Business Strategy of British Petroleum

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Business Strategy
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1Applying appropriate frameworks impact and influence of macro environment and itsstrategy........................................................................................................................................3D1 Critique and interpretation of data to produce set of valid strategic directions....................8TASK 2..........................................................................................................................................11P2 Internal environment and capabilities of an organisation...................................................11M2 Critical analysis of McKinsey's 7 model...........................................................................13TASK 3..........................................................................................................................................14P3 Evaluating competitive forces of a given marketplace of an organisation..........................14M3 Appropriate strategies to improve competitive edge and market position.........................14TASK 4..........................................................................................................................................15P4 Applying theories and models to devise strategic planning for an organisation.................15M4 Strategic management plan.................................................................................................16CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONIn today's context business strategy can be determined as a course of action or decisionwhich assist entrepreneur in gaining specific business objectives. It is a plan that management useto secure a competitive position in market as on to carry operations and achieve desired ends ofbusiness (Brewster, 2017). In this report the organisation chosen is British Petroleum Ltd, aBritish multinational oil and gas company headquartered in London. It is one of the world's sevenoil and gas company worldwide. This report is going to analyses impact and influences of macroenvironment and its strategies as well as its internal environment and capabilities of an respectiveorganisation. Moreover, applying Porter's Five Forces to identify its competitive position andproviding recommendation based on outcomes. Furthermore, applying models and theories toassist understanding and interpretation of strategic which is useful for an organisation.Additionally, producing a strategic management plan that has tangible and tactical strategicpriorities and objectives of respective company. Hence for such purpose CEO of BritishPetroleum has appointed junior manager in solving problem that has been faced within anorganisation.TASK 1P1Applying appropriate frameworks impact and influence of macro environment and its strategyA business strategy is set of competitive moves and actions that business uses to attractcustomers, strengthening performance and achieving organisational goals and objectives. It isbasically set out to achieve desired goals and objectives in an attractive manner. Additionally, itcan be described as a long term business planning process and mainly concerned with scope ofbusiness activities.Strategy:In organisation context, strategy is a framework that usually provide direction andscope for an organisation over longer period of time which help in achieving advantage throughconfiguration of resources within a challenging environment. A strategy is all about integratingorganisational activities and utilizing as well as allocating scare resources within organisationalenvironment as to meet up organisation goals and objectives. Moreover, while planning strategyit is essential to consider that all the decision are taken to meet up the need and demand ofcustomers as per their preferences. Moreover, within an organisation strategy is a blue print thatdefines organisation goals and objectives, reduces key policies and plans for achieving those
goals in a most appropriate manner. Thus, it can be said that strategy deals with long termdevelopment rather than routine operations as it consist of probability of innovations such as newproduct, new methods or market to develop for future aspect.Role of strategy to achieve business objectives and goalsIn an organisation context strategy play's many different role within workplace. Herein,mangers of BP oil are adopting different role of strategies in achieving organisational goals andobjectives. The role of strategy are determined below:Framework and operational planning:In an organisation, strategy provides aframework that usually plans in operating at challenging environment (Burlton, 2015). Ifstrategies are developed and carefully understand by the mangers of BP oil so that a consistencecan be maintain in operating their day to day business activities and function. Moreover, bymaintaining an equivalent consistence in strategies than resources are utilised at maximum leveland an organisation will able to achieve its goals and objectives in an efficient manner. Thus, inthis an organisation will able to attain sustainability for longer duration of time.Clarity in direction of activities:Within organisation strategy usually focus on directionof activities that are need to be undertaken in achieving goals and objectives of an organisation.In this role of strategy mangers of BP oil must ensure that they are clear about theirorganisational objectives in more clear and specific manner. Moreover, if strategies are spelt outin an effective manner that it become clear to direct a person in an organisation who isresponsible for implementing various courses of action. Thus, strategies most focus onoperational activities and make them more