Global Business Environment: British Petroleum SWOT Analysis Report

This report provides a comprehensive analysis of British Petroleum (BP) within the global business environment. It begins with an introduction outlining the report's objectives, which include identifying key internal and external drivers through a SWOT analysis. The SWOT analysis examines BP's strengths (diversified interests, loyal customers, global leadership, and strong customer relationships), weaknesses (controversies and ethical issues), opportunities (alternative energy, growth in energy demand, and sustainable practices), and threats (competition, recession, and negative image). The report then assesses the impact of these key drivers on two functional areas: finance and human resources. The finance section highlights the substantial investments required for alternative energy sources, increased production, image rehabilitation, and diversification, all of which influence financial planning. The human resources section discusses the need for competent personnel to maintain customer relationships, handle controversies, and support diversification into new energy sectors. The report concludes by summarizing the key findings and implications of the analysis.

Global Business
Environment.

Table of Contents
INTRODUCTION ..........................................................................................................................3
Swot Analysis of British Petroleum.............................................................................................3
Impact of key drivers on functional areas....................................................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
This portfolio paper aims at discussing key drivers from internal and external
environment of British Petroleum and in order to identify these key factors SWOT analysis will
be completed in this report. On the basis of identified key factors from Swot later impact of these
will be analysed on two functional areas of the firm.
Swot Analysis of British Petroleum
Strengths
Diversified Interest- British petroleum has its presence and different types of Petroleum
products and this is one of its important strength (Alm and Brown, 2020). Company has
diversified into energy, aviation fuel, information technology and lubricant along with oil and
gas.
Loyal customers- Customers are most important for success of an organisation and British
petroleum has managed to create and developed customers’ basis. Specifically in our business
customers of British petroleum are highly loyal for the brand.
Global leadership- British petroleum has presence in global market and along with its presence
it is also a leader in its industry and in many of its product categories.
Strong customer relationship- Strong customer relationship is also strength of British
Petroleum. British petroleum ensures that they maintain strong relationship with their customers.
In order to do so British Petroleum has in-depth understanding of customers and their
requirements.
Weaknesses
Controversies- British petroleum has a weakness that there are several controversies that have
affected image of British Petroleum. Controversies of British petroleum are mainly related with
oil spill in various parts of world. Oil spills affect the sustainability of countries and this effect
image and goodwill of British Petroleum.

Ethical issues- There are several ethical issues that have become weakness of British Petroleum.
Ethical issues are because of dishonest transactions from employees, and they also have been
created because of disaster created from oil spills and irresponsible attitude of company and its
management in handling these disasters (Yuriy, 2020).
Opportunities
Alternative Energy- Alternative energy is a very important opportunity that British petroleum
can utilise. Alternative energy includes solar energy and wind energy. With increasing focus of
world and communities on sustainability this is a very important opportunity that British
petroleum can utilise. Sustainable and responsible attitude of British petroleum towards
environment will also help it in changing it image that got affected because of oil spills.
Growth in demand for energy- Increase in demand of energy is and very important opportunity
that British petroleum can utilise. Along with this demand for renewable energy is also
increasing and this also has an important for British Petroleum.
Threats
Competition- Competition is one of the biggest threats for British Petroleum. There are several
big organizations operating worldwide and increasing competition intensity is a threat for
company (SWOT Analysis. 2020).
Recession- Recession is also a threat for British Petroleum because due to recession demand for
company reduces and creates a threat for organization.
Negative impact on its image- Because of oil spills around the word and unethical practices of
British petroleum and its employees of company has significantly affected. This also creates
threat for British Petroleum and its Global leadership position.
Impact of key drivers on functional areas
The key drivers that are being identified impact the following functional areas of British
Petroleum:
Finance

Finance is the lifeblood of the organization and all the working depends upon the finance
as lack of finance can put a hindrance in various operations of British Petroleum. For switching
onto the different energy source there is huge amount of investment which is needed. For moving
to solar and wind energy, British Petroleum needs to invest in huge solar and wind plants. As
there is increase in the demand of energy, so British Petroleum have to increase its production of
energy which will incur huge costs. Therefore, the finance department area is impacted by the
increase costing.
As due to some issues the image of British Petroleum was also negatively impacted
therefore to again build a positive image lot of efforts will be put upon (Falcone, 2020). Doing
social welfare for weaker sections, donating for social cause and releasing the campaign which
will impoverish the image of the organization will require money and it will impact the finance
department of British Petroleum. The organization has also diversified into different areas
therefore in all the areas finance are needed therefore the diversified areas impact the finance
department as money has to spent not only in one area but in various areas.
As the organization have many competitors and to cope up with the competition British
Petroleum has to invest in innovation and marketing to make their energy products and other
products stand out and better than competitors. For innovation and marketing purpose a lot of
money is required which comes from the finance department.
Human Resource
As British Petroleum has a global presence therefore for all the places of operations
human resources are needed. The organization also have to undertake various activities so
different human resources are required for different activities.
As British Petroleum is known for its good customer relation and for maintaining
customer relationship competent personnel are required that have the required skill set that can
establish better relationship with the customers (Gutierrez-Gutierrez, Barrales-Molina. and
Kaynak, 2018). The human resource which is selected will also be able to attend the customer
grievances and problems and will be able to sort them therefore human resource should hire
human resource accordingly to the need.

The human resource department is also impacted from the controversies as due to this
people do not apply for the job and the organization does not get the good human resource, and
they loose various advantages. If the organization decides to diversify into other sources of
energy like solar and wind then different human resource are required for operating different
plants. As all the plants have different ways to operate and working therefore different personnel
are required which have the required skills.
To beat the competition, the organization has to innovate and find out various ways to attract
customers therefore several personnels are required that can contribute in developing new ideas
and bringing something new to the market so that customers are attracted.
CONCLUSION
It can be concluded that there are strengths, weakness, threats and opportunities for
British Petroleum and some functional areas such as finance and human resource areas are
impacted due to the identified key drivers.

REFERENCES
Books and Journals
Alm, K. and Brown, M., 2020. John Rawls’ Concept of the Reasonable: A Study of Stakeholder
Action and Reaction Between British Petroleum and the Victims of the Oil Spill in the
Gulf of Mexico. Journal of Business Ethics. pp.1-17.
Falcone, P.M., 2020. Environmental regulation and green investments: The role of green
finance. International Journal of Green Economics. 14(2). pp.159-173.
Gutierrez-Gutierrez, L.J., Barrales-Molina, V. and Kaynak, H., 2018. The role of human
resource-related quality management practices in new product
development. International Journal of Operations & Production Management.
Yuriy, T., 2020. THE ANALYSIS OF FINANCIAL STABILITY AND PROFITABILITY OF
BRITISH PETROLEUM (BP) FOR THE PERIOD 2014-2019. Review of Business and
Economics Studies. (1).
Online
SWOT Analysis. 2020. [Online]. Available Through: <
https://corporatefinanceinstitute.com/resources/knowledge/strategy/swot-analysis/>.