Strategic Management and Sustainability Assessment 2

This report analyzes the key business strategies, resources and capabilities of British Petroleum over the last five years. It also evaluates how the organization can implement environmental sustainability science, ways and theories of thinking to become more competitive.

STRATEGIC MANAGEMENT AND
SUSTAINABILITY ASSESSMENT 2

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
TASKS.............................................................................................................................................3
1. Identifying the key business strategies of company with related framework .........................3
2. Identifying resources and capabilities and analysing company's aligned resources to
strategies......................................................................................................................................5
3- Evaluating with evidence how organization can implement environmental sustainability
science, ways and theories of thinking to become more competitive..........................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is basically defined as the method or strategy utilized by various
organizations for making them more competitive with setting up objectives, plans and goals.
This is usually done for using full efficiency of staff along-with deploying resources so that they
may able to achieve targets. The report shows about 'British Petroleum' which fall under the
category of top petroleum brands based in United Kingdom. Analysis gives details regarding the
key business strategies of company over the last five years along with related frameworks
regarding the strategies used. Further, shows about the resources and capabilities of company
over last five years and analyse about what extent company has aligned them. Lastly, report
delivers information about how firm can implement environmental sustainability science,
theories and ways of being competitive.
TASKS
1. Identifying the key business strategies of company with related framework
The 'British Petroleum' tends to use different types of strategies which includes:
Ansoff Matrix: This is also known as the market or product expansion grid under which
company tend to pre plan and analysis of market conditions and strategies for the growth
expansion of firm. As the matrix most likely to shows about various strategies which aims at
firm to grow as well as analyse about risk.
Market Penetration: Under this company tend to fully and effectively utilize their
products while working in the same market. As brand most likely to increase or expand the
market shares which helps them in grabbing new customers and improving their efficiency.
Industry tend to use this strategy with reducing their prices of products so that new customers
may being part of firm. As after the Brexit exit and COVID-19 both most likely to affect the
brand's working in current market scenario (Cescon, Costantini and Grassetti, 2019). Not just
that but firm also try to increase their promotion and distribution, both of their working methods
which most likely to aid British Petroleum in getting more of the working efficiency and gaining
more of market share. Along with that they also most likely to try to get and acquire their
competitors. As under this firm aims at merging and gaining control over their small
competitions which results in firm to grow more exponentially and increase their customer base
along with getting a big market share for improvement and efficiency.

Market Development: Under this company tries to enter into new markets along with
their existing products. With expanding into new markets tends to provide firms with assistance
in identifying, analysing and knowing about all new geographic regions, new technologies and
customers. By this strategy industry may being able to cater and get to know about the target
audience. Like what kind of products they most likely to have, what is their major taste and
preferences and many others. After the Brexit and COVID company changes towards new
strategies with utilizing this market development as this helps brand in knowing about new
markets availability of resources. Also, helps in knowing and analysing about each and every
domestic market supplies the nation uses.
Diversification: Being the most, riskiest as under this firm tend to take their concern in
respect of both the product and market. This strategy may offers various increased values and
sales earning for the company to work on (HIDIROĞLU, 2020). Under this risk may being
mitigated with the properly diversification of organization's working accessibilities. With the
help of related diversification company most likely to make synergies between new market and
Illustration 1: Ansoff's Matrix
(Source: Ansoff Matrix, 2021)

old products. Whereas, in the Unrelated diversification there is no potential synergy between any
of them.
Product Development: While utilizing this strategy enterprise most likely to develops
new product for cater under the existing market. As the COVID and Brexit both results in putting
an impact on the organization's working conditions and for resolving these issues company uses
product development. With the help of strongly understanding about the markets in which
organization operates, firm may able to develop a new, more effective as well as innovative
product. This also aims at satisfying customers needs and wants. As company focuses on
investing in their R&D, acquiring competitors products and forming strategic partnership as well.
Apart from that British Petroleum' may also use Poter's Generic strategies which provides
guidance in the working (Porter's Generic Strategies, 2022). This includes:
Cost Leadership: In this firm sets out to being the low cost producer of the industry or
nation. With properly accessing them company may able to gain competitive advantages over
other firms in the market. As, being leader in terms of cost may provide brand with a huge
assistance with increasing profits along with reducing costs. Apart from that providing capital or
costs in technologies also helps in getting ahead of their competitions.
Differentiation: With this firm seeks out to being one of the important and unique one.
As the more unique and impactful the product, results in having more of customers (Giannoni,
Alarcón and Vera, 2018). With broader market strategies it does became crucial for 'British
Petroleum' to implement the method so that they may able to achieve their targets and gain more
access towards good research, innovation and developing high quality standardized products.
Focus: By dividing strategy into parts of 'Cost Focus' and 'Differentiation Focus' for
specialized their working in the niche market. With cost focus evolution of knowing about how
to operate in niche market, may able to provide product and services at cheaper cost and
maintain effective quality of them. While in differentiation focus shows about market and
investment required, what new features company may use and many others.
2. Identifying resources and capabilities and analysing company's aligned resources to strategies
For identifying various resources as well as different capabilities company intend to use
the Value chain analysis which focuses on understanding about areas to improve and
opportunities to grab (Bhat and Yadav, 2018). With the proper utilization of that organization
may able to break down all of their operating activities and separately work on them to improve

