Evaluating Internal and External Business Environment

Evaluating Internal
And External
Business
Environment

Table of Contents
1.Introduction.....................................................................................................................................
MAIN BODY......................................................................................................................................
2.Discussion.........................................................................................................................................
2.1 Economic determinants of Price of Crude Oil...........................................................................
2.1.1 .Income Level.....................................................................................................................
2.1.2. Inflation.............................................................................................................................
2.1.3. Employment rates.............................................................................................................
2.2. Effects of Government on the Price of Crude Oil in the UK. Explain about three
action of the government and the impact it has on prices..............................................................
2.2.1. Government to ban petrol, diesel and hybrid cars in 2040...............................................
2.2.2 Government promotion of electric cars (the establishment of Office for Low
Emission Vehicles (OLEV).........................................................................................................
2.2.3. Impact of ring fence corporation tax.................................................................................
2.3 Immediate Impact of COVID 19 on Crude Oil in the UK......................................................
2.4. Future impact of COVID 19 on Crude Oil Prices in the UK.................................................
3. Conclusion.......................................................................................................................................
4. Recommendation to the government............................................................................................
REFERENCES.................................................................................................................................
Books and Journals......................................................................................................................10

1.Introduction
Crude oil define as a naturally occurring and unrefined petroleum product which is
made up of hydrocarbon deposits along with some other organic materials. It has been
identified that a kind of crude oil or fossil fuel refers to the refine products which are usually
used in various manner such as diesel, gasoline and various types of petrochemical products.
It has been said that this is a non-renewable resource, and is mainly used by large number of
people all over the world and is very limited resource at the current situation. If talking about
UK, it has been identified that oil and gas industry within the marketplace of UK is wider and
the broader area which is producing around 1.45 billion BOE ( Barrel of Oil Equivalent) on a
daily basis. This is the most influential sector which have their own impact on various
segments which are both positive as well as negative. Just like the prices of various other
types of commodities swings, price of crude oil also have ups and downs at the time of
shortage as well as in oversupply. In addition to this, throughout the twentieth century, it has
been identified that the price of U.K. petroleum has been heavily regulated with the aid of
production as well as price controls. Furthermore, if talking about inflation, from the year
1947 to the year 2010 oil prices used to exceeded $20.53 per barrel 50 percent of the time.
Oil and Gas industry within UK has been changed periodically. It has been analysed that with
its extensive as well as complex supply chain, company will be able to provide their services
in an effective manner within different locations of the country in an effective and
appropriate manner. This is the industry which is dynamic in nature and is continuously
changing by changing in the market environment and situations. In relevance with the
contemporary business situation, modifications and alterations in market has been increased
which as a result raises the issues for business entity or industry. Apart from this, external and
internal factors need to be analysed by the oil sector on a regular basis which have their
influence over the business functioning. By focusing on internal & external environment, it is
easy to make decisions within the business in proper manner. This present report consist of
detail description of different elements of both internal as well as external environment. In
addition to this discussion related to economic determinants of cruel oil which affect the
prices in both positive and negative way. In addition to this, it also includes discussion about
the impact of COVID 19 on UK Crude oil prices. In current scenario, COVID 19 is the most
negative factor which have their impact on the overall performance of economy. Apart from

today, this factor affect the whole functionality of crude oil in a long run which reduces the
benefits gained by the nation. All these elements are discussed in this report which help in
developing understanding related to the topic.
MAIN BODY
2.Discussion
2.1 Economic determinants of Price of Crude Oil
It has been analysed that each element have some determinants which have their both
positive and negative influence. In reference to oil and gas sector it has been said that
increase and decrease of price have their direct influence on the economic growth as well as
development of the whole industry. Therefore, it is very essential for each and every industry
that examination of external elements and determinants are very essential for the
enhancement and decrease of price of crude oil. In reference to the United Kingdom, it has
been identified that the economic system of the country plays very essential role in order to
maintain their position at the competitive marketplace. For every industry it is very necessary
to develop and implement effective strategies and policies in order to stabilise the economic
system of the country. There must be sufficient and effective knowledge about these
determinants so that the overall decision making will be able to take in an effective manner.
In reference to oil and gas industry, some of the most essential factors as well as determinants
are going to be discussed as follows:
2.1.1 .Income Level
This one is the most essential as well as effective factor which have the capability to
highly affect the overall prices of crude oil in both positive and negative way. Income level of
individuals have the capability to influence the overall economic system of the country as a
country is economically stable only when the income level of individuals are strong. In
reference to the United Kingdom, it has been said that the income level of people are quite
strong which plays very essential role in order to influence the overall price of oil and gas
industry. This factor have the capability to affect the prices of crude oil in both positive and
negative way. The biggest reason is that people who have strong income level consumes
more as compared to people who have limited income level. This as a result directly
influence the growth and economic system of the country. In addition to this, it has also been
said that the disposable level of income shows the growth of industrial sector apart from the