Examining Corporate Strategy Issues at British Petroleum Company

This research report analyzes the corporate strategy of British Petroleum (BP), focusing on the risk factors the company faces. It uses existing literature and primary research, including a questionnaire distributed to BP employees, to identify key issues. The study highlights the need for a comprehensive strategy to manage environmental concerns and adapt to changes in the petrochemical industry, especially after the impact of COVID-19. The research identifies political, geological, price, supply and demand, and cost risks as significant challenges for BP. It recommends strategies for managing these risks, including government stability in tax systems, careful supervision of drilling actions, and accurate forecasting of prices. The report concludes with an action plan for implementing these recommendations to achieve a competitive advantage.

Corporate strategy
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Research Title: Identified the issues in
corporate strategy of the British petroleum
company.
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Executive summary
This research analysis has been manage the behaviour of different risk factors which the
chosen company is facing in the present time. It uses the study of different authors to determine
the value of risk factors and corporate strategies within the company. Furthermore, with the help
of primary analysis with employees of British Petroleum company it is analysed that there is
significant need to complete strategy and manage the behaviour of environment within the
petrochemical industry. After the impact of Covid-19 it is important to complete study and
manage significant range of petrochemical industry to complete the need of corporate strategy
and manage the different concept in market. In addition to this, wide range of research
methodology is helpful in completing the need of researcher and provide significant aspect of
company and achieve objectives in an effective way. Furthermore, researcher had made
significant recommendations for the company that helps them to work appropriately and achieve
competitive advantage in the market. In last a suitable action plan and its consideration is
analysed for managing sources and complete the working in an effective way.
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Table of Contents
Executive summary.........................................................................................................................3
Introduction.....................................................................................................................................5
Background of the company...................................................................................................5
Review the problem faced......................................................................................................6
Literature review..............................................................................................................................7
Literature review....................................................................................................................7
Managing issues and challenges that are arising from the above identified Risk Factors 8
Research Gap..........................................................................................................................9
Research methodology..................................................................................................................11
Research Questions..............................................................................................................11
Research Methodology.........................................................................................................11
Research findings..........................................................................................................................14
Interpretation of the secondary research...............................................................................14
Interpretation of the questionnaire........................................................................................14
Recommendation and action plan..................................................................................................23
Action plan...........................................................................................................................23
Conclusion.....................................................................................................................................24
References.....................................................................................................................................25
Appendix.......................................................................................................................................27
Questionnaire........................................................................................................................27
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Introduction
This research report include about the concept of corporate strategic analysis and its
factors that assess the growth of different industries. It further include the concept of different
risk factors which are needed to be analyse and considered as per the growth in market. This
research highlight about the concept of corporate strategies and its importance within the
organisation. Furthermore, this would be beneficial for managing and arranging the market
assessment to manage and analyse the market for gain the three main concept of growth,
suitability and renewal strategies within the business environment (Iqbal and et.al., 2021). This
research does not include about the various risk factors for any industry that include the basic
concept and growth in market to analyse and manage wide range of factors to complete the
study. This research include about the basic details and corporate strategy of British Petroleum.
Its headquartered is in London, England and it was founded in 1909. This company is basically
related to managing oil and gas industry and achieve the systematic growth in market and
manage the conceptual background of the corporate strategy and its risk factors.
Background of the company
The British Petroleum is a petrochemical company which actually explore the range of
products and provide the growth in oil and natural gas. Other products in which the company
deals are related to natural gas, refines, markets and other suppliers for managing solar energy
for market chemicals. The major risk which the company faced is related to having
environmental risk and its impact that are associated to the growth and manage sources for
considering the environmental compliances within the company. The company use different
corporate strategy but they have to deal in different concept that are associated to the
sustainability, the energy transition and different ambition to complete the working in an
effective and appropriate ways (Sweidan, 2021). BP is using business transformation values and
needed to be steps for managing world and gain values to provide fixed point and where they
operate in different conceptual data. The main aspects of the business are related to Safety,
Respect, Excellence, Courage and the team efforts for managing team in an effective and
appropriate way. It further helps in analysing more challenges related to risk factors and make a
corresponding nature while appointing the need of corporate strategy in market.
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Research aim: “To enhance the better understanding of the Risk Factors that British Petroleum
is facing in present times.”
Research objectives:
 To understand the meaning of corporate strategy within the company.
 To analyse the different risk factors faced in present times due to having issues in their
corporate strategies.
 To determine the different managing issues and challenges that are arising from the
above identified Risk Factors.
Review the problem faced
There are different challenges which the petrochemical industry are faced are related to
reducing cost to remain competitive environment and manage different industrial factors in the
company. The use of improving performance and manage systematic review to complete
valorization of assets to sustain the supply chain that are related to extraction, transportation and
refining the need for more complex and cost process. Furthermore, to evaluate the need and
manage more specific demand (Valeri, 2021). To complete this different framework of factors
analysis and corporate strategic pillars are used to complete the need and evaluate in the market
to analyse the demand and manage different factors to complete the basic need of petrochemical
industry in market. In order to overcome these challenges and issues, different concept and
models are used to analyse effectively and provide the significant growth in market and achieve
wide range of opportunities while the use of corporate strategies within the market (Colovic and
et.al., 2019). In addition to this, the petroleum organizations have also encountered the overall
challenge of alternative eco-friendly alternatives which has started to take over the market.