the working operations, reduce costs and improve profit earning. In order to define the key
resources and abilities of British Petroleum, value chain analysis model is taken into the
consideration. It is one of those strategic models that play vital role in the context of
organizational success in term of defining resources that they may have and also clarifying the
capabilities that a company may utilize to reach expect outcomes. The strategy focus on the
following:
Primary activities which tends to contribute sale, maintenance and providing services to
customers.
Inbound Logistics: All the major activities related towards receiving of products or
goods, their warehouse and inventory management also sourcing of their material required. With
'British Petroleum' aligned their various resources and capabilities with in bound logistics helps
in improving the working condition as well as reducing cost and effortlessly utilizing inventory.
Operations: Under the operations of company activities tends to change or transform
their raw materials or inputs into final products. As being the core products of the firm results or
aims to increase their revenue along with higher efficiency in the operations and production
(Ndung’u, Kinyanjui and Abayo, 2020). This also tend to support the activities so that enterprise
may being able to achieve their target along with sustain with profit earning.
Outbound Logistics: Aims to deliver of outputs towards the customers. With the help of
this capable utility British Petroleum aims to focus on collection, storing and distribution of
products. Not just that but also focusing on managing the both of company's internal working
environment and external dispatching along with other services. Gives the organization various
chances in taking corrective decisions also may provide assistance on the logistics to be more
smoothly.
Marketing and Sales: Activities such as the campaign, branding, advertising, promotion
and many other functions being held under that. With the help of this resource brand being able
to increase their sales revenue generation by providing customers reasons regarding why they
need to buy products.
Services: Activities related towards customer satisfaction which most likely to aims at
after service. By providing customers with products leads to support and building long term
relationship with consumers (Nastase and et.al., 2019.). This helps brand in gaining more of trust
from consumers along with increasing their product promotion as well as sales. With having

customer's trust also provides organization to even sustain more under the market as brand image
is being held high and also overcome the after effects of COVID and Brexit exit.
Apart from that but various secondary activities also helps in aligned the resources
including
Company Infrastructure: Activities regarding the different general, legal or maybe
managerial working of brand. Along with that providing quality assurance and public relations
also provides big assistance for organization to change their resources to more effective one.
Apart from that with effectively risk controlled brand aims to work under and within regulations
and guidelines.
Illustration 2: Value Chain Model
(Source: Value Chain Analysis with Examples, 2022)

Human Resources Management: This tends to focus on fully and effectively utilizing
the human resources to the fullest. Function such as hiring, recruiting, providing employees with
training so that company may able to have low employee retention rate. With firm having the
highest level of talent under them resulting in enhancing the operations so that company being
able to gain competitive advantage.
Technologies Development: Also being termed as research and development by
budgeting about the allocation of resources. Innovating, brainstorming and coming up with new
ideas 'British Petroleum' may aligned resources so that they may able to overcome the situation
or condition after the Brexit exit and COVID have caused. It is one of those resources that
organization may utilize systematically and appropriately for purpose of gaining benefits
whether it is competitive and other. It can be said that technology utilization may enhance
organizational productivity in term of increasing operational effectiveness that in turn bring
several benefit in bulk.
Procurement: With effect fully utilizing the resources aims to focus on purchasing as
well as finding vendors which tend to provide company resources. Not just that but maintaining
relations with vendors and negotiating of raw materials also may increase brand to grow on large
scale. Management may obtain desire result when they may concentrate on external and internal
operations.
3- Evaluating with evidence how organization can implement environmental sustainability
science, ways and theories of thinking to become more competitive.
In the world of business, there are different types of frameworks, and concepts accessible
that has been utilized by and in the context of many companies, whether they are public, or
private, and small or large. For example, in case of British Petroleum, CSR is one of the best
environmental sustainability models that may aid to enhance its performance and improve in
sustainable manner (Vishwanathan and et.al., 2020). It may drive the attention of organization
and its management toward considering the environmental issues and contribution of their
venture toward the same, which is not suitable for business growth & success in the corporate
world. According to corporate social responsibility, British Petroleum may take approach reduce
its carbon foot print, which is quite essential for it to do that because it may help to save
environment and prevent it from harmful factors. By conducting this practice, firm may become
more competitive and feel capable to give tough competition to other organizations that are

