Organisations In Their Environment Management Essay

5344 words (21 pages) Essay

1st Jan 1970 Management Reference this


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As part of privatization of public utilities/companies, this company was created originally by government and later as a privately owned Public Limited Company (PLC). Its role was to provide the infrastructure for the society. Given the massive pressures on the system, there is both commercial and political pressure to create a profitable and efficient public utilities system. However, there have been substantial criticisms of the public utilities post-privatization.

You have been provided with information indicating some of the issues around the function of the company. Using these and other sources which you may be able to obtain, analyze PLC in the following areas:

Task 1

You are to provide a write-up in tabular form to be use as ‘Induction Presentations’ as well as this coming discussion on the following matter:

You are required to identify the legal structure and type of the organization and state the purposes such as mission, values, aims, profits, market share, goals, objectives of selected organization (1.1)

Describe the extent to which selected organization achieves the objectives of stakeholders. Identify the stakeholders, conflict of expectations and satisfaction the stakeholders objectives (1.2)

Explain the legal responsibilities of the selected organization and strategies employed to meet objectives of stakeholders (1.3)

Task 2

Explain how economic systems in your country (Viet Nam) attempt to allocate and make effective use of resources available within the country (2.1)

Assess the impact of fiscal policy, monetary policy economy on selected organization and stakeholders in your country (2.2)

Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization (2.3)

All supplementary information besides the provided materials is required to cite the source and quoted in the appendices.

(Refer in the next page – Company Profile)


Description: BP logo

BP PLC is a British multinational oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by 2011 revenues and is one of the six oil and gas super majors. It is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing,  petrochemicals, power generation and trading. It also has renewable energy  activities in biofuels and wind power.

BP’s origins date back to the founding of the Anglo-Persian Oil Company in 1909, established as a subsidiary of Burmah Oil Company to exploit oil discoveries in Iran. In 1935, it became the Anglo-Iranian Oil Company and in 1954 British Petroleum. In 1959, the company expanded beyond the Middle East to Alaska and in 1965 it was the first company to strike oil in the North Sea. British Petroleum acquired majority control of Standard Oil of Ohio in 1978. Formerly majority state-owned, the British government privatised the company in stages between 1979 and 1987. British Petroleum merged with Amoco in 1998 and acquired  ARCO  and  Burmah Castrol in 2000.

BP has been involved in several major environmental and safety incidents, including the 2010 Deepwater Horizon oil spill, the world’s largest accidental release of oil into marine waters. In 1997 it became the first major oil company to publicly acknowledge the need to take steps against climate change.

BP in Vietnam

BP arrived in Vietnam in 1989 with many ideas. Over time, it had been able to turn those ideas into reality.

The business in Vietnam includes the exploration and production of oil and gas, the production and distribution of lubricants, and the supply of crude oil to the first local refinery. BP also invested in the growing Vietnamese power industry.

In the early 1990s, their exploration discovered four major gas fields 320km offshore south of Ho Chi Minh City. It resulted in the $1.3 billion Nam Con Son Gas Project. This complex operation involved the development of the Lan Tay and Lan Do fields, the laying of a two-phase offshore pipeline (the longest of its kind in the world) and the construction of the 720 MW Phu My 3 Power Plant in Ba Ria Vung Tau province.

The Nam Con Son Pipeline that BP built, operated, transferred operatorship, and expanded has become a model of sustainable, reliable, and efficient investment project in Vietnam. 

BP and Castrol are recognised brand names in the lubricants markets here. Every year, the business grows faster than the market, with a record performance of 2- 3 times growth in 2008 alone.

In 2009, BP Integrated Supply and Trading signed a contract with PetroVietnam to supply crude to Vietnam’s first refinery. The contract is for a minimum of 50% of their foreign crude requirement and is for the next five years (with option for extension).

BP’s work in Vietnam focuses on the areas of environmental protection, poverty reduction, education and training, enterprise promotion, and access to energy. 

So far, BP has invested more than US$6 million in community projects across Vietnam, with particular focus in Ba Ria Vung Tau Province where the company operates major production projects. 

BP has worked with the UK’s Foreign and Commonwealth Office and Leeds University to help with the training for Vietnam’s government employees and students, has provided over US$620,000 in sponsoring Vietnamese students to pursue graduate studies in the UK. We also initiate and provide financial support to the Marcel Loos Memorial Business Course at Da Nang University. The course covers such topics as modern accounting and business skills, both of them key to Vietnam’s transition to a market economy.

For more information about the Company, please visit: ;


Pass is achieved by meeting all the requirements defined in the assessment criteria.

