Business Strategy Analysis: BP Oil Company Report, Semester 1

This report provides a comprehensive analysis of BP Oil Company's business strategy, examining the impact of the macro-environment using PESTEL and SWOT analyses. It assesses the company's internal environment and strategic capabilities, including strategic analysis, choice, and implementation. The report further evaluates the competitive forces within the oil and gas industry using Porter's Five Forces model, offering insights into the company's competitive position. It also applies various models and theories to understand the company's strategic planning. The report concludes with recommendations for BP to leverage its strengths, mitigate its weaknesses, and capitalize on opportunities, ensuring the company's long-term success in the face of environmental and market challenges. The document highlights key aspects such as political and economic factors, social and technological influences, and environmental and legal considerations impacting the company's operations and strategic decision-making.

Business strategy

Table of Contents
INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
Analysis the impact and influence the macro environment on an organisation...............................3
TASK 2....................................................................................................................................................7
Assess on organisation's the internal envelopment and capabilities................................................7
TASK 3..................................................................................................................................................12
Evaluate and apply results by using Porter's Five force model.......................................................12
TASK 4..................................................................................................................................................14
Apply models, theories and concept to assist with understanding................................................14
CONCLUSION.......................................................................................................................................16

INTRODUCTION
Business strategy refers a effective combination of all decision to take or act of
performance which is performed by business. For accomplishing goals of business and secure
at competitive position. It is backbone of business and show roadmap which help to lead the
desired goal and objective (Ramdani and et.al., 2018). The present study is based on the “BP
OIL company” which is the British oil and gas company. The company is currently face big
challenge in meeting the demand and need of the stakeholders. The study lays emphasis on
analysis impact and also to influence of micro environment of organisation and its business
strategy. Report will assess by the internal environment and its capabilities of company by
uses the appropriate frameworks. Study will measure and applying by the porter's five force
model for evaluate competitive force of the given market sector for the organisation. It will
also highlighted by the range of concept, theories and models for strategic planning for the
organisation.
TASK 1
Analysis of organisation's macro environment.
The BP oil/gas company is growing advantaged in the upstream. The company is designed
their strategy to meet dual challenges by using technology, energy which is more productive
in new ways this help to meet the expected rise in the demand.
The meaning of strategy and its role to achieve goals and objective of company.
The strategy action plan to design for achieving effective and valuable long term goals and
objective of the firm. It is the high level plan to achieve one more goals to under the
condition. This have roles and responsibilities to achieve goals and objective are as follows:
 This provide proper direction to the company for promote action which are related to
the goals and objective of firm.
 Then strategic planning is the direction of the work and growth of the business.
 This plan is provide the effective and valuable motivation to the BP manager for
achieve gaols and objective of company.

Strategy of business is play an important role at organisation for achieving goals and
objective of organization. This plays role in operation management/function, it make the best
use of its resource. With the help of strategy, company manager are use proper resources at
right place and time without consuming time. It is the effective and valuable for the business
and its growth. Business strategy is effective and valuable for growth and this have needs a
good strategy to develop the actual business model and decisions.
There are mentioned the different strategic planning techniques for analysis the macro
environment are as follows:
The macro environment analysis helps to find out the external force that is affect to company
and its growth production and sells of this. It is concerns with the PESTEL analysis like
economical, political, technological, legal, social, and environmental factors which are affect
to the business and its growth at marketplace. The PESTEL analysis are as follows:
Political factor
The political factor refers a government policy a degree of the intervention at
economy growth. This includes the trading policies, inter-country relations, lobbying, tax
policy, environmental, labour law and so on. For example: national commission increases on
the BP oil and gas company (Spiler, Kvrgic and Vujadin, 2016). In this case company have to
pay extra commission to government by this company is affect but it decrease the it can be
effective and beneficial for the company. This shows the highest intervention to the
politicians in business. The evidence in this case a royalty rate to find stronger government by
head of department UK's government. In this company pays the extra commission by this it
impact to the business and its growth of business.
Economical factor
The economical factor affect to business world or national economy of environmental
business is runs. For example: the economy is supported to the fundamental by its oil and gas
industry market producer. This industry is faced increasing demand with high rate in fossil
fuels like replacement and nuclear of market industry which is restricted comparative
contribution. The energy is growing and replacing the total energy production and and its
growth work. Other hand, fossil fuels demand is decrease then company face problem
because by this supply of product is low.
Social factor

