Management

Public Perception and Awareness

Table of Contents

Introduction2

Discussion2

Strategy2

Factors affecting Strategy3

Globalization, Technological Advancements, and Information Society3

Media6

The evolution of Media6

The Influence of Media on Consumers7

Environmentalism8

Ecological factors affecting business8

Sustainable Development9

Ethics and CSR10

British Petroleum (BP)11

Environmental Strategy13

Conclusion15

References17

Introduction

The 21st century is increasingly being characterized by external forces, especially ecological and environmental variables that immensely affect the strategic direction of a business. Top level management and Boards are increasingly being compelled to incorporate environmental factors when devising corporate, as well as business level strategies.

Another factor which drives strategic policies and decisions is the influence of consumers and public awareness. Globalization, technological advancements and the advent of a pervasive media has provided consumers with a plethora of information. This information drives and defines consumers to boycott the purchase of corporations which negatively affect the environment through its operations. This research paper will briefly discuss the aspects and dimensions mentioned above and will also critically analyze the operational activities of the oil giant British Petroleum (BP).

Discussion

Strategy

The term Strategy can be defined as a process which intends to establish a position in the rejection of certain types of activities and coordination of selected activities. It is to create a unique and advantageous position, involving a range of activities. It involves the refusal of some activities. Strategy is determined by decisions about what the company does and does not intend to do. It is widely seen as the preserve of business leader even if a team an approach is possible. The purpose of the strategy is not only towards profit point, but to ensure the sustainability of the company. Strategy thus depends on the definition of competitive advantage from resource development and manufacturing capabilities, which provide a sustainable advantage in this changing world (Holt & McNulty 2008, p. 72-92).

The decisions made by organizations can be classified into three categories:

Strategic decisions:

They are made by leaders and urge all the organization over the long term (E.g. establishment of production units in China). Their questioning requires considerable time and resources.

Tactical decisions:

They are made by senior executives to implement decisions by strategic leaders. They only contribute a part of the organization over the medium term (E.g. the transfer of production tools Lillers plant to the plant in Beijing). Their recovery issue is possible for a reasonable cost.

They are made by employees to implement the decisions tactics of executives. They only contribute a small portion of staff and short-term (E.g. location of the cut before folding). Their questioning is easy and inexpensive.

Factors affecting Strategy

However, strategy formulation is not a simple process anymore. The advent of the 21st century has resulted in various factors and variables that have significant positive implication, as well as drastic affects for top managers that formulate strategy.

Globalization, Technological Advancements, and Information Society

The process of globalization is a historically unprecedented evolutionary event. Over the decades, the world scenario has been gradually transforming itself with a progressive widening interdependence between national economies and the resulting change in market conditions in which they operate businesses. Globalization can be defined as a process of economic, technological, social and ...