Report on the Global Business Environment of British Petroleum

This report provides a comprehensive analysis of the global business environment as it relates to British Petroleum (BP). The introduction sets the stage by defining the global business environment and its impact on organizations. A detailed SWOT analysis examines BP's internal strengths and weaknesses, such as its strong marketing skills and past oil disasters, as well as external opportunities and threats, including market expansion and government regulations. A PESTEL analysis then explores the external factors impacting the business, including political, economic, social, technological, environmental, and legal considerations. The report further investigates how these external factors influence key functional areas like marketing and human resource management, providing insights into how BP adapts to changes in the market and manages its workforce. The conclusion summarizes the findings, emphasizing the importance of analyzing both internal and external factors for generating profit. The report is supported by relevant references to academic sources.

Global Business
Environment

Contents
INTRODUCTION.....................................................................................................................................3
SWOT Analysis of British Petroleum......................................................................................................3
PESTEL Analysis....................................................................................................................................4
The key drivers that have impact on firms’ functional areas...................................................................5
CONCLUSION..........................................................................................................................................6
REFRENCES.............................................................................................................................................7

INTRODUCTION
The Global business environment is concern mainly with the international condition and
international forces if the company will and how those international conditions pose a threat or
any kind of impact on business organization. international forces include some aspects which
affect the business environment such as political unrest, natural disaster, international economic
conditions etc. Company consider in this report is British Petroleum is the multinational oil and
gas company whose headquarter is situated in London United Kingdom. Report include SWOT
analysis of a company and PESTEL analysis of a company
SWOT Analysis of British Petroleum
SWOT analysis is an effective tool used to analyze an internal environment of a business
organization. Full form of SWOT is Strengths, Weaknesses, Opportunities, Threats. Strengths
and Weaknesses are the internal factors a company can change them over time with some work.
Opportunities and Threat are the external factors a company not able to change external factors.
British Petroleum done SWOT analysis of the company which is discussed below –
Strengths Weaknesses
 British Petroleum maintain strong
brand image in the market, because of
company’s effective marketing skills
they are able to generate high amount
of revenue.
 BP also perform well in sequence to
rebuild their image in effective
manner.
 British Petroleum also engaged with
Corporate social responsibilities and
because of this they win hearts of
customers from years.
 BP maintain good relationship with
their consumers which satisfy them.
 BP affect environment in many ways
one of them is oil disaster which really
affect the natural environment.
 BP is not properly disaster which was
happened because of them and this
affect their brand image in negative
way.
 British Petroleum has shut down their
various oil wells because of
ineffective economic cycle.
 Increase in the level of competition is
also affect the British Petroleum.
Opportunities Threats

 There are many opportunities in the
market if the British Petroleum expand
their business. Arrival of new
technologies also create good
opportunities.
 If company focus on their R&D
process then they can become
effective market leader this is also an
opportunity
 If company also properly focus on
natural environment and people this
create opportunities in many ways.
 Problems related to environment
became threat for British Petroleum.
 Various Laws, rules and regulations of
government also affect the company
and create threat.
 British Petroleum reputation is
affected because of their various oil
disasters this become threat for them.
PESTEL Analysis
PESTEL is an important marketing tool which is used to examine the external environment for
the business organization. External factors which affect the business is mentioned below-
Political Factors – There are many political factors those affect the business organizations in
numerous ways, factors include Corruption level, Government rules and regulations, Trade
control, import restrictions, Tax policy etc.
Economic Factors - There are various economic factors such as economic growth, interest rates,
exchange rates, inflation, income of consumers etc. have impact on the organization.
Social Factors - Social cultural factors are related with belief and faith of human, Social factors
include- population growth, age distribution, health consciousness, career attitudes, Emphasis on
safety, Lifestyles, Buying habits, Religion and beliefs of people.
Technological Factors – These factors include - Basic infrastructure level, Rate of technological
change, Spending on R&D, Technology incentives, Legislation regarding technology, Access to
newest technology, Internet infrastructure and penetration.

Environmental Factors - These factors involve increasing scarcity of raw materials, pollution
targets, climate change and availability of energy etc.
Legal Factors – These factors are related with changes taking place in law. This include
discrimination law, consumer protection law, patent & copyright law, law regarding employment
etc.
The key drivers that have impact on firms’ functional areas
Marketing – External environment affect marketing department of British Petroleum in different
ways. Government rules and regulations regarding environment protection act have to follow
British Petroleum but they not focusing on them and this affect their various marketing activities.
In London inflation rate is high this which affect the rates of oil in market and reduce the sale of
British Petroleum. Technological changes also affect the marketing activities or tasks of the
company and to maintain this company require to develop strategies according changes taking
place in technological sector. Scarcity of fossil and fuel have created huge impact on British
Petroleum this affect their market condition. Rapidly increasing competition in petroleum market
various new companies came in the market with effect and attractive strategies this highly affect
the brand image of British Petroleum. Change in customer preferences and taste affect the
market condition of company, increase in population and diminishing natural gases and energy
affect the company. Oil plant of British Petroleum make air pollution which affect many people
and this reduce the brand image in market. Various rules and regulations on import and export
duties also affect the supply of oil in the market. British Petroleum need to understand or analyze
the market condition to maintain and manage their brand image in market.
Human Resource Management - External factors directly or indirectly affect the Human
resource department of the British Petroleum. Social cultural factor includes belief, ethics, faith
and values of an individual these are important aspects and in organization work is done
effectively only because of theses aspects of human. Management of British Petroleum work
ethically and socially they always take care of their employees because management know that
social culture affects the business in many ways. Technological changes bring various challenges
and opportunities for human resource department, management of British Petroleum have to
adopt these changes in sequence to perform well in the petroleum market. Technological changes
have impact on each and every department of an organization and to maintain human resource

department in effective manner company need to accept those changes in every department
because all departments are interrelated. Economic factors have huge impact on human resource
department of the company like recession and inflection affect consumer behavior and this
influenced the HRM department of British Petroleum. Competitors also affect the HRM
department, increasing competition is pressure on HRM department to beat the competition
management have to develop new strategies and perform well in sequence to bring competitive
advantage. HRM of British Petroleum perform well and support the company to get higher
success.
CONCLUSION
From the above mention report it has been concluded that internal and external
environment affect the British Petroleum company’s functions or operations. In sequence to
generate high amount of profit company need to analyze their internal and external factors in
effective or successful manner.

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