The social factor includes population and its growth rate, age, health consideration,
career attitudes and cultural issues. Those factors are directly affect to customers and drives
them. The water horizon is disaster, due to the huge political and legal pressures by US
government and local authorities. That are impact to the BP oil and gas industry socially. The
amount of the environmental damages are destroys the BP brand image and other hand
customers are avoid their product and service by this it can impact to the company and its
growth. Other hand, cultural issues are happens then demand is decrease then it impact to the
business. This concludes oil has the negative impact on the brand and company image.
Technology factor
Technological is the another technical factor which is impact to the company
externally. This affect to the business and its growth by introducing new technological factor.
The technological factor includes websites and other legal sources. By this company have lots
of advantage. For example: the BP advanced technology for the water exploration, that are
concerns with oil and gas energy efficiency. With the help of this technology company is able
to invest in low carbon future and production in effective manner. Technology is help to
develop business and its policies in effective manner.
Legal factor
The legal factor concerns with the legislation which is affect to business like
employment low, anti trust law, healthy and safety law etc. for example: in the BP company
have lots of healthy and safety concerns. In this company have to give proper and specific
concerns with the health and safe of employees and customers prospects. In that manager
take care of the all equipments before using it in effective manner (Ghlala, Aouina and Said,
2016). The BP company is observe this healthy and safety law and compensation against of
their injuries. By this company manager is take decision as per laws and give impact on
management decision making process of BP oil and gas company. The another rules and
regulation are impact to the company because manager have to make new strategy.
Environmental factor
Environmental factor is important and those environmental factors are plays the
important roles in business. This become more important because of increasing scarcity of
raw material, pollution target and so on. For example: the environmental activities that BP
spill that covers area of size because it impact to the business and its structure. In this

company manager have to take decision as per requirement and growth factor or
environmental activities. Other hand, by this company have some benefits like have proper
structure and business schedule.
SWOT analysis
SWOT analysis is help to manager for understand organisation to identify its strength and
weakness or also opportunities and threats. The SWOT analysis of the company are as
follows:
Strength Weakness
 The British oil and gas company
third largest energy company world
which is provide the best and
effective product and service to the
customers at market place.
 The company's strength huge market
impact is give the effective trading
performance global energy industry.
 It has the on effective strength which
company is good performer in the
international market.
 The company is faced many oil spill
and disasters which is led to facilities
or significant environment damage
in the world.
 In the ongoing company is focused
on change climate changes and
reduction is use of fossil fuels.
Opportunity Threat
 It has opportunity for the BP for
expand into new geographic with the
alternative fuel and energy
opportunities.
 Company can focus on the further
develop the subsidiaries and
technology uses.
 The company has the environmental
issue continue has threat for the
company. The CSR put its strategy
by revising safety workplace issues
in order to decrease explosions.
 The company face a lawsuit and
penalties which is not addressed the
environmental issues and poor
safety.

 The main threat of the company is
increasing competence at
marketplace.
Those are the strength, weakness, opportunities and threats of the company. In that have to
give recommendations for the business to turn their weakness into the strength. Other hand
use their opportunities for overcome the threats. This help to make the effective and valuable
growth of the company. As per the analysis of strength, weakness, threat and opportunities of
company. Company is need to make new strategy and decisions as per requirement. Like for
overcome the weakness of company, manager take decision as per strength use and make
new strategy. Other make decisions, for use opportunities in their company for growth and
successfully meet with stakeholder of company. Company have opportunity to develop and
expand market into new geographic the alternative fuel and energy. Then stakeholder are
direct connect with the company and industry to achieve goals and objective of company.
TASK 2
Assess on organisation's the envelopment and capabilities.
Internal environment is composed various elements within the BP oil and gas
company like employees growth, management, corporate culture. Corporate culture is help to
define employees behaviour. Th values and mission of company in reaching high growth in
market place. The strategic capability refers to the business ability which is harness all its
skills, capability and resources in order to gain effectiveness in the competitive advantage.
This help to company for survive and increase its value over the time. The strategic
capabilities are focus on assets, resource and market position like project of the BP company.
With the help of strategic capabilities company is able to meet with demand of the
stakeholder like employee, customers, suppliers and others (Yee, 2015). The strategic
capabilities have three key component which are important for the management of BP
company are as follows:
Strategic analysis
Strategic analysis is helps to understanding strategic position of company. Its very
important and effective analysis of environmental changes. This help to find those factor

