British Petroleum: Business Strategies, Resources and Sustainability

This report discusses the business strategies, resources, and sustainability initiatives of British Petroleum. It covers the company's strategies of low carbon electricity and energy, convenience and mobility, and resilient and focused hydrocarbons. It also analyzes the company's resources and capabilities using the VRIO analysis model and discusses how it can implement environmental sustainability science to become more competitive. The report concludes with the company's sustainability initiatives and measures taken to avoid negative consequences on the environment.

British Petroleum

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identify with evidence the key business strategies of the company over the past five years.
................................................................................................................................................3
Use related frameworks to discuss why this strategy was pursued or changed.....................3
Identify with evidences the resources and capabilities of the case study company over the past
five years and analyse to what extent the company has aligned its resources and capabilities to
its business strategies..............................................................................................................5
Evaluate with evidence how British Petroleum can implement environmental sustainability
science, theories and ways of thinking to become more competitive...................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is a process which helps companies in setting goals and objectives
to become more competitive in market (Cavaleri and Shabana, 2018). Different processes are
included under this such as evaluation and analysis of strategies, analysis of internal environment
of organisation and finally execution or implementation of strategies in company operational
functionality. On the other hand sustainability is defined as doing of business in such a way
without impacting environment and community where it is operating. Combination of strategic
management and sustainability is defined as a process of planning of strategies for attainment of
goals of an organisation without negatively affecting the environment in which it is operating. In
this report, British Petroleum company is taking into consideration which was founded in 1909
having headquartered in Lunnon, Ingland, Unitt Kinrick. Given report will include all the
strategies companies uses over the past five years and reason behind implementation or pursued
of strategies (Chofreh and et.al 2021). Different types resources that help companies in
formulation of their strategies. Several sustainability science and theories that help company to
become competitive in market.
MAIN BODY
Identify with evidence the key business strategies of the company over the past five years. Use
related frameworks to discuss why this strategy was pursued or changed.
British airways have planned different strategies over the period of last five years. By
implementing such strategies, the management of business planned to increases its annual low
investment 10- fold to around $5 billion dollar a year. Building a portfolio of strategies has
helped give company to getting down carbon technologies which include renewable, bioenergy
and other hydrogen and CCUS gases .
Several strategies implemented by companies over the past five years are Low carbon
electric and energy, convenience and mobility and resilient and focused hydrocarbons
These strategies will focus on several areas of business such as producing of electricity by low
carbon electricity and energy, enabling convenience and mobility, and maintaining resilient and
focussed on hydrocarbons(Our strategy,2021).

 Low carbon electricity and energy- By this strategy given comp nay would be able
integrate natural gas capabilities with significant growth in low and zero carbon
businesses and markets. This strategy was pursued because of following goals company
wants to achieve.
1. Management of company wants to invest in renewable energy capacity by 2025 and 50
gigawatts in 2030.
2. They also want to grow their integrated gas portfolio which include equity gas, LNG and
merchant portfolio.
3. British Petroleum also wants to hold their position in hydrogen and CCUS by holding
10% share of hydrogen in core markets.
 Convenience and mobility- This strategy was pursued by management of given
company for achievement of following goals such as-
1. Management of company wants to achieve advanced market growth by opening sites in
more than 8000 locations (Our strategy,2021).
2. British Petroleum also wants to redefining their convenience by getting 50% market share
from convenience and electrification.
 Resilient and focussed hydrocarbons- By adopting this strategy company focus on
developing low carbon energy and a corresponding reduction in oil and gas production.
This strategy was adopted for achievement of following goals such as:
1. Reduce the production by 40% by 2030 and create a resilient, lower cost carbon oil and
gas..
2. Improving or rising in cash flow which will help to fund transition for an integrated
energy company (Our strategy,2021).
Identify with evidences the resources and capabilities of the case study company over the past
five years and analyse to what extent the company has aligned its resources and
capabilities to its business strategies.
There are several resources management of British airways has used over a period of five years
and their capabilities are judged by using VRIO analysis model.
Resources Valuable Rare Inimitable Organized
Financial Financial Financial Financial Financial

resources resources resources resources resources
Human
resources
Human resource Human resource Human resource -
Patents - patents Patents -
Food products Food products - - -
Financial resources
 Valuable- Financial resources of British Petroleum in considered as valuable resource for
an organisation because this helps companies in investing in various projects for gaining
external opportunities. Moreover with the help of this resource given company would be
able to combating external threats which helps to rise in profitability of company(VRIO
Analysis of British Petroleum PLC ,2018).
 Rare- Given resource is considered as rare for an organisation because other companies
have to plan different strategies to rise in sales of their products in company. Such
strategies are difficult to implement to by other companies in market. Hence British
Petroleum has a longer existence in market as a result they had planned those strategies
so many years back. Therefore this a reason that financial resources is considered as rare
resource for company .
 Inimitable- This resource is considered as difficult to copy by competitors in market.
The strong financial position which the given company has attain by those companies
whose profits constantly rises on year to year bases. Companies which are newly formed
in market have to constantly make profit in order to reach at this stage. At the time of
tough competition it is not possible for companies to attain such a big profit. Therefore
this is considered as inimitable resource by an organisation.
 Organized- Financial resource is considered as organised resource for company because
this helps management of company to plan strategies about which project or investment
avenue to invest for enabling the use of opportunities and reducing external threats. This
resource help companies to attain competitive advantages in market. Hence it is put in a
category of organised resource for given company.
Human Resource

