Global Business Environment: Impact on Functions of British Petroleum

This report analyzes the impact of the global business environment on the functions of British Petroleum, including a SWOT analysis and the influence of key drivers on different business functions.

CW2 Global Business Environment Portfolio Paper 2

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
SWOT Analysis..........................................................................................................................1
Impact of key drivers on functions of business...........................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Global business environment can be describe as the surrounding in which organisation have to
conduct business activities. business environment will lead to have impact on performance and
productive of organisation (Kasemsap, 2018). This report is based in British Petroleum company.
This is multination oil and gas organisation which was established in 14 April. Founder of this
company is William Knox D’Arcy. This report will include information about internal capability
of organisation as well as impact of key drivers of different function of business.
MAIN BODY
There are different factors of business which will lead to have significant impact on
organisation as well as it performance. Business environment is majorly classified into two parts
such as micro and macro. Micro environment of organisation is related to internal capability and
weakness of firm that will lead to have significant impact on organisation productivity and
ability. It is crucial for respective organisation to analyse and evaluate different elements of
internal business environment as this will assist in better decision making of organisation.
Analysis of internal business environment will assist in creating strong strategy for organisation
as well as accomplishing set objectives.
SWOT Analysis
This is a significant tool that will assist company in analysing its strength and weakness to
perform organisation task. SWOT analysis stands for Strength, weakness, opportunity and threat
(Lasserre, 2017). By determining these factors respective company will be able to take better and
strong decision for improving performance of business along with this attain desired goals of
organisation. SWOT analysis in context of British Petroleum company is mention below.
Strength – This includes all those factors that is significant for fostering the performance of
company is market areas. British Petroleum organisation have global leadership which lead to
increase its capability and performance. This company is a market leader is petrol and gas
products and this assist in maintaining balance of region. British Petroleum business has strong
network connection all around that world that is supportive in offering its products and services
to large market area. respective company have strong presence over Europe, America, Asia
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Pacific, Africa. Strong relationship with customer is one of the major strength that is supportive
in developing strong brand image of organisation. This lead to have significant impact on loyalty
of customer and increase sale or profitability of British Petroleum company.
Weakness – There are various weakness of respective company which will lead to have
significant impact on organisation as well as its sales. It is crucial for British Petroleum company
to identify its weakness along with this improve these areas for attaining objectives. Oil spills
and disasters is the major weakness of this company as this will lead to have negative impact on
brand image of respective organisation. These disaster significantly damage envirnement all
around the world. Current climate changing issues and reduction of fossil fuels is the major
weakness of British Petroleum business as it put more pressure on organisation to migrate into
new area.
Opportunity – There are several opportunities with British Petroleum company that will assist
in increasing its sales as well as performance of organisation. it is crucial for this company to
effective analyse all market opportunity and trends in order to gain maximum benefits from these
practices. British Petroleum company have opportunity to alternate the energy options which
includes winds and tidal energy (Hamilton and Webster, 2018). This will support in sustainable
growth and development of business by providing alternate energy option in marker. British
Petroleum organisation have opportunity to expand its market areas as well as move to area
which require its products and services. this will help in enhancing market share of British
Petroleum business and gaining edge over other rival companies.
Threat – This include all those factors that will lead to have negative impact on organisation.
British Petroleum company is providing its products and services in highly competitive
environment which lead to affect the sales as well as profitability of respective company. The
major competitor of British Petroleum is Chevron and Shell. Both of these company are based
on effective strategy which influence performance of respective organisation.
Impact of key drivers on functions of business
All of these key drivers will lead to have major impact on different function and activates of
British Petroleum company. It is crucial to analyse the impact of internal capacities and
weakness of respective firm of its different function such as marketing or research and
development function. Impact of key drivers is mention below in detail.
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Research and development – This is one of the crucial department of organisation that assist in
increasing performance of business as well as conducting business activities in required manner.
British Petroleum company have opportunity to expand its business into new market area. This
opportunity will lead to have direct impact on research and development function of respective
company. Through this function British Petroleum business will be able to determine the most
appropriate market area which required oil and gas services. research and development
department of this company will help in identifying all those area which is rich is fossil fuel that
is beneficial for respective company.
Marketing – Marketing activities of British Petroleum company will assist in communicating
about products and service to customers. This function is majorly related to identification of
customer need as well as full filling it by providing right and accurate services (Doh, J.P.,
Luthans and Slocum, 2016.). This will assist in promotion of British Petroleum oil and gas in
such as manner that it will lead to enhancing the brand image of company. This function of
organisation will support in promotion and advertisement of respective organisation products in
new market areas as well as attracting more customers towards business. Marketing will assist in
increasing customer base of British Petroleum company.
CONCLUSION
From the above report it can be concluded that business environment in which organisation
is performing its activities will lead to have significant impact on its sales and productivity.
SWOT analysis is useful tool that will help in taking better decision.
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REFERENCES
Books and Journals
Kasemsap, K., 2018. Mastering business process management and business intelligence in global
business. In Global Business Expansion: Concepts, Methodologies, Tools, and Applications (pp.
76-96). IGI Global.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction to the
special issue.
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