which is affect to the company and their worker. Strategic analysis have aims to appoint the
view of key factor that are impact in present or future performance. This considers the
environment, resource of organisation and expectation of the different stakeholder.
 The environment exist with being able for interacting with the complex commercial,
political, environmental, economic, social and technological factor. The company
faced with the changes to environment which is impact strategic plan. The external
effect threats and weakness which are the part of the SWOT analysis.
 The resource of the business are internal influence. The strategic capability of the BP
company is the strength and weaknesses is related to SWOT analysis of the company.
Strategic choice
Strategic choice is undertake after the strategies analysis. This defines as selection of
best action which is based on evaluation of strategic options (Mathooko and Ogutu, 2015).
This is effective and valuable for the business and its growth.
Strategy implementation
Strategy implementation is refers way in turn strategy in the cation which are take at the
workplace for the better improvement. Here is requires the careful planning and proper
development of the organisation structure and its effectiveness by careful handling to the
possible changes.
Those are the key components of strategic capabilities which are help to make the effective
and valuable changes of company. The resource based view strategy of basic for the
competitive advantage in that the McKinsey 7's model management tool help to take
evidence for analysis internal capabilities are as follows:
McKinsey 7's model is designed for growth and help to BP oil and gas company's owner and
manager to understand how organisation is aligned and improved. Model is covers the hard
and soft elements which are considers effectively. The hard elements are consider the 3 factor
like strategy, structure, system. Other hand, the soft elements are considers the shared values,
style, staff and skills below:
Hard elements
The hard elements are considers effectiveness where manager and owner of BP company
have to spend their time for make strategies.

 Strategy is the highest level of perspective in the business to rise the plan for compete
with their competitors. BP oil and gas company manager and owners are make the
effective and valuable strategy for the meet the demand and need of the different
stakeholders like employees, customers and suppliers.
 Structure is the very important part of the company. This give proper direction and
guidance to manager and owner of company for work. This help to handle all the
situation at the workplace. The structure is deals with the each and every department
of BP oil and gas company (Takata, 2016).
 System is take the right place on regular basis to keep business operating and forward.
The system is help to make right work and ensure about employees are working in the
right manner or in the right projects for getting them done on the right time. By
following best and effective system BP oil and gas company is make the right
decision for achieving goals.
Soft elements
The soft elements are concerns and get for the many peoples. That are defined definitely
more difficult and quantify.
 Shared values is very important for the business and its growth. The overall culture of
company and the purpose which is done by in company. Values are very important
and effective for the growth of BP oil and gas company to achieve goals like meet
demand and needs of various stakeholder like employees, suppliers and customers.
 Style of leadership and management is fall and line with the both of culture of
organisation and needs of the team. In their manager and leaders of BP oil and gas
company have to use the effective and valuable leadership style for growth of the
company. This style are support to meet the needs and demands of employees and
suppliers (Abbott, 2015).
 Staff in term of knowing the effectiveness of the team in a classic leadership is more
responsible which has need to know about the them for the work and its growth. The
good leaders of BP oil and gas company are help to improve their team for stronger
future and present.

 Skills are vary important for the staff and employees. With the help of skills leaders
and manager of BP oil and gas company are able to make decision to meet needs and
wants of the different stakeholder like customers, employees and suppliers.
The model have strength and weakness which are help to make various decisions as per
requirement. The strength are help to analysis the gap between various elements and provide
the strategic direction to company. Other hand weakness is to ignore importance of external
environment. Those are the hard and soft elements of the McKinsey 7's model. That is help
to make effective and valuable strategy and plan for achieve goals and objective of the
company.
The is strategic analysis tool is help to organisation to uncovers their resources and
capabilities. This is related to strategic viewpoint ion the company. To analysis the strategic
capabilities here is use the VIRO frameworks is used to analysis the firm's internal resource
and capabilities which is help to find out the source to sustained in competitive advantage. It
is brilliant for the evaluation of the company. The VIRO model of BP oil and gas company as
follows:
Basis Valuable Rare Inimitable Organised
Competitive
disadvantage
Yes
Technological
changes
Yes Yes
Cultural
changes
Yes Yes
Assess to
critical raw
material for
the successful
execution
Yes Yes Yes
Opportunities
for brand
extension
Yes Yes Yes

