British Petroleum (BP) Management Challenges: An Individual Report

This report provides a comprehensive analysis of British Petroleum (BP), focusing on its management challenges within the framework of the Fundamentals of Management. It begins with an introduction to BP, followed by an overview of the company's profile, size, and financial performance. The report utilizes SWOT, PESTEL, and Porter's Five Forces analyses to assess BP's strengths, weaknesses, opportunities, threats, and external environmental factors. The report explores the company's management approach, emphasizing the use of the competency value framework. Key business challenges are identified, including shareholder pressure, management complexities, balancing oil and alternative energy sources, and safe oil production. The impact of these challenges on BP is discussed, including financial implications and strategic consequences. The report concludes with recommendations for addressing these challenges and improving BP's management practices. These include strategic adjustments, improved stakeholder relations, and enhanced safety protocols. The report offers a detailed evaluation of BP's current state and suggests actionable strategies for future success.

Fundamentals of
Management

Table of Contents
1 INTRODUCTION........................................................................................................................................3
2 THE COMPANY..........................................................................................................................................3
2.1 PROFILE..............................................................................................................................................3
2.2 MANAGEMENT APPROACH...............................................................................................................6
3 THE BUSINESS CHALLENGE.......................................................................................................................7
3.1 DESCRIPTION OF THE CHALLENGE.....................................................................................................7
3.2 IMPACT OF CHALLENGE ON COMPANY.............................................................................................7
4 RECOMMENDATIONS...............................................................................................................................8
5 CONCLUSIONS..........................................................................................................................................9
REFERENCES..............................................................................................................................................10

1 INTRODUCTION
The present report is based under topic fundamentals of management. The chosen firm of the
report is British petroleum which is known as the 4th largest producer of oil. The report will
discuss about the company in which it will include profile, size, features and analyzes invest
there are different models included. Further it will also discuss about the management challenges
better based upon Competency value framework. It will also evaluate about the business
challenges in which description an impact of challenges on the company was given. Lastly it is
also recommended about how to meet and solve all the challenges that are faced by the British
petroleum.
2 THE COMPANY
2.1 PROFILE
The British petroleum is known as the world court largest oil and natural gas producer that has
around 65,000 employees working with them in their company (Калюжний, Шапенко and
Козачок, 2018). The size of the company is very big that they have registered their 40% of
assets in United States and 80% office business outside the UK. In the year total finance in the
2015 on the basis of total revenue was dollar forty 3235 million and profit after taxation was
dollar 6485 million. The company take investment from there government as in 2011 the Indian
government have approved dollars 7.2 billion oil and gas investment rich gave BP a 30% stake in
large natural gas field of India East Coast. The company takes finances from banks and other
sources. Along with all this the company also expects that world demand for their energy will
continue growing up possible by 40% over 2010 which will be leveled by 2030. The company
has also measured their barrels of equivalent per day which was in Europe, United States, Russia
and rest of the world that also included Iraq. The largest presence of the company was in United
States in both extracts and sale large quantities of oil. They also take finances from there is
stakeholders and government which will result in meeting the cost of compensation.
SWOT
STRENGTH OPPORTUNITY

 The biggest strengths of the British
petroleum are that they have number of
the subsidiaries and retail brands that
are ARCO, BP travel Centre and BP
express (Rogova 2020).
 The company also have strong brand
loyalty in its oil business
 The company also keeps their full focus
on the corporate social responsibility
and thoughtful communications.
 The company has the opportunity to
become the market leader in the field of
fuel and energy. Along with this it also
includes wind and hydrogen.
 They also have the opportunity to
expand their business in new
geographic territories that is with
energy and fuel.
 They can also come in the partnership
with the different countries to come up
with the solution regarding the
infrastructure issues.
WEAKNESS
 Company has to face several oil spills
and disasters which results in
environmental damage around the
world.
 The organization has to close their
different types oil wells because they
have created poor economic cycles with
this the brand image were also resulted
in greedy and uncaring.
THREATS
 BP’s tarnished the brand reputation of
the company
 Different types of the global, regional
and local regulatory environments id
the biggest threats as changes in the
regulation impact the working of Bp.
 Economic pressure is the threat
especially in the terms of oil prices
around the world.
PESTEL
POLITICAL
 The company has to face issue that is
related to suspected ties that is with the
United Kingdom government (Saberi,
and et.al., 2019).
 They have to deal with the political
TECHNOLOGICAL
 As British petroleum is dealing in oil
they have to adopt all the technology
they are new launched that is
advancement that is in the seismic
imaging technology.

