The Brand Power Of British Petroleum Commerce Essay

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The British Petroleum is a famous name in the oil and petroleum market. The British Petroleum is an international brand and having business in most of the countries of the world. British Petroleum have various famous brands such as British Petroleum, Castrol, arco, wild bean café, ara and many other brands. The British Petroleum serves customers since more than last 100 years. If we have a look at its history, it has been established in 1870 by John Rockefeller. He has recognised the future demands of the oil in market and made his future plans accordingly. He has added Atlantic to his growing sector and fulfilled the growing motor oil demand and became the most known oil industry in the USA. The British Petroleum is refining the oil and providing it to the different consumers. After that the company have started to grow rapidly and became the famous brand in the world of petroleum. The company has introduced many brands in earlier 20th century. During 1917 the anglo-persian oil company has changed its name to British Petroleum to introduce it for the customers near UK. The company has introduced more than 500 depots for oil. The British Petroleum is the first company to use sky as an advertisement. In the world war 2 the British Petroleum has given its best to help the country and to provide sufficient fuel. British Petroleum was searching for oil in every part of the world. During 1969 it has found oil in Alaska after searching a lot of years. It has provided pipelines to transport the oil from Alaska to USA. During the years 1970 the oil company has introduced many more products such as chemicals, plastics, detergents, cold meats, minerals company, computing and lot of other products. British Petroleum has included food products and poultry, fish and dogs. The British Petroleum has started petrol stations and gas stations in many parts of the world in different countries. British Petroleum has also started to research for the oil and gas in the shore and deep sea area. The global warming and green energy are the main concepts of the company. The company tries to make its fuel such as it always use the green energy and can create better environment to get protection from global warming. In the year 2005 the company has introduced alternative energy sources for the low carbon power. But in the year 2008 the oil began to flow in the gulf of Mexico where the Thunder Horse, the world's largest floating platform is situated. The capacity if the platform is to produce 250,000 barrels of oil and 200 million cubic feet of natural gas per day. But the flowing of oil caused three miles of mud and the reservoir lie under a mile of ocean water.

The change in the organisation is fulfilled by the different types of tools. The definition can explained as It is the process for data collection, analysing of collected data, planning for improvements of organisational process, system, structure, culture and people. Its main aim is developing organisation's self-renewing capacity and developing creative and new organisational solutions.

For change in organisation McKinsey has developed 7S model for change management.

Staff :

The Staff is the most important part of any organisation. Thus the human resources has got the main position in the organisation strategy. All the organisations focus on hiring best staff and providing them training to achieve organisations' strategy and to take advantage over their competitors.  

Skills :

While selection procedure of the staff every company focuses on hiring well skilled staff. Different employees in the organisation have different skills which can be used for better development of the company.

Systems :

For support and implementation of the strategy and to run day to day affairs, every organisation develops some systems or internal processes. Those processes are followed by the employees to achieve maximum effective output.

Style  :

Style is the unique identity for every organisation. It includes the values and ways which developed by organisation and followed by all the employees. Most of the businesses have been influenced by strict adherence to upper management and form lower rank employees the procedures are expected.

Shared values :

Every employee of the company has common fundamental ideas about the business. This is to make money or to achieve targets in their fields. These goals keep them to work for a common goal as a team and are important to keep team spirit alive.

Strategy  :

An organisation prepares plan of action in response to the changes in the company's external environment, that action plan is called as strategy of the organisation. It deals with mainly three questions.  ( i ) the current status of the organisation ( ii ) The future plan of the organisation and future implementations needed for the organisation ( iii ) the total time required to get the target or the time schedule ( iv ) total money required to achieve the target or the total budget of the plan. 

Structure :

Any business required to be managed in a particular form of shape which is called as organisational structure. The structure of organisations is mainly depends on their culture and objectives. The businesses are being structured in such a way with several departments and divisions, each division is responsible for particular task such as marketing, production, testing, human resources or quality management. The idea for proper structure is to eliminate the middle management and to make the organisation more flexible.

