Business Environment Analysis of British Petroleum

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
1 PESTLE Analysis ( Marco environmental analysis)...............................................................1
2 Five Force Framework ( Micro environmental analysis).........................................................3
3 Internal Environment ( Resources, skills, capabilities and core competencies)......................4
4 Application of SWOT analysis and decision-making..............................................................5
Individual reflective report..........................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is term as collection of people and entities as well as other
elements that may or may not be control of a business which may effect business operation. It is
a mixture of all internal and external factors such as employees, customer's needs and
expectation, supply and demand, social trends, market trends and economic changes etc
(Brewster, 2017). Each and every business organisation operates in a distinctive environment as
business operation and function cannot exist in isolation. In this report organisation chosen is
British Petroleum Ltd, a British multinational oil and gas organisation headquartered in London.
It is one of the leading industry in oil and gas at world wide. This report is going to analysis
macro United Kingdom environment within which British petroleum operates that impact on
performance by adopting PESTLE analysis. Moreover, identifying industry environment by
applying Porters Five forces framework. Along with this analysing resources, skills, capabilities
and core competencies of a respective organisation. Furthermore, applying SWOT analysis that
will help in taking effective decision along with appropriate findings and conclusion.
1 PESTLE Analysis ( Marco environmental analysis)
PESTLE analysis is acquire by business to access competitive position of their product
and services within a stipulated time period. A respective organisation is adopting this tool in
order to know what are the key drivers of change that are extracting a stronger influences over
the other factors of a company while operating their day to day business activity.
Political Factor: Political factors play's a essential role in examining those elements that impact
an organisation by economic factors or government interference that affect business
operation(Burlton, 2015). For such instance mangers of British Petroleum need to analysis
drivers of change that create strong influences over business. Such as organisation are dealing
with various rules and regulation such as interferences of government legal framework that are
dine by a government. It is necessary for BP oil to maintain their energy forms to maintain
weather condition and different forms of carbon dioxide.
Positive impact: Different nation of government are providing various and various
opportunities such as eco friendly energy that ultimately benefit both organisation and economy.
In this manner a business can maintain sustainability for longer duration of time.
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Negative impact: There are some drivers have have negative impact to such as they need
to take care of safety measure so their their employees and customer feel comfortable. It occurs
higher cost with proper abidance that consist of employees safety so that an organisation have
good name in competitive marketplace.
Economic factors: Economic factors are those factors that usually impact on inflation rate,
foreign exchange rate, interest rate and other factors that determine aggregate demands and
investment within an economy. For such purpose many countries are depended on British
Petroleum as they are supporting out with high energy supply.
Positive impact: Many countries are reducing tax and inflation rate so that they can
develop their economic value which is beneficial for both organisation as well as nation.
Negative impact: Here are some drivers that are faced by a respective organisation is
that they need to follow different norms and regulation. Moreover, they need to reduce carbon
trading emission which are usually affected by high tax rate or inflation rate.
Social Factor: Social factor usually impact on culture of an organisation within an environment
as it consist of share beliefs and attitudes that play a major role in operating business(Chang,
2016). For this purpose they need to understand the marketplace social attitudes and cultural
issues and demand of population that may affect an organisation respectively.
Positive impact: British Petroleum are producing their product in such a manner that help
them to reduce carbon emission which leads to create positive impact on business environment
as well as society.
Negative impact: In many countries BP oil have faced may social issues as they fails up
to meet up the buying and consumption pattern of customer's as it differ from nation to nation.
Thus, this drive change may impact while operating business function effectively.
Technological factor: Technological factor is one to affective and disrupting factor in growth
of an organisation. With the adoption of proper technologies BP oil need to refine, explore and
distribute in marketplace so that they can increase their product offerings as well as create value
chain in oil and gas sector.
Positive impact: British Petroleum are creating positive impact in a marketplace as they
are acquiring advance tools and techniques that will help them to provide better quality of goods
and services.
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