Background:
BP was also looking forward the same and not only in 20th but in 21st century. Number of countries like North America, Mexico, Indonesia and Russia are dealing with BP project. BP also have gas pipelines in different places.
Moreover technology and BP ‘s research method for fuel and oil opens new door for oil and energy market.. is having their own research facilities was opening up new frontiers in the search for fuels. BP is not manufacturing oil only there are lots of different brands BP has launched.
Ownership:
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, – Chairman of BP, board of
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Sir – Non-executive director
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– Chief Financial Officer
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– Chief executive, Exploration and Production
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– Non-executive director, board of , ,
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– Non-executive director, CEO of , also board of
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Sir – Non-executive director chairman of
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– Non-executive director
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– CEO/MD BP Worldwide
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vice-chairman of the
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, board of and .
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, CBE director
Dr , director of Chatham House.
Main countries where BP Operates:
There are six main continents operates BP. And more than 100 countries
are using BP’s product and other services. BP work across Asia,
Australia, Africa, South America, South America. and Europe.
Exploration and production activites act in many part of arifa like
Algeria,Angola Egypt. Central Ausralia and Newzeland as well. BP’s
other project are utilising their products and services.
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The data shows that how many per cent oil was reserved with different countries in the end of 2002. As per that Middle East had 685.6 million barrels and on the other side Asia Pacific was the last only 38.7 million barrel.
Milestone development of the BP
BP Norge has submitted a US$5bn plan for the development of the Skarv and Idun oil and gas fields to the Norwegian government. The filing is an important milestone in the development of the project, which it is expected will start production in 2011.In this very small economic growth our shareholders are united on governance and support for the company’s robust operational and financial performance.
The new fields UVAST, VERHNECHONSKOYE(VCNG) and HAMENNOYES refinery showing the excellent result.
Our net debt reduced be $1 billion over the past nine months.
Case Study
Key events in corporate history:
In the corporate history following are the key eliments of the BP’s history.
1oil industry
2climate change
3treadmill of production
4ecological modernization
5new institutionalism
6corporate environmental behaviour.
Impact of Environmental Factor:
Being a multinational company and due to the significant requirement in terms of economical . political ,social ,legal environmental, technological and the need to posses a large infra structure , a new companies may find that there are relatively high barriers of entry in this sector.
The key to remain in this industry is to understand he environmental obligation and risk and to operate a business with maximum performance on an economy with enormous amounts of uncertainties. . further BP being one of the influential supplier in this industry with a handful of suppliers, either the buyers and the new entry cannot have a major affect on the corporate structure of this business.
The key players in this industry are powerful on their own and who are able to influence this oligopolistic market by their supplies.
The main competitive force for BP is the challenge ahead with climate change and restrictions by policy makers. Climate change in the reason years have featured on Washington agendas, and despite having political differences countries like China, India and America who are the main countries which account for the worlds carbon emissions have come together in working towards a timetable to address climate change issues and to align there economies by giving priorities to this issues.
BP’s Approach to a Lower-Carbon Future.
The British Petroleum Company ( BP) is very serevious and taking great action to find out the way of low carbon energy. BP has decreased their own participation in carbon energy. The following chart give us a better idea and figures about BP’s network for carbon energy matter.
Figure 1. Progress of lower- Carbon. (Taken from )
BP has set carbon emissions as the high priority when choosing new future investments and engineering future projects in both fossil and renewable energy . to overcome it believes in energy security which means by diversifying as the statement by Churchill which stated “ safety and uncertainty of oil lie in variety and variety alone “which clearly gives important to different sources of energy . further by creating competition to find the best source of energy and
produce and to distribute to use in an efficient way which means usage of a unit of energy to maximise its output without waste. Reliable statisticians for BP states by 2030 the world would need 45% more energy than what we use today and will double by 2050. Bp has invested enormous amount of funds on low carbon or alternative to energy projects. It clearly understands the need to face the future challenges by aligning its agendas with climate change and political requirements.
Bp has aligned its business to work within the government architecture, because political and government play a key role in its corporate structure . it believes government should provide the building blocks and tools for the betterment of this industry. Bp has already invested 4bln and 1bn every year on low carbon energy businesses. BP believes policy makers have restrictions imposed on countries which have energy reserves and the limitations to use new technology and research due to various political agendas. BP engages in taking very high risk in exploring oil resources including to the extent of drilling 10 km in Tiber fields and use of seismic imaging techniques in deep water seas in the gulf of Mexico. To overcome certain political challenges BP has been calling for action for the last 12 years.
