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Sociocultural Factors Affecting BP Petrol Filling Stations in the UK

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Introduction

Sociocultural Factors Affecting BP Petrol Filling Stations in the UK Introduction: 'Sociocultural influences on organisations include changes in the age and structure of populations, the manner in which populations behave and the way in which the culture of a population or country changes and develops.' Source: 'Understanding Organisational Context' - Claire Capon Sociocultural factors affect BP petrol stations in both the micro and macro environment. Within the microenvironment factors affecting petrol stations are directly linked to factors that affect the need for transportation, where as in the macroenvironment there are factors that affect the need for petrol in general. Factors within the Microenvironment: There is an ageing population as well as a growing population, all requiring transportation. Two car families are more common as both parents work, as well as having children in school. Increased pressures in life lead to more car use, as public transportation is not flexible enough for many lives. Larger catchment areas for state schools increase car usage as many pupils are too far from school to walk. Increased centralisation of public services within cities creates a large car use from the suburban areas. The amount of commuters is rising, requiring more car usage. Increases in disposable income allow the population to spend more on shopping and entertainment, which may require transport. Due to global conflicts more UK holidaymakers are staying in the country and thus requiring transportation. There are more 17-year-olds with cars responding to the growing demand for transport. Failing public transport systems, like late buses, prompt more car use. ...read more.

Middle

Government activities both directly and indirectly, influence business activities and government can be seen as the biggest business enterprise at national and local level. Source: Ian Worthington and Chris Britton Politics and the legislation that parliament introduce, influence the business environment in many different ways. The policies that are introduced affect business from a local, national, and global front. External Local influences in the political environment that could affect B.P. are as follows: The local government and authorities have a legal responsibility and are bound by law to maintain trading standards and environmental health. As such they hold great powers over all organisations no matter how big within their area, and have the authority to close them down if severe breaches of law are discovered. The National influences in the political environment that affects B.P are as follows: If the government increases the tax and fuel duty on petrol and other fuels then there may be pressure groups such as the People's Fuel Lobby (PFL), could start blockades which once happened towards the end of the year 2000. Source: http://news.bbc.co.uk/1/hi/uk/1003552.stm The result of the blockades caused people to start panic buying the fuel, causing exceptionally long queues. Consequently police were forced to close some petrol stations in Cardiff after long queues began affecting city-centre traffic. Source: http://news.bbc.co.uk/1/hi/uk/932207.stm The Global influences in the political environment that affects B.P are as follows: The Middle East an unstable area of the world is where a lot of the oil supply is brought from but with the hostilities that have been taking place has made the prices of fuel fluctuate. ...read more.

Conclusion

If a rival service station in an area drops its prices, BP would quickly lose customers if they didn't reduce their prices as well. Threat of new entrants There are not many new competition in the petrol industry at the moment but BP does have a lot of competition already company's which Shell, Mobil etc. Even though there isn't any new competition other company's are always try and compete with BP. Threat of substitute products or services BP tries and provides substitute products or services. BP has launched a environmentally friendly petrol which is a substitute as that it costs the same as normal petrol also it is environmentally friendly so customers would prefer to go for the new petrol. Some of BP's stations have a 24 hour caf� so either customers can go to the caf� or buy food from the store which would be cheaper products at BP stores are the same price as supermarkets. Bargaining power of buyers BP is the buyers and so are the general public. BP has power as a buyer as BP has a good reputation and is the most successful company in the petrol industry and when they choose their suppliers they will shop around for the best price for their for their oil etc. and the suppliers will not take advantage of BP as they are a well known company so you could say BP have a lot of power. Bargaining power of suppliers BP imports from a variety of oil producing countries, but in February 2002 BP North America also imported from Middle Eastern countries in the following quantities Iraq, Kuwait, Saudi Arabia and Algeria. ...read more.

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