BM461: Global Business Environment - British Petroleum PESTLE Analysis

This report provides a comprehensive PESTLE analysis of British Petroleum (BP), examining the external factors influencing its operations. The introduction defines external factors and their impact on organizations, setting the stage for the analysis. The main body delves into the PESTLE framework, dissecting political, economic, social, technological, environmental, and legal factors affecting BP. It explores how political changes, such as environmental pollution regulations, and economic factors, like Brexit, impact BP's profitability. The analysis further considers social factors, technological advancements, and environmental laws. The conclusion summarizes the impact of the macro-environment on BP and emphasizes the importance of strategic planning to mitigate external threats. The report is supported by relevant references, including books and journals, to validate the analysis.

British Petroleum

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE analysis on British Petroleum..................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
The tern external factor consists and composed of all outside factors or aspects which
impacts on functions and operations of organisation. Business act and reacts or implement
change by the analysis of company operations and functions that is managed and understand with
perspective of macro environment. This report is written from perspective of British Petroleum
and it provide details about competitive forces to perform work with analyse of macro-
environment factors.
MAIN BODY
PESTLE analysis on British Petroleum
Political- Political factors play an important role for determining the aspects and factors which
impacts on the long term profitability of British Petroleum within a country and market. British
petroleum operate business within Oil & Gas industry and this is a risk related sector. To
accomplish success in dynamic Oil and Gas industry management diversify systematic risk of
political environment within a country (Dallmeyer and et. al., 2014). Change in rules of
environment pollution by UK government generate an unstable market for British petroleum and
risk for country to enter in market.
Economical- There are different macro environment factors such as saving rate, foreign
exchange rate and interest rate etc. are considered in economic cycle that match with aggregate
demand and investment within an economy. In the context of UK, Brexit decisions generates
issue for an organisation and it impacts on purchasing power of individuals and also on
profitability of British Petroleum due to which it is challenging for management to control cost
of operations. Change identify with economic aspect define that labour cost and productivity for
BP is increased.
Social- Society culture and the method to perform things impacts on the culture of
organisation that exists within an environment. Shared beliefs and individual attitude of
population perform an important role that how marketers will understand consumer market. In
the context of British Petroleum organisation decide marketing message for the Gas & Oil
industry (Manh Cuong and Hung, 2020). Change identify by social factor is that demographic
and skill of population is impacted due to change in population number.
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Technology- The term technology define that change is implemented by management
through disrupting different factors within industries (Norouzi, Fani and Ziarani, 2020).
Transportation industry provide high scope in technology and from previous year technology is
impacting on industry with rapid speed. Example- Taxi industry is dominated by Ola and Uber
and this define fast moving automation due to which technology of organisation is impacted.
Change due to technology impacts on the cost and operation structure of Oil and Gas industry.
Environment factors- Different marketers perform their work with different norms and
it impacts on profitability of organisation within market. Each country develops and formulate
different laws and liability with environment. For example- UK is a developed country and it
provide liability cause to perform work and entry to organisation that not impacts on
environment of country (McGruer and et. al., 2019). Change within laws regulates environment
perspective because oil and gas industry impacts on air and water pollution of country.
Legal factor- In the number of different countries, legal framework, structure and
institutions are not enough for protecting the intellectual property rights for a country. A firm
evaluate the market of a country and it aids organisation to determine aspects through which
firms operate methods as per legal rules to gain competitive-edge in market. Change related with
external legal factor to manage work according to consumer protection and e-commerce law.
CONCLUSION
With the analyse of above report it is concluded that macro environment impacts on
functions and operations of organisation. Along with this by use of PESTLE model effective
strategy are developed to minimise threat of external factors. In the last, changes are managed by
business with use of appropriate methods.
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REFERENCES
Books and journals
Dallmeyer, I and et. al., 2014. Preparation and Characterization of Interconnected, Kraft Lignin‐
B ased Carbon Fibrous Materials by Electrospinning. Macromolecular Materials and
Engineering, 299(5), pp.540-551.
Manh Cuong, N. and Hung, P.V., 2020. Sea navigation-based Thai Canal implication: an
analysis of its effect on the Vietnamese maritime industry. Australian Journal of
Maritime & Ocean Affairs, pp.1-12.
McGruer, V and et. al., 2019. Deepwater Horizon crude oil exposure alters cholesterol
biosynthesis with implications for developmental cardiotoxicity in larval mahi-mahi
(Coryphaena hippurus). Comparative Biochemistry and Physiology Part C: Toxicology
& Pharmacology, 220, pp.31-35.
Norouzi, N., Fani, M. and Ziarani, Z.K., 2020. The fall of oil Age: A scenario planning approach
over the last peak oil of human history by 2040. Journal of Petroleum Science and
Engineering, 188, p.106827.
Yunker, M.B and et. al., 2014. Source apportionment of the hydrocarbon background in
sediment cores from Hecate Strait, a pristine sea on the west coast of British Columbia,
Canada. Organic geochemistry, 76, pp.235-258.
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