BRITISH PETROLEUM

Managing Innovation and Change: British Petroleum



Managing Innovation and Change: British Petroleum

Introduction

Innovation has never been more powerful than it is today, as organizations face violent international competition, continuously inventing technologies and minimizing world resources. For launching new ideas successfully, it requires an array of entrepreneurial, research, design and commercialization skills, as well as the ability, to bring these skills into play at the right time; capturing value from new ideas depends upon having the right business models and management of intellectual property. British Petroleum is an energy company, engaged primarily in the oil and natural gas. It is one of the largest companies in the world (since the eighth as the American magazine Forbes) and the third largest firm dedicated to oil and gas after ExxonMobil and Royal Dutch Shell. Innovation in BP is considered a vital element for the purpose of surviving, growing, and significantly influencing the aim or goal of the industry. However, development does not always bring success, but the company should be able to take failure as a challenge (Brown 2007, pp. 5).

British Petroleum is an international organization, which is operating in the oil and energy sector. There are sixteen refineries, which are partially or wholly owned by British Petroleum Company. BP provides energy for heat, electricity, fuel, retail services and petrochemical products. BP is one of the world's largest energy providers and employs over 92,000 people. In the last couple, of decades there have been many incidents where BP's actions have proved that BP considers economic profit more valuable than moral and legal obligations to the society and the environment and thus, improving on technology by continuous innovation and development (Bouckenooghe 2009, pp. 9).

The BP management strategy would likely have been considered on a cost-benefit basis. But, with the business facing massive penalties/fines/loss of custom if it did not act appropriately, the costs to rectify the situation has become enormous. With the eyes of the world on the company as it continues to tackle the disaster, BP has spent more than $1bn trying to contain the spill. It is now focusing to develop a new strategy of innovation and development that would mainly cater the losses that are incurred due to cost-benefit strategy. BP now is emphasizing to invest in R&D, for a better outcome and satisfactory results.

The industry is shared between the four industry leaders BP, OMV, Shell, and Jet / ConocoPhillips together making 65 percent of the market. According to the unspecified list is BP with 20 percent market leader, followed closely by the OMV with 19 percent. Shell rank behind with 15 percent, Jet / ConocoPhillips with 11 percent, Exxon / Esso with 8 percent and Eni / Agip with 7 percent.

British Petroleum

British Petroleum is an international organization, which is operating in the oil and energy sector. There are sixteen refineries, which are partially or wholly owned by British Petroleum Company. BP has employed nearly 80,000 employees to perform its operations around the ...