Global Business Environment

This report analyzes the global business environment and its impact on British Petroleum. It includes a PESTLE analysis of the company and discusses key drivers of change. The report also highlights the importance of staying informed about government policies and advancements in technology.

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE analysis of British Petroleum..................................................................................3
Key drivers of change.............................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
The global business environment is defined as the environment that comprises of various
factors that are external to the home environment of a company and can influence its process of
decision making. The report is based on British Petroleum which is a leading oil as well as gas
company (BP at a glance. 2020). The report describes the business environment of British
Petroleum and the impact of changes in business environment on it.
MAIN BODY
PESTLE analysis of British Petroleum
A PESTLE analysis helps an organisation in analysing various external factors and the
impact they can have on its performance. The analysis for British Petroleum is explained below -
 Political Factors – British Petroleum is a multinational company that provides oil and
gas services across United Kingdom. The company targets global market which means
that its overall success depends on the political environment (Peng, 2016). Also, after
Brexit the company has faced a lot of challenges to carry out its operations effectively in
the UK.
 Economic Factors – Economic factors comprise of tax rates, inflation rates, policies etc.
and the United Kingdom has been facing a lot of challenges after Brexit in order to
sustain and the wages and levels of disposal income have gone down.
 Social Factors – Social factors include age, gender, caste etc. and also population of UK
is growing which means that British Petroleum will have to revise its policies according
to the new generation.
 Technological Factors – Since the company is an old organisation, it should consider
implementing latest technology in its system in order to attract more customers (Lasserre,
2017). It can do this by developing its own application so that it is easier for the
customers to communicate with it and also remain informed of any new services.
 Environmental Factors – Since people are becoming more environment conscious, thus
the company should take this into account and make use of substances that do not emit
any harmful gases and are safe on the environment.
 Legal Factors – There are various legal issues like policies of the government, taxation
policy etc. that can impact operations of British Petroleum in United Kingdom. Thus, it
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should ensure that all activities are in line with the laws and there is no exploitation of the
same.
Key drivers of change
The environment can change as a result of changes in the government's policies and laws.
Therefore, businesses must plan and develop strategies accordingly (Tallman, Luo and Buckley,
2018). Policies formulated by the government of a stable country are very different from that of
an unstable country. Therefore, it is important for the company to stay informed about any
changes that occur in government rules and laws. Advancements in technology should also be
taken into account by the management of company in order to be able to sustain for a long time
in the market.
CONCLUSION
From the above report, it can be concluded that the global business environment is
changing rapidly. Thus, organisations should keep themselves informed about the changes that
take place in order to minimize the impact of same on their business operations as well as
performance in the market. The structure and functioning of an organisation can also be affected
as a result of change in the rules and policies of the government.
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REFERENCES
Books & Journals
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Peng, M. W., 2016. Global business. Cengage learning.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.
Online
BP at a glance. 2020. [Online]. Available through:
<https://www.bp.com/en/global/corporate/what-we-do/bp-at-a-glance.html>.
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