BP Report
BP Report
BP Report
Report- PPT
2
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
3
Introduction
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,
and Polar Plus. In addition to selling charging devices that can be installed in private
the largest public charging network for electric vehicles in the United Kingdom. This network
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
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
4
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.
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
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
Technological
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.
5
The business also conducts studies with the intent of implementing suitable technologies in
Environmental
Sustainability in the natural world is a major issue for modern society. Numerous
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
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).
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
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.
Weakness
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
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
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.
worldwide emphasis on sustainability. For the company's future success, this strategy
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
Threats
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,
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.
since they are more equipped to handle environmental difficulties than BP and have
energy firms that are providing the technology with the affordability to force a larger
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
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
9
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
References
Bamberg, J. H., 2020. The History of the British Petroleum Company. [Online]
Richard, 2021. The Purchase of the British Government's Shares in the British Petroleum
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