Although this challenges has not impacted the organization but have started to gain trend within
the market along with customers relative to the climate changes along with its positive impact on
the environment. This challenge threatens to take over the market share of petroleum companies
in the future which will lead to high level of losses. Moreover, it will also reduce the customer
base of petroleum organization and develop a negative brand image in the market.
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Literature review
Literature review
Meaning of Literature review
A literature review refers an academic writing that helps in demonstrating effective
knowledge along with understanding of the academic context relative to a specific topic within
its context. In addition to this, a literature review also included a critical evaluation of the overall
material which helps is illustrating the difference between reporting as well as reviewing. The
article in a literature review consists of content such as brief synopsis along with key points. A
literature review allows in effective summarising and analysing of previous research as well as
theorise along with identifying areas of controversy and contested claims. Furthermore, a
literature review helps in highlighting any gaps that may exist within the research to date. A
literature review is based on four main objectives which are survey, synthesising, critical
analyses and presentation of work in an organized and systematic order.
Different risk factors faced in present times due to having issues in their corporate strategies
According to the perspective of Gordon (2021), there are certain risks associated in every
sector such as management risks which is generally applicable in every industry but some
serious risk factors is specific to a particular industry like oil and gas industries. The major risks
faced by British petroleum is explained below:
Political risks: Political risks refers to the factors associated with government
interference and restrictions that can be imposed on corporations. Oil and gas companies prefer
to carry their operations in countries with political stability and a history of implementing long
term leases. The challenges that are faced by British petroleum in the political aspects includes
the limitations and regulations that restricts the industry to limit its scope of where, when and
how the extraction is possible. The extent of political risk generally increases when the industry
is working on deposits abroad (Risk management through the lens of complexity- the BP oil
crisis, 2021). The country that the industry has chose to do the extraction from is not always
become the country it ends up dealing with because of the changes in policies of government
causing disturbance in the operations of the industry. The problems are causing due to the
changes in policies of taxes and royalties along with clashes related to property titles.
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Geological risk: It refers to both the problems of extraction and the chances of shortage
of accessible reserves in deposits than the estimated amount. There are various challenges in this
aspect including high capital expenditure on the exploration and production of oil and natural gas
and are also subject to natural hazards causing shortage (Su and et.al., 2021). It also includes the
increased risk of dry holes or incapability of finding mercantile amounts of hydrocarbons.
Further more, there are increased risk of threats due to the possibility of equipment failures, fires,
blow outs and accidents along with the inadequacy and time lag in the accessibility of proper
equipments (Nerantzidis and et.al., 2021).
Price risk: This risk factor is the primary element in deciding the economical feasibility
of a reserve whether is beneficial for the industry or not. The price risk factors in context to
British petroleum is related to the geographical risk as the greater the geographic obstacles in
ease of extraction, the high the price risk factors associated with it. Due to the high costs
involved in unconventional extraction the price risk threat arises.
Supply and demand risks: supply and demand risks are highly anticipated risk related
to oil and gas companies. The British petroleum is facing issues due to the capital risk involved
in business operations and these industries are not likely to shut down when losses occur. The
nature of production for the industry is uneven that's why the prices of oil and gas are tend to get
eruptive.
Cost risks: The biggest risk which decides the extent for all of the above risks is
operational costs. The increasing regulations and the rising difficulty to produce oil is the reason
behind the increased expenses involved in the project (Schofield, 2021).
Managing issues and challenges that are arising from the above identified Risk Factors
As per the view of mayor (2021), the major prospect of an oil and gas industry's strategic
framework is the different extent s of risk factors involved in the accessibility of asset
investment alternatives. The management of risk factors associated with oil and gas industries
needs to be properly done in order to cope with the challenges faced by them. The government
should be focused on bringing stability in the tax system regime. Improvement should be
enhanced in the capability to extradite revenues along with the stability in currency exchange
rate. A remarkable approach needs to be examined in thoughtful evaluation of reducing the
political risks through maintaining sustainable associations with international oil and gas
partners (DeKeseredy, 2021). To deal with price risk factors the O&G companies cannot
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discontinue their operations if there are losses happening in the industry due to the difficulty
level in the winding up of such businesses and they cannot be easily restarted. So the company
should try to anticipate the forecasted prices throughout the project in order to enhance its
decision making regarding whether to initiate the project or not. Because once a project get
started then it becomes very challenging to make changes and the price factor always pose as a
threat. To reduce the risk arising from geological factors in oil and petroleum industry, it is
suggested to carefully supervise the drilling actions and ensure the materials high quality
(Drilling Down: Managing the dual challenges impacting oil and gas, 2021). The extraction
safety rules and proper precautions should be thoroughly considered to maximise protection. Oil
and gas geologists should be testing reserve estimates constantly to enhance their confidence in
their findings. Beside this, major environmental risks that are able to impact project economics
are required to pay attention (Mohammed and et.al., 2021). Generally, the operator cannot
produce oil unless an outlet is available which is mostly get burned or flared at the well. The
companies are recommended to implement environmental risk measurable technology and
economic assessment in every international decision making of a business entity.
