Business Information Systems - Bp

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British Petroleum is a global brand which is acknowledged worldwide for quality gasoline. The brand name BP ‘appears on production platforms, refineries, ships and corporate offices as well as on solar products, wind farms, research facilities and at retail service stations’.

BP has grown into a global energy group from a local oil company. It has employed over 96,000 people.

Strategic decisions are usually long term decisions which are often risky and speculative. A strategic decision made by British Petroleum was to make redundancies of up to 620 from their solar power business to make the cost of solar power cheaper. ‘…part of the strategy to “reduce the cost of solar power to that of conventional electricity’. ‘BP blamed the cutbacks on the credit crunch and lower-cost competition saying its global manufacturing capacity would still increase during this year and next via a series of strategic alliances with other companies’. This decision made by British Petroleum is respectively strategic as it is reconstructing the business. This could increase the companies’ efficiency which helps to reduce costs and in turn improve profitability in the long term. Solar panels are expensive to purchase but they are said to pay for themselves in the long term. British Petroleum could be taking advantage of the credit crunch by trying to get people to invest in solar panels. They are making redundancies in hope to make the cost of solar panels cheaper. By cutting back on what the company would have been paying in wages they are now trying to improve their efficiency in the production of solar panels. BP are working with alliances to make the cost of solar power cheaper which means consumers are in effect receiving the product which is usually costly and expensive for less in a time where they perhaps cannot afford it.

British Petroleum making redundancies brings some negative publicity at a time where the economy is in recession....
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