Impact of Business Environment on British Petroleum: A SWOT Analysis

This report analyzes the impact of the business environment on British Petroleum through a SWOT analysis. It examines the strengths, weaknesses, opportunities, and threats faced by the company. The report also discusses the impact of the business environment on the marketing and HRM functions of British Petroleum.

Global Business Environment

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
SWOT analysis.......................................................................................................................3
SWOT analysis of British petroleum.....................................................................................3
Impact of business environment on business function...........................................................5
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6
Books and journals.................................................................................................................6

INTRODUCTION
Global business environment can be defined as external forces which are surrounded
the business firm and can impact its decisions and operations. There are number of challenges
within organisation fees within the market these can act as an opportunity and threats for an
organisation where it have to use its strength and identify the weaknesses for dealing with
them. In context of this report, chosen organisation is British petroleum, it is in British
multinational company which mainly deals in oil and gas. Headquarter of BP is situated in
London UK. It is one of the seven super major giants in oil and gas industry. In this report
there will be SWOT analysis of British petroleum where its strength, weakness, opportunities
and threats will be analysed for identification of internal factor. This report will also consist
impact of business environment on British petroleum functions which are marketing and
HRM (Oyedele, 2016).
MAIN BODY
SWOT analysis
SWOT analysis that Framework which is used by an organisation to identify strength
weakness and threats for making effective business plan strategy survival in dynamic
business environment (Hakanen, Helander and Valkokari, 2017).
SWOT analysis of British petroleum
There is a SWOT analysis of British petroleum which is the leading British
multinational supergiant in oil and gas industry. There is evaluation of strength, weakness,
opportunities and threats.
Strengths Weakness
 Diversify interest: British petroleum
is operating in number of business is
it just not depend on the energy or
fuel aviation. company have number
of subsidiaries like Amoco, ARCO,
BP express, BP connect, BP travel
centres and many more health
company in management of risk
which arise because of economic
 Ethical Issues: There are lots of
ethical issues which are faced by
British petroleum which are directly
related to social factors. British
petroleum pacing number of scandals
which are related to dishonest
transaction from employee and these
controversies are directly impacting
on a firm's profit as well as brand

crisis or other economic issues like
government policies.
 Loyal customers: companies
operating globally where it is difficult
to maintain loyal customers but
British petroleum has loyal customers
because of my brand they have been
continue sourcing from the company
and enjoy the stable and long-
standing relationship with customers
where they satisfy the needs of their
customers which are related to
conservation of energy (Prajogo,
2016)
image where there is no genuine
concern about the society for the
environment of area related to firms
of operations.
 Diversity in sectors: The diversity in
sectors is also acting as weakness for
British petroleum this is because
company have its main focus on
energy related sectors where it is
maintaining its dominance but in
other sectors which are not related to
Energy Company is performing bad
where there is regular loss in its
operations which is acting as a
weakness for firm.
Opportunity Threats
 Expansion: there are number of
opportunities in front of British
petroleum which where it can expand
its functions to infrastructure sector
which is continuous developing this is
because. There are number of
structure challenges which are faced
by different economic because of
proper innovative ideas and capital
investment where it can expand its
form can also use alternative energy
sectors which are growing. Firm can
also use alternative energy sector
which are growing rapidly like wind
energy. Because number of
governments are focusing on renovate
energy sources.
 Environmental issues:
Environmental issues can act as a
threat for a company as companies
dealing in petroleum sector which has
negative impact on environment this
is because petroleum is a non-
renewable resources and use of this
will also increases the pollution and
other major concern hazardous for
human life.
 Increase competition: Increase
competition in market is also and
threat for a company this is because
companies like challenge on which
are dealing with this environment
issue better than British petroleum
and have in their brand reputation

within market which is also acting as
a threat for British petroleum.
Impact of business environment on business function
There are number of functions which are performed in an organisation which are
interrelated each other and essential for profitability and effective work within the
organisation. There is a great impact of business environment on this function. There are
number of function which type of formed by an organisation like human resources
management marketing research and development and many more. Impact of business
environment on marketing and human resources management which are stated below:
Marketing
There are number of impact business environment which are related to marketing
function of petroleum. They have direct impact on products of company where strength and
weakness of company will help marketing function in deciding proper marketing strategies.
British petroleum can strategy which is related to the other functions related to energy
sources. Here company can also set a marketing policy where it can promote ethical issues
and overcome it weakness (Khajeheian, Friedrichsen and Mödinger, 2018).
HRM
Human resources department also impacted because of internal environment within
the organisation as environment is directly related with hiring and procurement of employees
within the organisation. In context of British petroleum human resources department help to
identify the different strengths and weaknesses of the organisation and opportunities which
are going to be helpful for organisation in near future. Have to recruit the persons according
to the weakness and strength who can perform for getting number of opportunities within the
organisation (Aguilera and Crespi-Cladera, 2016).
CONCLUSION
It can be concluded from above mentioned report that there are number of impacts of
business environment on an organisation which have to be analysed and identified within a
specific time period. Company have number of strengths and weaknesses which have to be
identified and must be reacted on time where it can get number of opportunity by minimising
the threats within the business environment. It can also be concluded that it is business

environment have direct impact on marketing in human resources functions of the
organisation where they have to decide their policies according to this.

REFERENCES
Books and journals
Oyedele, A., 2016. Emerging market global business model innovation. Journal of Research
in Marketing and Entrepreneurship.
Hakanen, T., Helander, N. and Valkokari, K., 2017. Servitization in global business-to-
business distribution: The central activities of manufacturers. Industrial Marketing
Management, 63, pp.167-178.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment
in delivering business performance. International journal of production
Economics, 171, pp.241-249.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to
competitiveness in fast changing business environment. In Competitiveness in
emerging markets (pp. 3-11). Springer, Cham.
Aguilera, R.V. and Crespi-Cladera, R., 2016. Global corporate governance: On the relevance
of firms’ ownership structure. Journal of World Business, 51(1), pp.50-57.