Global Business Environment Analysis: British Petroleum PESTLE Report

This report presents an analysis of British Petroleum (BP) within the context of the global business environment, employing the PESTLE framework. The introduction provides a brief overview of the global business environment and introduces BP as the subject of the report. The main body of the report delves into a PESTLE analysis of BP, examining political, economic, social, technological, environmental, and legal factors impacting the company. It explores how factors like Brexit, inflation, customer demographics, technological advancements, environmental regulations, and legal policies influence BP's operations and decision-making. The report then discusses the key drivers of change in the global business environment and their implications for BP, emphasizing the need for strategic adaptation. The conclusion summarizes the key findings, highlighting the importance of continuous market analysis and strategic planning for organizations like BP to effectively navigate the complexities of the global business environment. The report references several academic sources to support its analysis.

Global Business
Environment
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
British Petroleum PESTLE analysis.......................................................................................3
Key drivers of change.............................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Global business environment is considered as environment which include numbers of
factors that are external for a company's home environment as well as it impact on its procedures
of decision making (Bhagra and Sharma, 2018). Organisation selected for this report is British
petroleum which is founded in 1909 and they are operating in oil and gas industry. The main aim
of conducting this report is to develop understanding of impact of change in business
environment by using PESTEL analysis.
MAIN BODY
British Petroleum PESTLE analysis
Through PESTEL analysis an organisation able to determine factors which affect its
performance at the potential marketplace. Explanation of those factors in respect of British
Petroleum are explained below:-
 Political Factors – British Petroleum need to develop their decision according to
political factors of United Kingdom because that will help in adopting changes that occur
after Brexit.
 Economic Factors – It is essential for this firm to considered different economic factors
such as inflation rate, unemployment rate and so on because that help in offering products
and services according to country and customer economic condition.
 Social Factors – There are several factors of this such as age, gender etc. and for British
Petroleum it is essential to considered this factor according to potential customers
(Brenner, 2018). It is so because it help in offering services and products in respect of
customers.
 Technological Factors – For respective company it is essential to adopt new and
advance technology because through that they able to increase their performance as well
as it also minimise wastage.
 Environmental Factors – Respective company need to consider different factors in
order to operate in UK such as environmental legislation, NGO rules etc. According to
which they must emit harmful gas in order to prevent their environment.
 Legal Factors – There are several legal factors which impact on the performance of
British Petroleum at the United Kingdom such as taxation policy, government rules and
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so on (Kumar and Pradhan, 2016). So it is essential for company to consider all factors at
the time of decision making.
Key drivers of change
According to change in government policies, procedures and rules, environment of a
company also get change or update and for that management need to develop strategies as well
as action plan accordingly. Moreover, it can be determined that policies design by government of
stable nation are different from any unstable nation so it is essential for companies to conduct
market analysis before conducting business in particular nation (Lasserre, 2017). Along with
this, it is also necessary for an organization to upgrade their policies and regulation according to
change in nation legislation because through that they able to conduct their business effectively
as well as it will also help in sustainability for long run.
CONCLUSION
By conducting analysis of above discussed point it can be summarise that business
environment at global level change on continuous basis as well as it impact on the company's
performance. In respect of this an organisation need to conduct market analysis on the
continuous basis as that will help them in developing effective decision. Along with this it will
also help in developing strategies through which they can minimise impact of changes on
company's performance. In order to conduct analysis an organisation can adopt various strategies
such as PESTEL analysis.
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REFERENCES
Books & Journals
Bhagra, A. and Sharma, D. K., 2018. Changing paradigm of employability skills in the global
business world: A review. IUP Journal of Soft Skills. 12(2). pp.7-24.
Brenner, B., 2018. Transformative Sustainable Business Models in the Light of the Digital
Imperative—A Global Business Economics Perspective. Sustainability. 10(12). p.4428.
Kumar, V. and Pradhan, P., 2016. Reputation management through online feedbacks in e-
business environment. International Journal of Enterprise Information Systems
(IJEIS). 12(1). pp.21-37.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
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