Research Gap
The above literature review has provided the information about corporate strategy and its
important components along with the need to develop corporate strategy for an organisation. It
also reflected the major challenges which the British petroleum is currently facing due to having
issues in their corporate strategy. The necessity for implementing a corporate strategy has
already been discussed along with its implications and the factors that needs to be consider while
creating a corporate-strategy. From this literature review, the researcher has analysed that due to
the lack of development in a proper corporate strategy, the emerging companies and industries
can face serious complications in the functioning and operating of a business entity (Aramini,
2021). It is further observed that the issues faced by oil and gas companies includes different
areas of risk like political risk, geological risk, supply and demand risks along with price risk and
cost risks. Moreover the suggestions are recommended in order to imply risk management and
cope with the issues and challenges that are being faced by the petroleum industries.
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Research methodology
Research Questions
 What is the meaning of corporate strategy within the company?
 What are the different risk factors faced in present times due to having issues in their
corporate strategies?
 What are the different managing issues and challenges that are arising from the above
identified Risk Factors?
Research Methodology
For completing this method researcher opted researcher methodology framework which
is effective for completing framework for considering wide range of practice in an effective
manner. For completing research onion to provide different sectors to complete research
methodology, it is analysed below:
Research approach: Research approach: It is defined as the plans as well as procedure
which include the steps of broad assumption to detailed methods of data analysis, collection,
interpretation and so on. In addition to this, this approach may only attempt to analyze the
characteristics of a research problem by description. In this, facts should be collected as per the
predetermined criteria and with the aim of demonstrating relationships of interest. It is
significant for investigator to select an appropriate research approach so that problem associated
to research provide generalized and understandable answer. There are mainly two forms of
research approach that is inductive as well as deductive approach. Inductive approach starts with
theories and observation with the objective towards the end of research procedure as a outcome
of observation (Denton, 2021). On the other side, deductive approach is associated with
development of hypotheses that is based on existing theory. Both the research approach are
effective and useful but as per the topic of investigation, deductive approach is beneficial as it
help in gathering and analysing data related to the topic and collect information within less time
and cost. Also, it help researcher to achieve research objectives within set time frame.
Research strategy: It is a systematic procedure of how a study is conducted in order to
resolve a problem. In addition to this, it is a step-by-step plan of action which provide direction
to researcher and also enable to implement study in a systematic manner. The different forms of
research strategy are case study, action research, literature review, experiment and many more.
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Following of an appropriate research strategy is vital in order to conduct study in an effective
and efficient manner. For the present study, survey as a research strategy is taken into
consideration. The main reason to select this is it is useful in describing the overall
characteristics of a large population (Lewis, 2021). Along with this, it also ensure appropriate
and accurate results which further leads to development of valid and reliable conclusion.
Furthermore, It also help researcher to gain in-depth knowledge about topic which leads to
effective understanding and implementation of activities associated to study.
Research choice: It is defined as a process of effective and deep understanding into a
particular consent, issue and problem using the various research choice. In addition to this, it is
the process of collecting data in order to attain research aim and objectives with resource
constraints. Qualitative and quantitative are two forms of research choice which is used to
conduct the studies. Both the research choice is effective but as per the topic of investigation,
quantitative research choice is appropriate and accurate. The main reason to select quantitative
research is it help in collecting data based on facts and figures which further leads to
development of valid and reliable results (Brennen, 2021). Along with this, it also assists
researcher to interpret information in more efficient and effective way. It provide quantifiable
and objective data which is easy to understand and interpret. Moreover, it provide data to
researcher in numerical form which is easy to interpret and to attain objective of research.
Research design and analysis: In this study, researcher is able to choose primary and
secondary outcome to complete for managing wide range of primary data is applicable sources
for completing major challenges in an effective manner. Primary and secondary data is used to
complete research in an effective manner. In the context to complete primary data, researcher
opted questionnaire for conducting interview and manage the different perspective to complete
the research. Furthermore to complete this research of questionnaire researcher take a help
through sampling method. As sampling is one of the significant way to complete the study and
achieve appropriate approaches to complete the study and manage the data in an effective and
appropriate sources. Sampling is use with the method of random sampling method and the
chosen size is 30. They are the employees of the BP Company as having appropriate information
and knowledge to the company (Thompson Burdine, Thorne and Sandhu, 2021). On the other
hand, researcher opted secondary method for this online journals, articles and newspaper are
used to enhance knowledge and provide significant growth in the chosen research topic. With the
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