Analyzing British Petroleum's Global Business Environment with PESTEL

This report provides a PESTEL analysis of British Petroleum (BP) to assess the macro environmental factors affecting its global business operations. It examines the political, economic, social, technological, legal, and environmental factors that present both opportunities and threats to BP. The political environment in the UK offers stability, while economic factors provide a strong cash flow. Social factors highlight growth potential, and technological advancements offer opportunities for improved customer service. Legal factors provide a stable framework, and environmental regulations influence resource management. The analysis concludes that a strong understanding of the global macro environment is crucial for BP to navigate challenges and leverage opportunities effectively. Desklib provides access to this and many other solved assignments for students.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
PESTEL of British Petroleum..........................................................................................................3
Conclusion- .....................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Macro environment of a company affects its business operations due to various
uncontrollable factors. These factors can provide opportunities as well as threats to a company.
British Petroleum is one of the leading company in oil and gas industry across the world which is
headquartered in London.
PESTEL of British Petroleum
PESTEL analysis is done for scanning the macro environment of the company. It helps in
understanding the impact on business operations of an organisation. These are as follows
Political Environment- This factor affects companies operations majorly due to its
impact on overall industry. It is consists of various rates which influences the decision making in
a company. It occurs due to change in the government of a country, political relations with other
countries and other political changes (Perera, 2017).
Opportunities- Company can prosper in stable political environment in UK. This
provides an opportunity in the expansion strategy as well as increase in demand from other
countries.
Threats- Company faces threat in changes in the tax for the industry due to varied
fluctuations in oil and gas industry.
Economical factor- Company gets severely affected due to changes in economic
structure of UK.
Opportunities- Economic environment of UK provides stable cash flow due to strong
economic system. This provides an opportunity to the company in generating more employment
as well as good access to source financial aids.
Threats- It can provide a threat to the company due to instability in disposable income of
people.
Social factor: Social factors also known as the socio-culture factors involves the study
of the consumers belief and attitude towards the company's products. Due to this technological
phase of this era, people prefer bulk buying.
Opportunities- Company gets an opportunity due to its experience in various countries
which leads to more growth and greater market share across the world.

Threats- It provides threat in understanding cross culture in different countries.
Technological: Technological ways directly impact the minds of the consumers. They
affect the company by targeting the consumer market, targeting management of distribution of
products and affecting the new ways of production and sales of products.
Opportunities- It provides opportunity to company in utilising latest techno friendly
products which helps in providing excellent customer services.
Threats- It poses threat on company due to loss of obsolete technical assets.
Legal: Legal factors defines the company about what is legal and what is not legal to
maintain their trade graph. These include health and safety, consumer rights, safety standards,
employee and employers rights etc. The change in the government policies will affects the day
to day operations of the company in a positive and negative manner (Zahari and Romli, 2019 ).
Opportunities- It helps in providing satble legal policies due to presence of good legal
system in UK
Threat- Due to government intervention in the industry it can harm the operations .
Environmental: Environmental factors gains its importance due to government rules for
maintaining carbon footprints, increasing scarcity of resources and so on. These are the issues the
marketer is facing as they have to maintain a balance between the rules and consumers demands.
Opportunities- UK government has imposed good control on the environment condition
which helps the company in
Threat- This factor can impact the production and extraction of resources .
Conclusion-
Global macro environment of a business affects the functioning of British Petroleum.
With the help of strong analysis it can overcome them by identifying its opportunities and
threats.

REFERENCES
Books and Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Zahari, A.R. and Romli, F.I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics, 192, p.104901.