The History of British Petroleum Company (BP)

British Petroleum Company (BP), initially called the Anglo-Persian Oil Company was founded in 1909. It is located in the United Kingdom. The company has approximately a total number of 84,500 employees. The founder, William D’Arcy, is a prominent business person. D’Arcy in his search for oil in Persia was almost bankrupt but lucky enough he was impressed by gold when oil reserve was discovered in 1905. Furthermore, his struggle landed him on the oil rights to the better part of the country by the Shah of Iran. This was in exchange for 16% of the oil company’s yearly interest.

BP is in control of operations in 30 countries globally. In 2014, the revenue of the company was at $358.7 billion. The operation in the US alone can make up for a third of this revenue. Consequently, the branch in the UK manages more than 40 offshore oil and gas fields, a pipeline directory and four terminals from the sea to the land (Bamberg, 2000, p. 10). The rank of the company has improved tremendously due to its flawless accomplishments. In 2001, it was ranked number 7 on the Forbes Global in Australia and augmented to number 2 in 2004 and 2005 subsequently. In 2009, BP was reckoned to be merited above $238 billion in assets with $101.6 billion value.

Vision

The vision of the company is to stand out and be recognized as an outstanding company. This shows that the company has a force for advancement. BP Company believes that being competitive will enhance success, therefore, bringing change in the world.  

Mission

The company’s mission is to enable the world to comply with its growing need for having light, heat, and affluence of economic conditions. British Petroleum Company attempts towards this by generating affordable energy that is safe and free from damaging the environment. This will ensure that the energy produced does not harm the consumers as well as does not pollute the environment. 

Goals

Goals are the objects of desire one tries to achieve within a period of time, according to their set time target. BP, like many other performing companies, has its goals that they have yet to accomplish. The main goals entails discovering the oil gas, extracting and transporting oil and gas, making products out of the extracted oil and gas and selling the products to the market. The company also targets at performing its work responsibly.

Global Operations of British Petroleum Company (BP)

The competitive landscape and customer profile (B2B/B2C)

This article gives a business analysis which establishes direct and indirect competitors. Considering its competitive environment, the core business strategies and the resources that are available for the company. The British Petroleum Company engages in oil and gas extraction and production of crude oil and natural gas. It also deals with transportation and the sale of the products produced; the example of the products produced include, fuel, petrochemicals, and other petroleum products. Marketing and promotion of the products are involved in order to diversify the company and its products. Due to the fact that the industry is highly competitive, competitors have difficulties in understanding its expense and the successful strategies which they should be employed in order to make the company successful (Ramos, 2011 , p. 540). When the capabilities of a company are moderate, that is, neither simple nor high, a competitive advantage is attained in the company. This enables the company to improve and develop new capabilities in accordance with the changing market conditions. BP as a company has sufficient competition in its landscape. Globalization is one of the elements that have stimulated competition for the oil and gas industry. Shall, Exxon Mobil, and Chevron companies are part of the BP competitors including the companies of the Gulf States. The largest supply of the crude oil today in Saudi Arabia, Gulf, and OPEC countries are mainly state-owned companies.

With regard to the environmental problems awareness, BP has formed strategies that are framed according to the issue with the corporate responsibility inclusive. This helps to reduce emissions and the issue of greenhouse gases. However, such projects are unstable because they could be an increased price calling for the need for a more stringent solution. Therefore the issue of greenhouse gas is still a threat drawing attention on the ways to curb the emissions.

Challenges of shifting from oil to Gas refinery

When the company decided to shift from oil to gas Refinery Company there are various challenges that the company will face. To begin with, the company will have to change the machine utilize in the production of the gas since they are not the same. Acquiring new equipment is an expensive task. The new set of technology needs to be set as well. The professionals need to be changed or be trained which also is an expensive activity to be done by the company. This will enable the company to grow in a great way. Also, profit margins enlarge in a positive way. The gas market and oil are different elements.  The production company will, therefore, be forced to set a new market, set new prices of the product and also set a new plan which will ensure that set goals are realized at the end of the day. The change not only involves the wastage of resources, time aspect will also be wasted and the company will take a considerate period of time to adapt to the new market.

Vision and Mission of British Petroleum Company (BP)

The company may decide to shift in production of a product due to various push challenges:

If the company has crisis each and every time there is need to shift to another possible product that is different and easy to manage. If the product to be produced is cheaper or more suited the company should do so with the immediate effect. This will help to reduce some expenses which lead to huge losses for the company. When companies are subjected to pressure, either internally or externally due to its reactiveness, the best option needs to be adopted that will save the company from collapsing. Also, this kind of pressure should be avoided by ensuring that the employees are familiar with them and they know the best ways to avoid them. Technology is another aspect which may cause the company to change to a different product. This happens when the product to be manufactured suits the available technology effectively, with low costs. When the company employees the new technology and then its exploited fully it brings a great impact to the company. The profit margins are enlarged. The management needs to recognize the achievements they have realized. There is the need for the management to appreciate and even equally thank them for making the organization great 

