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BP SWOT Analysis Essay

Introduction BP is a public limited company which is established within the United Kingdom major integrated oil and gas industry. The firm deals with production of various forms of energy such as transportation fuel and petrochemical products (Uldrich, 2010, p. 30). Currently, the firm is considered to be amongst the largest gas and oil producing companies.

Over the years it has been in operation, the firm has managed to establish its market in more than one hundred countries. The firm’s operations are organized into two main segments. These include refining and marketing and exploration and marketing. The two segments are well organized into upstream activities, field development and midstream activities.

Upstream activities entail exploration of gas and oil. On the other hand midstream activities entail transportation of petroleum and petroleum products through the firm’s pipeline network. Through its refining and marketing processes the firm is able to supply its products to the market.

Considering the competitive nature of the industry, it is vital for firm’s major integrated oil and gas industry, it is paramount for the firm’s management team to be effective in formulating operational strategy. One of the ways through which this can be achieved is by undertaking a SWOT analysis. This paper entails a comprehensive SWOT analysis of British Petroleum Company (BP).

SWOT analysis According to Dransfield and Needham (2005, p.137), a SWOT analysis enables a firm to evaluate its internal strengths, internal weaknesses, external opportunities and threats. Below is a discussion of BP’s SWOT analysis.

Strengths

BP has a strong management team. As a result, the firm has developed an edge with regard to strategy formulation and implementation. Its strong management team has not only made the firm to attain a strong financial performance but have also made the firm to operate in a social responsible manner (BP, 2011, para. 1-3).

The firm has been in operation for a number of years and has managed to venture into the global market. As a result of its global operations, the firm has managed to develop a strong financial base arising from its large market share. BP has also developed strong brand equity globally. This has culminated into its products being widely accepted in the global market hence attaining a high degree of customer loyalty.

Get your 100% original paper on any topic done in as little as 3 hours Learn More The firm has a strong research and development team which enables it to conduct successful oil and gas exploration. Its research and development is also enhanced by the firm’s collaboration with other firms such as California Institute of Technology. The collaboration has enabled the firm to be efficient in developing solar cells. In addition, the firm also collaborates with MIT in an effort to conduct a research regarding development of clean coal technology (Uldrich, 2010, p. 33).

Opportunities

Over the recent past, various economies have experienced oil scarcity. This has led to a rise in oil and gas prices which is an opportunity for the firm to make more profit. Considering the increasing demand for alternative sources of energy, there is a high probability of BP improving its profitability by venturing into production of alternative energy.

Some of the alternative energy sources which the firm should consider include bio-fuel, wind and solar energy. In addition, BP can expand its pipeline networks to emerging economies such as Eastern Europe countries and China. This will contribute towards an increment in the firm’s market share.

Considering the high rate of growth in the vehicle manufacturing industry, there is a high probability of the firm experiencing an upward shift in the demand for crude fuel. This arises from the fact that most of these vehicles will be fueled with crude oil energy.

Weaknesses

Oil and gas form’s the firm’s core products. However, these resources are finite which means that the resources are limited. In its operation, BP has been over-relying on hydrocarbons. As a result, the firm’s survival in the long term is threatened.

The firm has a weak pricing strategy with regard to some of its products. In its operation in the United States, the firm distributes different varieties of BP and Amoco fuels. Some of these include Amoco and BP fuels. These fuels have low sulfur content. However, the price of these fuels is relatively high.

Considering the fact that consumers are price sensitive in their purchasing patterns, there is a high probability of them considering cheap alternatives. This is mainly likely to occur during economic recession. The resultant effect is that the firm may lose its loyal customers to competing oil and gas products.

We will write a custom Essay on BP SWOT Analysis specifically for you! Get your first paper with 15% OFF Learn More Threats

Considering the increased requirement for firm’s to attain environmental sustainability in an effort to minimize increment in the rate of global warming, many firms may result into consumption of alternative energy. Incorporation of renewable energy by firms is a threat to the firm’s hydrocarbon fuel business.

The firm’s facilities which are located in various parts of the world face numerous risks such as a result of political instability which may lead to war. In addition, the high rate of terrorism is a threat to the firm. This arises from the fact that such plants are a major target.

