Our group is talking about BP Company. As a management major student, I’m going to use SWOT analysis to analyze the BP Company’s Strengths, Weakness, Opportunities and Threats which can help BP Company management department make effective strategic plan.
BP worldwide have nearly 100,000 employees from different backgrounds. The different cultures and backgrounds is strong advantage of BP. BP giving every employee chance to bring their fully advantage, constantly looking for newer and better ways to outperform their competitors, hiring the best employees and making customers more satisfied. Thus, BP achieves a win-win situation.
Forging ahead with innovation and creativity
BP, with a focus to drive future performance continuously, invests in research and development (R&D). Investment in R&D is also a measure of the company’s commitment to the future organic growth of the business. In FY(Fiscal year)2011, BP’s expenditure on R&D was $636 million. Strong R&D capabilities provide BP to attain competitive advantage over its peers, maintain technological edge over its competitors, and stay ahead of industry trends. In addition, it allows the company to ensure safe and reliable operations by strengthening its portfolio, getting more from its resource base and winning new access.
Sustainable business development strategy
BP persistently follows its sustainable business development strategy. Over the years, BP is committed to the protection of the earth's natural resources and actively develops ways to combat climate change to reduce the release of carbon dioxide. In 2005, BP set up alternative energy business, which helps to increase the efforts in the field of solar energy, hydrogen, wind.
The Gulf of Mexico oil spill has damaged BP’s reputation, which may have a long-term impact on the group’s ability to access new opportunities, both in the US and elsewhere. As we know, lose by once international reputation damage is irreversible to a multinational company. It Not only brings the direct result of its sales drop dramatically, but also makes their and competitive strength decrease compare with its competitor.
In addition, responding to the incident has placed, and will continue to place a significant burden on BP’s cash flow over the next several years, which could also impede its ability to invest in new opportunities and deliver long-term growth.
People put more attention on the oil industry's impact of climate nowadays because of the intensified global warming. The slogan of "low-carbon" resounded around the world, the new clean energy not only in US but also in the