SWOT Analysis of British Petroleum: A Comprehensive Essay

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Assessment 2: Essay
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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Conclusion.......................................................................................................................................6
Reference List..................................................................................................................................7
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Introduction
At the essay, SWOT analysis of British Petroleum will be done. SWOT analysis is an essential
tool towards analysing the current strength, opportunities, weakness and threats of any selected
organisation. BP has been considered as one of the biggest energy providers of the entire world
and they are especially famous for petrochemical business. Consulting the SWOT analysis
provides the opportunity of assessing their recent strengths as well as weaknesses so that they
can seek upon future opportunities for minimising most their business related threats.
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Discussion
BP inherits an extensive number of retail brands as well as subsidiaries, which includes ARCO,
Amoco, BP Express, BP Connect, Burmah Castrol, BP Travel Centre and many more. It
provides them the overall opportunity of earning revenue from an extensive revenue portfolio,
which clearly indicates that their revenue generation does not only rely into their energy related
business. Different revenue options can be identified as one of their key strength (Fox et al.,
2018). In addition to this, the brand value and overall brand extension of BP is quite high, which
let them to assess a bigger number of potential as well as targeted consumer base. Therefore,
strong brand value as well as market reputation is also one of their key strength. Moreover,
another strength of BP is their capable managerial as well as employee workforce that assist that
organisation extensively towards getting out of potential threats. Therefore, strong as well as
divisive workforce can also be considered as one of their major strength. In addition to all of
these, the organisation is quite successful towards decreasing their employee turnover rate, which
increases the number of skilful employees at certain extension.
In addition to all of these strengths, it has been observed that the organisation also has some
potential weaknesses that decrease their brand image and revenue generation at some extension.
In previous time, the organisation has faced numerous accounts of disasters as well as oil spills
that lead them towards making significant environmental problem. Some of the executives
belonging from the organisation are quite dishonest and they handle different issues that
damaged the overall environment poorly (D’Andrea and Reddy, 2016). It is also their potential
weakness, as they cannot achieve sustainability due to these factors. Moreover, it has also found
that the current focus of reduced usage of fissile fuels and the recent changes of climate has
made the organisation to migrate from their energy producing options, which can also be
delivered as their weakness. BP has forced to close so many of their oil wells, which
automatically lead them towards having poor economic cycle. Therefore, it can also be
considered as one of their weakness.
There is a close opportunity for the organisation that they has the potential of becoming the
market leader of different alternative energy as well as fuel market, which might further increase
their revenue generation by decreasing the negative aspects. Moreover, the organisation also
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inherits the opportunity of entering into new geographic areas for increasing their revenue
generation at certain extension. Moreover, the organisation might also increase their overall
infrastructure so that they can further welcome other organisations to join up and share their
revenue with the organisation (Abdelrehim et al., 2015). It will also provide them the
opportunity of developing different subsidiaries for earning more revenue out of their potential
investment.
In addition to all of these, it has been closely observed that the organisation might face a range of
different threats due to different things. As an instance, the environmental related issues has
continuously beginning to represent huge threat towards the organisation as there are no ways of
minimising this potential threat. It has been observed that the organisation might face different
lawsuits as well as penalties for not minimising as well as addressing the potential negative
impacts on their regulated environment (Lyon et al., 2015). In addition to that, the organisation
also face threat from the perspective of reduced sustainability that will ultimately lead them
towards deceasing the potential revenue generation of the organisation. Moreover, the increased
number of competition at the current energy market can also be considered as one of their
potential threats. Additionally, the organisation in recent context is unable to increase further
their brand reputation rate, which can also be described as their potential threat.
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Conclusion
From the overall study, it can be described that skilful employees as well as strong brand image
and different options for earning revenue are the basic strengths of the organisation. Conversely,
recent environmental hazards as well as inadequate managers are the weakness of the
organisation. They have the chance of penetrating new target market, which is their opportunity
and they might lose their strong brand reputation due to the recent environmental scenarios,
which is their major threat.
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Reference List
Abdelrehim, N., Maltby, J. and Toms, S., 2015. Narrative reporting and crises: British Petroleum
and Shell, 1950–1958. Accounting History, 20(2), pp.138-157.
D’Andrea, M.A. and Reddy, G.K., 2016. Adverse health effects of benzene exposure among
children following a flaring incident at the British Petroleum Refinery in Texas City. Clinical
pediatrics, 55(3), pp.219-227.
Fox, L.R., Stukins, S., Hill, T. and Bailey, H.W., 2018. New species of Mesozoic benthic
foraminifera from the former British Petroleum micropalaeontology collection. Journal of
Micropalaeontology.
Lyon, B.A., Nezat, P.F., Cherry, K.E. and Marks, L.D., 2015. When multiple disasters strike:
Louisiana fishers in the aftermath of hurricanes and the British Petroleum Deepwater Horizon oil
spill. In Traumatic stress and long-term recovery(pp. 57-70). Springer, Cham.
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