Bp Corporate Strategy
A. External Environment (Macro environment) Analysis:
With respect to the specific organization (in this case, BP); things are changing at a rapid pace since the supply and demand of oil is becoming highly dependent upon socio political condition of different parts of the world, where its business is operating.For the external business environment analysis of global oil industry (with respect to BP) the selected analysis tool is PESTEL. This model presents a strategy framework built over variables like surrounding political, economic, social, technological, environmental, and legal aspects, which actually shape the initiatives and decisions of any organization in the global market. As far as global oil industry is concerned; it is more adequate to state that since 1980’s, the entire industry is facing an economic slump due to unsuccessful exploration results faced by all the major oil and gas companies. Furthermore, incidents and naturally occurring accidents (along with their respective costs of elimination) are causing extra damages to this industry which produces one of the biggest daily consumption commodities – oil.
. This reflects the significance of product this industry is producing and providing globally. In this regard,
The PESTEL analysis for this particular industry (with respect to BP) suggests that:
1. The global oil industry has become increasingly politicized in the recent years. More specifically, with the critical position of Middle East and other major oil producing regions, the global investments have increased into the areas of alternative energy sources, suggesting a close figure of USD 336.75b in the last financial year, and expected to rise up to USD 653.35b (Peri, 2009). BP has been moving with the trend, and also putting heavy investments in the area of alternative energy. Therefore, with the increase of volatile elements in the Middle East, oil giants including BP are looking for other alternatives to secure their respective
With respect to the specific organization (in this case, BP); things are changing at a rapid pace since the supply and demand of oil is becoming highly dependent upon socio political condition of different parts of the world, where its business is operating.For the external business environment analysis of global oil industry (with respect to BP) the selected analysis tool is PESTEL. This model presents a strategy framework built over variables like surrounding political, economic, social, technological, environmental, and legal aspects, which actually shape the initiatives and decisions of any organization in the global market. As far as global oil industry is concerned; it is more adequate to state that since 1980’s, the entire industry is facing an economic slump due to unsuccessful exploration results faced by all the major oil and gas companies. Furthermore, incidents and naturally occurring accidents (along with their respective costs of elimination) are causing extra damages to this industry which produces one of the biggest daily consumption commodities – oil.
. This reflects the significance of product this industry is producing and providing globally. In this regard,
The PESTEL analysis for this particular industry (with respect to BP) suggests that:
1. The global oil industry has become increasingly politicized in the recent years. More specifically, with the critical position of Middle East and other major oil producing regions, the global investments have increased into the areas of alternative energy sources, suggesting a close figure of USD 336.75b in the last financial year, and expected to rise up to USD 653.35b (Peri, 2009). BP has been moving with the trend, and also putting heavy investments in the area of alternative energy. Therefore, with the increase of volatile elements in the Middle East, oil giants including BP are looking for other alternatives to secure their respective
References: BP Outlines Plan to Improve Financial Performance While Growing Production Through 2020 – BP Strategy Presentation 2010 (Dated: 02 March, 2010):<http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7059787> Ansoff, I., 2007, Strategies for Diversification, Harvard Business Review, Vol. 35 Issue 5, Sep- Oct, pp.113-124 Attwood, K., 2007 Baig, E., 2007. iPhone 's fab, but Apple could make it even better. USA Today Bales, C., Chatterjee, P., Gluck, F., Gogel, D Bingelli, U. and Pompeo, L., 2002. Hyped hopes for Europe 's low cost airlines. The McKinsey Quarterly. 2002 (4), pp.87–97. Chisnall, P., 1995, Strategic Business Marketing, NY, Praeger. Courtney, H., Kirkland, J. and Viguerie, P., 2000. Strategy under uncertainty. The McKinsey Quarterly. Strategy Anthology, pp.81–90. Dahlstrom, P., Deprez, F. and Steil, O., 2004. Meeting the no-frills mobile challenge. The McKinsey Quarterly. .