Any organisation can be developed by many different ways such as

( 1 ) Human process :

These processes include group decision making, problem solving, communication and leadership. Human processes can be derived mainly from disciplines of psychology and social psychology and human relations. It includes following interventions :

( i ) Process Consultation : It focuses on inter relation between staff and social dynamics occurring in work group. Generally it helps group members to diagnose group functioning and to get proper solution to process problems like poor communication and dysfunctional conflicts so that members can get the skills to solve their problems themselves.

( ii ) Third Party Intervention : This method is another form of process consultation to solve dysfunctional relations between group members in organisations. The third party intervention helps people to solve their some problems through some methods such as bargaining, problem solving and conciliation.

( iii ) Team building : Team building helps work groups to become more effective for solving tasks. It helps members to identify group processes and solution to their problems. Team building can help people to get closer relations and to understand and solve problems of the organisation.

( iv ) Organisation Confrontation meeting : It is the method for organisation members to recognise their problems, set targets and to work on the problems to get their solution. This method is generally applied when organisations are having stress and it becomes necessary for the organisation to solve the problems immediately. The intervention includes grouping of various employees to identify and solve the problems. 

( v ) Inter group relations : The inter group relations are designed to improve interaction between different departments and different groups in the organisations. This intervention has a small group of people whose background closely matches the problems of organisation. That particular group addresses the problem and finds its solution. 

( vi ) Large group interventions : In this interventions a large variety of stakeholders are involved in large meetings to develop new ways of working, to make clear important values, to find new vision for the company and to solve the current problems occurred in the company.

Purpose of development of the staff : 

For the growth of the organisation, its staff must be Human resource management interventions focus to develop, integrate and support people in the company. It particularly includes goal settings, performance appraisal, and career planning and reward system. Practitioners in these area focuses on the employees of the organisation believing that company's effectiveness results from improved employees in the company and these interventions are based on employee relations, employee selection and placement, compensations and benefits, career development and performance appraisal. It includes following interventions.

( i ) Goal setting : Goal setting involves challenging and clear goals to improve company's effectiveness by creating better co-ordination between organisational and personal objectives. Managers are arranging meetings for planning about work, review, achievements and for finding solutions for achievements of goals.

( ii ) Performance appraisal : Performance appraisal is a process of assessing work related strengths, weaknesses and achievements. This intervention is mainly related to HR management to provide performance feedback to all the employees and different work groups.  This is very important link between reward systems and goal settings. 

( iii ) Reward Systems : Reward system improves employee satisfaction and performance by rewarding employees including promotions, fringe benefits and innovative approaches to pay.

( iv ) Coaching and mentoring : managers and executives are provided training and coaching to clarify their goals and improve their performance. 

( v ) Management and leadership : It is one of the oldest strategies of organisational development. This intervention helps organisation to build the competencies required to lead the organisation by providing classroom lectures, action learning, simulations and case studies.

( vi ) Managing workforce diversity : By increasing number of women, mentally and physically challenged people in the workforce creates more flexible set different policies and practices.

( vii ) Employee stress and wellness : It includes employee stress management and employee assistance program which help employees to deal with financial, marital, abuse and mental health problems which are generally associated with poor work performance. Stress management programs helps employees to deal with stress and its negative impact on their mind and performance.  

National cultural differences on performance of the business :

The performance of the business is dependent on different cultures of the countries and different parts of the country. The choice of the product can be vary in every country. The cultural difference can create major impact on the sale of the product.

SWOT analysis

SWOT analysis is a tool for auditing an organization and its environment . It is the first stage of planning and helps marketers to focus on key issues . The SWOT analysis means identifying the strengths, weaknesses, opportunities and threats for the organisation. This analysis helps the organisation to overcome its weaknesses and to utilize its strengths in some particular directions.

The SWOT analysis according to our company view can be best depicted as follow:

Strengths :

Our management system is very strong.

We have effective internal communication system.

We can use our resources efficiently.

Our employees have proper freedom .

We have various work forces.

We are always innovative .

Our products are eco - friendly.

Weakness :

Though we have strengths but to be honest there are some weaknesses also:

We have lower market share .

Our knowledge of our customer about the product is still limited.

We have limited capital stock.

Opportunities :

Our opportunities are:

Our expanding market growth rate.

We use new technology.

We can use many promotional media in this advanced world.

