LCBB6004 - Strategic Analysis of BP and its Competitive Environment

This report provides a comprehensive analysis of British Petroleum (BP) and its competitive environment, focusing on strategic management and sustainability. It examines BP's global haulage organization, using PESTLE analysis, strategic group assessment, and SWOT framework to understand the factors influencing its productivity. The report also assesses BP's competitive environment through Porter's Five Forces and industry life cycle analysis, highlighting the challenges and opportunities the company faces, such as supply chain issues, shortage of HGV drivers, and the need for sustainable practices. The analysis identifies key strengths, weaknesses, opportunities, and threats for BP, offering insights into its strategic position and potential for growth. Desklib offers a wealth of similar resources for students seeking to deepen their understanding of business strategy and sustainability.

Analysis of British Petroleum
BP and its competitive
environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Determine global haulage organization and appropriate model.................................................3
Competitive environment of BP.................................................................................................6
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Environment is refers to as surrounding that helps business by determining surrounding
that helps in raising organization productivity (Alm and Brown, 2021). The report is based on
British Petroleum that is located in UK, it is British multinational oil and gas industry. This
provides varieties of services to consumer by offering them oil and gas services in their petrol
station. In this determines global Haulage by discussing PESTLE, strategic group assessment,
SWOT framework. Further, examine competitive environment of organization by assessing
Industry five forces and life cycle that described competitive environment of BP.
MAIN BODY
Determine global haulage organization and appropriate model
In accordance to organization, the global haulage organization is emphasized
government by apathy as influences BP productivity. By occurring of shortage of HGV drivers
in petrol station that influences organization performance (Wajid and Zafar, 2021). This
facilitates by UK facing issues in fuel trading among retail channels by emphasizing of lack of
diesel grades. In order to determine the influences of approaches on industry as well on sector. It
is explained below;
PESTLE Analysis- The approach influences business by determining different factors that plays
key role in function of organization. By approaching this strategic planning tool helps business
to operate and production of products in effective manner. This is defined below;
Political- In regard to organization, by strategic assessment of business that takes place by
overcoming situation through maintains political stability. This strategic assessment helps
business to grow and maintains sustainability growth of organization. By overcoming problems
as it operate and production of products through expanding British Petroleum.
Economical- In terms of BP, the strategic operation of business in emphasized by economic
factors that emphasize interest rate, inflation and influence cost of business (Loizia and et.al,
2021). Through this organization performs work in effective manner by maintaining economic
condition of business. By raising production costs, higher national income etc. helps in reducing
issues by deriving positive outcome for business that raises organization productivity in desired
manner.

Social- In responds to organization, it influences organization by strategic analysis through
changes in social aspects of business. As oil prices is raises in upcoming year due to
requirements of diesel and oil that helps in enhancing organization productivity and efficiency in
effective manner. Through determining needs and willingness of peoples to work that helps in
raising organization cost by influencing business in respective manner.
Technological- In context to business, by emphasizing technology advancement of products and
services in organization helps in overcoming issues. By using current technology and global
energy creating products. Through using IT tools for observing supply of oil and diesel that
determines control of organization (Vera-Contreras, Vera-Rivera and Puerto-Cuadros, 2021). It
helps in influencing business in positive manner through boost organization productivity and
maintains sustainability growth of business.
Environmental- In order to BP, this is concerned with environment sustainability of organization
by securing environment through reducing pollution. By using pollution free services that helps
in enhancing organization productivity and maintains sustainability growth of business.
Legal- The legal aspect plays key role in function of BP, through influencing production of
business by emphasizing discrimination law that impacts on operation of organization. By
following health and safety law that helps in deriving positive outcomes for organization by
maintaining sustainability growth of BP.
Strategic group analysis
In accordance to organization, the strategic group framework helps business to grow by
raising organization profitability and productivity in desired manner. Through emphasizing
strategic tool that increases efficiency of business by reducing challenges in effective manner.
This is determined below;
Breadth of market- The organization size is wide as it is emphasized as British multinational oil
business that helps in deriving positive approach for organization (Anh and Tien, 2021). In order
to this boost organization productivity by emphasizing strategic group assessment that conducts
positive approach for business.
Product quality- In order to organization, by providing better quality of products and services
helps in raising organization profitability. By maintaining services of business through offering
consumer better quality of oil and diesel. This helps in raising organization productivity and
maintaining sustainability growth of business in respective manner.

