Strategies adopted by BP for achieving the targets

BP was a member of the “Seven Sisters” collective of international oil companies in the 1970s. Write an essay on BP and Discuss both the attractions and disadvantages of BP as a possible take-over target, and identify the most probable bidders for BP. Give some examples of the problems that face these potential bidders.

The study is having in depth discussion about the strategies adopted by British Petroleum, that is, BP for achieving their target. As mentioned by Albrechtsen and Besnard (2014), British Petroleum is one of the biggest public sector companies which are famous of oil and gas related activities. Some of the major activities which British Petroleum performs are exploration, production of oil and gas. The headquarter office of British Petroleum is located in London, England. Apart from this, study is having focus on different strategies adopted by BP regarding their target and other. With the help of this study, the impact of low oil price strategy adopted by BP is also analyzed. British petroleum is also known for their good quality of services, oil and gas products.

In context to this Chanysheva and Biryukova (2015) commented, regarding their business activities they follow strategy for tender and bidding. The study is having identification of most apparent bidder and the characteristic required for perfect bidder. The analysis of issues regarding bidder and other process of BP is also focus point of this study work. Moreover, the Britain is planning to retain their imperial oil and gas company, that is, British Petroleum (Grunskoy and Perkhutkin, 2014). The strategies and planning which British has done to maintain ownership their imperial organization is analyzed in this study.

As mentioned by Glau et al. (2014), the strategies adopted British Petroleum for achieving their target is short term as well as long term strategies. Some of the major strategies adopted are proper goal setting, SMART strategy and others. With the help of these strategies British Petroleum tries to set proper goal and follow effective procedures. The SMART strategy used by British Petroleum is as; specific, measurable, attainable, realistic and timely. The target regarding their each employee as well as overall is decided prior to strategy adoption methods. In relation to this Grondin et al. (2014) stated, with the help of target decided by organization strategies are implemented. On the other hand, British Petroleum tries to follow SMART strategy for attaining their target.

As stated by Grunskoy and Perkhutkin (2014), with the help this strategy the person which will be involved in its operation and others are also identified. For example, to achieve the target of oil and gas production, only the experts are involved. Under the specific step the goal setting is done with the help of operation category. On the other hand, the target and strategy for each and every task of BP is different. That is, the strategy for production, exploration, sales and other activities are different. As mentioned by Jacoby (2012), if the target decided by manager or organization is not specific and measurable. Then the strategies followed should be realistic and effective regarding their operation. They try to complete their each activity on time, that is, on time completion of activities and task are their main focuses. In addition to this, the managers of British petroleum also try to motivate their employees regarding on time task completion. According to opinion of Javaherdashti et al. (2014), with the help of long term strategies BP tries to increase their sustainability and others. They also focus on their relationship with stakeholder and shareholders.

Identification of most apparent bidder for BP

In perspective to this Krupa (2013) stated, some of the other strategies adopted by British petroleum for achieving their target is; effective motivational strategy, proper work life balance and other. The main focus of British Petroleum is exploration, production of oil and gas, so the employees involved in their operation belong to different beliefs and views (Albrechtsen and Besnard, 2014). The motivational and managerial theories adopted by managers of BP managers are implemented taking into consideration their employees’ and other factors. Apart from this, the some of the in house strategies which helps in achieving the target are; ay structure, effective communication method, training programs and others. As stated by Lebedko (2014), these strategies are considered as short term strategy, that is, BP managers try to implement updated and effective strategies. On the other hand, with the change in operation and environment these strategies are changed.

In context to this Linde et al. (2013) stated, the bid will be suitable if they are having lowest bidding price. They also provide best services as well as after services in that price only. The main feature on which selection of apparent bidder is dependent is; they should have lowest completion time of project. In case of British Petroleum the bidders the most probable bidder is that consist of proper information regarding the completion and process of project. They should also have good and positive reviews from their past clients related to projects (Grunskoy and Perkhutkin, 2014). The main task for which British Petroleum requires bidding and tendering process are retaining the ownership. That is, Britain government or other organization when bid for retaining the ownership of BP.  

As mentioned in the case study, BP has incurred huge amount of money and costs which may affect the bidding process. The cost incurred by BP can affect the operation of both the companies and others, that is, bidder organization or Britain government. In case if Britain government tries to retain their ownership on BP then the cost incurred by them will affect the economy of Britain. In addition to this, it will also impact the business related market share of Britain. On the other hand, in case of bidder organization, the cost incurred by BP will impact their profit share, operation and others. In perspective to this Linde et al. (2013) stated, the organization who is incurring huge amount of cost if retained or acquired can affect the working, rules, regulation and other factors of the organization.

