Limited-time offer! Save up to 50% Off | Solutions starting at $6 each  

UNIT 32 Business Strategy Assignment - BP Oil company

Added on - 22 Nov 2020

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 16 pages
UNIT 32:BUSINESS STRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1. (a) Meaning of Strategy....................................................................................................1(b) Role of strategy to achieve business objectives................................................................1(c) Strategic Planning Techniques..........................................................................................2M1. (a) Macro Environment of BP Oil..................................................................................2(b) Critical Analysis of Macro Environment using SWOT Analysis.....................................2D1. (a) PESTLE......................................................................................................................4LO 2.................................................................................................................................................5P2. (a) Meaning of internal environment and capabilities.....................................................5(b) McKinsey 7S Model applied to BP Oil............................................................................5M2. (a) Critical analysis of McKinsey 7S Model...................................................................6(b) VRIO Framework.............................................................................................................6LO 3.................................................................................................................................................8P3. (a) Analysis of industry competition using Porter’s Five Force Model...........................8M3. (a) Recommending strategy using Ansoff Matrix..........................................................9LO 4...............................................................................................................................................10P4. (a) Porter’s Generic Model applied to BP Oil................................................................10M4. (a) Meaning of Strategic Management Plan.................................................................11(b) Strategic Management Plan for BP Oil...........................................................................12CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................14
INTRODUCTIONBusiness strategy is defined as the set of actions taken by a company with a view to attaina competitive advantage in marketplace (Bell, Bryman and Harley, 2018). The primary motive ofenforcing an effective business strategy is that it provides assistance in accomplishing theorganisational goals and objectives in the stipulated course of time. The emphasis of devisingsuch a strategy is to enhance the sales and profitability of business by undertaking measureswhich are aimed at gaining the attention of population.The present report is based on the business strategy and the strategic planning of BritishPetroleum Oil Company. BP Oil is a multinational corporation functioning within oil and gassector and has its headquarters within London, UK. This assignment provides knowledge aboutthe influence of macro environment on business and its strategies. Also, it includes an analysis ofthe internal environment of organisation and its capabilities by making use of McKinsey 7SModel and VRIO framework. Additionally, the assignment gains an insight into the applicationof Porter’s Five Force Model to evaluate industry rivalry along with the selection of appropriatestrategy by using Ansoff Matrix. Lastly, a strategic plan is devised by analysing Porter’s GenericStrategies.LO 1P1. (a) Meaning of StrategyStrategy can be defined as“the set of actions that are taken with a view to attain the longterm objectives of a company”(Brewster, 2017).In other words, it can be said that “Strategy refers to the alignment of people and theirbehaviour towards accomplishment of a desired state in future.Both the definitions state that strategy is future-oriented and provides assistance inaccomplishment of long term business objectives.While the former definition states that strategy is a course of action, the latter depicts thatit is directing the behaviour of people towards the long term objective.(b) Role of strategy to achieve business objectivesStrategy is the course of action by which companies aim to achieve a competitiveadvantage in marketplace so that they can override rivals operating within the same industry andenhance the overall sales and profitability. Thus, strategy provides assistance to an organisation1
in accomplishing the organisational goals and objectives, thereby attaining the strategic intent bydirecting the behavioural characteristics of individuals towards the vision of company. Also,business strategy aids an organisation to undertake such activities and processes which providestrategic directions to various units and departments of an entity so that long term goals can betimely attained.(c) Strategic Planning TechniquesThere are a number of strategic planning techniques that are available to a business inorder to take tactical decisions aimed at improving the position of company at marketplace andenhancing its overall sales as well as profitability. Some of the techniques that are widely usedby the business organisations are BCG Matrix, SWOT analysis, PESTLE analysis, Stakeholderanalysis etc. (Chang, 2016). These techniques provide assistance to an organisation to takedecisions for the entity based upon the analysis and evaluation of macro and micro environment.M1. (a) Macro Environment of BP OilBP Oil is a well renowned multinational company which is following vertical integrationand successfully functioning within all the areas of oil and gas industry, inclusive of refining,marketing and distribution, exploration and manufacturing, petrochemicals, trading and powergeneration. By the end of 2017, this organisation was operating within 70 nations producingapproximately 3.6 million barrels per day of oil equivalents and had overall proved reserve of18.441 billions of barrels of equivalent (Cavusgil and et. al., 2014). Thus, it becomes necessaryto examine and assess the macro environmental factors of this company such as stakeholders,PESTLE factors, strengths, weaknesses, opportunities and threats in order to improve the overallmarket position.(b) Critical Analysis of Macro Environment using SWOT AnalysisIt is essential to evaluate the macro environment of an organisation as it assists an entityto take adequate and relevant decision which will aid in gaining a strategic edge over rivals andenhancing the overall profitability. BP Oil has experienced major challenges in last some years,inclusive of costly as well as brand shattering accidents along with the pressure to take intoaccount targets of global climate change and emphasize upon CSR. In this regard, being one ofthe world’s largest energy companies of the world, BP Oil has examined the macro environmentby making use of SWOT analysis as follows:-2
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document