Merit Identify and apply strategies to find appropriate solutions. (M1)

Characteristics / Possible Evidence – relevant theories and techniques have been applied with various parties in the industry, the organisation, and models.

Select and apply appropriate techniques. (M2)

Characteristics / Possible Evidence – a range of methods and techniques have been applied indicating current trends, economic environment and methods used.

Present and communicate appropriate findings (M3)

Characteristics / Possible Evidence – An appropriate structure and approach have been used to prepare a report. Present data using a range of methods e.g. tables, diagrammatical and graphical forms.

Distinction Use critical reflection to evaluate own work and justify valid conclusions


Characteristics / Possible Evidence – Ability to show evaluation has taken place using defined criteria such as development towards corporate objectives and plans, roles and function of agencies and appropriate use of advertising.

Take responsibility for managing and organising activities (D2)

Characteristics / Possible Evidence – Ability to show with evidence the areas of substantial activities / projects or investigations have been planned, managed and organised with respect to competition and a clear explanation of responsibilities and implementation of business and organisational plans.

Demonstrate convergent, lateral and creative thinking (D3)

Characteristics / Possible Evidence – An innovative and creative thought has been used to identify mission, objectives and responsibilities of APL as well as investigate related government and economic policies affects the company.


The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and student’s name. Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use.

Ensure that authenticity declaration has been signed.

This is an individual assignment.

Content sheet with a list of all headings and page numbers.

A fully typed up professionally presented report document. Use 12 point Arial or Times New Roman script.

Your assignment should be word-processed and should not exceed 3,500 words in length.

Use the Harvard referencing system.

Exhibits/appendices are outside this limit.

The assignment should not contain a bibliography – but should contain a list of any references used in the assignment.

You assignment must be submitted as hard copies and in electronic form (CD) for checking.

NOTES TO STUDENTS for suBmission

Check carefully the submission date and the instructions given with the assignment. Late assignments will not be accepted.

Ensure that you give yourself enough time to complete the assignment by the due date.

Do not leave things such as printing to the last minute – excuses of this nature will not be accepted for failure to hand-in the work on time.

You must take responsibility for managing your own time effectively.

If you are unable to hand in your assignment on time and have valid reasons such as illness, you may apply (in writing) for an extension.

Failure to achieve a PASS grade will results in a REFERRAL grade being given.

Take great care that if you use other people’s work or ideas in your assignment, you properly reference them in your text and any bibliography.

NOTE: If you are caught plagiarizing, you could have your grade reduced to zero, or at worst, you could be excluded from the course.

A report on British Petroleum


Prepared for:

Jubred A. Peñano (Lecturer)

Unit1: Business Environment

Banking Academy, Hanoi

BTEC HND in Business (Finance)

Word number: 4895

Prepared by: Mạc Đình Minh – Eric – F05C

Registration No: ITP F05 – 136

Submission date: 20th November, 2012

Table of Contents

Executive summary

British Petroleum is big foreign company invest and operate in Viet Nam market. They have objective, vision, mission, and goal to success in Viet Nam.

BP has to meet objective of differences stakeholder to satisfy them and achieved the objective.

Operate in Viet Nam BP had to care about responsibility of company with employees, government, Business and Ethics, and Public Relation and Corporate Image. BP responsibility makes BP better and popular in Viet Nam. It also protects environment and social. Make out life better and safer.

When operate in Viet Nam, Bp have to follow law and policy of Government. That Why law and policy in Viet Nam affect BP in many differences ways. Global economy also affects directly Viet Nam economy and BP.


BP group is a leading multinational oil and gas in the world. BP gives consumers the world fuel for transportation means, living for energy, lighting and heating, PETROCHEMICAL PRODUCTS CONSUMER DEMAND FOR DAILY.

With 29 facilities exploration and exploitation of oil and gas, 17 oil facilities with a total staff of up to 92,000 people.

BP logo named after the sun god Helios in the ancient Greek legends with illustrations of the most dynamic source of energy in all its forms, from oil and gas to solar energy – which daily the company brings more than ten million customers around the world.

BP is one of the first oil companies in Vietnam in the 90s of the last century.BP in Vietnam with investment in two main business lines in the oil and gas industry: upstream – exploration and exploitation – and downstream – the production and consumption of products.

In the field of lubricants, two world famous brand lubricants and lubricant present in Vietnam is BP and Castrol lubricants. With diverse products, lubricants BP and Castrol meet all the demands of consumers as well as industry.