Analysis of major problems faced by bidder regarding managerial styles and political issues

As mentioned by Rodriguez and Soeder (2015), the most important characteristic on which selection of bidder is dependent is; low price and less completion time. For example, if British Petroleum wants to give their ownership to any other organization or government. Then they will try to start bidding process for it. In this case the bidder will be selected with the help of proper analysis and evaluation process. The bidders have to work in proper manner and with the proper coordination with host organization. The previous review is also analyzed in this process, to evaluate the bidder organization best points. Moreover, the report submitted by bidder is the main aspect on which they are selected. As stated by Romanova and Kotov (2014), the bidder should try to provide all the information required by Host Company, that is, British petroleum. There are several criteria predefined by British Petroleum regarding bidding and related task.

As mentioned in the case study, the organization is planning to get under their old government, that is, Britain. The retention of British Petroleum can only be success fully done by Britain if they are having proper policies and procedure followed. In context to this Rusco (2012) stated, the retention of ownership can also be done with the help of bidding and related process. In case of retaining the ownership British Petroleum require proper working and operation process. They should also try to increase or expand their business in same country to continue the ownership. As stated by Sharaev and Pavlyuchenko (2014), the business operation, productivity and profitability of British Petroleum will help in this process.

As opined by Thomas et al. (2014), the managerial style, political and other similar factors are which affect the working of British Petroleum. Some of the major issues which will be faced by bidder are regarding managerial style and political factors. In case of managerial style problems will be related to agreement. Suppose if, bidders are planning to complete with the help of some other methods. But the manager of British Petroleum wants to get activity completed in another style and then the chance of discomfort will be high.

In relation to this Sharaev and Pavlyuchenko (2014) stated, some of the major managerial style followed by British petroleum are paternalistic, democratic and others. With the help of managerial styles, the British Petroleum managers try to maintain environment and complete their task. They also try to subordinate their sub team members with the help of managerial style. In addition to this Tudorica (2014) commented, every manager of British Petroleum follow their own style of managerial style to increase their team performance. Suppose if the managerial style followed by a manager of exploration team is paternalistic. That is, they will decide what is best and superior for their team members. Then in this case the bidder team will try to change operation style. The first one to oppose will be their team manager. So as stated by Sharaev and Pavlyuchenko (2014), the belief, thoughts of each and every person is different. With the change in belief the style of working and managerial style also changes.

In case of political factor, every country follows their separate and different rules and regulation. With the change in country, the operation style and other related styles should be changed. As stated by Romanova and Kotov (2014), if British Petroleum do not change the style of operation according to their bidder the chance of conflict is high. Suppose is British Petroleum plans to open their new oil and gas exploration and production site in middle east, they have to follow al rules, regulation and political factors. On the other hand, with political factor they have to follow Middle East all code of conduct regarding business. As mentioned by Rodriguez and Soeder (2015), if British Petroleum does not follow their particular code of conduct, the operation will be affected. As stated by Linde et al. (2013), the main factor behind success of any organization like oil and gas company, British Petroleum is dependent on their managerial style and other factors. If managers of British Petroleum do not follow proper managerial and leadership style the operation will be affected.

The strategy which helps British Petroleum to increase their profitability in oil and gas market is low price of oil. In relation to this Grunskoy and Perkhutkin (2014) stated, there are several strategy adopted by British Petroleum regarding their productivity and profitability. Out which low oil pricing is the one. With the help of this strategy, they outsource their oil or other product of oil in oil price in comparison of their competitors. On the other hand, in some cases the low price strategy impact the profitability of them. For example, British Petroleum is planning to outsource their oil and gas product is east or any other location. But the perception of that country organization is; low price product and services are was low cost (Glau et al., 2014). Then profitability of British Petroleum will be affected. In addition to this, the target of organization will also be affected.

As mentioned in the case study, the low price in the year of 2015 was followed by British Petroleum, which led to led to decrease in bid price and others. According to opinion of Albrechtsen and Besnard (2014), the continuation of low pricing will be one of the biggest barriers to British Petroleum. It will also affect the bidding process of organization. If organization will continue the low price oil strategy in each and every business operation, the chance of takeover will be increased. With the help of data presented in the case study, it is clear that low oil price strategy has affected the profit share of British Petroleum in dew years (Jacoby, 2012). It has also affected the capital as well as stock market of British Petroleum, which represents that, strategy should not be followed every time.

Conclusion

According to the data of case study, in Russia British petroleum is sixth ranked in oil and gas market. They are famous for their oil and gas exploration, production and others activities. The strategies followed by them impact the operation of British Petroleum. Apart from this, the takeover process of British Petroleum is increased due to their improper strategy implementation. That is, low oil pricing strategy, they adopted this strategy in each and every country which affected their productivity and profitability share. In oil and gas exploration and production market there are many competitors of British Petroleum. So the strategies followed by them should be effective for their sustainability process. On the other hand, the managerial style followed by organization also affects their several processes. That is, bidding, operation, retaining ownership and others. The bidder is apparent or effective once they are having proper conformation regarding completion of project. Some of the other information and criteria on which probable bidder are selected is; the lowest bidding and project completion time.

References

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