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Business Strategy of BP Oil

   

Added on  2020-10-22

19 Pages6654 Words285 Views
BUSINESS STRATEGY

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Impact and Influence of macro environment on the business.....................................................3TASK 2............................................................................................................................................7Internal Environment and Capabilities of BP Oil Company.......................................................7TASK 3............................................................................................................................................9Evaluating the competitive forces that influences the BP Oil Company....................................9TASK 4..........................................................................................................................................11Strategic direction available for the company. .........................................................................11CONCLUSION..............................................................................................................................14REFERENCES..............................................................................................................................15

INTRODUCTIONBusiness Strategy is the core management function. It is a set priorities for the companyand management team as well as help to attract and retain talented workers that a firm needs. Thecombination of all the decisions taken and actions performed by the business to execute thebusiness goals and to secure a competitive position in the market (Begg, Van der Woerd andLevy, 2018). It is fact that achieving the business objectives without business strategy is like adream that never comes true. In today's business environment, business strategy is becomingapparent with the continuous rising competition. This present report is context to the BP Oil company. It is a public limited companyoperating in Oil and Gas industry founded in 1909 by William Knows D'Arcy. The BritishPetroleum company plc is a British multinational oil and gas company (BP Oil Company, 2019).London is the headquarter of BP oil company. It is one of the world seven largest oil and gascompany whose performance in 2012 made it sixth largest energy company in the world. This present report will analyse the impact and influence which external environment hason BP oil company and its business strategies as well as assesses the internal environment andcapabilities of the company. Further, report will also cover the competitive forces company isfacing in the business environment. Thus, by conducting the business environmental analysis,organisation will find and solve the reason for not meeting the demands of stakeholders byformulating effective business strategies. TASK 1Impact and Influence of macro environment on the business.Strategy: Strategy is defined as the plan of action of designing a long term or overall aim of theorganisation. Business strategy is defined as the master plan that management of the companyused to secure the competitive position in the market to carry its operations (Ubini, 2019). On the other hand, Thompson, Strickland and Gamble, (2015) said that, business strategy can bereferred to as the master plan that the management use to sure a competitive position in themarket carry on its operations, please customers and execute the desired goals of the business. Role of Business Strategy to achieve the business objectivesBusiness Strategy is the very important for the success as well as to retain employees inthe business environment. Strategy helps organisation to achieve the desire goals and objectives3

of the organisation. BP oil company is facing serious challenges operating the business like notmeeting the demands of stakeholders, losing the key employees and some other issues a well. Socompany is to establish their business strategies as it helps in following way: Planning: Business strategies is the core and fundamental part of business plan. All the goalsand objectives are set in the business plan to achieve. Strategies provides the path to fulfils thebusiness goals. Competitive Advantage: Business strategies also helps in capitalising on the capabilities of thebusiness as well as utilize it as competitive advantage to position the brand in a strategic manner.It also provides a unique image in the eye of customers that will give strategic direction to thecompany. Pestle Analysis of BP Oil CompanyPestle Analysis is one of the best tool to track the forces in business environment. Pestleanalysis is also used as the different strategic planning tool used by the company. BP oil is alsogoing to use Pestle analysis in order to track the factors influencing the operations and functionof the company (Feng, Morgan and Rego, 2017). There are six major factors which are includedin Pestle analysis which are as follows-Political Factors: This factors includes government policies, foreign trade policies,taxation laws, environment and labour laws, political stability and instability and many others.These elements of the political factors influences the way business operates in the business. UKhas stable political situation of the nation which is one of the biggest advantage of expanding thebusiness and gaining profitability as organisation do not have to bring changes accordingly. Onthe other hand, due to changing demands of oil and geopolitical variability energy market in theworld are getting quite unstable that is creating threat for BP Oil company. Governments ofdifferent counties are choosing more sustainable forms of energy due to climate destabilisationfrom emission of carbon dioxide. However, BP oil company can also conduct ethical practicesand can save the reputation of the business and meet the needs of stakeholders. Economic Factors: This factor includes economic growth, interest rates, exchange rates,inflation and so on. These factors also influences the operation and functions of BP oil company.The positive advantage of this factor is that the economy of the many nations is depends of BPoil company as it largely support the economy and this creates an opportunity for BP Oilcompany to meet the needs of stakeholders of various nations. 4

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