Price- In responds to business, by emphasizing strategy through providing customer oil and
diesel at lower price. This helps in raising organization productivity by attracting more and more
customers towards business that raises business efficiency in desired manner.
Geographic coverage- In regard to BP, through spreading services and products in geographical
area helps in raising organization performance and productivity. By raising organization
productivity by offering of oil and diesel in geographical area of business (Daniluk, 2021). This
helps in raising organization productivity and profitability by enhancing geographic coverage
area of business.
Profit/ Non-profit- In terms of business, the strategic group assessment helps in raising profit of
business by maximizing profits through innovating services. It helps in raising organization
productivity and efficiency by working in respective manner.
SWOT Analysis
In respond to organization, this approach helps in facilitating productive role of business
through determining their strength, weakness, opportunities and threats. The BP faces crisis of
petrol and oil that leads towards influencing productivity of business in respective manner. By
determining this factors helps in emphasizing the elements. This are explained below;
Strength- In regards to business, it is leading as retailer brand by raising number of subsidiaries
that derives strength for business (Bonfante and et.al, 2021). The BP grows rapidly and
maintains loyalty by facilitating trust of customers through providing them better quality of
products and services. This helps in raising organization productivity and efficiency in effective
manner. As organization build reputed image at globally through leading organization by
raising their productivity and efficiency in effective manner.
Weaknesses- In respond to organization, faces financial crisis and issues related to supply of oil
and diesel. This influence organization function by impact on their production and operation that
develop drawbacks of business. The business facing problems due to shortage of oil that impact
by reducing consumer that influences their production. As this leads towards creating weakness
for business by impact on their sustainability growth of organization.
Opportunities- In terms of organization, it has potential to leading as a sector by developing
opportunities through emphasizing strategies by taking innovative measures. This helps in
gaining sustainability of organization by enhancing geographical sector of organization. By
developing opportunities through deriving positive outcome or result for infrastructure problems

by aiming at revenue of business. Through raising organization performance by reducing issues
and problems of business by raising revenue and cost of British Petroleum. It conducts
productive approach for organization by deriving fuel and energy alternatives.
Threats- In context to BP, the major risks for their business is facing crisis of supply chain that
impact on organization performance (JATMIKO and et.al, 2021). The another factor is facing
problem due to economic pressure that developed by lack of diesel grades. This influence
business productivity by emphasizing issues related to organization. Also, impact BP
profitability by handling major issues in business that developed problem by reducing
customers. This leads towards threat for business by decreasing organization productivity and
profitability due to lack of supply chain. As it facilitates threats for organization by decreasing
their sustainability growth and impact on business productivity in negative manner.
The different approaches are emphasized into consideration of BP, that facilitates
distinctive elements that signifies occurring of problems that organization faced. Such as lack of
diesel grades, reducing of supply chain and shortage of oil (Hosseini-Nasab and Tavana-
Chehartaghi, 2021). This influences organization productivity and efficiency by facing crisis of
diesel that impact on sustainability of business. As British Petroleum facing problems due to
shortage of HGV drivers that impact on organization growth. The business faces global haulage
and evidenced lack of supply chain management and shortage of diesel grades. It determines
through adapting distinctive frameworks helps in maintaining sustainability of organization by
smooth functioning of business in desired manner.
Competitive environment of BP
The British Petroleum works in competitive environment of business that emphasizes by
deriving approaches in organization. In order to business, the industry five forces and life cycle
framework helps in determining factors of organization (Lee, Chang and Wang, 2021). It helps
in reducing issues through emphasizing productive approach by innovating products and
services that helps in reducing issues of HGV drivers by emphasizing productive approach for
business. It is defined below;
Industry five forces- In accordance to BP, it emphasizes by determining distinctive factors that
considered in this that helps in emphasizing five forces. This are;
Threats of new entrants- In respond to organization, by managing cost through reducing prices
of products and emphasized by innovating oil and HGV drivers (Chik, 2021). This helps in

