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Business strategies are the plans made by organisation which can help entrepreneur in gaining the competitive advantages along with their goals and objectives. This help an entrepreneur to make organised working between their different elements, so that the aims get achieved in effective manner. BP oils stand for British Petroleum company Ltd, it is an British multinational company of oil and gas.
It was established in 1909, and have head quarter at London, England. In 2010, BP oil faced a disaster of oil leakage in Gulf of Mexico, this lead to reduction in the reputation of BP oils, and also lead them to face lots of loss in profitability. For solving this problem, CEO of BP oil has hired a junior manager for making report , which cover some specific points. These are the impact and influence of macro environment on their strategies. Also the internal environment of BP oils, along with their capabilities ( Brewster, 2017). This report will also cover section on the competitive force of organisation in given market. Along with this, appropriate theories, models, and concepts has have to be discussed, which can help them in making strategies.
The impact and influence of the macro environment on BP Oil Company as an organization and its strategy.
Strategies are referred to the high level plans, which organisations use to design for achieving some specific goals and objectives, with in specific time period. BP oil is huge organisation of Britain, which use to serve peoples in oil and gas sector. It is very important for them to identify the external factors that can influence their strategies. For this, PESTEL analysis has to be done by junior manager of company, which is as follow :-
1. Political: This factor is one of the most important factor for an organisation. BP oil have to make deep study of policies made by government of countries where they use to serve their products. This will help their managers to make strategies which are good for organisation, and this will lead them in attaining their goals and objectives.
2. Economical: Economic condition of a country as well as of that organisation, plays a huge impact on success and failure of that organisation. BP oil has huge source of finance, but in countries where they use to sell their products economic conditions are stable and same. For this, they have to study the economic conditions of country, this will help them in knowing the factors related to economy. Using this study, manager of BP oils can make strategies that will lead them in achieving their goals and objectives.
3. Social: Social factor is very important for an organisation, as this help in improving their profitability and position in market ( Burlton, 2015). BP oil provide their products in different countries, therefore, it is very important for them to study the social factors of that country. Like, if society of a country use to avoid vehicles which run by oils and gas products, then invest in such countries can cause loss to them. Therefore, studying such conditions will help them in making effective strategies which lead them to achieving their objectives.
4. Technological: Change in technology can lead to change in working performance. BP oil use to make regular investments in new technologies ( Chang, 2016). This has become possible because of their regular study on change in technology. This help them in making strategies that help in adopting new technologies, which take then to gain their goals.
5. Environmental: Environment is a factor, which make companies to make changes in their strategies. BP oil also have to study the environmental conditions of places where they their plants. This will help them in modifying their strategies, which are good according to their future perceptions.
6. Legal: Change in legal policies or over lapping these policies can create huge problems for organisations. BP oil have to study all the legal policies and have to make strategies according to these policies and rules. This will help in performing their business without any problem and also help in achievement of their goals and objectives.
Along with this, for making effective strategies, BP oil can use different strategic techniques, which are as