practical in nature.Increase organisational effectiveness:In an organisation strategies determinesorganisational effectiveness in different ways. Strategies usually bring effectiveness withinorganisational activities by properly utilising resources in best and effective manner in order tobring efficiency which ensure maximum contribution towards organisational activities.Moreover, mangers of BP oil need to take strategic management decision which states thatobjectives of an organisation can be achieved in given context of resources.Personal Satisfaction:In today's context an organisational strategies also contributestowards organisation effectiveness by providing personnel satisfaction too. In many organisationa formal strategic management process is followed with this process people are more definetowards roles and responsibilities by reducing conflicts and ambiguity. Moreover, the mangers of
BP oil need to take decision in an systematic manner so that everybody knows how to contributetowards organisational objectives.Strategic intent:Strategic intent defines idea of an organisation that desire to attain infuture. It indicate long term market position of an organisation in order to create and desire ofopportunities for exploring new responsibilities. The strategic intent of BP oil is to recognised asa great petroleum company that is competitively successful in competitive marketplace of sameindustry line.Different strategic directionStrategic action is a course of action that leads to achievement of goals of an organisation(Chang, 2016). It is one of the important force in an business as it established a structure forinternal responsibilities that each department carry out in an appropriate manner. Moreover, itclearly identifies mission, vision, objectives and strategies that defines core value inestablishment of strategic direction.Vision:The vision of B P oil to have best competitive corporate in same business line aswell as to become assessable, inclusive and diverse.Mission:Its mission is to bring integrity, honesty dealing with dignity and striving formutual advantage as well as working towards human progress.Strategies:The strategy direction of BP oil is to become more abundant and less costly intheir product and services. They are adopting new technologies that will produce more efficiencyin several ways as well as help to meet up expect rise of demand in competitive advantage.Issue:Moreover, respective company was facing problems in meeting demands ofstakeholders and its result to loss key workers and it tremendously effected profitability of theirperformance in competitive marketplace.For such instance, mangers of BP oil have cost of leadership model in order to regain theircompetitiveness in marketplace. With application of this method they are able to create low costof operation within market. This strategy is primarily adopted by the mangers in order to gain anadvantage over competitors by reducing operational cost in same industry. Moreover, thisstrategy adopted as it allows them to remain competitive in time when policies, technologies andcustomer's preference are evolving. Moreover, BP oil mangers believes in an balanced portfolioin order to remain competitive in marketplace as well as sustainability for longer period of time.Identifying and explaining different strategic planning techniques
In an organisation strategic planning is basically a management activities that are adoptedto set out priorities, focus on energy and resource, employees and stakeholder work towardsachieving common (Chenand and Jermias2014).There are different strategic planning techniquessuch as VMOST, PEST, SWOT, SOAR and Porter's Five forces. Herein, the mangers of BP oilare adopting SWOT and PEST analysis in order to best strategic planning that help in achievinggoals and objectives of an organisation in an effective manner.PEST analysis:PEST analysis is adopted by an organisation as measure or assess marketplace for theirproduct at a given time frame. Herein mangers of BP oil are adopting this tool in drawing outproper strategic planning which is essential for an organisation for longer duration of time.SWOT analysis:In an organisation play's an essential role as it help to determine evaluate competitiveposition of a particular organisation by identifying an organisation strengths, weakness,opportunities and threats. Moreover, BP oil are using SWOT analysis in order to have moststrategic planning for their business operation. Herein, the mangers need to identify its strengths,weakness, opportunities and threats so that an appropriate decision can be adopted which isimportant for an organisation to attain sustainability in same industry line. Moreover, strengthswill help mangers to are described their unique feature from its competitors as well asunderstanding their consumer depth by catering all their energy needs. Additionally, weaknesswill help managers to take decision for those are where they are lacking behind or such areas thatare need to be focused more so that better result can be outputted. Moreover, determiningopportunities that creates avenues in competitive environment that are surround by businesscapitalize to increase profitability in competitive marketplace. Furthermore, analysing threatsthat usually harm an organisation due to increase in competition. Hence with Swot analysis anorganisation will able to have an effective strategic planning so that appropriate decision can betaken.The above mention are tools and techniques that are adopted by mangers of BP oil indeveloping an appropriate strategic planning that is beneficial for an organisation to attainsustainability for longer period of time.M1 Critically analysis of macro environment to determine strategic management decisionMacro environment analysis:
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