Reaching Target market outline

The company needs to use social media platforms. The company needs to utilize social media platform in reaching its target market. In this regard, social platforms such as Facebook, Twitter, and the LinkedIn will be utilized. Most of the clients use social media and therefore will be aware of the updates the organization will make concerning the product. Social media will be used as an advertisement platform. Additionally, the analyst should be employed too. The Company should have analysts to be utilized in guiding the organization on what exactly should be done.  The organization is such regard will be able to understand the demands of the clients and therefore adhering to them. Due to change in production community, the business needs to employ need branding approaches in order to make the customers understand the changes made by the company. This will reduce confusion problem among the client. The company need use content creation strategy. The company needs to educate the current and the potential clients through the use of content creation approach. This will provide informative, educational and entertaining information.

Goals of British Petroleum Company (BP)

The configuration 

The company is integrated globally.  It, therefore, carries out the operation in all phases starting from the exploration and the extraction of the gas and the crude oil, the transportation and trade of the gas and oil. Also, the manufacturing phase entails the refining of the lubricants, fuels, and petrochemicals. It is then followed by marketing and sales activities which ensures that the product is sold to over 18,000 stations globally.  The company utilizes three main activities to configure its market; the upstream, the mid-stream and the downstream activities. The company is utilizing the upstream approach, whereby it locates countries which are mainly from the developing counties and are in politically unstable environments. The company despite the challenges works hard to ensure that the sales are made to such nations. The company has also been able to partner with countries like those of Europe and USA through the network of service like franchising to make its sales. This approach is called the downstream approach. The organization is also helped by logistics companies which have the fleet of tanks facilitating the transportation of the product to the market by the approach called the midstream approach. 

Coordination activities in the organization

The management of coordination activities entails; planning and logistics. In considering this aspect, the management of the organization needs to plan ahead on the long-term activities as well as short-term activities. These activities need to be controlled accordingly. Additionally, the quality assurance activities are important. In coordination activities, the management needs to regard making the system grow so that the production is consistency. The culture of the organization needs to be adhered to. This is realized through proper coordination. Also, the process of verification is vital. Verification is a requirement which needs to be controlled well that will ensure that the organization gets more customers. Coordination in the organization of the structure of the business particularly regarding marketing activities since the organization is shifting to new production.  

How to treat employees well

The management needs to build a good rapport with the employees. There is need to prioritize employees by regarding their welfare first.  Provide a working environment that is conducive for them to deliver effectively and also ensure that their needs are met. Furthermore, the organization needs to conduct a weekly meeting with the employees in order to ensure that they are updated about what’s going on in the organization. Before any changes are made in the organization, ensure that the employees are aware of the changes and even their contributions are in the transformations. There is need to properly define the expectations of the organization and what you expect from the employees.

Competitors of British Petroleum Company (BP)

Machines needed in Gas and oil refinery industries

The equipment is classified according to the job it has to accomplish. For example, we have those used in the exploration of minerals which may include; modeling software, seismic surveying equipment, well logging equipment, drill stem test equipment, coring equipment, and drilling rigs (with associated casing, mud additives, drill bits among many others. Additionally, the company utilizes some of this equipment in the extraction process. They include pipelines, service rigs, tank batteries (for oil storage), pumps, completions rigs and associated equipment including hydraulic fracturing equipment, hydraulic fracturing equipment among others. Lastly, there is a need for transportation of the working equipment to the customers. These equipment used for this purpose includes; pipelines, tanker trucks, and railcars.

Logistics by the company

In general, it is a responsibility of the management and also the employees of the company to ensure that various approaches are put in place to combat the challenges which the company faces every time. These approaches entail the following logistics:

Engaging the stakeholders

To begin with, the company engages the stakeholders. The organizations and the individuals who were affected by the activities of the British Petroleum company are talked to by the organizational management. For instance, before the company prepared the report of the year 2016, the management was able to meet over 100 different organizations globally (San Sebastián and Hurtig 2004, p. 40). It also took an initiative of meeting various investors, industry associations, non-governmental organizations, analysts, shareholders and business partners.

The company listens

Additionally, the company has held various sessions with the employees on the way forward concerning the improvement of the service delivery. The feedbacks got are then implemented leading to improved services.

The company assesses

Secondly, the company listens to the grievances of the stakeholders. Despite the fact that the stakeholders have differing priorities, the company has put into considerations all these in order to ensure that no one is left out. It has worked hard to improve in managing its activities on sensitive matters that otherwise would affect many (Maloney and Mulherin, 2003, p. 470). Furthermore, the organization is able to prioritize the issues depending on the way they would impact the organization as well as the stakeholders of the company. The company has been able to validate this with both external and internal stakeholders to ensure that every issue is put on the check.

The company reports

Environmental Concerns and Strategies of British Petroleum Company (BP)

The organization then documents the issues of great importance. After stakeholders and customers have been assessed the important information is captured in their report and therefore such issues are dealt with accordingly.  For example in the year 2016, the company captured that the supply chain and air quality management were matters of great importance therefore given the first priority (Boscheck, 2008, p. 360). The report was then structured with the material issue beginning with worldwide issues before moving to the local issues and then solving them accordingly. The plans are underpinned by the stakeholders of the company, the government and the process of managing them.

