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Smart objectives of bp

Task Three

SMART Objectives of BP

BP Objectives are prepared according to SMART (Specific, Measurable, Achievable, Realistic, and Timed).That means it should be particular about what we are going to achieve and should quantify about the objectives.

There are a several types of objectives that all can be done in the SMART format.

  • Process objectives
  • Impact objectives
  • Outcome objectives
  • Personal objectives

BP's five year plan objectives are,

  • Increase profitability by 20%
  • Increase production
  • Financial gain by serving to the increasing demand
  • Build brand value that was affected by the oil spills

Five year development plan for BP

Business plan is a statement about company's future goals and plans to achieve those goals. This can be externally focus or internally focus.

BP's Strategies in progress can state as,

  • Upstream growth
  • Downstream turnaround
  • Alternative Energy: focused disciplined Corporate simplification

In the upstream will focus on cost and capital efficiency to deliver profitable growth. In the downstream will drive further efficiencies and a focus on quality and integration. They will maintain their disciplined approach to alternative energy and will continue to unlock corporate efficiency through a culture of continuous improvement.

Five year development plan for BP

#

Objective

Strategy

Actions

Performance Indicators

Time Period

1

Increase profitability by 20%

Research and development

Hire most qualified researchers

Innovative ways of doing things

One year

2

Increase production

Acquisition of north sea area.

Negotiations with governments and agreeing for a joint profit sharing.

Coming into an agreement with relevant governments

Two years

3

Financial gain by serving to the increasing demand

Sales and Marketing approaches to increase market share

Recruiting experienced sales and marketing people and objective training

Acquiring new market opportunities, increase the market share

One year

4

Build brand value that was affected by the oil spills

Communication and promotion strategy

Using new media opportunities of social media to build brand name again, invest in CSR activities in Go Green.

Reduce the black mark

3 years

Evaluating and implementing the plan

In corporate strategy, Johnson, Scholes and Whittington present a model in which strategic options are evaluated against three key success criteria

  • Suitability (would it work?)
  • Feasibility (can it be made to work?)
  • Acceptability (will they work it?)

(Source-: http://en.wikipedia.org/wiki/Strategic_management)

#

Objectives

Time Line

1 year

2 year

3 year

4 year

1

Increase profitability by 20%

X

2

Increase production

X

X

3

Financial gain by serving to the increasing demand

X

4

Build brand value that was affected by the oil spills

X

X

X

Conclusion

When it is mention about the strategic management and the leadership strategic planning is a major part of it. Strategic planning can divide in to three stages as strategic Analysis, Strategic Options and Evaluation and Implementation. The British petroleum Corporation is a well established organization in petroleum industry and here it is mentioned about the strategy and competitive advantages of the BP and the technical tools which could they can use to analysis situations. The porter's five forces investigation helps identify the competitive environment BP analysis their market for Quality production.

There are so many competitors like Solar, sharp in the market and BP establish with mass production. By doing the SWOT analysis it's helping company to identify the internal and external environment of the company. BP is focused on customers and they believe in their productions.

They used the oil plus solar power combination and they used product segmentation, improve cost efficiency and some more strategies to increase their profits. They have created value through technology and this is a barrier for their competitors.

Company can use strategy clock, Ansoff growth matrix tools to analysis their position in the market. To develop strategic options first it should identify the external context and priorities and clusters. Then it should develop the strategic options. SOP matrix is best tool to identify the strategies of the company.


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