Due to the lucrative nature of the industry, there is a high probability of competitors developing future alternative fuels culminating into an increment in industry rivalry. The resultant effect will be a reduction in the firm’s level of profitability.

In an effort to expand into the international market, the firm faces increased cultural challenges due to existence of cross cultural differences. This may limit the firm from conducting its operations in the international market.

As a result of the oil spill which occurred off the Gulf of Mexico, the firm’s popularity has been negatively affected in some areas (Hefferman, 2010, para. 1). This may limit the firm’s effort to expand its operations to such markets. The previous economic recession has a negative effect on the firm’s operation. For example, increase in the price of oil barrel to $66.71 will result into tension amongst firm’s operating in the oil business (Hefferman, 2010, para. 5).

Conclusion and recommendation

From the analysis, it is evident that BP has developed a number of strengths internally culminating in the firm’s success. In addition, the external environment also presents numerous opportunities and threats. In an effort to position itself effectively in the market, BP’s management team should consider the following recommendations.

Considering the rise in oil prices, the firm should consider implementing a flexible price policy. This will culminate into the firm attaining price competitiveness compared to its rivals.

The firm should consider cooperating with its business partners so as to develop sustainable energy.

In an effort to attain environmental sustainability, the firm should ensure that its operations do not result into emission of carbon dioxide which is one of the major causes of global warming. In order to achieve this, the firm’s management team should incorporate the concept of carbon-foot-printing which entails removal of carbon dioxide a firm emits in the atmosphere.

Reference List BP. (2011). How we operate. Web.

Dransfield, R.

Change Management Strategy in an Organisation Report

Nursing Assignment Help Change is inevitable: it is brought about by globalisation, change in customer needs, and technological developments among other factors. As much as change is inevitable, the nature of human being resists change; how well an organisation adopts to change, determines the competitive a company.

Leaders have the role of implementing strategies to effect change effectively in their organisation. Change may be rapid, where there is minimal time to plan and adjust processes and products in line with the expected change (Hayes 12-23). This paper discuses change management strategy in an organisation.

Strategy A strategy is a thought system and process to be followed, with the aim of attaining certain set objectives. The strategy may be made by an expert, or it can be developed internally in an organisation to ensure that better processes have been adopted. Implementing and managing a strategy is the final stage of a strategy, where elements and components of the strategy are put in place. In the case of change, a change strategy should be implemented and pioneered by change agents.

Change management strategy Leadership of an organisation has the mandate of implementing and managing change. Businesses, countries and the world in general is facing massive change and developments, there are transition and development in different areas.

Change should be gradual but should adopt a pace that ensures that the organisation will benefit from opportunities offered by change or mitigate any threats offered by changes in business world. An effective change management policy will ensure a smooth transition from old process development methods to the new form of production.

Objectives of a change management program There are different reasons why change should be undertaken in an organisation. The prevailing condition offers the objective to meet by the change process. Major objectives of a change management strategy are:

Improve current working condition; this is through adoption of modern or relevant strategies, for example to implement risk management strategy, there are some change that need to be accommodate in an organization

Adopt a different way of doing things and take advantage of available opportunities as other business opportunities are created

Make new combinations of resources in an organization; this is mostly when better combination ways have been innovated

Adopt new technology; scientific innovations and developments have resulted to technological innovation that robust organization should adopt for efficiency and effectiveness in internal and external processes.

Change of business, target market, production formulae, management, job schedules, job description among other; this is where an organization need to take a different approach in business

Have a different human resource management system, computer system among others

Change management program

The success of a change program is dependent on how employees in the organisation are going to adjust and the way they will perceive the change. The attitude towards change determines whether the process will be affected effectively or not. The change agents should take certain deliberate measures and follow a well thought process that is influenced by organisational culture of a company.

Get your 100% original paper on any topic done in as little as 3 hours Learn More To implement a change strategy, the following process should be followed:

Planning change

This is where the need for a change in an organisation is recognised; at this stage, an analysis of prevailing condition in the industry is important. An internal and external audit is conducted to ensure that current position in market is recognised. Change agents should undertake massive research on an area of deficit recognised so that they can devise appropriate mechanisms and strategies to an effective solution (Newman 56-78).

