Business Strategy: Analysis of British Petroleum (BP) PLC

Business strategy

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company overview......................................................................................................................3
Task 1...............................................................................................................................................3
Pestle analysis..............................................................................................................................3
Stakeholder analysis....................................................................................................................4
TASK 2............................................................................................................................................5
Organization’s internal environment and capacity......................................................................5
McKinsey 7S model....................................................................................................................8
TASK 3............................................................................................................................................9
Competitive Analysis...................................................................................................................9
Task 4.............................................................................................................................................11
Strategic planning......................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy have he referring of activities and actions to make respective decision making
in order reach the business goals at the competitive level in the industry. The company have the
deed to make proper level of formulation of business strategy for hiring and resource allocation
process in addition to that’s, it is helpful for the different department to make coordination by
ensuring department decision for supporting all over direction of company. British Petroleum
(BP) PLC is a world’s largest oil and gas company with headquarter in London, UK. BP has
operations in about 80 countries, which produces nearly or equivalent to 3.8 million barrels of oil
per day and runs nearly 22,400 service stations in the world. In this repot there will be
environmental analysis of the company to have the identification of core competencies which is
been evaluated on the basis of their suitability, feasibility and acceptability.
MAIN BODY
Company overview
British petroleum is there global oil company fir which the revenue is been measured as the third
largest company by operating in more than 80 countries. On the other hand, the firm have
reported as the currently facing the big level of challenge with demand of all stakeholders along
with advisability to be part of essential resources. The firm have identified with major level of
challenge which have impacted on there profitability and existence of company. So the company
have been involved in there in strategically analysing the BP company to create the better level
of external environment impact.
Task 1
Pestle analysis
Political factor
The firm face the major issues due to the oil and gas industry is Deepwater Horizon disaster that
is caused by oil spill in the Gulf of Mexico. The firm have felt the level of pressure due to the
profitability and challenging aspect associated with gulf and other industries. On the other hand,
the price of ill have been debatable concept as major changes in price will lack the proper
investments of differentiated projects. This have the major influence on their social and political
factors for the price of crude oil.
Economic factor
3

US is having major level of domination to Iraq and their political instability have affected the
price of crude oil. On the other hand, there is increase in demand of crude oil in Indian and
china. So it is important for company to have avoidance of disaster in BP by investing in oil
production company and infrastructure.
Social factor
Change in climate in effecting the business of firm as looking for the right level of supplier o
reduce the negative impact. The income distribution is considered to be important aspect as it is
helpful in improving the demand of oil due to affordability of complementary goods that’s is car
and motor cycle. This is creating the positive impact in company performance.
Technological factor
Due to more level of innovation, the demanded for the substitute service of oil have created hike
in market which is creating negative impact on company. On the other hand, the company is
pressurising to reduce the greenhouse effect and to improve the sub oil sea technology for oil and
gas production method. So, the film is proving efficient training and development to employee in
order to have improvement and adoption of moreen technology
Environmental factor
The more level of climate change which effect the firm profitability. The BP oil is having
pressure to reduce the greenhouse effect and to improve the sub oil sea technology for oil and
gas production method. So, to have avoidance of further damages, the firm is having sustainable
development in infrastructure and cut the greenhouse gas emission by 40% in order to set goals
by promoting the nuclear power usage.
Legal factor
–Taxation and Fuel duty (1993) of government are affecting the price of company. On the other
hand, Renewable Transport Fuel Obligation (2005) have creating the pressure of consumer to
make consumption of bio fuel which is detoxicating demand of oil industry. All the law is
affecting their company operations along with pricing and product.
Stakeholder analysis
As the per the stakeholder mapping, there is acceptability for new level of strategic choices as
the demand in very high in their market se to the consuming power of consumers and risk is
associated is considerably low. In addition to tats BP company so securing more level of
competitive edge in the Asian market which have inclusion of employees, customers,
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