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British Petroleum is currently ranked 3rd among oil and gas suppliers worldwide. The origins of this business can easily be traced back to the early 20th century. The merits have all been purely about the challenges and victories the British company has achieved though. It has recruited a very large number of people around the world, based in more than 80 countries around the world today (Blais). With an estimated 84 000 work openings produced around the world, the firm continues to generate about 3 million barrels of oil a day. It majorly focuses on the production of energy thereby being able to cater for all those who deal with petrol and diesel in their day to lives.
Just like any other company out here in the world today, the British company has it financial side or aspect. It can be majorly attributed to the weaknesses and strengths that the company has to undergo. The company has from time been able to compete favorably from time to time due to the good strategies that it has always been able to implement in general. One of the strategies that have enabled the company to be at the top is a very strong brand that can be attributed to its internal management (K). The other factor is its ability and strength over the years that has seen it effectively deliver its services well to all the countries across the world in general. The flexibility of the company is also another great advantage. It has seen it being able to even diversify their products across the world in equal measures as well in general. Hence it has been able to dominate other companies all over the world. The company through this strategies is always able to effectively attract talent and other investors that in turn fully invest in this company (K). This as well also helps in making sure that the company is always well afloat of other companies. It ensures that the company has a greater hand in the competition that is an everyday reality for all businesses. It makes sure that they are well ahead of everyone regarding customer satisfaction.
Strengths: The brand value of the company is among the top strengths that the company boasts about. It is even positioned as the 6th brand among the top 500 global companies that are around the world today. A very good brand is normally taken as a primary advantage as it normally ends up giving the company a key ahead goal in the company in general (Blais). It is also able to secure a world's best place that can see to it that a company is performing at all times in general. The company also has a differentiated portfolio. The portfolio is also another strength as it spreads risks throughout the organization and not just leaving it to just one particular place in general. The fact that the company has a world clientele demonstrates the fact that it is trusted and that its services are very good in general. It has built a brand name all over the world making even its competitors who want to fairly compete with it to be scared of their presence at all times. The BP company can use these strengths to fully maximize on the left market that is untapped all over the world today in general.
Weaknesses: BP as a company has three shortcomings that are very key. One of them is the fact that it operates in a strict industry which most of the times lead to accumulated risk expenses. The reason is that of fiasco dangers such as oil flames and licks. The organization requires that it can make use of the overall profits at all times. An instance of such a great loss was when there was oil spillage in Gulf in 2010 (Blais). Such occurrences have always had a negative impact on the company in general. The other weakness is the fact that the organization needs to focus more on its corporate aspect at all times. It is normally the only way that can we get back some of the clients that you have lost over time.
There have also been the lessening of the oil creation all around the globe today. A show that was aired by BBC at one point strongly indicated that there had been a significant drop in the production of oil all around the world today. It is the reason why BP as a company dealing in that line of industry is also worried (Daft). It has also always been suggested by different forums that discuss the effects of oil. One of the things that BP still deals with up to date is the oil spillage that occurred in Gulf some time back.
The other weakness that is easily notable is the fact that the company for a long time has been unable to have proper internal and external controls making it very susceptible to the shocks that are associated with economics. The inflation in prices of crude oil sometimes has rendered the company to be completely unable to satisfy their customers well all throughout. Some political changes that have occurred over time could negatively affect the company if not well taken of and fought against at all times.
Opportunities: The external environment from time to time has always provided the British Petroleum company with the endless opportunities that they should be able to take advantage of at all times. For instance, the inclination towards a clean energy is a great opportunity that the company can easily capture and win the moment of the day (K). It can begin creating alternative energy forms that can be sunlight based, use wind energy or even use geothermal if they so wish to go into that line of direction. BP has always been open for any future advancements and developments that can come its way and therefore can effectively take up this golden opportunity in general.
The other opportunity that BP can effectively seize is by coming up with an analogy that checks the available emerging markets in general. The markets once checked are always key for any company that is developing since they as well also have markets that are constantly developing as well (Blais). This way they give BP knowledge that they as well need to know that certain markets, for instance, are in their developing stages. Then BP being the giant in the room can always have the upper hand in securing some of these opportunities due to its strong and solid brand that it has shown all across the world.
Threats: One of the most crucial and most significant of all the threats that the Company is facing is the ever-changing stringent yet very legitimate environment altogether. Oil and gas industry as one of the majorly targeted areas for its high areas regarding the amount of pollution that it causes to the environment at all times. Different states come up with different regulations every day that could see the company go down regarding the pollution that it causes to the environment in general (Blais). The other major threat is caused by the fact that the company engages in an unfair business that could easily be used by other companies to bring the company down in just a matter of seconds. To be able to avoid this BP effectively has to ensure that it tries as hard as possible to cement its strengths in different parts of the world and try as much as possible to it that they are always on the safer side of the coin.
Summary of Findings
On analyzing the BP's SWOT analysis, it comes out clearly that obviously, the organization has strengths as well as weaknesses. The Gulf oil slick that happened recently appears to have the worst negative effect on the organization since it has brought about expanded the negative view of BP diminished brand quality, and decrease its productivity and profitability as well. The present position of British Petroleum requires reestablished endeavors to guarantee that the organization holds its driving position. Be that as it may, this may be conceivable through investigating accessible opportunities. We have recognized different open doors that British Petroleum can venture into to guarantee its development as well as sustainability. It will be the organization to organize these opportunities as in the order of relevance and urgency.
Bearing in mind that an international company like BP is subject to the world economic shocks, it would be important for managers to come up with a way of differentiating their products to increase the market share as this will help in cushioning the company against the unforeseen eventualities. The company should also develop plans that would help in forecasting of the oil market so that the company can diversify its investment portfolio to remain relevant in the face of a dynamic business environment. As for ensuring that the company has a good image, the company needs to comply with the standard of the environmental regulatory bodies to avoid things like lawsuits which could damage the image of the company.
Blais, S. Business analysis: best practices for success. Wiley International Institute for Management, 2012.
Daft, R. Management. Australia Mason, . OH: South-Western, 2012.
K, Moses. Oil and global market, . Oxford school of Business, 2009.
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