Use of digital Technologies by the company

Digital Technologies as the employment of the internet of things it will not only ease the operation of machines but will also enhance automation, the connection of the employees via internet platform enhancing the interaction. The technologies will boost the performance of the employees since they will be able to carry out research on the way to deliver. They are therefore able to change accordingly.  Such technologies require trained employees, this will enhance all round employees (Sadorsky, 2001, p. 20). These technologies are important to the employees alone but also to the company as well since they will improve the storage of company’s information thus maintaining the secret of the company. The new technology also ensures that the work is done effectively and without using much energy. The internet of things will enhance communication which is an important tool in operation of every organization. And also it will ensure that the work is done correctly without wasting much time. 

Oil companies need enough labor skilled, semi-skilled or unskilled. There is the need for the company to work tirelessly regarding this issue in order to ensure that the problem is combated timely to ensure that companies run effectively. It is due to the fact that such companies have a lot of risks that need constant monitoring. This can only be enhanced if the employees are enough such that when one group is on a night shift, the other group work during the day.  The approach will ensure that no accidents occur (Berdy, 2012, p. 44).   The company should liaise with the clients to ensure that they come up with the effective approach of transporting oil and gas which are highly flammable elements risk of causing fire accidents. This will ensure that those accidents are prevented hence the company will avoid losses realized due to accidents. Additionally, the company is recommended to have backup facilities in order to ensure that production continues as well as accidents combated. This will ensure that clients trust the organization; therefore, the problem of the market will be an element of the past. The company should also utilize technology in helping to monitor the running of the machines to avoid any kind of accidents to the business.

Challenges Faced by British Petroleum Company (BP) during Shift in Production

  There is the need for the organization to embrace teamwork and regard each and every member of the organization so important. This helps the members of the company to strengthen each other in carrying the activities in the company hence products of the company double. The company’s management needs to avoid the cases of sidelining some of the employees in the organization. They should ensure that the working environment of every individual is conducive.

Conclusion 

It is clear that the company is doing well in business, maintaining its clients by serving them accordingly. The refinery of both gas and oil are a risky business that needs the companies involved to be always vigilant. Technology, clients, the employees, and management are key elements in ensuring that a business succeeds.  The company, therefore, needs to ensure that these stakeholders are involved and aware of the activities of the business so as to bring positive change to the company.  The management of the organizations of the BP Company needs to be aware of the fact that problems exist in every organization and thus they should find a genuine solution to those problems. Also, the company should face the problems courageously without fear knowing that they contribute greatly to building the company. Factors that only determine the success of such organization is the timely logistics set ready to combat the challenges faced. Also, the management, employees and the other stakeholders need to put into consideration the urgency of resources needed as a way of managing capital. Marketing strategies are vital in determining the success of companies. Whenever the company faces marketing problems, it is important for the management to figure out the best product that suits the current market and adjusts accordingly.     

Bamberg, James H 2000. The History of the British Petroleum Company: British Petroleum and Global Oil, 1950–1975: The Challenge of Nationalism Cambridge: Cambridge University Press.

Berdy, Michele A. 2012. “Lessons Learned From BP’s ‘Bold Move’”. Moscow, The Moscow Times.

Boscheck, Ralf 2008. Strategies, Markets, and Governance: Exploring Commercial and Regulatory Agendas. Cambridge University Press. p. 360.

EarthRights International, Racimos de Ungurahui, and Amazon watch 2007. A legacy of harm: Occidental Petroleum in indigenous territory in the Peruvian Amazon. Washington DC: EarthRights International.

Eilperin, J 2010 Independent probe of oil spill in the works. The Washington Post,web.

Los Angeles Times, 2008.Indigenous peoples in South America are taking on big oil over decades of environmental abuse. Los Angeles Times.

Maloney, MT, and Mulherin, JH 2003. The complexity of price discovery in an efficient market: the stock market reaction to the Challenger crash. Journal of Corporate Finance 9: 453–479

Martinez MO, Napolitano DA, MacLennan GJ, O’Callaghan C, Ciborowski S, 2007 Impacts of petroleum activities for the Achuar people of the Peruvian Amazon: summary of existing evidence and research gaps. Environ Res Lett 2: 1–10. M Journal of Public Health 15: 205–211.

Ramos, SB, Veiga, H 2011 Risk factors in oil and gas industry returns: International evidence. Energy Economics 33: 525–542

Roberts, John 2005. “Organizing for Performance: How BP Did It”. Stanford Business. Gsb.stanford.edu.

Sadorsky, P 2001. Risk factors in stock returns of Canadian oil and gas companies. Energy Economics 23: 17–28.

San Sebastián M, and Hurtig AK 2004. Oil exploitation in the Amazon basin of Ecuador: a public health emergency. Pan A