Our customer awareness for using green products is increasing day by day.

Threats :

Like other new products our future is uncertain.

Increasing rate of inflation in the present situation

Credit crunch

We have strong competitors as every business is now moving to eco friendly product.

Some government policies like tax regulation.

In SWOT, strengths and weaknesses are internal factors.

For example :

A strength could be :

Your specialist marketing expertise .

A new, innovative product or service.

Location of your business .

Quality processes and procedures.

Any other aspect of your business that adds value to your product or service.

A weakness could be :

Lack of marketing expertise .

Undifferentiated products or services (i.e. in relation to your competitors).

Location of your business .

Poor quality goods or services.

Damaged reputation.

In SWOT, opportunities and threats are the external factors . All the organizations should try to use their opportunities and to take maximum advantage from the available opportunities. There are lots of threats to every organization, and the organization has to find different ways to overcome the threats.

For example :

An opportunity could be :

A developing market such as the Internet.

Mergers, joint ventures or strategic alliances.

Moving into new market segments that offer improved profits.

A new international market.

A market vacated by an ineffective competitor.

A threat could be :

A new competitor in your home market.

Price wars with competitors.

A competitor has a new, innovative product or service.

Competitors have superior access to channels of distribution.

Taxation is introduced on your product or service.

PESTLE Analysis

It is very important that an organization considers its environment before beginning the marketing process . In fact, environmental analysis should be continuous and feed all aspects of planning.

The organization's marketing environment is made up of:

1. The internal environment e.g. staff (or internal customers), office technology, wages and finance, etc.

2. The micro-environment e.g. our external customers, agents and distributors, suppliers, our competitors, etc.

3. The macro-environment e.g. Political (and legal) forces , Economic forces, Socio cultural forces, and Technological forces. These are known as PEST factors.

Political Factors

The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as :

1 . tax policy

2 . political stability

3 . trade restrictions

4 . tariffs

5 . environmental regulations

6 . employment laws

Economical Factors

Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at:

1. Interest rates.

2. The level of inflation Employment level per capita.

3. Long-term prospects for the economy Gross Domestic Product (GDP) per capital.

4. Economic Growth

5. inflation rate

6. exchange rates

Social Factors

The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include:

1. age distribution

2. health consciousness

3. emphasis on safety

4. Career attitudes

5. Population Growth

Technological Factors

Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points:

1. Research and development activities

2. Automation and use of technology

3. Rate of technological change

4. Technological incentives

Legal Factors

The legal factors are also very important for any organisation to develop it into various countries. There are a lot of factors related to government such as health and safety , competition in the market, the employment status of the country. Future changes in the laws and future government stability . The trading policies are also affects the legal factors and the growth of the company. The other factors are regulatory bodies which regulates the various laws in the country.

Environmental factors

The environmental factors have great impact on the firm's growth. The level of pollution can be created by the product development. The global effects of the pollution can also affect the future of the product and the future of the company. The recycling of the waste should also be considerable factor in the environmental factors.

By analysing the PESTLE factors, if the government changes in any country, it will directly affect to the company. The new government can change the laws about the employment, health and safety, sales and taxes of the products, taxes on the companies. The new government can also change the laws of purchasing property. Such that the new government directly affects the business of the organisation.

For the company like British Petroleum the impacts on the performance of the business depends on many governments of different countries as it is a multi - national company. The British Petroleum have to deal with all the governments to make the benefits of for the company.


The British Petroleum is a multinational company having its business in almost most of the parts of the world. In this essay we have analyse the importance of the business evaluation and impact of change management in the organisation like British Petroleum. The development of the staff is also very important for the development of the organisation. The staff can be trained by organising different types of training courses and programs. The selection procedure of the staff should be such that the best staff can be selected for the organisation who can deal with such crisis in the organisation. If anything goes wrong then, trained staff can handle the situations. In our assignment we have also discussed about the SWOT and PESTLE analysis. These analysis are very important for development of the business. The SWOT analysis recognise the strengths and opportunities and the shows the way to overcome the weaknesses and threats. The PESTLE analysis shows the different factors affecting the business and the company. For development and growth of the company all the organisations have to implement these analyses and to find the various ways to overcome it.