QUESTION: Analyze vision statement of an organization assess how well the organizations activities are aligned to it?

I have selected BPCL (BHARAT PETROLEUM CORPORATION LIMITED)

INTRODUCTION

Burmah Oil Refineries Ltd. was incorporated in 1952 as a joint venture between Burmah Oil Company, UK and Shell Petroleum Company by an agreement with the Indian Government to set up a refinery at Mahul in Mumbai, which went on stream in 1957. In 1976 the Indian Government nationalized the petroleum industry and acquired 100% equity in Burmah Oil Refineries and named it Bharat Refineries Ltd. The name was later changed to Bharat Petroleum Corporation Ltd. (BPCL) in 1977. BPCL was an integrated refining and marketing company. It markets a diverse range of products from petrochemicals, solvents, specialty lubricants, aviation fuel and LPG. The Mahul refinery had a capacity of 6 million tons per annum and it operated at 127% of the capacity in the year ending March 2000. It also had an installed capacity of 98000 MT of benzene, 17600 MT of Toluene, 90000 MT of lubricants and 10950 MT of sulphur. It was the first Indian industrial unit to obtain ISO 9002 and ISO 14001 certification and the only Indian Refinery (and one of the 34 refineries worldwide) to achieve a Level 7 on the

International Safety Rating System (ISRS). BPCLs retail network was the third largest in the country with around 4,500 retail outlets (petrol pumps / gas stations), around 950 dealerships for kerosene and light diesel oil, and 1200 LPG distributors. It had 22 LPG bottling plants, 3 lube blending and filling plants, 6 port installations, 13 aviation service stations, 67 company operated depots and 23 dispatch units. It completed a 250 km long cross-country pipeline between Mumbai and Manmad in March 1998. It had a market share of around 22% in petroleum products and 20% in LPG. In 2000, the total sales grossed over 36,000 crores of rupees and 18.86 million tons of petroleum products. Industrial customers contributed to 27% of sales, LPG 7%, aviation fuel 3% and lubricants 0.5% of the total sales. The refinery and the marketing infrastructure are considered the best in the industry and most efficient.

VISION OF BPCL

We are the leading energy company with global presence through sustained aggressive growth and high profitability. We are the first choice of customers always. We exploit profitable growth opportunities outside energy. We are the most environment friendly company. We are a great organization to work for. We are a learning organization. We are a model corporate entity and social responsibility

VISION ANALYSIS

Highest capacity utilisation Merger of krl with bpcl has given it a competitive advantage in the industry. Wide experience in petroleum refining. Participative work culture conductive to team work. Adaptability to new technological change. Crude oil receipt facilities consisting of Single Point Morning and the associated off shore tank farm equip the refinery to receive crude oil in very large crude carriers at reduced cost. Exposure in free marketing of free trade products. Successful diversification in petrochemicals. Political intervention and trade unionism often result in loss of man hours due to hartals and lockouts. Lack of land facility and availability of proper roads. Environmental clearance problems.

 Inability to change the products to take advantage of prices due to the following constraints Nature of new materials Government directions Heavy dependence on imported crude. Private and joint venture refineries with no reservation and social commitment Manglore refinery (subsidiary of ONGC) which has cheaper labour cost

OPPURTUNITIES FOR THE GROWTH OF BPCL Deregulation in the energy sector resulting in several business opportunities for diversification and expansion. Deficit of products like LPG continues in the supply zone company Location advantages of being a costal refinery with acquirable land proximity The per capita oil consumption of India is much lower than the developed growth prospect in India New emerging business opportunities in gas sector with new domestic discoveries as well as related activities

BPCL firmly believe in inclusive growth and expend considerable effort towards social responsibility in all area of our operations While traversing on our path of sustainable development, we balance economic progress with social value, health, safety, security, and environment care. Our inspiring vision has been the stimulant for a high level of performance, catalysed by technology and powered by vibrant work force. We continuously explore opportunities and evolve innovative solutions, driven by our passion to enhance value for our customers, stakeholders, and society. We are committed to building a better world for generation to come through reaching out to people in myriad ways.

REFERENCE

BPCL Annual report 2010-2011. BPCL Website: www.bharat petroleum.com Wikipedia.