BRITISH PETROLEUM

British Petroleum

EXECUTIVE SUMMARY

This paper talks about the British Petroleum company. The first section of the paper presents the strategic analysis of the UK oil industry and the position of British Petroleum in the market. The second part of the paper highlights the different strategies that the company has undertaken to improve its performance and to ensure a good strategic position in the market. The strategies undertaken by the company has helped it to maintain a good strategic position in the market.

Table of Contents

EXECUTIVE SUMMARYII

INTRODUCTION1

BRITISH PETROLEUM'S STRATEGIC POSITION1

Porter's Five Forces1

1.Power of Buyers2

2.Power of Suppliers2

3.Threat of New Entrants2

4.Threat of Substitutes3

BRITISH PETROLEUM'S STRATEGIES3

Individual Performance3

Managing Employee Performance4

The Different Elements5

Continuous feedback5

The Performance Manager Qualified6

Motivation7

Types of Incentive Plans8

CONCLUSION9

British Petroleum

Introduction

British Petroleum is the one of top three oil companies in the world. It is present worldwide and has expanded its operations. This has benefitted the company a lot. It is the third largest energy company and is the fourth largest company in terms of revenues in the world. It is considered as one of the super-majors in the field of oil and gas. The operations of the company are in above eighty countries and the company has produced above 3.8 million of barrels of oil per day. The number of stations of BP in the world is 22,400 (Vroom, 1964, Pp 31). This paper will discuss the strategies that the company has pursued to improve its performance. The company has done a good job by implementing strategies that has motivated the employees which has led to BP's good strategic position in the oil industry.

British Petroleum's Strategic Position

The company has undertaken various strategies that have helped it to make what it is today. The strategies for improving the performance of the employees as well as the company have helped it to maintain a good strategic position in the market. The company has ensured effective strategies for improving its performance. This section of the paper will first present the strategic analysis of the company and will then discuss the various ways which have been used by BP to ensure s good strategic position (Herzberg, 1968, pp 57).

Porter's Five Forces

The company's strategic position in the industry can best be analysed by Porter's Five Forces.

Power of Buyers

The number of buyers in the industry is huge because there are a lot of people who consume oil. The purchase of oil is diversified among different categories of people. The number of buyers is huge and this number not only includes institutional buyers, but also includes the individual buyers. The institutional buyers are huge than the individual buyers, but due to its reputation, the number of individual buyers cannot be ignored. This is the reason, that the company should ensure that it maintains the number of individual buyers.

Power of Suppliers

The suppliers in the UK oil market are small in number. This has not affected the demand because the demand in the industry is high (Flavin & Lee, 2003, pp 62). This allows the companies to increase the ...