Contemporary Business Environment: Micro and Macroeconomics Components and Theories, Management and Leadership Theories of British Petroleum

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................6
Task 1...............................................................................................................................................6
Micro and Macroeconomics Components and Theories.............................................................6
Task 2...............................................................................................................................................8
Management and Leadership Theories........................................................................................8
Globalized Environment of British Petroleum............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................13

INTRODUCTION
Contemporary business environment is defined as the current business environment
circumstances and ideas in present time. In the current competitive market contemporary
business environment are increasing. British Petroleum Company plc is the British oil and gas
company, headquarters in London established in 1909. It is the seventh biggest company in the
world which operates its business in all oil and gas industry. On January1, 1995, British
Petroleum became a holding company and later on in 1977 the British government sells the
shares to public and reduced its ownership. In the 1980s the government turned British
Petroleum to private ownership by selling it all remaining shares (Hobbs, 2019). In the process
of its operations and productions company find a developed hydrocarbon resources, refineries,
operate oil, gas production assets and pipelines and terminals across the world. The vision of the
British Petroleum Company is to become a leading hydrocarbon business industry and the engine
room of the integrated energy company.
To solve the biggest issues in the economy company will reduce the carbon emissions,
improves the efficiency, flexibility deploying talent, integrated across value chain. And the
mission of the British Petroleum is to provide the highest quality products, services and solutions
to customers and delivering more values to the customers and earn the loyalty and respect from
them. The aim of the company is to use natural based solutions which delivers the value and
contributes to the society, people, environment and planet through operating its business
activities and using the materials for long period to a good life cycle. The purpose of the British
Petroleum is to reimagine energy for the planet and the people and the aim to become a net zero
company by 2050. Aims and objectives of the British Petroleum is to become net zero operations
and it targets a reduction of 20 percent in operational emission till 2025 and aim of 50 percent
reduction by 2030 (Ceil, 2019).
The second objective is to become net zero production till 2050 in carbon and in
upstream of oil and gas production. British Petroleum targets a reduction of 20 percent carbon till
2025 and 35-40 percent by 2030. The scope of the company is to care for the planet by covering
water management, biodiversity and the nature based solution which includes the reduction or
removal of carbon emissions. The decline in biodiversity and the degradation of the environment
was the serious risk for the planet. Due to the uncertainty of Covid-19 it impacts every business
across the world. British Petroleum support team and leadership teams were addressing and

responding daily to the uncertain changes in the conditions. Company focused on supporting
government to limit the spread of Covid-19 by considering the supplies of fuel and energy.
During pandemic company also provides free foods to people by its UK retail sites.
There is a fall in the commodity and stock price of company due to crisis. The largest
shareholder of the company is State Street Corporation which is a global financial service
company in Boston. It offers institutional investors a range of products and advisory services for
investments (Chofreh and et.al., 2021). State Street Corporation owns about 26.8 million shares
which is 9.5 percent of the company. BlackRock Incorporation holds 16.3 million shares which
represent 5.7 percent of the company. British Petroleum employees over 80.000 people over the
world, the stakeholder affects by the company's performance and also influenced by the
company's performance. The company commits to provide the excellence of health and safety to
customers which helps the company to maintain important position in the sector.
Digitalization in every business helps the business to improve the efficiency of
operations make process easy and increases the speed. David Eyton leads the innovation and
engineering part in British Petroleum. David identifies the threats which it can demonstrate to
play a central and integrating role in providing value creation across British Petroleum. It
mentioned four points which can be followed- Firstly, it understands the licence to innovate
which is based on the operation, safety and security of licence to continue investments.
Secondly, they created a single organization to provide innovation as a service to customers and
British Petroleum, decreasing carbon, providing high returns. Thirdly, it planned to double the
capital investment in digitalization by 2050 of $1.5 billion. Lastly, its aspiration is to create
around 10 new digital business in 2022 focusing on the intelligent commodities and sensing with
a billion dollar potential (AlMulhim, 2021).
British Petroleum has strategies of ICT influence which includes integrating energy
system, driving digital and innovation, partnering with countries, cities and industries. The
company contributes to the creation of value from the source of digital and innovations. The four
sources are- The first and the second sources focuses on the digital investments in the existing
business by transforming core operations and to extend the customer access. Third source
focuses on the reducing carbon emission relation to British Petroleum's operations and products.
And the fourth source is for investing in new digital business which are adjustable to the existing
business of the company.