reducing competition and problems by overcoming threats of new entrants in market sector of
business. Through protecting environment of organization by making sustainability growth of
business that helps in maintainig growth of organization by emphasizing productive approach in
respective manner.
Bargaining power of suppliers- In regards to business, it emphasized productive approach for BP
by leading supply chain with numbers of traders. This helps in managing sustainability growth
of organization by reducing issues of supply chain of BP. By powerful suppliers of oil and gas
that derives through negotiating strength of oil and diesel (Pangarkar and Yuan, 2021). It helps
in deriving positive outcome through experimenting design of products that helps in
emphasizing bargaining power of traders. The BP profitability raises by determining effective
role through negotiating with suppliers that helps in managing organization sustainability growth
in effective manner.
Bargaining power of buyers- In terms of organization, raises consumer towards their business by
emphasizing growth and sustainability through decreasing bargaining power of buyers. It
emphasizes by innovating new products in business that raises organization profitability and
facilitating productive approach. The innovative products helps in deriving opportunities for
business by raising operation and production of organization. This conducts through bargaining
power of powers by decreasing it that emphasizes by increasing sustainability growth of
business in desired manner.
Threat of substitute products- In context to BP, when new products are emphasize in market that
impacts on productivity and profitability of organization. By offering value proposition of
business that helps in deriving positive outcome for organization. Through emphasizing product
oriented services helps in managing problem of organization by reducing threat of substitute
products. The BP understands the needs of customer by considering their requirement and
overcome issue of shortage of oil and gas. This helps in raising organization productivity and
profitability by emphasizing product oriented services (de Castro and et.al, 2021). As this helps
in maintaining sustainability growth of organization by determining product oriented services.
Rivalry among existing consumers- In order to organization, by occurring of existing customer
rivalry impact on sustainability of business. As this influence business due to lack of supply
chain and facing shortage of HGV drivers. By building differentiation through emphasizing
products that helps in raising organization productivity in effective manner. Through

collaborating with competitors that helps in raising market sector of organization. It overcome
issues and challenges that faces by BP due to shortage of oil and diesel that decreases customer.
To boost organization productivity and efficiency by reducing rivalry among existing consumer
by deriving them better quality of services. This helps in raising organization development by
increasing productivity of business in effective manner.
Industry life cycle- In order to BP, this life cycle stages helps in raising operation and
production of organization by maintaining sustainability growth of business. Through
emphasizing different levels into consideration of organization that helps in growing
profitability of organization. By overcoming issues and challenges of organization of supply
chain and shortage of HGV drivers (Pahlevan, Hosseini and Goli, 2021). The BP facilitates
corrective measures by deriving competitive environment of organization through emphasizing
stages of life cycle. It helps in raising organization productivity and profitability of business by
approaching stages. It is determined below;
Emergence stage- In terms of organization, this stage helps BP by deriving emergence stage of
business as their sales of products and lack of supply chain. It emphasizes that their consumers
are in few numbers and their production function of business is in small size. To survive in
competitive environment of organization by developing products and services helps in reducing
challenges of business by introducing new market sector of business. As this leads towards
sustainability growth of organization by raising their productivity in respective manner.
Growth stage- In regards to BP, by launching new and innovative products in market size of
organization develops growth of business. By maintaining sustainability growth of organization
through raising their profitability by launching products and service. As this helps in conducting
growth of business in competitive environment of organization by overcoming issue of supply
chain and HGV drivers effectively.
Value of organization- In respond to business, this stages raises value of business by
emphasizing productive approach through deriving customer satisfaction (Ferrari, Volpi and
García-Muiña, F.E., 2021). By providing them better quality of services without facing any
inconvenience occurs positive value of market sector of BP. As it helps in conducting positive
outcome for business by raising organization sustainability growth in respective manner.
Maturity stage- In terms of organization, it helps in making slightly growth of business by
developing products and services in differentiated manner. This helps in raising organization

productivity and efficiency by differentiating products. As this stage of life cycle derives
positive outcome for BP as it faces shortage of HGV drivers and lack of supply chain facility.
By differentiating products and services through maintaining supply chain of organization helps
in raising business productivity in desired manner.
Declining stage- In context to BP, faces declines stage due to shortage of oil and diesel grade
that derives decline of organization sustainability (Kanger, 2021). Also, this leads towards
impact on production and operation of business by declining of HGV drivers. To overcome this
problem by emphasizing innovative products and raising supply chain in customer helps in
reducing issues. As business faces crisis due to lack of oil and diesel suppliers that influence
their productivity and declining sustainability of organization. This develops risks for
organization by impact on their growth and development. It derives negative approach on
business by influencing sustainability of organization.
CONCLUSION
The report has been summarized of BP that facing issues and problems due to shortage
of HGV drivers that emphasize lack of supply chain. It has been concluded about organization
by determining their global haulage industry through implying distinctive frameworks. This has
been described that are PESTEL, strategic group analysis and SWOT approaches that will take
place into consideration of organization. Furthermore, also has been emphasize competitive
environment factors by adapting approaches of strategic five forces and industry life cycle that
has studied in this report. Lastly, the whole study has been take place by determining issues and
their elements that considered by discussing their approaches effectively.

REFERENCES
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