Strategic Management and Sustainability: Analysis of Competitive Environment of British Petroleum

Strategic
Management and
Sustainability

Table of Contents
INTRODUCTION ..........................................................................................................................1
OVERVIEW OF THE CASE..........................................................................................................1
MAIN BODY...................................................................................................................................1
Critical Analysis of Industry as well as The Sector...............................................................2
Competitive Environment of British Petroleum.....................................................................5
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
Strategic management is continuous process of planning, analysing, monitoring and
assessing the requirements of an organisation to meet and achieve their goals and objectives.
Consistent changes in business and its environment will require companies to pervasively alter
their strategies for maintaining growth. Sustainable strategic management means making efforts
and leading ways in improving the social and environmental impacts of human activities. British
Petroleum Retails (BP) is among the growing retail companies in the world, established in the
year 1909 and headquartered at Westminster, London. This report covers an analysis of retail
industry as well as the sector. Moreover this report covers an analysis of competitive
environment of British Petroleum Retails in order to study its competitive status in the industry.
OVERVIEW OF THE CASE
It has been observed that in the year 2021 the petrol stations were halted after the
nationwide shortage of supplies for heavy goods vehicles (HVG). British Petroleum Retails
apologised for the current scenario of lacking in the supply of their products in their supply
shops in UK. They explained that some of their supply sites are temporary being closed due to
lack of supplies and user suppliers. It was found that this situations aroused after the meeting
between the government and executives from huge companies about the Britain's supply chain
crisis (O’Brien, Wellbrock and Kleer, 2020). Another statement added by Downing Street
claimed that there isn't the shortage of supplies. This put more political pressure regarding the
growing demand to take actions to ease shortage of supply chain and labour during pandemic
and Brexit. The companies are planning to create outsourcing and visa schemes to attract
workers on farms, industries and road haulage firms. But the situations are threatened by Rod
McKenzie of Road Haulage Association, that accused ministers by dramatic opposition
regrading the start of visa schemes to attract workforce.
MAIN BODY
The sustainability strategic management process helps an organisation to accumulate
stats of their prevailing scenarios, plan new strategies, formulate them, apply and analyse its
impacts on management strategies (Skok, 2020). Internal and external environment factors that
provides imperatives for a firm's strategic management approach to sustainability into its internal
and external management aspects.
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Critical Analysis of Industry as well as The Sector
BP Retail is a subsidiary of British Petroleum Ltd, an oil, gas and now also in retail
company indulged in supplying its products mainly in fuel and power across many nations
globally. It is among the major giants that are indulged in world's gas and oil operations and
supplying power across many countries in the world. The analysis of Industry/sector in which the
British Petroleum operates is given below.
SWOT ANALYSIS
It refers to the internal or interior analysis and review of an organisation's strengths,
weaknesses, threats from exterior environment and opportunities which influences the strategic
decisions in the company (Wei and Khachatryan, 2021).
 Strengths: The company has many strengths as the company operates oil business in
multiple places in the world. It has a string of various retail brands and subsidiaries that
are situated at the various places across the world. The company has many extensions
to it such as BP Connect, BP Express and Burma Control. In the economy of UK it
represents approximately about thirteen to fourteen percent of its exchange index. BP in
the UK is among major contributories in Lucrative sector, which is considered as the
barometer companies in its success or failure of the country's economy. British
Petroleum Retails has a strong customer loyalty and its products cover a larger market.
The company's different retail brands with the “Beyond Petroleum” slogan made the
image of company as energy company, not just an oil company. Even though the
company was affected by devastating effects of changing global situations the company
has been experiencing the rise in its revenue due to record increase in oil and gas prices
(Kolach and et. al., 2020).
 Weaknesses: British Petroleum Retail has a few weaknesses as well but these may be
a major factors affecting its worth in the market. The company has been in controversy
since very long times in related to collaborative oil pipelines constructions in volatile
areas that are prone to conflicts, environmental and political concerns. The company has
been portrayed as the criminals of environment and convicted to annihilation of
indigenous people's lives. The company also faced severe challenges in relation to
harms caused due to explosions in various pipelines and accidents in refineries causing
lives to threatened. Its consequences of oil spills and deep water horizon spills has
continuously deteriorated the company's retail image (Najib and et. al., 2021).
 Opportunities: There are many unexplored opportunities for BP are still hidden. The
company has moved and shifted its ways of producing energy and in their retails since
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