Global Business Environment: Key Driver Impact on Functional Areas

This report provides an analysis of the global business environment, focusing on how key drivers influence organizational functional areas. It begins with an introduction and an overview of the task, emphasizing the impact of globalization and key drivers on business operations. The report then delves into PESTLE and SWOT analyses, examining the political, economic, social, technological, environmental, and legal factors affecting British Petroleum (BP). The SWOT analysis highlights BP's strengths, weaknesses, opportunities, and threats. The core of the report identifies how these key drivers impact functional areas like marketing, HRM, operations, finance, and R&D, with specific examples of BP's strategies. The report concludes by summarizing the significance of the global enterprise environment and its influence on business decision-making. The report also includes references to relevant academic sources.

Assessment
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Contents
INTRODUCION..............................................................................................................................3
TASK...............................................................................................................................................3
Pestle analysis..............................................................................................................................3
SWOT analysis............................................................................................................................4
Identify that how key driver impact on the organizational functional areas...............................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCION
The report is mainly focused on the global enterprise environment which mainly referred as
change the climate of enterprise. In order to influence the decision making power of firm in
business activities. The documentation will discuss about the different key drivers where how
they will impact on the organizational functional areas such as marketing, operations, HRM,
Finance and R&D. Furthermore, it will analyse internal as well as external business environment
by using pestle, swot framework.
TASK
Overview
The global environment may be defined as concept which always promote the
organization in term of growth and development. As per analysis, it can be identified that British
petroleum organization consider the key drive which always supports for increasing overall
business productivity as well as profitability in marketplace.
In context of firm, environment can be referred as different external forces which
influencing its overall business operations and decisions. Sometimes, British petroleum face an
unprecedented wide range of challenges as well as opportunities in term of social, political,
economic business environment (Ahmed, Asif and Alrashed, 2019). On the other hand,
Globalization is a based on the process which automatically remove barriers within organization.
In order to increase the efficiency in term of resource allocation while developing strategies,
change industry structure, layout.
Pestle analysis
It is based on the strategic platform or tool to analyse the current market condition of
business. As require to understand the market growth as well as decline (Ahmed, Asif and
Alrashed, 2019). It ensure that British petroleum performance aligned positively with powerful
force of change.
Political: this factor plays important role in the business expansion. The current political
condition of BP depend on the policies and procedure. In order to directly impact on the overall
business performance and efficiency (Capuder, Sprčić and Pandžić, 2020). UK government has
been changing the policy and British petroleum adapt procedures to increase the revenue.
Economic: this type of factor is mainly focused on the economic condition of country. It
can be possible when British petroleum maintain their position during recession. It always trying
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to avoid unnecessary resources. For instance, the most of British petroleum project has stopped
because of insufficient supply of funding.
Social: This factor is based on the demand, tastes which directly changes with trend,
fashion and other disposable income (Tsangas and et.al., 2019). It provide the opportunities,
threat of British petroleum. As per analysis, Population structure and other consumption has
gone down 20%. It also impact on British petroleum where increasing the market share.
Technological: In recently, technology plays a major role in the British Petroleum to gain
more sustainable competitive advantage from other competitors. BP is going through become
challenging environment or culture because of innovative. British petroleum has been utilised the
complex resources through innovative idea (Tsangas and et.al., 2019). As consider key aspects of
innovative resources for increasing business profitability.
Environmental: British Petroleum that uses for refining raw materials, consider as
operational process for extracting petroleum produce air pollution (Tsangas and et.al., 2019). In
additional, there are various type of hazardous items which released in oil as waste. Sometimes,
it associated with environmental risk factor.
Legal: health and safety is a major concern with employee linked with British petroleum. It
should be consider as policy adapt by organization (Ujoumunna, 2019). This type of regulation
made by government which help for protecting the personal health or safety of workers. The
government is mainly consider to vital information and find out the risk factors.
SWOT analysis
Strength:
 British petroleum has a large number of subsidiaries and other retail brands which mainly
includes BP connect. It provide the better opportunities for diversified revenue portfolio
rather than simply relying on business energy (Widya Yudha and Tjahjono, 2019).
 It is extensively to establish the brand image and handling various enterprise activities.
Weakness:
 BP has faced the problem and issue related disaster which automatically led the facilities.
In order to damage the environmental condition or situation.
 It is mainly focused on the climate change which reduce the use of other fossil fuel and
increasing pressure on the BP.
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Threat:
 It has increased the environmental issue which may continue to be threat. If BP does not
formalise its social responsibilities (Widya Yudha and Tjahjono, 2019).
 BP has faced the penalties and does not address environmental issues.
Opportunities:
 British petroleum is consider as market leader which increasing the fuel as well as energy
in marketplace.
 In order to develop the opportunities for expanding the business international markets.
Identify that how key driver impact on the organizational functional areas
As per identified the key driver which directly impact on the organizational functional areas
such as Marketing, HRM, operations, Finance and R&D. British petroleum firm is focused on
the policies and procedures which are made by government (Widya Yudha and Tjahjono, 2019).
Human resource manager always tried to adapt new policies for providing the better facilities
and services of employees, customers. HR department always maintain the workplace
environment to give chance where staff member share new innovative idea in business expansion
(Widya Yudha and Tjahjono, 2019). On the other hand, marketing team use social media
platform to promote the product as well as services. In order to target a large number of
population.
Apart from that Finance and R&D keep maintain the British petroleum financial information
and also setting the price or cost of particular item on the basis trend, demand. Everything
depend on the driver such as modern technology which will support for improving current
business condition or situation.
CONCLUSION
From above discussion, it concluded that global enterprise environment which plays
important role in term of climate. In another way, it also influenced the decision making power
of firm in business activities. it has summarised about the different key drivers where how they
will impact on the organizational functional areas such as marketing, operations, HRM, Finance
and R&D. Furthermore, it can be identified both internal as well as external business
environment by using pestle, swot framework.
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REFERENCES
Book and Journals
Ahmed, W., Asif, M. and Alrashed, F., 2019. Application of Building Performance Simulation to
Design Energy-Efficient Homes: Case Study from Saudi Arabia. Sustainability. 11(21).
p.6048.
Capuder, T., Sprčić, D.M. and Pandžić, H., 2020. Review of challenges and assessment of
electric vehicles integration policy goals: Integrated risk analysis approach. International
Journal of Electrical Power & Energy Systems. 119. p.105894.
Tsangas, M. and et.al., 2019. The Application of Analytical Hierarchy Process in Combination
with PESTEL-SWOT Analysis to Assess the Hydrocarbons Sector in Cyprus. Energies.
12(5). p.791.
Ujoumunna, J.C., 2019. SWOT ANALYSIS AND JOB PERFORMANCE OF PRIVATELY-
OWNED PUBLISHING AND PRINTING INDUSTRIES IN SOUTH EAST GEO-
POLITICAL ZONE OF NIGERIA (Doctoral dissertation, DEPARTMENT OF LIBRARY
AND INFORMATION SCIENCE, FACULTY OF SOCIAL SCIENCES, ABIA STATE
UNIVERSITY).
Widya Yudha, S. and Tjahjono, B., 2019. Stakeholder mapping and analysis of the renewable
energy industry in Indonesia. Energies. 12(4). p.602.
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