Strategic Management: PESTEL Analysis of BP and Five Forces Analysis of the World Steel Industry

Strategic Management

Table of Contents
Question 1........................................................................................................................................3
Task: Using PESTEL, analyse the case study on factors that offer the most important
opportunities to BP, and the most important threats?......................................................................3
Question 2:.......................................................................................................................................6
Task: Analyze using Five Forces analysis on how attractive is the world steel industry? What
accounts for this?.............................................................................................................................6
Question 3:.......................................................................................................................................8
A. Select product or services of a business organization and analyze growth/market share using
BCG market.....................................................................................................................................8
b) Critically analyze the potential problems with the BCG matrix...............................................10
Reference list.................................................................................................................................12

Question 1
Task: Using PESTEL, analyse the case study on factors that offer the most important
opportunities to BP, and the most important threats?
Political (P) The Gulf of Mexico had to face a major problem in
oil and gas industry where deepwater horizon
disaster caused oil spill. Solution to this was not
found (Sammarco et al., 2016). As Gulf is one of
the profitable industries BP had to face a lot of
problems and they were under pressure. There was
a debate in between two communities due to oil
prices one community was saying it happened due
to disaster and other said because of the price
change and that is may be because of lack of
investments. Also the crude oil was influenced by
political and social factors.
Economic (E) Other than India and china there was a rise in oil
prices in Iraq and US also. For the company
stability and capacity so that further disaster
happening in BP can be avoided, more investment
on oil and gas company and in their infrastructures
too. BP should keep a watch on exchange rates,
inflation rates and investments also (Ritchie et al.,
2014).
Social (S) Right kind of suppliers is required for the rise in
domestic oil and gas prices, which may be BP’s
marketing strategy. Social factor is one of the
important factors (Vaast et al., 2017). It is a great
opportunity for middle class people to buy cars if
money distribution can be done for the demand of

oil increases. But if there is an increase in demand
of population, the demand for oil will still be there
even if there is no improvement in terms of income
distribution.
Technology (T) BP had to do a lot for the reduction of greenhouse
emissions. A lot has been done as per the
technological needs alternative energy sources
other methods were used (Fingas et al., 2016). Like
for the improvement of sub-sea oil technology BP
had to invest a lot for this. For the modern
technology, training is provided to develop the
skills of employs.
Environmental (E) Fracking can pollute local water supplies and can
also lead to earthquakes. Climate change will affect
the oil industries in some way eventually. Efforts
can be made to reduce greenhouse emission. BP
took a step to reduce the nuclear emissions; they
had to take a major step regarding greenhouse
effect.
Legal (L) Pressure on consumers were made to use bio-fuels
by the renewable transport fuel obligation, the bio-
fuels destroy the sales in oil industry. Government
has also imposed taxation and duel duty rules that
affect the prices of oil.
The opportunities and threats to BP are:
OPPORTUNITIES THREATS
 BP has been active in bio-fuels and
wind power, as a small alternating
business set up, and it’s been since
2005.
 There was a partnership between
 The major threat to BP is that it is one
of the world’s largest oil and gas
companies.
 Oil Company peaked at about $120 a
barrel in 2008 but after that recession