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Operations and Management assignment : British Petroleum

   

Added on  2019-12-28

14 Pages3503 Words211 Views
Operations Management

EXECUTIVE SUMMERY In the contemporary business environment, the success of an organization is greatlydepending on its operational efficiency. It includes management of production process, handlingof supply chain, arrangement of different resource etc. It has significant impact on quality ofproducts and efficiency of management. The present study evaluates different aspects ofoperations management with reference to business operation of British Petroleum. BritishPetroleum (BP) is a UK based multinational organization which is handling different businessoperations in almost 80 countries across the globe. Company has managed business functionsinto two as upstream and downstream. The upstream part of operations management isassociated with the finding of oil and gas. On the other hand, downstream segment ensures thetransportation and trading of different kinds of fuel products by using pipelines, ships, trucks andtrains as per the needs of supply chain. Furthermore, this report examines different businessstrategies and operations and has found that the safety and security of environment andemployees has been considered as key strategic issues of business operations due to occurrenceof various accidents such as Gulf of Mexico oil spill. Furthermore, expansion of business in biofuels and wind energy has been identified as future business opportunities for company. Thisreport also provides some recommendation in the context of key strategic and operational issueand has addressed that up-gradation in drilling norms and application of latest technologies suchas 3-D and 4-D Seismic Imaging and CO2-Sand Fracturing could help business entity in order toreduce safety issues.

TABLE OF CONTENTSINTRODUCTION................................................................................................................................1DESCRIPTION OF COMPANY AND BUSINESS CONTEXT........................................................1OPERATIONAL ANALYSIS.............................................................................................................5RECOMMENDATION........................................................................................................................7CONCLUSION....................................................................................................................................8REFERENCE.......................................................................................................................................9

INTRODUCTION The operations management is termed as a most important aspect of businessmanagement. The term operations management refers to the administration and development ofan appropriate combination of various business practices through which overall efficiency of anorganization can be increased. The primary objective of the operation management isconservation of all resources of an organization as efficiently as possible to maximize the profitof an organization (Al‐Rabadi and Zwick, 2004). This report is going to discuss key strategicissues faced by the management of British Petroleum during the process of operations. BritishPetroleum (BP) is identified as largest producer of oil and gas within UK. This report determinesdifferent aspects of operations management their importance on productivity of business entitythrough which overall profitability and business position is hampered. This study also providessome recommendation as per the strategic issues of BP. DESCRIPTION OF COMPANY AND BUSINESS CONTEXT British Petroleum (BP) is a UK based multinational organization which is managingbusiness in all over the world. The company was started its business as Anglo-Persian OilCompany in 1908 which was subsidiary of Burmah Oil Company. The company became theAnglo Iranian Company in 1935 and then become British Petroleum (BP) in 1854. The businessentity has developed a clear strategy by setting clear priorities, actively managing a qualityportfolio along with employing wide range distinctive capabilities (About BP, 2016). Theseentire factors are playing important role in the process of operations management. In this regard,the primary aim of the company is to create shareholder value by growing and ensuring thesustainable free cash flow over the long term so as business entity always tries to enhanceoperational capabilities of business along with several management practices. In this process,management has aimed to run safe, reliable and compliant operations through which businessentity can ensure better operational efficiency and safety performance. In the context of oil and gas business, cost of projects are very high therefore businessentity has adopted different strategies in order to achieve competitive project execution in whichmanagement ensures about the project delivery process therefore different project are deliveredefficiently on time and on budget (Chary, 2009). The management has ensured about company'sability in order to deliver best practices as per the business priorities so as management has builta right portfolio that depends on our distinctive capabilities. In addition to that business entity1

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