Strategic management over the business process could be defining as the major necessity to attain those changes and processes which helps to excess over the development and progression. This particular report there will be the discussion about BP oil company which is facing challenges associated with stakeholder’s management. The resource and staff management is also becoming a major challenge to be produced efficiently for the company. This is essential for the organization to introduce certain changes and improvements which helps to manage the business process effectually. The study will be helpful to analyse key business terms necessary to be handled.
Moreover, to analyse the company performance and improvements in internal as well as external environment of the company will be overlooked precisely. This will also include the strategies and approaches which will be helpful to manage the business process and development efficiently. While discussing about managing the company performance and values determination about the competitive edge is also necessary. Further will also be the discussion about this particular aspect which will help to attain strategic fit over the development required to be attained. Apart from that, discussion about the strategic values and priorities will also be analysed to manage the performance values.
Definition of the Macro Environment in Business
The macro environment indicates towards the external values and aspects which may impact over the company culture and performance. This includes the analysis over competition, economic aspects, regulation and so on which are associated with the company values and current positioning (Islam and Pattak, 2017). The major examples which comes under this analytical approach includes changes in culture, changes in interest rate and so on.
Inclusion of the Macro Environment in The BP Organisation
This is necessary for BP organization to analyse different approaches and values which helps to manage the challenges related to stakeholder engagement, production management, employee satisfaction and so on. This could be analysed that the micro environment factors help to determine about the process which could be included with the objective of managing challenges and values. The socio-cultural aspects of company are not much managed as the employees are not satisfied from the current regulations and policies followed by the upper staff. On the other hand, the economic values are also getting hampered due to the losses which are facing by the company. This could be analysed that these challenges are requiring to introduce the process which helps to access over the values necessary to be attained for the expansion and development (Barinova, 2017). The company itself is looking forward to maintain and access the necessary changes.
Definition of Business Strategy
The business strategy indicates towards the plan initiating by an organization with prime objective of accomplishing long terms goals and development. This could be defining as the game plan which focuses on to attaining the idea about those aspects which helps to maintain the performance and aspects of enterprises for long run. This includes the aspects which provides with better engagement over the process necessary to be attained in terms of attaining the development and needs to be followed.
The Strategies Within The BP Organisation
The business strategies which are following by BP group are broadly focusing on to introduce the changes and development aspects which helps to maintain the development and company culture in significant aspects. There are basically three types of strategies which are incorporating by the organization.
Functional Level Strategy: This is the long range planned strategy which associated by the line management of the organization. This mainly includes the comprehensive plan which discuss on to determine about the values which are necessary to be accomplished to manage the growth and development. this strategy includes different function which are associated with the company and focuses on to introduce the changes necessary to maintain the company culture and development (Witkowski, et. al., 2017). BP group is currently facing challenges to manage their functional approaches. They are looking forward to attain the values and improvement which are necessary to again manage the production and development.
This is the strategic intervention attaining by the organization which includes the aspects of determining about the process and values attaining by the business. This helps to access over the entire process and also helps to get an idea about necessary changes and values to build the interventions significantly.
Pestle Analysis Definition and Pestle Analysis in BP Oil
Pestle Analysis Definition: The Pestle analysis is the framework which provides with the environment scanning aspects and also helps to determine about the steric approaches and values necessary to be engaged by the organization.
Pestle Analysis in BP Oil
- Political factors: The political factors make wider impact over the services delivering by an organization as this includes the rules and regulation necessary to be followed by the organizations. BP group had also suspected ties of with the UK government to manage entire process (Rakesh, 2014). They are also looking forward to maintain the gulf stated supply deals on efficient aspects.
- Economic factors: This could be analysed that the economic values of company are getting hampered due to the lack of management over the production values. This is essential for the organization to boost up offshore investments aspects. This is also necessary to grab mare influences of the North Sea assets (Grublješič and Jaklič, 2015). This will be helpful to improve the performance.
- Social factors: In terms of analysing the social factors the aspects which are necessary to be analysed relates to the negative and dissatisfactory responses of the customers towards values and performance of the company. This could be analysed that such changes are helping to initiate those changes which helps to manage the development.
- Technological factors: This is necessary for the organization to attain the technical interventions and values which helps to process the business effectively. BP group needs to introduce changes in the seismic imagine technology which helps to maintain the process and development effectually.
- Legal factors: BR group deals with the oil industry and this is necessary for the organization to follow several rules and regulations which helps to manage the process effectually. This is necessary for the company to follow the greenhouse gap policies and regulations (Aykol and Leonidou, 2018). This is also necessary to attain the analysis over Gulf of Mexico oil spill.
