limited (POCL).

Soon after that, on 3rd June 1974, Petroleum

Storage Development Corporation (PSDC) came into
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existence. PSDC was then renamed as State Oil nn 1976) saw the merger of the Premier Oil
Company Limited and State Oil Company Limited, giving way to Pakistan state Oil (PSO).

After PSO’s inception, the corporate culture underwent a comprehensive renewal program
which was fully implemented in 2004. This program over the years included the revamping of the
organizational architecture, rationalization of staff, employee empowerment and transparency in
decision making through cross functional teams. This new corporate renewal program has divided
the company’s major operations into independent activities supported by legal, financial,
informative and other services. In order to reinforce and monitor this structural change, related
check and balances have been established by incorporating monitoring and control systems.
Human Resource Development became one of the main priorities on the company’s agenda under
this corporate reform.

It is due to this effective implementation of corporate reform and consistent application of

the best industrial practices and business development strategies, that PSO has been able to
maintain its market leadership in a highly competitive business environment.

PSO is the market leader in Pakistan’s energy sector. It’s a public sector company with the
government shares of 25%. The company has the largest network of retail outlets to serve the
automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces
and agriculture sector. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan
and ship fuel at 3 ports. The company takes pride in continuing the tradition of excellence and is
fully committed to meet the energy needs of today and rising challenges of tomorrow.

Pakistan State Oil is currently engaged in storage, distribution and marketing of various
POL products. The company’s current market share of 82.3% in the black oil market and 59.4%
share in the white oil market, alone speak volumes about its success.

From 1999 to 2008, PSO have undergone radical changes, both internal and external and
has emerged as a market leader with a long term vision. The company is the only public sector
entity in Pakistan that has been competing effectively with three multinationals (shell, Caltex and
Total) which are supported technically by their parent organizations.

ii. Segmentation, Targeting and Positioning of Proposal

Following segments of the consumers can be targeted for marketing.

 Motorcycle Oil Users (MCO)

 Passenger Car Motor Oil Users (PCMO)

 High Speed Diesel Engine Oil Users (HSDEO)

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 iii. Reason for opportunity:

For cosmetics manufacturers, Pakistan is a very lucrative and powerful market due to
consumption patterns that have been strong for many years due to the increase in traffic and the
high demand for electric generators in Pakistan.

Pakistan imported approx. 231 million liters of lubrication from around the world has an
import value of USD 178 Mn. in 2016 and the local refining product in 2016-17 was recorded at
193,741 KL.

iv. Promotion:

At the beginning of limited production, the company will rely on a combination of pull-
and-pull strategy; however the situation will change with increasing power consumption where the
drag object will be reduced and may be reduced in competition. Therefore, the company requires
that by May 2018 6 it renew its late promotional strategy and target both buyer and seller / sellers
to sell their product. Regular sales promotions and promotions should be targeted at merchants and
retailers while discount coupons and gift plans should be targeted at retailers, equipment, retailers
and end buyers. The market place is already very crowded with all the big brands emphasizing the
high quality of their products, which is why the front runner brand will be the one that offers the
best incentives to sellers and buyers. Review its late promotional strategy and point out to both
buyer and seller / sellers to sell their product. Regular sales promotions and promotions should be
targeted at merchants and retailers while discount coupons and gift plans should be targeted at
retailers, equipment, retailers and end buyers. The market place is already very crowded with all
the big brands emphasizing the high quality of their products, which is why the front runner brand
will be the one that offers the best incentives to sellers and buyers.

v. Distribution:

Oil-based products will be sold to retailers and retailers by authorized distributors

nationwide. Products must be placed in all POL-related retail stores nationwide.

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 vi. Project Area:
This plant can be set up in any industrial area in any major city across the country.
vii. Proposed Business Status:
The legal entity of the business will be Private Limited and registered with the SECP.
Licensing for the construction and operation of an oil mixing facility and licensing as an Oil
Marketing Company from the Oil & Gas Regulatory Authority (OGRA) must be obtained.
viii. Project Capacity:
The crop concentration capacity is 3,600,000 liters annually, assuming 300 working days
per year. In addition, this plant has a capacity of 50,000 liters per month to consolidate the energy
of a third person.

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 ix. Applicable Economic Size:
The total investment required for this project is Rs. 96.01 million. This investment mainly
takes into account the cost of Rs. 64.53 million and cash transactions amounting to $ 31.47 million.
x. PRODUCTION PROCESS:
The process of producing lubricants mainly depends on the base oil and additives used,
but the overall performance is based on a simple mixing head. Process recognition is shown below:

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3. SWOT Analysis:
i. Strength:
a) Leading Public Sector Company of Pakistan, PSO has been driving the wheels of the
national economy and is the first public company to pass the 1 Trillion rupee revenue
mark.
b) The Company possesses the country’s largest storage capacity representing majority
of the nation's total storage capacity.
c) PSO possesses the largest distribution network in the country comprising of 3500+
outlets
d) Financial Stability with strong reserves, paid up capital adds to the trust of shareholders
e) Relations with government is one of the greatest strengths of PSO in order to get legal
protection
f) Product line widths adds long range of products for more revenue opportunities

ii. Weakness:
a) Lost & Dissatisfied customers are major weakness of PSO as they are causing the
perception of inefficient PSO
b) Old retail outlets are major weakness for PSO as they are not enough capable to
compete the Shell outlets
c) Quality assurance is not so effective to build image of “Quality and Quantity”

iii. Opportunities:
a) Exploring new product markets, expanding the lubricants product range, further
expansion of the company retail network, and reducing product movement costs.
b) Afghanistan’s Market is the biggest opportunity for OMCs in Pakistan.
c) De-regularities of Oil industry in Pakistan add the opportunity to fill the deficiency in
few sectors of petrochemicals markets
d) Export Opportunities of Black Oil Products is also adding the opportunities by
exporting Black Oil products, which is facing downfall due to the introduction Gas
Oil.
e) Industrial & Trade growth in Pakistan is also the opportunity for PSO as they are
adding revenues in Power sector that is the major customer of PSO.

iv. Threats:
a) Risk of forward integration of Supplier is the key threat for PSO and other OMCs in
Pakistan
b) Risk of diversification in new technology is also a key threat to PSO as new technology
is leading to decline in its products.

4. Conclusion & Recommendations:

The PSO is a nationwide leading state oil company and has limited restrictions to work for
country and for itself. There is a lot of opportunity to capture the overall market to increase the net
overall turnover.
I’ll recommend PSO should place its own plants and should start its own refined products
which may include oil, lubricants, filters and service areas for the all type of transport vehicles.

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5. References
i. https://psopk.com/en/home
ii. https://www.scribd.com/document
iii. https://ieeexplore.ieee.org/
iv. https://www.academia.edu/
v. https://en.wikipedia.org/wiki/Category:Wikipedia_proposals

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