 Valuable- Employees are considered as valuable resource for given company because
the staff of mentioned company is highly trained which helps to generate more
productive output for an organisation. Moreover all staff are loyal and committed to their
work which management has assigned to them. All the efforts of human resource help
company to provide greater value to customer. Therefore it is considered as valuable
resource for an organisation.
 Rare- Given resource is considered as rare for British petroleum because there are so
many employees who are highly skilled which is not in the case with other firm in
market. Apart form that given company also provide better compensation and work
environment to its employees that they do not even think to leave an organisation and
join another one.
 Inimitable- Human resource of British Petroleum is considered as inimitable resource for
an organisation because no other company in market can provide good package to its
employees because of market monopoly of given firm in market. Due to market
monopoly other companies find it hard to generate profits. Moreover kind of work
environment and culture given firm is give is difficult for other companies to enable.
Therefore it is shown that this resource inimitable by other companies in market.
Patents
 Rare- Mentioned resource is considered as rare resource for an organisation because
patents are not easily available and cannot use by other competitor in market. With the
help of patents companies can manufacture their products without interference from the
competition .
 Inimitable- Respective resource is considered as inimitable by an organisation by having
a patent rights competitors are not allowed to make similar products which existing
company is making. Moreover developing and getting a patent is also a costly and
expensive process. Hence it is considered as inimitable by an organisation.
Food Products
 Valuable- British Petroleum food products are highly differentiated as a reason the value
which they provide to their customers are always high. Moreover they are also valued
high due to the differentiation they provide to their customer in market much more than
their own competitor (VRIO Analysis of British Petroleum PLC ,2018).

Above discussed resources has helped mentioned company in formulating business strategies so
many ways.
 Human resources- The major purpose behind British Petroleum is to produce of
electricity with low carbon electricity and energy. For implementing this strategy the
mentioned firm has provided proper training to their staff members regarding how to
produce electricity with the help of low carbon electricity and energy. Employees has
also helped organisation by working long hours to attain this objective (Durand, Paugam
and Stolowy, 2019).
 Financial resource- Money plays a very important role while executing these stargates
in operational functionality of British Petroleum. For purchasing those technologies
which help firm in production with low carbon dioxide and energy are very costly
therefore given organisation has to purchase them by either use their own money if they
have sufficient fund or they can also take loan from market (Zeemering, 2018).
 Patents- Given organisation has to use several technologies for implementation of their
strategy of low carbon electricity and energy. Therefore an organisation has to use
patents on their machines whichever they use for production. Patents give security to
respective company that no other company in market can use the same technology.
Hence this allow firms to attain competitive advantage in market (Hawn, Chatterji and
Mitchell, 2018).
Evaluate with evidence how British Petroleum can implement environmental sustainability
science, theories and ways of thinking to become more competitive
Sustainability management help companies in focussing on making positive difference in the
environment in which it operates. The purpose is to protect the planet through protecting
biodiversity, water bodies and nature by reduction of carbon emissions, circularity and
sustainable purchasing. There are several ways by which respective company can implement
sustainability in environment are as follows:
 Enhancing biodiversity- For improving biodiversity, mentioned company is planning to
work on several projects from 2022 with the aim to achieve net positive impact, having a
target to achieve 90% of their actions within five years of project approval. Along with it,
management of company is also planning to develop biodiversity at their major operating

sites to provide sustainable use of natural resources where they have current or growing
investments (Caring for our planet,2021)..
 Water positive- By this strategy mentioned company has aim to use more freshwater for
consumption in their operation. For achieving this aim company will use efficient
operational freshwater by collaborating with others to fill freshwater in the areas where
firm is operating. The British Petroleum is planning to achieve this aim by 2035.
 Championing nature based solutions- With the help of this strategy, management of
company is planning to use nature based solutions(NBS) to provide value to the people
and planet through this business operations. Moreover, company will also do their
development in scalable markets that would help the worlds to reduce deforestation and
can provide environmental and social benefits.
 Unlock circularity- British Petroleum keeps their materials in use longer period of time
and value them throughout their life cycle. Management of company will do this by using
their resources in developing design and operations and aim to develop relationship by
joint venture for creating opportunities.
 Sustainable purchasing- By this the aim management of given company wants to work
with their suppliers by following sustainable practices. Developing focus of decreasing
greenhouse gas emissions and increasing the circularity of the products which company
buys for sell in market (Caring for our planet,2021).
While British Petroleum do their operations it sometime negatively affect the
environment. Therefore several measures have been taken by company to avoid negative
consequences such as:
 Decommissioning- The management of company has use decommissioning technique
for prevention of environment due to its operations. By this British Petroleum have
closed down the site and to pay special attention regarding reuse, recycle or properly
dispose of materials. This technique helps company to know whether material is able to
get back into production system or nor (Anh, Huy and Phuc, 2021).
 Climate change adoption- There are several climatic change affects the operational
functionality of firm such as floods, rising in sea level, surrounding communities and
many more. Therefore, in order to deal with different climatic changes, management of
company is working on different projects to assess risks and identify relevant preventive