- Environmental factors: These are the factors and aspects which provides with the idea of managing the factors which provides with the idea of attaining the values to indulge the processes for better environmental aspects.
Analysing The Impact of the Macro Environment in The BP Organisation and Its Strategies
The macro environment is helping to analyse the process and values which provides with the attainment of changes and values which are necessary to be attained for the process intervention in the growth and development. This could be determined that the interventions and processes which are necessary for BP group to attain values which provides with the engagement over changes and values efficient to be accessed. On the other hand, this also provides with the ideas and development which provides with better engagement over the development necessary to be processed. This also provides with the idea and values which are necessary to be determined in terms of analysing the changes which helps to process over the innovations necessary to accused in terms of building the performance development (Um and Kim, 2019). This also helps to attain the idea about process which is necessary to maintain the development.
Critical Analysis of the Macro Environment in Business
The political and environmental factors which area associated with the company are having with proper management over the process and interventions which are necessary to be attained. On the other hand, company is lacking in terms of attaining the technical and environmental values which are lacking in terms of attaining the values and processes in negative aspects. This could be defining that there is certain parameter which were negatively affecting the process associated with the company culture and development (Varadarajan, 2020.). This could be analysed that entire process is getting affected due to the values necessary to be managed.
Analytical tools PESTLE, stakeholders and Benchmarking
This is necessary to analyse the strategic values and aspects which are necessary to be attained un terms of managing the performance and improvements necessary to be attained. This could be determined that the frameworks help to access over the demands necessary to be fulfilled and managed in terms of building the development and processing.
PESTLE: The stud which had been attained by pestle analysis helped to determine that the environmental aspects are necessary to be managed in terms of accomplishing the business values and objectives. This is necessary to introduce the changes in process of growth and development (Lemus and Luco, 2019).
Stakeholders Analysis: This analysis had provided with the idea about negative impact which is impacting over the business management. This is becoming necessary for the organization to overlook the operational values which helps to manage the company culture and processing effectually.
Benchmarking: This helps to analyse the performance of company comparing to the industry performance. This could be determined that changes and values are necessary to be attained which provides with better engagement over the process necessary to be included (Madden and Pezzino, 2019). This also includes the idea about those aspects which are necessary to be improved to manage the performance.
Determining the Strategic Decision of the Management
This could be analysed that the strategic management and intervention over the changes is the key necessity to be incorporated which provides with the better intervention over the processes and values which are necessary to be accessed. This could be determined that the changes and values provides with engagement over the processes which mainly indulge with the services and idea necessary to be incorporated for development and process management (Islam and Pattak, 2017). The strategic decision includes processing over the ideas which helps to maintain the development and company culture to be processed effectually.
Interpretation and Critical Analysis of the Data Environment in The Business Environment
The data environment indicates towards the process and approaches which are necessary to be managed in terms of attaining the idea about those changes necessary to be attained. This could be analysed that the process which helps to attain the changes and progress includes the idea about those values which provides with the idea of attaining the changes which provides with the idea and process necessary to be introduced in the significant aspects. This also includes the ideas and modifications which provides with better values be delivered.
Producing Strategies, Objectives and Actions to Improve the Development of the Business on the Current Market.
This is necessary to attain the production strategy which provides with the idea of attaining better engagement over the values necessary to be attained in terms of building the development and improvements effectually. One of the most effectual strategy which could be used for business management in the current marketplace is level production (Barinova, 2017). This helps to attain better engagement over the values necessary to be processed to attain development effectually.
The objective pf this plan is to introduce the values and changes which helps to attain the idea about those aspects which are necessary to be processed efficiently. This also helps to determine about the process which give the idea about changes and expansion necessary to be attained in terms of managing the company culture and development.
The actions which are necessary to be attained are related to managing the values and processes which helps to attain the idea about processes necessary to be managed by taking the actions of improvements (Witkowski, et. al., 2017). This could be analysed that taking the changes and processes which helps to access the values helps to attain the idea about processes necessary to be managed and processed.
Analyse The Internal Environment and Capabilities of BP Oil Organization Using Appropriate Frameworks
This is necessary to analyse the internal environment and capabilities which will provide with the better engagement over changes necessary to be produced. One of the most suitable factor which could be used to analyse the internal values is SWOT analysis.
SWOT Analysis of BP Oil Organization
· Efficient operational performance
· Initiation of development technologies
· Developed on the global level
· Challenges to manage stakeholder’s engagement.
· Facing minor accidents at workplace
· New project will become the key factor to attain growth
· Expanding demand of energy.
· Accountable for global emission.
· Cyber security is becoming major concern.