factors that are related to the Gulf
States with the supply deal.
 They also have to detect the signs for
their early warning.
ECONOMICAL
 In the economic factors British
petroleum must require more
investments on their offshore.
 For this the company can utilize large
number of the north seas assets that are
in United States.
ENVIROMENTAL
 They do different types is types of the
things which will result in lowering the
carbon future.
 They also use renewable energy in their
operated business in the oil and gas
sectors.
SOCIAL
 The company have to face so must risk
at the time of exploratory drilling in the
coast of the South Australia.
 In this the company is also working
hard so that they can put some efforts
on the social investments which will
result in supporting the communities
efforts by increasing their incomes and
improving standards of living
(Hopkinson and et.al., 2019).
LEGAL
 The company has to follow different
types of the rules and regulation that
are related to the greenhouse gases.
 On the other hand they have to deal
with legal laws that are regarding the
Gulf of Mexico oil spill.
PORTERS 5 FORCES
Threats of new entrants: in this field the new entry bring innovation which results in
putting the pressure on British petroleum that is in the form of the lower pricing strategy,
reducing cost and will result in providing the value propositions to their customers.
Bargaining power of suppliers: suppliers in this company are the dominant positions
which not only decrease the margins that the company can earn in the markets. The
company has high bargaining power of suppliers because of its overall productivity in oil
and gas.

Bargaining power of buyers: the buyers of the company are demanding lot as they want
best offers for the paying the prices as it will also result in putting the pressure on the
profits in their long run. Thus the bargaining power of the buyers is very high (Dźwigoł,
and Dźwigoł-Barosz, 2018).
Threats of substitute products or services: this is also high in this file because of the other
company will come up with the new products which will result in attracting large number
of the customers.
Rivalry among existing competitors: in this field it is very intense because of drive in the
prices and decrease in the overall profitability of the industry.
2.2 MANAGEMENT APPROACH
By using the competition value framework the company explained there managing approach
which is related to commitment of effective management of individuals along with their teams in
order to achieve high levels of the organization performance. British petroleum doesn’t know
what are the high organizational goals and market shares because of their employer’s gate
performance. The management approach is based on the business plan that is designed by.
British petroleum which will result in accomplish all the elements that are related to group
overall strategy by using the framework the company try to make an gain a competitive
advantage publicly stating on their website which result in attracting and retaining the best
people along with this they also offer their customer competitive reward packages those were
hard work for the achieving goals and objectives of the organization. The company had to face
several issues data related to hi confetti of the employees because the company is known as the
one of the fourth largest producer in oil and gas which it mainly works in UK is. Along with the
management of growth of the organization say that they are aware of the waters the importance
of employment and their practice upper formant isn't mentioned interregnum they also make sure
that their rewards are used effectively by their employers. By using this the company also added
value by securing their oil reserves that is the company have heavily invested in their license to
search for oil itself and by acquiring And creating joint venture with the companies that already
have license. Along with this their managing approach also bro suppliers in all fields like in
countries Indonesia which they have achieved successfully within the time allowed (Braham and
Casillas 2020).

3 THE BUSINESS CHALLENGE
3.1 DESCRIPTION OF THE CHALLENGE
The company has to face different challenges that are
• The shareholders of the company are pressuring management to improve their performance
which will result in growth and success of the organization (Batchenko and Honchar, 2020).
• The management of the organization was very hard to manage because the companies mainly
rely on the joint venture with the other companies.
• The company also has to face different challenges that are related to British petroleum strikes
that are for the balance between investigating oil and oil sources of energy.
• The last challenge that is faced by the company is related to producing oil safely to the other
countries because it is very hard for them.
3.2 IMPACT OF CHALLENGE ON COMPANY
The company has to face several types of impacts on the challenges that are faced by them on the
basis of
• Half of the shareholders of the company are forcing management to improve their performance
because of the low dividend payments they are facing in the real recent years and for this they
are also continued out that is related to Gulf of Mexico cost which has damaged high amount of
share price in 2007 at the time of they were trading 600 Pence and in 2000 around 400 Pence that
is with the yard of 5%. On the other hand the owner of the company also expecting their
managers to improve the performance as they want clarity about a strategic decision on the
issues data faced by them which include new sources of supply and relationship with their
partner and safety.
• The other impact that British petroleum has to face is strikes which result in balancing between
investing in oil and alternative knowing all sources of energy which includes biomass and wind.
At the time of tenure of John Boney the company has to face develop prominent features for
their organization which does not appear so good in recent years. This all features result in
improving environmental benefits but have not helped with the pressure from shareholders for