It has suggested creating price for carbon through market mechanism there by creating competition to manage energy in an efficient manner
and to cut carbon emissions and further\calling investments on low carbon energy projects which could possibly create competition to manage resources and utilize them in a climate friendly manner.
Our net debt reduced be $1 billion over the past nine months.
Task 2
2nd question:
Strategic Capability of the firm.
Company’s Strategic capability is depend upon so many factors like:
1 Nature of organisation:
As we have mention BP is world’s top most multinational company. The main business is oil and fuel. and company have enough sources to compete with others from the same market.
2. Nature of Resources:
The meaning of nature of resources is from what competent company is using and from where they get the resources. sometimes some company’s are depend on other company’s Here for BP we can say BP is self-made Plc. And BP’s main business is explores and get the oil, fuel and other products.
Resources and Capability:
BP is having that capacity and very strong management and network to use that recourses and get the target. BP’s skills employees, and the latest technology are the key factors for BP to reach the climb. Moreover BP is having effective production capacity, Highly famous brand name, strong marketing skills, corporate and retail market network ,organisational structure makes BP a great world best company. The main reason is company is not only focusing on profitability but client satisfaction is also most important part for company.
As above mention BP is the 3rd largest company of the world. The best way to mention by SWOT Analyses system.
SWOT ANYLASES SYSTEM OF BP :
Strength:
BP is world’s 3rd largest company and highly reputed multinational oil company.
1.BP does petrochemical business in all over the world through their other retail products like BP Express, BP connect, BP Travel centre, AMOCO, ARCO, AMPM, Brumah Castrol.
2. BP’s brand slogan ‘Beyond Petroleum’ managing itself strongly.
3.AMOCO BP’s brand is having strong royalty for oil.
4.As above mention that BP is listed in the FTSE 100 Index and that’s great honour. As per London Stock exchange data BP’s share value is high or sometimes on average but not below the investment shareholders are happy and satisfied with BP .and BP also participate IPO in new York stock exchange.
5. Due to record oil and gas prices the net profit BO Q3 increased by 83%The figure of 2007 indicts $53.43 per share.
Weaknesses:
1.Oil wells of Alascan is closed. so it effects to company’s production and exploration for that part.
2.Petrol prices increased in UK.
BP is criticized because of launching disputed business Baku-Tbilisi-Ceyhan pipeline.
3. In 2005 BP refinery was highly exploited in Taxes and 100 injured and 15 died because of that disaster.
4. In 2006 270000 gallon crud oil was spread at Alaskan Tundra and that was criminally charged.
Opportunities:
1.To bit their main rival s BP launched flexible price policy.
2.In the north sea area BP extensions strategic oil and gas acquisition .
3.Due to High demand of the BP product BP invest 8.b USD in research
of different method of hydrogen, fuel, natural gas.
Threats:
1A very sensitive and serious about safety and security because of refinery explosion occasionally.
2Because of toxic and oil spills spoils their good image as per safety and environmental polices.
3BP ceases operations in many prime location for re-binding.
4Corrosion in pipelines.
5BP is having a number of client in corporate stations only. so the waitage of retail sector is not impressive.
5.Chevron and Shell are the main competitors.
6.In the next few months will be hitting more than 5.000 shortage.
Market access product characteristics and reality of operation.
TNK-BP LTD.
TNK-BP (Tymen oil Co.) was a merger in August 2003 in the British Virgin Island as a (TNBP). It was a major vertically integrated Russian and Ukraine oil and gas with assets of Alfa group and Access Renova group, a stakeholder called AAR. TNK-BP after the merger it became the world largest oil company. Because of the BP’s majority assets in Russia the company owned 50% and the other 50% was owned by the group of prominent Russian investors the AAR, (Access industries and Renova).
TNK-BP combines the best Russian and international skills and experiences, it is managed by a multinational management team, which consists of Russian and international executives who have working in more than 50 countries worldwide. The company has 70,000 people and operations in Russia.
Since the foundation of TNK-BP in 2003 it has become an outstanding success in terms of growth. TNK-BP announced a net income of $1.7 billion in the third quarter of 2009, up 34% of the previous quarter; it has recorded the industry-leading 130% reserves replacement ratio over the past three years.
Conclusion:
Finally we can say that BP is a most valuable multinationl oil company in the world. It is the brand having sustaniblity,strong infrastructure,and management power.Apart from some environmental issues , company has enormous amount of strategic capabilities and advantages over its rival companies.
References:
