Strategic Management Report - Case Study

Added on - 21 Jul 2020

  • 11

    pages

  • 2856

    words

  • 7

    views

  • 0

    downloads

Showing pages 1 to 4 of 11 pages
StrategicManagement
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1PESTLE Analysis to offer significant opportunities & threats to BP.........................................1TASK 2...........................................................................................................................................3Porter's five force analysis to determine attractiveness of steel industry....................................3TASK 3............................................................................................................................................4a) Analysis of market share by using BCG matrix.....................................................................4b) Critical analysis of potential issues with BCG matrix............................................................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONStrategic Management is one of an essential process that is adopted by every businessconcern in which plans and policies are formulated & necessary actions are taken in order toattain targeted goals of firm (Eden and Ackermann, 2013). It provides directions and helps intaking major decisions regarding future course of actions. In the present report, 2 case studies aregiven. One is related to BP which is largest oil and gas company and other is Steel Industry inwhich its significance & role play by it in different countries are defined. The assignmentincludes PESTLE analysis from which opportunities and threats for BP are describe. Apart fromthis, five force analysis of steel industry is also included in the project.TASK 1PESTLE Analysis to offer significant opportunities & threats to BPPESTLE analysis is an important tool which is user by firm in order to assess the forcesthat are exist in business environment and influence working of an organisation. Analysis ofthese factors assists company in taking major decisions regarding operations of firm. BP is alargest oil and gas industry which has approximately 21000 service stations located atworldwide. PESTLE analysis of BP is defined below:Opportunities`BP have 18% of shares at the time when oil business of Russia was aligned with Rosneftin partnership. Under this, influence of government rules and legislations on policies of firm isincluded. BP is the largest petroleum company whose policies are influenced by this factor.Economics factors includes decisions related to prices of goods, inflation, economic growth,exchange rates etc. Several fluctuations in prices of oil are faced by BP between 2012 to 2020.Asper the predicted reports of Forbes Magazine, economic growth between 2012 and 2020 is7% for china, 1% for Europe and 2% for United States. It depicts about sustainable economicgrowth in market.To run operations smoothly, there are various social factors that should beconsidered by BP. Other favourable condition for firm is that oil prices is at peak in 2008, i.e.,$120 a barrel.Some legislations should be introduced by BP regarding health and safety ofemployees who are working in firm (Gregorini, 2012).BP needs to consider variousenvironmental factors in order to attain high market share. Various activities are performed byfirm that includes oil and gas extraction from natural gas. Technology related aspects areincluded in it. It is necessary for firm to adopt high end technology in order to enhance business1
operations.New technologies are used by BP involves exploitation of “fire ice” &“fracking”.Adoption of these technologies assist to increase natural gas supply worldwide byyear 2020. Use of these innovative technologies results in fall of gas price by 30% between 2011to 2013.Legal factors involves various laws and regulations framed by government andnecessary to be implemented by firms.It is required by firm to follow all the regulations andpolicies made by government of United Kingdom so that, operations can be carried out in aneffective manner (Hill, Jones and Schilling, 2014).Complying with legislations and regulationsformulated by legal authorities allow them to run their operations smoothly and effectively.ThreatsThe incident of 2010, in which Deepwater Horizon oil rig was exploded of BP due towhich 11 deaths took place and for this, $4 billion is charged by US government. Apart fromthis, there are many court cases which are still pending (Godoy and Naidich, 2012) The majorthreat that company was faced is recession of 2009 due to which prices of oil drop down from$120 to $30. Exchange rate of different countries is also one of the factor that should beconsidered by company. In European countries, car usage has been fall and have shifted towardstrain and motor vehicles to travel anywhere. Use of Fracking technology pollutes local watersupplies and trigger small earthquakes. By this, about 8% of gas is extracted and releaseddirectly into atmosphere and it has high contribution in global warming. Oil rig explosion wasthe major threat face by company in year 2010 which leads to death of 11 people. Along withthis, adoption of fracking technology proves harmful for environment as the gas is directlyreleased into atmosphere and contributes highly in global warming. Water bodies are beingpolluted and small earthquakes are also generated due to this. Rules and regulations of eachnation is different so, it is necessary for BP to follow these in appropriate way. Firm face majorchallenges in formulation of policies regarding health & safety of manpower who are workingwithin company. These should be framed as per the guidelines given by government. Policyregarding tax rate of product must be frame. Deepwater horizon disaster has led company todesign new safety regulations that has to be introduced in system (Hodgkinson and Healey,2011).2
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Download This Document