The model helps to analyse the internal values which are associated with the company. This helps to determine about the approaches which are positive related to the business values and also included the information about those aspects which are negative influences over the business management and cultural aspects (Rakesh, 2014). This helps to access over the values and approaches necessary to be attained in terms of building the performance and management interventions. This could be analysed that the changes and values ate the key necessity to be produced to maintain the business culture and development effectively.
Critically Evaluate the Internal Environment to Assess Strengths and Weaknesses of an Internal Capabilities, Structure and Skill Set.
The internal environment analysis provides with the information about those aspects which are necessary to be analysed in terms of managing the business values and development. The strength of company is related to the effective operational management and access over the global aspects. this provides with the information about those values and aspects which helps to attain the idea abet changes necessary to be introduced. This could be analysed that the processes and values which are necessary to be attained includes the values which helps to access over the demands associated with the changes and development necessary to be incorporated (Grublješič and Jaklič, 2015). This could be analysed that the values which are impacting in terms of managing the values and cultures are attaining the idea about those aspects which needs to be managed effectually. This could also be helpful to attain the values which helps to attain the management and development.
Porter’s Five Forces
It is a well-known fact that in order to grow the company and make more profits, it is very important that a company must need to understand the importance of the external factors. It will be considered as very helpful because it helps to identify the current external situations of the business. Porter’s five forces is one of the most important model which improves the understanding of an organization about its external business environment with the help of five important components which includes threats of new entrants, bargaining power of suppliers, bargaining power of buyers, rivalry among competitors and threat of substitutes as well (Rahman, 2019).
|Threats of new entrants||As the oil industry needs high capitalization to get enter into the oil industry, it make the threats of new entrants very low which helps to understand that the entry is not easy so far. Thus, the oil industry has been considered as the high profit making company, it is very much possibilities that there are various big brands who want to enter into the industry as well. BP oil company must need to offer some effective solutions to the stakeholders so that they would not lose their faith in the growth of the company as far.|
|Bargaining power of suppliers||As there are only few companies in the oil industry, it indicates that it reduce the power of the suppliers of BP oil company as well.|
|Bargaining power of buyers||The bargaining power is completely centralized to the customers and since the investments are quite high, it will definitely make it necessary to focus on the customers as well.|
|Rivalry among competitors||The rivalry among the competitors’ are very high and it make it necessary that the company will focus on improving its market reputation so that the competitive advantages can be achieved easily as well. In order to improve the competition, the company must need to shift its focus to the customers and run some customer centric strategies to overcome the situation as well.|
|Threat of substitutes||As already discussed, there are very less oil companies worldwide has been working in the industry, it reduces the threats of substitutes which empower the business of BP oil company as well. However, the technical advancements have been highly improved which empowers the substitutes’ market so far (Baxter, 2019).|
Devise Appropriate Strategies to Improve Competitive Edge and Market Position Based On the Outcomes.
This could be analysed that the that attaining then strategies which provides with the competitive edge helps to access over the values and processes which are necessary to be attained and managed. This also includes the aspects which provides with concise determination about the process necessary to be incorporated to attain growth and development. The following will be the strategies which BP Oil Company can use for overcoming this difficult situation as well.
- Competitive advantage – With the help of evaluation of the Porter’s five forces, the company must need to understand that in order to overcome, BP oil company must need to understand the importance of the fulfilling the requirements of the customers. Participating into the CSR activities will be one of the most impactful way to attract the customers as the customers are really getting smart nowadays and the understand the impact of damage to the environment as well. Besides that social media promotions can be helpful to attract the customers as well (Szymanski, et. al., 2019).
- Market dominance: This strategy defines about the position of a company in competitive market world. BP oil is a prime and major market leader in the oil industry. Thus, they dominate the industry with their quality services and prime aspects of oil extraction facility.
- Diversification: This strategy enables a business to enter in the new market world and facilitate new services and products. For BP Oil this strategy is not appropriate as they already appear in different market and establish as oil providers.
- Global: This strategy is helpful in managing global presence of a company. BP Oil is a big company and facilitate operations in maximum parts of the world.
- Reengineering and restructuring: Business units are redesigning their business process just to accomplish targets and improvise the business performance. For this, reengineering approach is mainly use. After the BP Oil case, company redesign their process to regain their level in market.
- Downsizing: Under this strategy business downsize their size and cost. As per this strategy, many employees lose their jobs because business implement cost-oriented strategy to maximize their performance, productivity and efficiency.
- Delayering: Companies typically avoid and remove hierarchy from their business levels so that they can boost the efficacy. With this, company can eradicate the chances of red tape and managers can reach to entire process as a whole.
