British Petroleum Essay

2. introBP is one of the largest multinational senss in the world. According to CNN (2011), BP is the fourth largest multinational corporation in the world and employs over 80,000 people and making annual revenue of $392 Billion. BP has massive influence on the global economic climate and has the surgical procedure capacity to affect stakeholders. This essay will analyse BPS menstruation stance using Porters five forces. It will also establish who are the most important stakeholders and suggest strategies that butt be used in future.3. Porters Five ForcesThis looks at he external factors that can affect which al belittled in in the raw entrants, buyers, suppliers, substitutes and competition and can affect productivity of a blood line as seen in appendix A.3.1 Threat of New EntrantsThe threat of new entrants into the oil and gasolene industry is relatively low. This is a result of the blue capital costs and technology, distribution channels, economies of scale, regulation s and geopolitical barriers and the high levels of expertise demand for exploration and extraction. (Mascarenhas, 1997) This makes it relatively easy for the oil and gas industry to refuse of potential entrants however the investment in relation to profit returns with competent milieual and technical environment is relatively high.3.2 RivalryRivalry in the oil and gas industry is relatively high because of the resource ground nature of the business. There is severe competition to locate and secure cut licenses between the major players and the cost of expedition and production is relatively high. The main source of competitive advantage in his industry is to cut overthrow the costs of production per unit produced.3.3 Substitutes for Oil and Gas ProductsThe threats of substitutes for oil and gas products are low and come from revolve, nuclear, hydroelectric and biomass. Wachsmith et al (2013) states that solar precedent, wind indicator and other substitutes for oil and gas products are not only efficient enough to challenge oil and gas products as they can be affected by environmental factors. Other substitutes such as Nuclear power can cause devastating harm to the environment in the event of unprecedented spillages and reparations would be extremely costly. However, BP is currently embarking on projects to diversify the range of their energy production sources into wind power and biofuels which weaken less carbon emission.(BP, 2014)3.4 BuyersBuyers are both industrial and individual consumers. Consumer power is relatively low because suppliers have an incentive to keep supply low in order to control oil prices. Also OPEC has the power to arrange the amount Oil in the market and can alter this to the good of the producer to achieve the highest possible price. (Radetski, 2012) The consumer is the price taker.3.5 SupplySupplier power in the oil and gas industry is high. This is because of the constraints attached to the supply of the end product by OPEC and countries resource management levels. (Radetski, 2012) This enables suppliers to control oil prices to an extent sequence working in unison to the regulations of overseeing organisations and countries of operations they can decide to contact BPS output if terms and conditions of resource exploitation are not met.4. StakeholdersThe major BP stakeholders are suppliers, environmental organisations, countries of operation and oil production government organisations.5. ConclusionThis essay has given a short account of BPs stakeholders using Porters five forces as a model and identified the major stakeholders. This study has shown that suppliers, countries of operation and governing bodies play amajor map in the success of BP. These finding suggest several courses of action for BP which implicate Abiding by the rules and regulations of both countries and governing organisations. declareing a frugal core of production and investing in more efficient methods of productionM aintain good relationship with government to secure more oil blocs. trouble should be taken when mining to reduce hazardous environmental personal effects as they will call for reparations and damage government relationship.6.AppendicesAppendix A Porters Five Forces (own source)