better return on their investment. The impact of us fallen oil price from last 2014 that it had
resulted in current investment in exploration (Arpaci, 2017).
• The impact that is faced by the company’s relationship with its partner as they are mainly rely
upon joint venture and it is very hard for them to manage. They stake in the company on around
16% of profits and there are so many investors who are worried about their investment because
of their bad relationship between Russia and the where Detroit is due to differences over the
conflicts in Ukraine and the Middle East (Yakima, McLintock and Hunt, 2020). Because of this
the company have to face Gulf of Mexico accident which is resulted in developing the
partnership with other companies and they are heavily relies on the associate arrangement for
oversight and governance. For this government of Russia and US plays a significant part in the
outcomes net result in showing driver’s expert over the company and the government in which
they have to deal.
• The very tough challenge that are face by the companies is producing oil safely as they have to
face different types of consequences that is related to power full exploration and production
division on the other hand they had a high degree of autonomy better accountable to British
petroleum profits. For this they have also created separate safety unit where all these tabs are
embedded in the operating units and they report directly to the CEO. On the other hand they have
two reduce the oil safely because it is very dangerous for their employees because it contained
different types of gases which is not good for their health for this the company have to develop
different types of things which will make their employees safe.
4 RECOMMENDATIONS
It can be recommended that the company can do different type of things which will result in
facing all the challenges that is why the company can secure their oil reserves along with this
they can also do changes in their culture and structure which will result in better performance of
their employers along with this they do not have to be fully relied on their joint venture they
should work in their own matter which will result in facing all the challenges without facing any
impact in British petroleum (Saberi and et.al., 2019).

5 CONCLUSIONS
By summing up the above report it has been concluded that the present report has given the
information about the fundamentals of management for the company British petroleum. With the
systems of the above report it has given the information about the company which I’ve included
profile and analyzes along with this it has also given the information about managing approach.
With the values they have already won the information about challenges and its impact data
faced by the organization and lastly they have given their in recommendation of how to meet the
challenges.

REFERENCES
Books and journals
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BUSINESS SPECIALISTS OF THE HOSPITALITY INDUSTRY IN HIGHER
EDUCATION INSTITUTIONS OF UKRAINE. Publishing House “Baltija
Publishing”.
Braham, A. and Casillas, S., 2020. Fundamentals of sustainability in civil engineering. CRC
Press.
Dźwigoł, H. and Dźwigoł-Barosz, M., 2018. Scientific research methodology in management
sciences. Financial and credit activity: problems of theory and practice. 2(25).
pp.424-437.
Hopkinson, N. S., and et.al., 2019. Chronic obstructive pulmonary disease: diagnosis and
management: summary of updated NICE guidance. Bmj, 366.
Murod, U., and et.al., 2021. Fundamentals of Creation and Use of Interactive Electronic Courses
on the Basis of Multimedia Technologies. Annals of the Romanian Society for Cell
Biology. pp.6860-6865.
Rogova, I., 2020. Competitive strategies of the enterprise: theoretical fundamentals.
Saberi, S., and et.al., 2019. Blockchain technology and its relationships to sustainable supply
chain management. International Journal of Production Research. 57(7). pp.2117-
2135.
Yakima, S., McLintock, C. and Hunt, B. J., 2020. RE: ISTH interim guidance to recognition and
management of coagulopathy in COVID‐19. Journal of Thrombosis and
Haemostasis. 18(8). pp.2057-2058.
Калюжний, Р.А., Шапенко, Л.О. and Козачок, І.Я., 2018. Course Training Program"
Fundamentals of Roman Private Law".