Bp Challenges of Globalization

Topics: Globalization, Culture, Economics Pages: 2 (430 words) Published: February 17, 2013
BP Challenges of Globalization

John Manzoni, Chief Executive, Refining and Marketing for BP, gave a speech in 2005 discussing BP’s future in globalization and the challenges that lie in an increasingly global business environment. He said that business (BP) is the heart of society and can’t ignore what is happening around it, and that BP exists for a purpose, which is to provide goods and services that people want to buy at a price they can afford to pay, and BP exists because of shareholders who put their money in trust with business expecting a reasonable return in exchange (Manzoni, 2005). “Business won’t succeed if it isn’t engaged with the society around it” (Manzoni, 2005, p. 1). The most dramatic change of the last two decades has been the globalization of economic activity, and even though there has been international trade for centuries, the scale of the change over the last twenty five years has been remarkable (Manzoni, 2005). Evidence of globalization is evident is in almost every sector and is changing the shape of international economy (Manzoni, 2005). Manzoni lines out four main challenges for BP as they prepare for this increase in globalization. The first is absence of framework of global rules, a company based in one country must obey the rules of that jurisdiction but it must also and simultaneously obey the law in each and every place in which it is working (Manzoni, 2005). The second challenge is the way in which BP is organized and managed, the sort of global scale and reach which is necessary to be competitive on an international scale requires a widely distributed set of operations, spread over many times zones and jurisdictions (Manzoni, 2005). The third challenge is cultural diversity. The nationality of the company has to be reflected in the makeup of the workforce and senior management especially. It is very hard to find people who can go into different cultures and bridge the divides (Manzoni, 2005). The fourth issue...
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