- Cost Advantages Strategy: The cost advantages strategy is one of the strategies which helps to analyse the aspects which helps to attain the advantages over the competitors in terms of cost. This strategy indicates that of one organization could be able to maintain the cost it will become easier to protect the marketplace from the competitors who are providing products on the higher rates. There are number of factors which could be beneficiary to maintain the cost structure. This mainly includes the technology, innovation and development (Aykol and Leonidou, 2018). This helps to attain the idea about those values and interventions which provides with the better engagement over managing the quality on lower cost which could be defining as the aspects of attaining changes and values necessary for the development and improvement. Technical interventions and values provides with the idea of attaining the changes which are necessary to maintain the values.
- Price Leadership Strategy: This is the strategy which uses by the large organizations in which the decided the process for some specific product. This includes the information about the aspects which are necessary to be attained in terms of handling the process of attaining benefits effectually. This is the approach which focuses on to attain the aspects which are necessary to be analysed in terms of processing the cost managed (Um and Kim, 2019). This is necessary to attain the customer’s preferences on concise manner.
After reviewing all the strategies and their analysis, it has been understand that as per the current running situations for BP Oil Company, competitive advantages would be considered as the best and appropriate strategies. It will be very helpful to attract the customers and at the same time, it improves the market reputation as well as the positions of the company among its competitors so far. It will be helpful for the company to overcome from the current difficult conditions which makes it necessary to run competitive advantages as well.
Theories, models and concepts to interpret strategic planning of BP oil organization
Since BP Oil Company has been facing big challenges in past few years, the company has been considered as a complete failure when it comes to manage the workforce of the company. In past few months, the employees of the company had left and joined the competitors at the same time; BP oil has been facing various financial challenges along with loss of market positions as well. In order to overcome from the issues company, must need to run some of the most effective strategic planning so that the company will be able to not only survive but also become achieve its market positions as well. The following models will be considered as very helpful when it comes to interpret any strategic planning for company.
SWOT analysis is considered as one of the most helpful way to identify the strengths, weaknesses, opportunities and threats of the company as well. The more the BP oil will become aware about its current positions, the more it will be helpful to make the company overcome from those issues as well (Kau, et. al., 2019).
Michael Porter’s five forces theories will be considered as an impactful theory which will be helpful to the company to evaluate the external business environment of the BP oil company which is one of the prime priority of the company. It helps to understand the areas where company needs to work on and it helps to develop the more effective strategic planning for the company to overcome this condition as well (Mahdi, et. al., 2019).
Strategic management plan
In order to overcome from this difficult situation, it is very important that the BP oil company must develop an effective strategic plan which would include the tangible and tactical strategic priorities and objectives as well.
|Tangible||Invest into effective welfare programs for employees and fulfill CSR to improve the market reputation||To reduce the employee turnover|
To improve the company reputation in international and domestic markets
|Tactical||Investing into effective and advance training programs of employees at cheap costs||To overcome the shortage of skilled labor|
|Problem||Activities||Time frame||Expected Outcomes|
|Disturb market reputation||Effective participation in CSR activities||6 months||Since the market reputation of the company has been completely disturbed in past few years, if company will show active participation in CSR activities, it will be very helpful to manage the bad reputation of the company in national and international market so far (Bellver, et. al., 2019).|
|High employee turnover||Increase the welfare programs and benefits for the employees||6 months||In order to reduce the employee turnover, it is very much required that the company will invest into some effective and advance training programs and apart from it, running some welfare programs will be helpful to make the employees stay in the company as well.|
|Increase profits||Shift focus on promotions using digital media||3 months||From past few months, the company has been facing high financial issues and it is very much needed for BP oil company that company invest into running social media promotions to increase the customer reach of the company as well (Durand, et. al., 2019).|
The report had discussed about the implication of strategies to manage the organizational culture and performance. This could be determined that while working at some specific workplace the prime necessity always relates to attaining the idea about those aspects which are negatively influencing company performance and values. This could also be determined that analysis over business structure and values requires to overlook the internal as well as external factors which are majorly impacting over the growth and expansion. This could be analysed as the approach of handling changes and values effectually to accomplish the objectives associated with the business performance and development.
The report had discussed about the issues and challenges which are facing by BP oil company. The stakeholders are nit satisfied from the performance. Business is also not getting the required and projected outcomes. these challenges are becoming necessary to be resolved efficiently and to attain proper management over the process and the thing which needs to be done is processing the modifications for better engagement of the company towards value driven aspects. the entire study helped to encounter the significant and necessity of having effectual and well organized strategic plan which helps to maintain the process efficiently.
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