and mitigation errors. British Airways also use various relevant external risk indices to
know weather science and modelling. This relevant tool help business to meet their
critical business needs .
 Hydraulic fracturing- By this technique, management of mentioned company has
designed so many wells for the purpose to reduce water contamination. For this the
company have install multiple layers of steel into each well and protect freshwater
aquifers by cement barriers. Given process helps in creating small earth tremors for
which companies mitigate that risk by their designs .
CONCLUSION
On the basis of above report it has been concluded that strategic management and
sustainability plays a very important role in operational functionality of business. By this,
company would be able to achieve its strategic goals without affecting the environment. In this
report, it has been discussed various strategies that company have used in their operations for the
period of five years aloing with the reaosn regarding their adoption. Next to it different types of
resources haven been discussed aloing with their uses in competition of strategy. Moreover
different types of ways regarding environment sustainability has also discussed which British
Petroleum can apply in their business operations to achieve competitive advantage.

REFERENCES
Books and journals
Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Chofreh, A.G., Goni, F.A., Klemeš, J.J., Moosavi, S.M.S., Davoudi, M. and Zeinalnezhad, M.,
2021. Covid-19 shock: Development of strategic management framework for global
energy. Renewable and Sustainable Energy Reviews, 139, p.110643.
Durand, R., Paugam, L. and Stolowy, H., 2019. Do investors actually value sustainability
indices? Replication, development, and new evidence on CSR visibility. Strategic
Management Journal, 40(9), pp.1471-1490.
Zeemering, E.S., 2018. Sustainability management, strategy and reform in local
government. Public Management Review, 20(1), pp.136-153.
Hawn, O., Chatterji, A.K. and Mitchell, W., 2018. Do investors actually value sustainability?
New evidence from investor reactions to the Dow Jones Sustainability Index
(DJSI). Strategic Management Journal, 39(4), pp.949-976.
Anh, P., Huy, D.T.N. and Phuc, D.M., 2021. Enhancing Database Strategies for Management
Information System (Mis) and Bank Sustainability Under Macro Effects-A Case Study
in Vietnam Listed Banks. Academy of Strategic Management Journal, 20, pp.1-15.
Mura, M., Longo, M., Micheli, P. and Bolzani, D., 2018. The evolution of sustainability
measurement research. International Journal of Management Reviews, 20(3), pp.661-
695.
de Oliveira, A.C., Sokulski, C.C., da Silva Batista, A.A. and de Francisco, A.C., 2018.
Competencies for sustainability: A proposed method for the analysis of their
interrelationships. Sustainable Production and Consumption, 14, pp.82-94.
Darwish, S., Gomes, A.M. and Ahmed, U., 2021. Risk Management Strategies and Impact on
Sustainability: The Disruptive Effect of Covid 19. Academy of Strategic Management
Journal, 20, pp.1-19.
Drobyazko, S., Okulich-Kazarin, V., Rogovyi, A., Goltvenko, O. and Marova, S., 2019. Factors
of influence on the sustainable development in the strategy management of
corporations. Academy of Strategic Management Journal, 18, pp.1-5.
Cantele, S. and Zardini, A., 2018. Is sustainability a competitive advantage for small businesses?
An empirical analysis of possible mediators in the sustainability–financial performance
relationship. Journal of Cleaner Production, 182, pp.166-176.
Nawaz, W. and Koç, M., 2018. Development of a systematic framework for sustainability
management of organizations. Journal of Cleaner Production, 171, pp.1255-1274.
Our strategy,2021, .[online]. Available at:<https://www.bp.com/en/global/corporate/what-we-
do/our-strategy.html>
VRIO Analysis of British Petroleum PLC ,2018.[online]. Available
at:<https://www.case48.com/vrio-case/6722-British-Petroleum-PLC-and-John-Browne-A-
Culture-of-Risk-Beyond-Petroleum-A>
Caring for our planet,2021.[online]. Available
at:<https://www.bp.com/en/global/corporate/sustainability/caring-for-our-planet.html>