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The petroleum sector has been in operation for a very long time now. It is a massive multi-billion dollar industry that consists of many big players. Oil is undoubtedly one of the most vital elements in the world today with almost all industries being dependent on it. The global economic state is determined, in large parts, by the fluctuating prices of this rare commodity. BP, which stands for British Petroleum, is one of the giant firms that is involved in oil refining and exploration. The products produced by this company are numerous and they play different roles in the daily lives of consumers. Lubricants as well as the usual gas and petroleum products are produced to move engines and light fires. BP products such as petrochemicals are essential raw materials for industries such as paints and packaging. BP has a very massive customer base since it operates globally in all continents. It means that BP has a significant social responsibility in the regions where it is operational. The head offices of BP are located in London but many other offices spread all around the world. BP places primary interest on its customers as well as the society in large because it operates to ensure efficiency. To this end, it is guided by certain values and mission objectives.
Mission is not explicitly stated, but BP has listed their values and the qualities they represent. The aim of BP is to be perceived as a force that brings about genuine progress while changing the world for the better. The goal is to ensure that they provide energy that is secure for the environment and affordable for all people.
The primary idea is to improve sustainability and the technology that enhances operational safety for the workforce. Energy conservation is also a key part of BP’s vision, with the primary focus on future trends in the sector.
Strategic Management is a process exercised to formulate and implement the business decisions that are made by the company’s management (Hopkins, 2007). Strategic management considers many things including, resources available as well as the external and internal business environment. BP is a company that has adopted a strategic management plan to help in achieving the goals set by the corporation. The processes in strategic management happen in order, one after another, and each stage holds crucial information for the enterprise.
Goal setting is the first step, and it explains what the company aims to do and achieve. The timeframe will depend on the type of goals that a business has. BP seeks to be an oil company that consistently delivers value over volume (Ritzer, 2011). The management decided to set clear targets and priorities as well as to invest in the distinct capabilities of its employees. BP aims to create more value for the shareholders and in the process it also aims at boosting its portfolio. The company seeks to take on a disciplined approach that will make it possible to increase shareholder distributions over time. BP has a set of clear priorities, and the first involves running operations that are reliable, safe and in compliance with necessary safety standards. The company also intends to diversify its portfolio in order to emphasize its strengths. Leveraging of upgraded assets, improving technology, as well as good customer relations are some other goals that BP aims to achieve.
Strategic analysis is the stage where a company looks at other factors that affect the implementation of the set targets. The data companies acquire in this step should cover a broad range of areas that affect the final goals (Crane, 2008). Strategic analysis requires the company to look into their external and internal environment to assess issues that may hinder them from achieving their set targets. BP conducts analysis on the threats and opportunities the company faces as well as considers their weak points and their strengths.
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BP can draw on its strengths such as the fact that it is in the list of top three biggest energy companies globally, largely due to its activities in international markets. It gives BP an upper hand when it comes to participating in the energy industry. BP brands such as AMOCO, CASTROL, BP EXPRESS and AMPM do very well in international markets. Weaknesses such as the oil spilling in the Mexican Gulf are also analyzed to serve as a lesson for the future. Opportunities for BP are extensive, and a good example is the acquisition of the North Sea region. Threats to the company are analyzed too.
We use the information gathered in the step called strategy formation to see what resources the company can draw on in order to achieve the objectives. It is crucial to know if any external resources are required, so that the company can devise a clear and a robust plan (Mullerat & Brennan, 2011). In this stage, all these requirements the company is facing are prioritized according to the criterion describing how crucial they are to the achievement of business goals. BP has many goals, and one of the most important is to ensure that it operates while complying with all set standards. With this objective in mind, BP decided to use its massive influence to join the fight against climate change. BP was among the earliest multinationals to voice out on climate change as a significant threat way back in the mid-nineties. The company made a commitment to cut down greenhouse emissions in its places of operation. Other strategies were formulated too. BP joined other international bodies involved in the war against climate change. British Petroleum also brought up the implementation of solar energy as a clean type of energy.
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In strategy implementation stage, the ideas and theories are put into practice (Mullerat & Brennan, 2011). In this action phase, all the employees of an organization need to know which part they play in achieving the overall objectives. All the necessary resources should be made available during this stage (Crane, 2008). BP conducted an analysis of carbon dioxide emissions globally. The findings showed that global emission of carbon dioxide would be 30% higher in 2035 compared to 2012. BP also proposed that a price should be put on carbon emissions in order to ensure that people and companies were discouraged. BP also implements plans by supporting and funding research in climate and energy-related technology in top universities like Harvard, Oxford, Princeton, Cambridge and MIT among many others.
Strategy monitoring is the final process that involves evaluating and reviewing the performance while correcting where necessary (Crane, 2008). Progress is evaluated by looking at the results against the original plans. BP carries out surveys periodically, while adjusting current design criteria and technology practices for more efficiency in reducing climate change. BP regularly checks the progress of the many strategies that they have in the process to ensure that they operate as planned.
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BP is a global brand, and hence it affects the lives of many people around the world with its operations. The range of stakeholders involved is vast mainly due to the company’s scope of action. Stakeholders in BP include:
- Employees- BP ensures that communicating with its employees is easy and efficient at all times. Training of workers is also done to ensure that they are up to standard.
- Analysts and shareholders- BP uses annual general meetings as well as other means such as webcasts to engage the shareholders,.
- Local communities- BP engages local communities via public consultations or by holding meetings with local representatives of the people.
- Non-governmental organizations (NGOs) – BP liaises with relevant NGOs during implementation of new projects. This happens in cases where such NGOs understand the impact of such projects on environment or society.
- Customers- BP engages clients via global tracking research program where consumers are interviewed around the world. Social media is another area where BP can interact with clients.
- BP should focus on putting the team together in their project organizational structure in order to complete their projects on time.
- For the BP to boost their productivity, the company should focus on the matrix structure.
- To boost their profit, the company should focus on reducing their overhead expenditure.
BP is among the largest oil supplier in the world. British Petroleum mission is to provide fuel that is environmentally friendly at affordable price. The company’s vision is to improve the technology in their production in order to improve safety for their worker. BP has adopted strategic management plan in order to fulfill their objectives.