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Business Strategy Assignment - BP Oil Company

   

Added on  2020-10-22

20 Pages6877 Words286 Views
Business DevelopmentFinanceLeadership ManagementMechanical EngineeringEnvironmental SciencePolitical Science
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BUSINESSSTRATEGY
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1. Analysis of the impact of macro environment on an organization .................................3D1. Analysis of environmental and competitiveness for production of strategic directions,objectives and tactical actions for BP Oil...............................................................................4TASK 2............................................................................................................................................7P2. Analysis of internal environment and capabilities of BP oil............................................7M2. Evaluation of internal environment to assess strengths and weaknesses of organization'sinternal capabilities, structure and skill..................................................................................9(a). Critical analysis of McKinsey 7s model analysis............................................................9(b). VRIO Framework to analyse internal resources/capabilities structure and skill...........10TASK 3..........................................................................................................................................12P3. Application of Porter's Five Forces Model to evaluate competitive forces of BP Oilcompany...............................................................................................................................12M3. Analysis of BP oil by using Ansoff Matrix to improve competitive edge....................14TASK 4..........................................................................................................................................14P4. Application of range of theories, concepts and models along with interpretation andformulation of strategic planning for BP oil.........................................................................14M4. Strategic management plan for BP oil Company..........................................................17CONCLUSION..............................................................................................................................18REFERENCES..............................................................................................................................19
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INTRODUCTIONBusiness strategy refers to a group of actions or decisions taken by considering vision andmission statement in order to achieve objectives and goals. The management of a company makeplans for gaining competitive advantage and strong position in the market. The other reason forimplementing various tactics and strategies is to provide maximum customer satisfaction and toachieve desired goals (Scholes, 2015). These may be for long-term goals as well as short-termgoals. The chosen organization in this report is BP Oil Company having its headquarters atLondon, England, UK. Further, the report covers Influence of macro environment on anorganization and its business strategy, analysis of internal capabilities and environment,evaluation of competitive forces by using Porter's five forces and application of models, theoriesand concepts for understanding strategic directions available to an organization. TASK 1P1. Analysis of the impact of macro environment on an organization BP PLC is a company operating in the business of oil and gas. It has its head office atLondon, UK. It is carrying its business in multiple countries and is considered as sixth-largestenergy company on the basis of market capitalization. In the year, 1998, it executed a mergerwith Amoco Co-operation of US, which gained it the title of world's leading oil company. (a). Definition and explanation the meaning of strategy:Strategy derives from Greek word strategia which means “generalship”. It refers to policymade by top management which will provide direction in order to achieve organizational goalseffectively and efficiently. Before its preparation and implementation, company conductsresearch of market to understand effects of various environmental changes. In the words of Kenneth Andrews, “Corporate strategy is the pattern of decisions in acompany that determines and reveals its objectives, purposes, or goals, produces the principalpolicies and plans for achieving those goals, and define the range of business the company is topursue, the kind of economic and human organization it is or intends to be, and the nature of theeconomic and no-economic contribution it intends to make to its shareholders, employees,customers, and communities.”
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(b). Role of strategy to achieve business objectives and goals, strategic intent and differentstrategic directionStrategies are vital for achieving set goals and objectives with the available resources(Wheelen and et. al., 2017). The role of a strategy is important as it provides various benefitswhich are as follows: Development plans, policies and their timely implementation.Operational planningAnalysis of customer preferences and choices. Gaining competitive advantage.Increased value proposition. (c). Identification and explanation different strategic planning techniquesStrategic planning is a process that involve activities whereby strategy or direction areformulated and decisions are made for resources allocating. These can be achieved throughtechniques. These are applied to attain long term goals. There are many techniques such as: Benchmarking: This technique is use to make a comparison of strategies and practicesof an organization with that of competitors'. This technique is useful in assessing strategiesadopted by competitors that have provided positive results in order to implement those strategiesin the organization to attain same results and sustain in competitive environment.Cost benefit analysis: It is used to make strategic decision by evaluating costs andanticipated benefits of different alternatives and courses of actions and selecting that actionwhich will fetch highest benefits. This technique when company is proposing plans to save costsincurred in manufacturing. D1. Analysis of environmental and competitiveness for production of strategic directions,objectives and tactical actions for BP OilThere are various forces viz. External or internal which impact operations of an entity.These create ocean of opportunities for an organization (Higgins and et. al., 2015). Managementmake strategies, policies and plans to attain its goals. It should make changes in order to reducenegative effect such forces and remain competitive in the market. Such alterations are importantto meet the demands of customers by retaining the position. BP Oil Company has been facing amajor challenge in fulfilling demands of all stakeholders which includes key people also. Also,problems such as a appropriation of resources and machines failure which caused risk to aquatic
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