Strategic Management Assignment : Apple Inc

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................2
Analysis of the factor that offer the most significant opportunities and threats to BP using
PESTLE...........................................................................................................................................2
Task 2...............................................................................................................................................5
Analysis of world steel industry using Five Forces.........................................................................5
Selection of products of Apple Inc and analyzing market share using BCG matrix.......................6
Analyzing the potential problems with the BCG matrix.................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Introduction
The report focuses on the significance of strategic management of the organization
operating in the competitive business environment. Strategic management basically involves
identification of how the enterprise stacks up in comparison with other rivalries and the
opportunities as well as threats facing them. This has huge significance in the organization as it
helps to optimize profit in the long run and improve their financial performance (Bisbe &
Malagueño, 2012). The first section of the study highlights on the major oil company BP that
faced complex environment in the year 2013. The factors that provide the most important
opportunities as well as threats to this company are analyzed in this paper using PESTLE. The
second section of the report reflects on the analysis of the consolidated steel industry using the
Porter’s Five Forces. The market share of this steel industry is also analyzed by using BCG
matrix. The study also discusses about the potential problems that is integrated with the BCG
matrix.
Task 1
Analysis of the factor that offer the most significant opportunities and threats to BP using
PESTLE
British petroleum (BP) is a British multinational gas and oil corporation that is
headquartered in England and UK. It is one of the world’s biggest corporations, which has been
ranked sixth in terms of market capitalization. It is the vertically integrated enterprise that
operates in every area that includes exploration, manufacturing, refining, distribution and
marketing. Their biggest sources of their oil production are USA and Russia. This company has

3STRATEGIC MANAGEMENT
also energy business that is active in windpower a well as biofuels. This corporation has been
involved in various environmental as well as safety incidents. The Deepwater Horizon Oil spill
that occurred in the year 2010 is the biggest accidental oil release into the marine waters. This
resulted in major health, economic and environmental outcome.
There are several factors that contributed to opportunities and threats to BP, which has
been explained by applying PESTLE (Yüksel, 2012). It is an acronym of Political, economic,
social, technological, legal and environmental. PESTLE is basically an analytical instrument that
is used for making strategic business planning. This strategic framework is used for analyzing
external influences on BP.
Political-The big issue of Deepwater Horizon disaster caused by spill of oil crates threats to BP
as they was under huge pressure owing to other oil sectors. As a result, there was huge
fluctuation in the price of oil(Ho, 2014) This is reflected by the fact that the oil prices hiked to
about $120 barrel during the year 2008, declined to about $30 during the recession period and
then recovered to about $100 in the year 2012. Owing to this price of oil, the industry also faced
huge challenges from their rivalries.
Economic-Historical evidences reflect that political instability in US and rise in demand of oil
from India as well as China lead to increase in prices of oil. This in turn provided them
opportunity to stabilize the company. However, they strategized to invest huge amount of money
on oil as well as gas manufacturing and in infrastructure (Kapferer, 2012). Moreover, the
inflation rate and exchange rate also influences the BP enterprise.
Social- The marketing strategies of BP also gets influenced by the increase in factor in the
domestic gas as well as oil price. In addition, variation in climate has been considered as another