Strategic Analysis of British Petroleum: Evaluation of Global Haulage Industry and Competitive Environment

Analysis of British Petroleum

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Evaluation of Global Haulage Industry with the help of related frameworks in order to have
critical analysis of industry.........................................................................................................1
Evaluation of competitive environment of British Petroleum....................................................6
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................9

INTRODUCTION
The strategic analysis is an procedure of conducting research of an business environment
by an organisation which tends to facilitate strategic planning in order to have smooth decision
making operations for an organisation. The business sustainability is also called as corporate
sustainability which is related to management coordination with various environmental factors
for the success enhancement. The report is based on essay of strategic analysis of British
petroleum which is an Haulage industry of the UK (Blumberg, T and et.al., 2019). It is a
Multinational oil and gas company headquartered in London, England. This company was
established by William Knox D'Arcy Charles Greenway in 1909. several issues were faced by
the organisation in framework of supply at various retail sites and therefore few sites were closed
temporarily. The cause of behind the shutdown was unavailability of unleaded and diesel grades.
Several strategic analysis has been done in order to study impact of several external factors in the
context of organisation. The essay would focus on several strategic analysis approaches such as
PESTEL analysis, SWOT analysis Industry life cycle along with value chain analysis model that
has been developed by porter.
MAIN BODY
Evaluation of Global Haulage Industry with the help of related frameworks in order to
have critical analysis of industry.
PESTLE and SWOT analysis
The PESTLE analysis of global haulage industry in framework of British petroleum is
been performed. This also further highlights the threats and opportunities for various external
factors that is impacting over the organisation within the industry.
FACTORS OPPORTUNITIES THREAT
POLITICAL  The political opportunity
British Petroleum has seized
lately is its expansion into
post-Soviet territories for its
future reserves. It has also
 Political instability poses a
major threat to British
Petroleum's business.
Because of Brexit, there is a
great deal of instability in the
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made its presence in the North
Sea region through the growth
of its major oil and gas
acquisitions (Dong, K and
et.al., 2019).
 To its advantage, Britain has
begun to pay lobby fees so that
they can look after their
political interests in the
country. It has also started
funding government political
campaigns to get the political
benefits.
free movement of workers
and the supply chain
involved.
 A disruption in global oil
prices can occur at any time
if there is tension between
Iran and the US. This can
lead to a decrease in the
supply of oil and the demand
for the oil will increase,
which will lead to an
increase in oil prices.
ECONOMIC  Another opportunity British
Petroleum offers is that it has
developed a flexible pricing
policy system and that system
is not followed by its
competitors.
 The opportunity that British
Petroleum has seized is to be
listed on the London Stock
Exchange, which has helped
develop customer loyalty to it
in the oil sector.
 The collaboration is an
opportunity to meet the
demand and supply for British
Petroleum products in the UK.
The supply chain is getting
more options outside of the
 British Petroleum's danger is
that profit margins have
decreased due to the
recession, which led to its
overall growth and
expansion strategy.
 When inflation is high, it
demands higher wages from
workers and leads to higher
operating costs (Righi, S.,
2019).
 The loss of sales was felt in
both the supply chain and the
oil industry. This is because
of increase in wages for
workers in this sector.
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