1.1 Identify the purposes of different types of organisation.

BP is a multinational oil company which is the third largest energy company and the fourth largest company in the world. (none, 2012)

1.1.1 Company legal structure.

BP is one of the first oil companies in Vietnam in the 90s of the last century. BP joined in Vietnam and investment in two main business lines in the oil and gas industry: upstream – exploration and exploitation – and downstream – the production and consumption of products. (Anon., 2010)

They are limited company and are one partnership of Petro Viet Nam Corporation.

1.1.2 BP vision, mission, values, goal, objectives.

BP Vision:

On BP magazine (2006) John Mingé (BP Vietnam’s director general) said that Bp Viet Nam vision is “BP vision is to be the leading gas supplier and grow the Business further in line with the country’s needs in a mutually beneficial way” (Anon., 2006)

BP mission:

BP Mission is: “From finding, extracting and refining oil and gas, to developing advanced bio fuels” (Anon., 2012)

BP goal:

BP Viet Nam goal is: “Optimal exploitation of the economic benefits can be obtained from the gas and other potential gas fields form a closed cycle value.” (leader, 2012)

BP objectives:

Short term objectives:

“BP profit of $ 5.4 billion in the three months ended on 30-9, a successful return compared with a loss of $ 1.4 billion in the previous quarter. BP says it has plans to increase its quarterly dividend by more than 12% to 9 pence (14.4 cents) per share” (Bảo, 2012)

Long term objectives:

Since joined to Viet Nam, Bp committed long-term business objectives and commitment to the overall development of the economy of Vietnam. Especially is the industrialization and modernization of the country.


As a part of process, BP value are:





One team

1.1.3 Comments about vision, mission, goal, objectives, and values of BP.

Viet Nam has joined to WTO that is good opportunity for BP to become leading in gas and oil supplier in Viet Nam. Viet Nam government are very welcome with foreign company and encourages them develop in Viet Nam. According to (Decree 108/2006/ND-CP of the Government) enterprises enjoy preferential tax and land. That is advantage for BP to done the vision and success in Viet Nam markets.

Finding, extracting and refining oil and gas, developing advanced bio fuels are main task of BP. They should improve and develop their skill, quality, and associated with environmental protection.

By analysis short term and long term objective BP Viet Nam can control the company and have strategy for BP in the Future to make company better, earn more benefits, and have make BP become biggest company in the oil and gas market.

BP has big value because they are a big and importance company in Viet Nam. They also affect Viet Nam economic, they make Viet Nam economic grow and improve life style of many Viet Nam people.

1.1.4 Summary.

In general, BP vision, mission objective and goal are very clearly. BP wants to earn more profits and also associate with environmental protection. BP purpose in Viet Nam is finding, extracting, refining oil and gas, developing advanced bio fuels, it is clear that vision, mission, objective and goal are very suitable with Viet Nam, they are going to be success and they can be achieved it purpose in Viet Nam.

1.2 Describe the extent to which an organization meets the objectives of different stakeholders.

1.2.1 Three broad types of stakeholders in BP:

Internal stakeholders (employees, management)

Connected stakeholders (shareholders, customers, suppliers, financiers)

External stakeholders (the community, government, pressure groups)

(Anon., 2010)

Each of them has influence to BP so that BP needs to understand them to achieve satisfaction from those groups.



Stakeholder mapping

Key Player

Keep satisfied

Keep informed

Minimal effort

Internal Stakeholder



Connected Stakeholders





External Stakeholders


Local Authority

Professional Bodies

Influence of Stakeholders to the company

Table above shows influence of differences stakeholders to the company.

We have stakeholder mapping depend on power, influence, interest, and aspirations.


Low High

Minimal effort

Keep informed

Keep satisfied

Key players




Figure: stakeholder mapping

Internal stakeholder:

Management (key players): Management are key players because If no one controls BP’ employees, BP will not operate and develop without management.

Employees (key players): Employees are importance, they work well and hard working will bring many benefits for BP.

Connected stakeholder:

Customers (keep satisfied): Customer has power in market because they influence benefits of BP so satisfaction customer is necessary for BP.

Suppliers (keep satisfied): Suppliers only care about their benefits so that why BP just needs to keep satisfied with suppliers.

Shareholder (keep informed): Shareholder maybe doesn’t have power in make decision but they are investing money in BP. That why BP should keep informed.

Financiers (Keep informed): Financiers are always looking for interest of BP. So that BP just keeps them have minimal effort.

External stakeholder:

Government (keep satisfied): Government create laws and allow for BP to work in Viet Nam so that they influence BP. That reasons why BP should keep them satisfied.

