Bp Case Study

shares in New York, London, Paris, Frankfurt, Zurich, Tokyo respectively.

1.0 Introduction

In order to give a insight into BP P.L.C and the impact of both internal and external factors on its performance. Based on the case study of BP, this report will investigate the main sectors in the operating environment that have influenced BP through a PESTEL Analysis. It then goes on to a framework of Porter's Five Forces as to analyzing its competitive environment and examine the most threatening force to the company. And then it follows by the explanation of company's decision that the reasons for the new Chairman who taking office with a blank background of oil industry. Recently, BP has been actively involved in renewable energy resource development. However, company has been involved number of enormous environmental and safety incidents that lead to BP suffered serious damage to its both reputation and financial looses.

2.0 The business environment of BP P.L.C

BP is a British registered company, while it operates in more than 100 countries of the world that it dose 80% of its business outside of the UK, and 40% of its assets are in the United States. Its business scope mainly includes three segments: the exploration and production of oil and natural gas; Refining and marketing, and the chemicals.

2.1 PESTEL Analysis

By using the PESTEL framework we can analyze the many different factors in a company's macro environment. (Gillespie 2007)

2.1.1 Political factors

​*​Political Instability

Political turmoil in countries such as Libya and Egypt are impact on the price of oil. In this case, the price of oil futures contracts would be biding up that in order to supplies for highest bidder. Political unrest leads to a negative impact on the demand for oil that it would decrease as prices increase, causing loss of revenue to BP.

​*​ Energy and climate policies

Due to global warming issues, climatic disturbances and resource shortages, governments are more willing to creating barriers on oil excavations, while encouraging such industries into find out more sustainable contributions of energy. However, on whole, the global energy market is becoming more upheaval also in consequence of enormous oil demands from the third world countries

3.1.1.3 Security of future supplies

Europe's dependence on Russian gas has become a central issue in the European Union's internal debates about its relationship with Russia and its energy policy.

3.1.2 Economic factors

The