Pilot study and management sensitisation

After the area that need change has been recognised, the report of the change should be discussed with top management. This is a very important task since how well top management understand the change to come in an organisation, the more support they are likely to give to the change.

Through brainstorming and involvement of experts, alterative are devised; if there are past organisations that have implemented any of the set alternatives, its performance should be evaluated. The risk areas are established to ensure that mitigation measures have been established. It is at this stage that the best alternative is chosen; this stage may take varying durations depending with the urgency of the problem at hand, however it should address all areas.

Staff sensitisation and involvement

After the management have decided on the way forward, before taking any step further, they should involve their employees at all levels seeking their support. At this stage, employees are likely to have a number of questions regarding the change and how will be affected by the change. Change agents should be well versed with the expected change results and the effects it is likely to have on employees.

In case some employees have some recommendations to the change, their views should not be locked out but should be included in the change process as long as they will not contradict the objectives targeted by the change. Employees should be made aware that they are part and parcel of the change process and the process should not be implemented on them rather they should be fully involved in the change process (Sadler and James 34-46).

Consolidating change When all things are set to go and attitude of employees towards the perceived change is positive, then the new strategy of doing things should be launched. Before switching the old strategy of doing things, the new strategy and the old one should be run concurrently to give a testing chance of the new strategy as employees learn and adjust to the new system.

We will write a custom Report on Change Management Strategy in an Organisation specifically for you! Get your first paper with 15% OFF Learn More Sometime there are improvements that become necessary after implementation; such improvements should be done before the old system has been switched off. Support, monitoring, improvement and control of the new system should also be embarked on.

Managers role in change Management Leaders in an organisation are mandated with the task of pioneering a business to its desired objectives; they are the change agents. In transitional period the leaders is the one who guides subordinates to the desired path. They make rules and policies to be followed in attaining the goals: without disregarding their subordinates. Change needs to be planned at all, times when it is being implemented and conducted in such a way that it will be accepted in the business (Hiatt and Creasey 8-12).

Change best practice Change Best practice is the approach that a company can adopt to undergo the change process effectively; it involves accommodating all people. Although different strategies of change management are used in different companies, John P Kotter’s has come up with an eight-stage change best practice model, as follows:

Increase urgency

After the top management has understood and backed the change process, change agents goes down the hierarchy to create awareness on expected changes in the company. Focus is on the specific departments that will be affected. Having round table meetings where the expected change is discussed is necessary. Relevant inputs from employees are accommodated.

Build the guiding team

At this stage, people have diverse views, fears and optimisms; depending with an individual. Change agents should work closely to explain finer details of the projects and remove doubts and tensions created. This stage call for professionalism since it can break the entire system if a negative perception is created in the mind of the employees.

Communicate for buy-in

This stage, employees undergo necessary training on how they are expected to conduct themselves after the change process. Those employees who are still resistance should be given one-on-one approach where issues and their fears are aired out.

Empower action

Change agents guide the employees to see the practicability of the new way of doing things, depending with the development; this stage can be delayed to later date. Any issues and misunderstandings are polished at this stage as employees learn more about the new system and its operations. Note at this stage, the old system still is on.

Create short-term wins

The new change is given a full test without doing away with the old one. The new system dominate in activities, this stage gives the company the chance to evaluate the new system as employees learn it further.

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In case the new system has disappointments, it should not be done away with; it should be reinforced and accustomed further for the business.

Make change stick

At this stage, the company will have understood the change and ready to work with it. The old system is switched off and mechanisms mechanism to evaluate, appraise and upgrade to the new system are put in place (Sadler and James 45-76)

Conclusion People are static to change; however, if an organisation implements an effective change program, then change can be smooth and effective. An effective change strategy should involve employees of an organisation at different levels and sort for their continued support.

Works Cited Hayes, Johns. The Theory and practice of Change Management . New York: Palgrave Macmillan, 2010. Print.

Hiatt, Jeff, and Creasey Timothy. Change management: the people side of change. Colorado: Prosci, 2003. Print.

Newman, Janet. Modernising Governance. Belmont: SAGE Publications, 2001. Print.

Sadler, Philip, and James Craig. Strategic management. London: Kogan Page Publishers, 2003. Print.

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