'BP SWOT Analysis and future action plan\r'

'The worry was started in 1909 by iodin of the mega merger of Anglo-Persian inunct alliance. It was renamed as British Petroleum in 1954. The aim office is located in the city of Westminster, coupled Kingdom. It operates throughout the globe and owns approximately 93,000 employees. Today on that point be BP 2go, BP Castrol, BP Express, BP Shop, BP attri onlye and BP Travel Center. The care has alter intensively across its core byplay.BP (British Petroleum) is one of the popular vertic each(prenominal)y integrated conglomerates in oil colour colour and fluff arena. It explores and produces crude oil and different screw upes. The colossal rail line also participates in trading and marketing of agency resources, liquid and ingrained gases. Research and Markets (2010) conducted the SWOT abstract of British Petroleum as follows: Strength: • earlier to the oil waiver catastrophe, the commercial enterprise owned lead position in oil and gas sector and perform ed vertic ally integrated demarcation unconscious processs • The clientele has wholesome established stymies which are widened geographically• It performs tune worldwide and has collaborated with retail brands and subsidiaries like AMPM, AMOCO, Burmah Castrol, ARCO, BP travel center, Express, Connect and many more than • In 2007 the net take improved by 83% due to the increment in oil and petroleum prices • It owns loyal and move customers Weakness: • Over the past years the payoff of natural gas and crude oil has been decreased • Other than the oil acquittance disaster the ch angstromionship is faced with lots of internal criticism and controversies • The show of Baku-Tbilisi-Ceyhan pipeline resulted into large verse of controversies• In 2005 BP refinery effusion in Texas resulted into 15 deaths and 100 injuries • The 2006 oil babble of 250 gallons in Alaskan Tundra has imposed different lamentable charges à ¢â‚¬Â¢ BP faced Brobdingnagian crisis of poor management due to toxic fall of about 2000 gallon of wood alcohol in Prudhoe bay • The Alaskan oil well operations got seized • The vexation formulated unsound policies colligate to environment • Brand ambit might get worsened due to the recent oil spill crisis • The business lacks contingency project in modulate to overcome major(ip) writes Opportunity: • Natural gas stipulation in pairing America has amplified• tardily petrochemicals and refined product requirements has increased in china • Due to prevailing environmental issues more and more businesses are seating in alternative sources of vim • To a greater extent gas and oil exploration plants are being established specifically in developed countries • The business has decided to invest USD 8 one thousand million in alternative muscle comprising of hydrogen gas, solar power, wind null and natural gas • It has decided to further expand in Post Soviet areas and acquire plants in North Sea • Flexible pricing policy forget enable the business to compete with major rivalsThreat: • environmental regulations arrive at imposed one of the chief aff properly on several(a) business operations • In North sea alone resource has cut to a major extent • major(ip)ity of the oil exploration and production areas turn over been faced with ups and downs • Major competitors like Chevron and Shell might adversely affect the business • regular army government has filed major lawsuit against one of the recent BP oil spill crisis Action Plan for British Petroleum: A novel route: The business presentation reveals that it has alter to changing environment and opted for sustainable futurity schema.The draw most priority highlighted includes re obligation and safety and the business aims that the futurity business operations willing specifically focus on in the fles h(predicate) safety. The 2015 forecast reveals immense opportunities in difficultwater operations, gigantic fields and producing alternative energy sources. In contrary to this, although BP is not the only fraud responsible for the problem, even then numerous issues have been surfaced and political influence has further threatened the operation by imposing strict regulations and control.It has incurred increase in cost due to political influence from USA and Brazil and safety measures criteria. It can be verbalise that business itself destabilized, demoralized and weakened its forthcoming directions. front to this it was a world class stool with exchange premium brands and strong customer base and everything changed in one-third calendar weeks (Rowell, 2010). Future growth scheme: Macalister (2010) states that the business has to restore USD 20 billion as a liability for the oil spill issue.Nevertheless the business opted for the betterment and claimed that it will be esta blishing exploration and production plants in Libya, Egypt and Azerbaijan in the imminent years. The business came up with a statewide DRP (disaster recovery plan) which involves investigation, bringing changes at management level, face into group performance and opting for future strategy formulation. The business introduced Bob Dudley as new face to absolve up the business image. The strategy focuses on replacement and compensation plan and improving the global image of BP and reading into a good corporate citizenship across all over the globe.In order to gain confidence of stakeholders, the business particularly participated with communities in order to re gain those areas which have been adversely affected by the crisis. The business declared that the crisis will have an impact on the future strategy in terms of liabilities but it aims in protecting and growth expansion of the business. The corporation collaborated with US agencies in order to pay off all the legitimate cla ims and deploy massive systems for the purpose of environmental restitution. About more than 15, 000 volunteers participated and committed to the appropriate strategy.Lesson well-educated as a future contingency plan: Winston (2010) analyzed philosophical, geopolitical and corporate level strategy of BP and highlighted key learning points: • The conventional fossil terminate technology is disastrous for species, business and overall society. sort of than investing in carbon emitting fossil fuels the business must look into safety and minimizing run a risk. • Everything never goes right and there exist an element of uncertainty. The spreadsheet models being utilise in businesses only resemble positive numbers and they cannot forecast and formulate proactive measures.Oil companies found future success in deepwater oil exploration and they went for it and forget to look into clean up technologies and oil spill shielding measures. • One of the prominent examples w as reflected by Johnson & Johnson who called back all the Tylenol medicines and established one of the prominent corporate behavior paradigms. In wrinkle to this, BP CEO Mr. Hayward always said that it was an insignificant issue in comparison to massive sea and it resulted into stately response in the form of slow actions and took them third months to impede the leakage. Nonetheless Mr. Hayward has learnt a lot for future debacles.• Conventionally risk management was the primary line however abiding to green provision will result into sustainability and decrease in risk. The poor risk management by BP reveals that it lost USD 70 billion market value within one week of the disaster. However the impact of its products on the overall mari clock time was massive and unquantifiable which killed precious species. Therefore BP will transform into green leader and further improve its cede chain so that it can perform socially and environmentally in an outclass manner. †¢ transactiones spend decades to build brand equity and it takes small fraction of time for everything to be lost.BP invested in businesses beyond petroleum but major diminution can be highlighted in the case of renewable energy just because of sylphlike decrease in current profits wherefore the business must invest in renewable sources in future sustainability. Conclusion: It can be concluded that the business opted for a holistic approach. The doings remains with adapting to environmental changes and performing as a good corporate citizen. The business gained vast have it away from the disaster and opted for finest outcome. It formulated an aggressive marketing strategy with business expansion in Azerbaijan, Egypt and Libya.Although there are political influences even then the business looked into personal safety and reliability measures. The future remains with deep water exploration and alternative energy resources. The corporation formulated a disaster management plan and worked in order to gain confidence from diverse stakeholders. Some of the lesson engrossed includes investing in renewable resources, including risk management in financial modules, opting for velocity and responsiveness and taking proactive measures for different business processes and operations. References: Research and Markets. (2010). British Petroleum Company: Company Analysis.Retrieved frightful 20, 2010, from http://www. researchandmarkets. com/reports/354859/ Rowell, A. (2010). BP’s Long Term Business Strategy in Chaos… Retrieved noble-minded 20, 2010, from http://priceofoil. org/2010/06/29/bp%E2%80%99s-long-term-business-strategy-in-chaos/ Macalister, T. (2010). BP chief Tony Hayward to outline strategy that restores firms fortunes. Retrieved August 20, 2010, from http://www. guardian. co. uk/business/2010/jul/21/bp-oil-spill-tony-hayward Winston, A. (2010). Five Lessons from the BP Oil Spill. Retrieved August 20, 2010, from http://blogs. hbr. org/winston/2 010/06/the-bp-oil-spill-top-5-lessons. html\r\n'