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BP Report

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Report- PPT
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Table of Contents

Introduction................................................................................................................................3

PESTEL Analysis.......................................................................................................................3

Political..................................................................................................................................3

Economical.............................................................................................................................3

Social......................................................................................................................................3

Technological.........................................................................................................................4

Environmental........................................................................................................................4

Legal.......................................................................................................................................4

SWOT Analysis.........................................................................................................................4

Strengths.................................................................................................................................4

Weakness................................................................................................................................5

Opportunities..........................................................................................................................5

Threats....................................................................................................................................5

Risk Evaluation..........................................................................................................................6

Conclusion..................................................................................................................................6

References..................................................................................................................................7
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Introduction

Chargemaster Limited is an industry leader in the provision of charging infrastructure for

electric vehicles. The business was established in the year 2000, and its present headquarters

can be found in Milton Keynes, which is located in England. In addition to these names,

Chargemaster Limited is also known as BP Pulse, BP Chargemaster, chargemaster, POLAR,

and Polar Plus. In addition to selling charging devices that can be installed in private

dwellings, commercial enterprises, and public locations, it is responsible for administering

the largest public charging network for electric vehicles in the United Kingdom. This network

is located in the United Kingdom. (Bamberg, 2020)

Rapid charging stations for electric vehicles can only be found at Chargemaster, which is the

only location in the United Kingdom to offer such a service. As of the year 2017, the

company had installed more than 30,000 residential charging stations for owners of electric

vehicles (EVs), in addition to more than 10,000 public and commercially managed to charge

stations. This indicates that the company has made significant headway in developing the

infrastructure necessary for charging electric vehicles. (Smith, 2019)

PESTEL Analysis

Political

Since BP is a global company, the political decisions made in each country it operates are unique.

This includes, but is not restricted to, the implementation of new tax rules, strict employment

requirements, rising terrorist threats, and varying national competition laws. All of this influence

the success or failure of BP's business. BP has financed political campaigns to win over

governments. For instance, it has been known to fund lobbying efforts in the United States to

ensure that its interests are protected. Its operational decision-making method in certain regions
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has been influenced by political issues, leading to adopting a distinct production technique.

(Cross, 2021)

Economical

The economy is the primary driver of BP's operations and strategic decisions. For instance,

the cost of exporting or importing its energy solutions is affected by currency rates. Its profit

margin has been cut due to the recent global recession, interest rates, and other factors.

Consumer trust in BP could be damaged by the company's allegedly irresponsible

environmental actions. Rising national economic expansion in certain nations has raised sales

of its products, particularly solar panels, while higher inflation in some regions has boosted

operational expenses by paying workers more.

Social

"Demand for a firm's products," said one observer, "may be affected by shifts in societal

trends, as can the availability and eagerness of persons to work"). Since BP's employees are

expected to live longer due to the country's ageing population, the company must spend more

on pensions. The global population is growing at an alarming rate ("Population growth, para.

2.). Therefore, it is expected that oil product demand would rise in the years ahead (Hayward,

para.7). The growing environmental consciousness of the public will require BP to adapt the

character of its offerings to meet consumer demand. (Richard, 2021)

Technological

BP must overcome the technological hurdle of creating cutting-edge, global energy

innovations. A portion of the company's oil is transported via extensive pipes, thus it uses a

safe information technology system to keep tabs on and manage the oil flow. The company's

website allows for simple two-way communication with customers on a wide range of issues.
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The business also conducts studies with the intent of implementing suitable technologies in

the creation of renewable energy sources.

Environmental

Sustainability in the natural world is a major issue for modern society. Numerous

environmental organisations have voiced their disapproval of the company's environmental

practices on a regular basis. Since consumer sentiment toward climate change may affect

demand for BP's offerings, this may affect the company's overall success. Nominated for a

Greenwashing Award in 2009. This prize is for businesses that aren't doing much to fight

climate change. Despite the controversy, BP is working to reduce its impact on the

environment.

Legal

BP's operations have been impacted by legal considerations. Legislation prohibiting ageism

and disability discrimination, for instance, has impacted how the company does business in

the United Kingdom. The minimum wage has been raised in certain nations, and new health

and safety legislation and stringent work rules have been adopted in others.

SWOT Analysis

Strengths

 A company's strengths are its areas of expertise and the resulting competitive edge

they provide. Here are some of BP's benefits:

 Although oil and gas are British Petroleum's bread and butter, the corporation has

diversified into lubricants, electricity, aviation fuel, and telecommunications via its

many wholly owned subsidiaries (e.g., Amoco, BP Express, BP Connect, and so on).

This helps the company reduce its exposure to risk.


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 Consumers that are devoted to a single brand are called "loyal customers," and BP has

many devoted fans among its oil industry clientele. They've been long-time clients of

the firm and enjoy a reliable, mutually beneficial business partnership. Additionally,

several of British Petroleum's clients count on the firm for almost all of its energy

needs.

 World-class status: The company dominates its industry worldwide. The company

does more than only serve as the major oil and gas company in the UK; it also helps

keep the area’s economy stable. Company X is the largest distributor of gasoline in

the United States.

 Connectivity - The company operates in all of its fields across Europe, North

America, Latin America, Africa, as well as the Asia-Pacific region. The company

operates 17,150 service centres in the region, with its subsidiaries AMOCO within the

east while ARCO within the west handling sales. There are around 11,850 BP service

stations run by the corporation, with 1,500 of those located in the United Kingdom.