running and managing their ventures operations in the similar market or industry. It is the best
way of thinking to become more productive and competitive that in turn provide unexpected
benefits to the chosen firm such as British Petroleum.
In order to become more sustainable, firm and its management along with other
stakeholders may accept the green tactic, which is quite beneficial and essential for them to do
that (Lartey and et.al., 2020). With skilled and experienced workforce, they may take initiative to
become a sustainable brand in term of using recyclable materials that utilize in the context of
packaging anything whether it is a product or more. It can be said that green strategy facilitate
judgements and transformation actions that may enhance environment. By setting a clear aim and
mission, organization may drive toward implementing chosen tactic that aid to bring more
advantages in bulk, beyond management expectations.
It is quite essential for it to consider each and every factor whether it is internal or
external to become a productive, sustainable and competitive company, than its rivals (Wahba
and et.al., 2019). Green tactic may aid to achieve this aim in systematic and effective manner in
term of driving their effort and concentration toward adopting and developing strategic
approaches that make business sustainable forever. It may help to gain the attention of profitable
suppliers, consumers and investors and also support to retain potential stakeholders, among
which each stakeholder may hold power and have high interested regarding business success and
progress. It is considered as an experiential tool that has been used by several brands in
systematic way, just to make assure that their business never influence environment and beauty
of nature in any term, especially in negative form. It may always take initiative to adopt
sustainability ideas, which in return lead to increase performance and profitability of company
that aid to maximize its financial performance and base more than last few years or months.
There are more strategic ways and methods accessible that organization may take into its
consideration. For instance, it may take action to go paperless, which drive the attention of
management toward using technologies for purpose of effective communication that is quite
important in the workplace. By adopting this sustainable way, it may take advantage of
developing positive and sustainable brand image, which is a challenging task for British
Petroleum to do that as it may need a lot of efforts and resources. Before taking any action and
decision, it may focus on current challenges related to environment in term of environmental
factors that affect the way a firm may work and perform within specific sector.

By considering all these factors, organization may take approach to move forward with
key strengths, capabilities and workforce, among which each candidate is able to develop
strategic plans and may hold power to achieve set aim.
CONCLUSION
From above analysis, it has been concluded that by using appropriate business tactics,
organization has gained competitive advantages. It has increased the profitability and
productivity level more than other companies or rivals. It has given tough competition to its
rivals that is quite essential for them to do so. Furthermore, by summing up above discussion, it
has been summarized that organization overcome the negative impact of its business upon
environment and boost environmental sustainability, which is not that easy for any firm to do
that. It has utilized existing resources and enhanced its capabilities, which has enabled them to
gain competitive advantages in bulk. The utilization has enabled firm to sustain and ruined in the
market for longer time. With the help of sustainable strategies, and considering CSR concept, it
has builds great brand image in the market that aid to attract the consumers and allow them to
retain with firm forever.

REFERENCES
Books and Journals
Bhat, J. A. and Yadav, P., 2018. Analysing Factors of Inbound Logistics and their Impact on
Non-Financial Performance of Handicraft Firms. Int. J Sup. Chain. Mgt Vol. 7(3). p.42.
Cescon, F., Costantini, A. and Grassetti, L., 2019. Strategic choices and strategic management
accounting in large manufacturing firms. Journal of Management and Governance.
23(3). pp.605-636.
Giannoni, C., Alarcón, L. F. and Vera, S., 2018. Diagnosis of sustainable business strategies
implemented by Chilean construction companies. Sustainability. 10(1). p.82.
HIDIROĞLU, D., 2020. Strategic leadership: Best practical leadership style to business
strategies in the period of COVID-19 Epidemic. Turkish Studies-Social Sciences. 15(4).
pp.1945-1955.
Lartey, T and et.al., 2020. Going green, going clean: Lean‐green sustainability strategy and firm
growth. Business strategy and the environment. 29(1). pp.118-139.
Ndung’u, E. N., Kinyanjui, W. N. and Abayo, R., 2020. Effects of type and rate of usage of
social network marketing on sales performance of the real estate in Nairobi.
International Academic Journal of Human Resource and Business Administration. 3(8).
pp.143-158.
Vishwanathan, P and et.al., 2020. Strategic CSR: A concept building meta‐analysis. Journal of
Management studies. 57(2). pp.314-350.
Wahba, S and et.al., 2019. Green envelop impact on reducing air temperature and enhancing
outdoor thermal comfort in arid climates. Civil Engineering Journal. 5(5). pp.1124-
1135.
Online
Ansoff Matrix. 2021. [Online]. Available Through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/>
Porter's Generic Strategies. 2022. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newSTR_82.htm>
Value Chain Analysis with Examples. 2022. [Online]. Available Through:
<https://www.smartsheet.com/everything-you-need-to-know-about-value-chain-
analysis>