Financial
resource
Yes Yes Yes Yes
Brand position Yes Yes Yes Yes
As per the use of VIRO model company is able to find the effective and valuable growth of
the company. With the help o0f this model company can get idea about the what are source
are available in their company for the use of product and service. It is the effective and
valuable for the team work of the company.
 Valuable is the resource which are effective and valuable for the growth of Oil and
gas company. The valuable resource of the company are financial, marketing, human
and operation management of the company (Rastogi and Trivedi, 2016).
 Rare elements are needs to ask the resource that are valuable to the gas oil rare or
costly. The rare both competitor and new entrants easily.
 Inimitable is most of the industry which is facing increase threats of the disruption.
That are help to compete with the competitors.
 Organized element is compete with the capabilities to make the various resource as
per requirements.
This model is show the effective and valuable growth of the company as per the
requirements. With the help of this model strategic capabilities are present the effectiveness
at the market place. This is helpful for analysis the external environment of the company by7
managing PESTEL model. With the help of this company is able to make effective and
valuable growth of company. This have strength to meet with the strength and weakness. The
strength of this model is to make proper decision as per requirement. Other hand, weakness
of company is shows the important elements of company,
TASK 3
Evaluate and apply results by using Porter's Five force model.
The oil and gas industry is facing strong competition for attracting sciences and
various technology. As per with the marketing and advertising, hospitality, transport and

retails. With the help of porter five force model the BP model is able to make the effective
and valuable changes to the company. With the help of this BP manager is able to analysis
their competitive analysis at marketplace. The competitive analysis by using porter five force
are as follows:
Porters five Force model
This consist of the five forces, that describe that which factor affect the business of the BP
company. These forces are as follows:
Barraging power of the buyers
The bargaining power the buyers for the BP company is high, as it affect the business of the
barraging leverage, brand identity, buyers incentives all are the factor that affect the business
of the BP company (Widya Yudha, Tjahjono and Kolios, 2018). If buyer not accept the
products such as oil and many more than the company have to be adjust their price and have
to make new strategies for the company.
Threats of new entrants
Power of the Threats of the new entrants for the BP company is low. As the to enter in the oil
industry, need to have big amount of the capital and this not possible to enter in this field for
any company. This is why the power of the new entrants is low. And does not affect the
strategies of the BP company. Low pricing and the strong competition is make the others for
the new entrants into the industry.
Competitors rivalry
The power of the competitors is high, as the BP company have to change their strategies and
plan as according to their competitors in the market. If competitors reduce their prices of
their products, then BP company also have to make changes in their prices strategies in order
to attract more customers as compare to their competitors.
Supplier Power
The power of the suppliers is low as compare to the others. Because as the BP oil company is
big brand that have many suppliers to distribute their products in the market. So this can
switch to any suppliers any time. This make the suppliers power low.
Threats of substitute products

The oil and gas price is hike is weak threats of the substitutes for the BP in the oil industry.
There threat from the substitutes in solar industry because company pays a very huge amount
of switching cost. The investment have to wait for a long time and term. BP manager are
knowns about the barriers like big companies enter in the solar industry. In this company
manager are develop the new technologies for its solar industry to invest. By this BP
company is have not fear from their substitute products and service (Koshesh and Jafari,
2019).
Those are porter's five force model which is help to analysis the competitive analysis. The
competitive analysis is help to make the effective and valuable growth of company. In order
to analysis stakeholder of the BP oil and gas company by using Ansoff matrix to
product/market strategy are as follows:
The strategic is used to analysis various cooperate choices for the BP by using Ansoff model.
This help to decide product and market strategy for the business growth and effectiveness.
Market penetration
It is running business with the existing product in the existing customer because it is help to
buy more products from the company for new customers. In the BP is having good market
penetration and also help to earn brand loyalty. It is the strategic alliance, tie-ups , joint
venture and subsidiarity. The company is to penetrate into the market to look the segmented
use of it.
Product development
The product development is help to make the effective and valau8bel growth of the company
in order to achieve. The BP company has out the many of the products and service to their
customers in their competitive advantage in the business market and also in effective manner.
Market development
The market development is very important and valuable for the business and growth. The
market want to sell the existing product in market this strategy in used in effective manner
and growth of the company. Car and vehicle market are create the great opportunities in the
market and existing customers.
Diversification

