Business Economics Assignment
Student I.D: 1331260
Table of Contents
1. Abstract 2. Introduction 3. Political 4. Economical 5. Society 6. Technology 7. Law 8. Environment 9. Conclusion 10. Appendix 1 11. Appendix 2 12. Appendix 3 13. Harvard Reference
BP is a British global energy company and is the 4th largest company in the world. This report is in relation to BP’s profitability, product development, market power and placement. The report uses PESTLE analysis to investigate these areas providing an insight to the successes and failures of BP during recent years. It covers the failures of Russia which has been a failure in terms of past successes with western governments.
The report also covers BP’s market power with the profitability in its products. The report looks at society and our addiction to oil and the technical advances that BP has made. Finally the report covers the Failures of BP on an environmental level which has tarnished BP’s reputation as a MNE.
On 14th April 2009, BP celebrated its 100th anniversary of its company. Throughout these years BP has developed into a multinational oil company and is currently the third largest private sector energy corporations in the world, and one of the six “super majors” (Appendix 1).
BP has looked to grow its oil exploration activities in frontier areas of Russia for its future reserves. In Russia, BP owns 50% of TNK-BP (TNK is AAR, Alfa, Access/Renova owned by three Russian billionaires). TNK-BP’s aim is to become a world class oil and gas company and accounts for a fifth of BP's global reserves, a quarter of BP's production, and nearly a tenth of its global profits. However, whilst BP has enjoyed success in other countries on a political level, a crisis surrounding the decision of the Russian owners of the group in an attempt to change the composition of the board