Local authority (keep satisfied): They influence BP because they are direct control BP in local, so that keep them satisfied is necessary.

1.2.2 Stakeholders objectives:

Each types of stakeholder have differences objectives. Table below is my evaluation the extent to BP achieves the objectives of three stakeholders.




Achieved/Not achieved

Internal Stakeholders


Security of Income



Increase in Income

Connected Stakeholders


Receiving goods and services

Paying reasonable price for those goods and services

Wide range of choices

External Stakeholder

Local Authority

Organisation is meeting relevant legal requirements

Environment protection


Dose not harm the outside environment


Table: Company stakeholder’s objectives


Security of Income: They have not achieved this objective. In 2004, Bp has violated labour rights, employee salary used to pay taxes and do not pay enough wages to employees. (Vân, 2011)

Skill and career development: They have achieved this objective. Because BP is company depends on employee’s skill, commitment and behaviour at work, so that they achieved this objective.

Increase in Income: They have achieved this objective. May 3-2008, in the first wage increase for employees, each employees of BP salary are to be raised from 30% to 40%. (Hồ, 2009)

Each stakeholder has different influences to BP. That why BP need to achieved their objective to satisfy them. BP had almost achieved stakeholder objective, however they still need try to satisfy all stakeholder objective.

To satisfy stakeholder objective BP used increase salary, have program to training skills for employees, protect environment, and create more jobs for local employments.

1.3 Explain the responsibilities of an organization and strategies employed to meet them.

1.3.1 Responsibilities:

Each organisation is subject of the rules. Rules can be law or other realm of ethics, there are five responsibilities are:

Social responsibilities: “The obligations that the organisation has towards the people and the environment in which the company operate.” (Anon., 2010)

Environmental responsibilities: This is responsibility of BP to protect environment in local where they operate. It involves legislation and regulation, ecological relevant to business, green concerns.

Ethics and business: “Ethics is about the codes of moral principles that people follow with respect to what is right or wrong. Ethical principles are not necessarily enforced by law, although the law can incorporate moral judgements.” (Anon., 2010)

Management responsibilities: “Responsible not only to the organisation’s owners, but also has responsible to:





The local community

The general public (and government)” (Anon., 2010)

Public relations and corporate image responsibilities: Responsibilities of company about corporate image of company in the mind of the general public, and perhaps more specifically, in the minds of potential customers. (Anon., 2010)

1.3.2 Example and The strategies employed by BP to meet them:



Strategies employed


Help poor people in Viet Nam and over the world

Create more jobs for employments

Contribute to the social work

Build house, school and hospital for poor people.

Develop circle of activities to more local.

Help local authorities in social activities


Protect environment

Cleaning, waste treatment

Help other people to cleaning and waste treatment

Mining and processing in accordance with procedures and safety compliance.

Workers waste cleanup on local where company operate every day

Propaganda to the people so that all people aware of environmental protection

Ethics and business

Produce the product with right quality and safety for consumers.

Trading in fake goods, pirated goods, not taxpayers.

Respects competitor.

Improve the quality of products by producing advanced technology

Enhanced inspection and survey products on the market

Improve the quality of their products instead of finding ways to affect competitor


Listen and care staff

Listen and care customer


Listening to staff and try to satisfy them

Listening to customer feedback to improve the quality of products

Control the company follow the rules of Government

Public relations and corporate image

Maintain and preserve corporate image.

Maintaining corporate image with loyal customer

Maintaining corporate image with employees.

Right corporate image advertising and other activities to keep the company image

Ensure product quality and to keep their commitments to customers.

Keep their commitments to employees.

Responsibilities above of BP make BP become good organisation, it also bring success and make BP become company that can be trusted in Viet Nam market. These responsibilities show that BP provide about social, environment, and care about customer, employees.

2.1 Explain how economic systems attempt to allocate resources effectively

2.1.1 Definition of economic system.

According to Eric85:

“1. Economic system is the set of institutions and mechanisms by which a society provides answers to the three fundamental questions.

2. Economic system organized way in which a state or nation allocates its resources and apportions goods and services in the national community.

3. Economic system is Basic means of achieving economic goals that is inherent in the economic structure of a society. Major economic systems are capitalism, socialism and communism.

4. Economic system is the system of production, distribution and consumption.” (Eric85, n.d.)

2.1.2 Types of economic system.

Each country has their ways to approaches economic system. According to Hitesh Bhasin there are three types of economic system:

Market economy: A market economy system is relies on consumers to economic resources. 