The diversification is get into the new market by lunching new product and service at
marketplace. The BP is the big oil and gas company in the marketplace and easily achievable.
The solar industry is started the to survive and BP consider with the switching cost from the
one industry from another (Bull and et.al., 2016).
This Ansoff business model which is help to analysis the product and market strategy and
also stakeholder analysis. As per the porter five force analysis company have great and
effective position at marketplace by using various strategy
TASK 4
Apply models, theories and concept to assist with understanding.
To analysis the model and theories are which are help to make the effective and valuable
growth towards the market growth by using porter's generic strategies model.
The porter's generic strategy is try to define the firm to complete to show the following,
model competence on either cost and product differentiation.
Cost leadership
The cost leadership sets the firm to become the low cost in the industry. The source of the
cost advantage are varied and depend on the structure of the industry. The may include to
economics of scale, property technology, access to raw material. A low cost m8ust be find the
source of the cost advantage (Phadermrod, Crowder and Wills, 2019).
Differentiation
the differentiation is the effective product development strategy to look and seeks to be the
unique in the industry. in the select this is the effective and valuable growth of the company.
The strategic plan
Strategic management planning is a process of an organisation that define their
strategy so that they can effectively develop strategies and accomplish specific objectives and
goals. Strategic management can be defined as the method of collection ongoing activities
and process that used by the organisation systematically to align and coordinate the actions
and efforts with the accomplishment the changes. The plan involves formulation and
implementation of the developed strategies. It help in providing a strategic direction to BP oil

and gas company. As per the strategic plan, here is company is expand in other country.
Below is mentioned hypothetical strategic management plan for expanding in new country:
AIM:
To launch into new markets of China and India and earn better profitability.
OBJECTIVE:
BP company is going to enter into the markets of China and India by making use of various
strategies. These strategies are majorly going to include promotion and advertising. The
objective of the company to reach new markets and ensure that appropriate growth and
development is being achieved by better marketing and advertising practices.
MISSION:
The mission of the company is to provide the people with clean and less pollution causing
oil.
VISION:
It's vision is to enhance the global market and transportation by providing cheap and easy oil
to the people across the world.
OPERATION PLAN:
The operation plan for the company in order to sell its oil into new countries such as China
and India is by making use of marketing and advertising. This can help the company to reach
towards new growth and ensure that appropriate growth and development is taking place.
STRATEGY:
The strategy for the company is to hire best of the marketing agencies and the best advertisers
from both of the countries in order to ensure that appropriate growth and development is
taking place. Along with it, it the company is going to promote through various means as
well.
ACTION PLAN:
The company is going to hire marketing agencies which are the finest in these countries. It is
because hiring the best marketing and advertising agencies can help the organisation to
develop itself overall and ensure that set growth and development (Niederwieser and et.al.,
2016). Along with it, the company is going to set-up a team to evaluate and measure that

appropriate growth is taking place. It can help the organisation in developing itself and reach
and measure new growth. Also, it can enhance it overall profitability and would make it able
to reach new growth prospects.
CONCLUSION
From the above study it had been concluded that the BP has the largest company in
the public by coming out with the many more new product and service. BP has to be more
creative to bring out the technology and they can invest more for the installation of the solar
plants. The PESTEL analysis has shows the effectiveness of the company and external
environment. The SWOT analysis has effective for analysis the strength, weakness,
opportunities and threat of the company. McKinsey model has effective and valuable for the
growth of the company to analysis the structure and strategy of company. With the help of
VIRO model strategic capabilities get know about the company and able to make the
effective and valuable strategy to meet needs and wants of the various stakeholders like
employees, customers and suppliers. The porter's generic model has effective and valuable
for the business this help to make new product and service at marketplace.