Additionally, Castrol lubricants are sold in around 50 countries.

Weakness

 Companies and brands all have areas of opportunity or weaknesses.

 British Petroleum has many different interests, but the energy industry is where it

shines brightest. The company has struggled to break into new markets. Yet the

company could suffer in the long run from its limited involvement in other markets

besides the energy industry.

 Controversies The company's sustainability score and goodwill among stakeholders

took a major hit after it was implicated in a string of oil spill incidents across the

globe. In addition to gravely damaging the ecosystem, their oil spills have killed

countless marine animals.


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 Ethical problems: British Petroleum was rocked by a succession of scandals caused by

employees' dishonest dealings, and the company's poor response to spills harmed the

business and gave the appearance that it cared little about its impact on people or the

environment.

Opportunities

 Opportunities are situations in which a company has the potential to increase its

bottom line by strategic use of resources available to it. Potential options include:

 Alternative energy - British Petroleum's dominant position witthe hin energy market

allows it to explore less conventional energy sources including tidal and wind power.

A plethora of new opportunities in renewable energy has emerged as a result of the

worldwide emphasis on sustainability. For the company's future success, this strategy

may be the best option.

 BP's expansion into the infrastructure industry might benefit both the company's

bottom line and its public image by helping developing economies find renewable

energy solutions to pressing infrastructure problems.

Threats

 To put it simply, environmental dangers are anything that could hinder an

organization's expansion.

 If the company does not create its corporate responsibility and location it at the heart

of its tactic, it will face repercussions, including the need to revise workplace safety

concerns to reduce refining explosions, oil leaks as well as spills, pipeline corrosion,

as well as other environmental hazards.


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 Legal action and financial fines will have a significant impact on the company's long-

term existence if it does not address these environmental problems and improve its

safety standards.

 Competition-Other corporations, like Shell and Chevron, pose stronger competition

since they are more equipped to handle environmental difficulties than BP and have

strengthened their brand reputation.

 BP's clientele could dwindle as a result of the emergence of specialised alternative

energy firms that are providing the technology with the affordability to force a larger

transition away from dependence on fossil fuels.

Risk Evaluation

Internal and external risks can be differentiated from one another as distinct classes of

potential dangers faced by BP Group. Internal variables have clear links to the operation

function as well as labour management of the Group, and they are able to be mitigated by

efforts that are both targeted and coordinated. Understanding the ways in which the market,

business, environment, and legislation can all change over time is essential to having the

adaptability to respond effectively to these changes.

Conclusion

In response to favourable market conditions that were characterised by high levels of oil and

gas prices, BP fared better in the second half of the period with larger profit margins, ROCE,

more efficient total asset utilisation, and higher overall asset growth. These improvements

occurred in the second half of the period. It would appear that throughout the second half of

the year, the Group had a harder time generating sales and earnings, as evidenced by the fact

that they incurred losses. The widespread decline in the price of oil and gas, which has an

influence across the entire industry, is the primary contributor to this problem. This decline
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has an effect across the board. In addition, the reallocation of oil and gas production and

exportation away from Russia and towards the United States has given the Group an

increased number of opportunities as well as hazards. The United States is BP's most

significant market in terms of both revenue and reserves, and the company may choose to

increase output there despite the fierce competition from other oil and gas corporations. The

United States is BP's most important market. BP's financial research came to the conclusion

that the company's competitiveness in the United States market is lower than that of other

significant oil and gas corporations. This was one of the key conclusions of the study.

However, because to its earnings, efficient asset utilisation, high inventory levels, and fast

debtor turnover, BP is gaining some competitiveness in the market of the European Union. In

addition, the oil disaster that took place in the Gulf of Mexico in 2010 has left a stain on BP's

performance that will be felt for a long time to come. In addition to lowering BP's return to

shareholders and causing a delay in dividend payments, the massive expenditures connected

with such incidents hindered the increase of the company's net assets, a pattern that it was

projected would continue over the course of the subsequent five years. Two potential bright

spots for such a Group are a strong financial basis, as well as a projected rise in the pricing of

oil and gas in the future. Nevertheless, the company faces a variety of operational risks that

could prevent it from achieving its expansion goals.


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References

Bamberg, J. H., 2020. The History of the British Petroleum Company. [Online]

Available at: https://ideas.repec.org/b/cup/cbooks/9780521259507.html

[Accessed 14 August 2022].

Cross, J., 2021. Transformation of the IT Function at British Petroleum. [Online]

Available at: https://www.jstor.org/stable/249721#metadata_info_tab_contents

[Accessed 14 August 2022].

Richard, 2021. The Purchase of the British Government's Shares in the British Petroleum

Company 1912-1914. [Online]

Available at: https://www.jstor.org/stable/649859#metadata_info_tab_contents

[Accessed 14 August 2022].

Smith, 2019. British petroleum. [Online]

Available at: https://books.google.co.in/books?

hl=en&lr=&id=aNBQnow_wbYC&oi=fnd&pg=PR11&dq=British+petroleum+research+pap

er&ots=NxcC2DakTw&sig=8Bd_ij0ZuJJjBjJRGY_YeFC34p4#v=onepage&q=British

%20petroleum%20research%20paper&f=false

[Accessed 15 August 2022].


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