Command economy: The state control the public interest. They deciding which goods to make and how to make them. What is available are decided by government planners.

The mixed economy: It is mixed, among the world economies. All command systems has in a market sector.

2.1.3 Specify the economic system of Vietnam and the way Vietnam allocate and make effective use of resources within the country.

Viet Nam is developing country, either the State or the consumer control the economic so that why specify the economic system of Viet Nam is the mixed economy.

In 2011, According to associate professor, Ph.D. Ngo Quang Minh : “Communist Party of Vietnam construction undertakings in Vietnam, a market-oriented economic system of socialism.” (Minh, 2011)

In 2012, congress defined economic innovation management mechanism. Remove focus bureaucracy, building new mechanism in accordance with objective rules and the level of development of the economy, to create motivation manufacturing business units to improve labour productivity, quality and efficiency of the planning mechanism in business accounting method socialism, the principle of democratic centralism. (DÅ©ng, 2012)

One of the basic directions to accomplish that goal is “to develop the market economy socialist orientation”, paying special attention to understand and address the major relationships, including the relationship “between the market economy and socialist orientation”. XI Congress of the Party is determined, one of the three strategic breakthrough “Completing the institutional market economy socialist orientation”. (DÅ©ng, 2012)

National financial restructuring is a task that many countries in the world have been made. However, the financial restructuring of a country will also face the challenge, is to develop and implement policy. After 25 years of renovation, Vietnam’s economy has experienced rapid development in many aspects, economic institutions socialist-oriented market gradually developed and perfected. Average growth rate of the period 2001 – 2010 was 7.26%, per capita GDP in 2010 was $ 1,204, the size of the GDP in 2010 at current prices 3.4 times compared to 2000, making Vietnam out of water poverty, underdevelopment, and narrow the gap in living standards compared to other countries in the region. (Thăng, 2012)

The way Vietnam allocates and makes effective use of resources within the country.

Allocation and efficient use of financial resources with advanced process-oriented role of state financial resources. Specifically:

Focus state capital development and economic infrastructure essential techniques. At the same time, create mechanisms and policies to attract investment of social resources infrastructure development, gradually shifting resources from the state to people, invest in environmental science and technology, education and training, health care; promote autonomy for business; development of social safety nets; innovation mechanism of state capital investment and financial management mechanisms for now owned by the State. (Thăng, 2012)

National financial restructuring is required to improve the efficiency of mobilization and use of financial and resource allocation. There by, contributing to maintain the security, financial and monetary stability, to create conditions that promotes rapid and sustainable economic growth.

Viet Nam is mixed economy, Government create mechanisms and policies to attract investment of social resources infrastructure development. That is big opportunity for BP to invest and operate in Viet Nam. That easier for BP to success in Viet Nam markets.

2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities

2.2.1 Definition of macroeconomic policy

Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary. (Anon., 2008)

2.2.2 Impact of fiscal and monetary policy on Vietnam economy

Resolution No. 01/NQ-CP 3 May 01, 2012 of the Government on the key measures of direction and implementation plan of socio-economic development and the state budget in 2012 and the measures practical, consistent with the actual situation; operating simultaneously focus on directing, implementing a number of measures to remove difficulties for business, marketing support as follows:

Extension of the 06 month time limit to pay value added tax in April, May and June 2012

50% reduction of land rent payable in 2012

Extension of 09 month deadline for corporate income tax from 2011 and earlier but not paid to the state budget

Excise tax exemption in 2012 for fishing and households producing salt.

Extended up to 12 months term payment of land use for the project investors with financial difficulties. Provincial-level People’s Committees for consideration and decision grace period specific to each project, the project team after reports of the Standing Council of the same level.

Implementation of appropriate measures to enhance the attraction, accelerate the disbursement of foreign direct investment (FDI), which focused on attracting a new wave of investment, large-scale and high-tech.

Implementation of measures to remove difficulties and to create favourable conditions to encourage production for the field, offering the advantage, especially in the areas of agriculture, tourism and services.

In the early months of 2012, although more difficult due to the impact from the outside and in the country, but by identifying the objectives and implementation of proactive deployment, positive, effective mechanisms policies and measures in accordance with the striving, the efforts of the industry, at all levels, the business community and civil society, the economy has achieved positive results initially. Inflation curb low; macroeconomic basic stability; social security guaranteed. However, production difficulties; purchasing power of market decrease; economy has been growing, but the growth rate is lower than the same period in 2011. So focus to overcome difficulties and create favourable conditions for the production associated with support for

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