Swot and Pestle analysis of British Petroleum

Swot and Pestle analysis of British Petroleum

The British Petroleum is one of the largest petrochemical business and energy organization of the world. In the following the SWOT and PESTEL analysis of the organization is presented.

SWOT Analysis

Strengths:

• British petroleum is one of the major petrochemical houses in the world market.
• It has a long chain of subsidiaries and that includes some major business houses, like, Amoco, BP Express, BP connect, Castrol, ARCO etc.
• It has a strong brand loyalty to its oil business.
• The brand practices many slogans like “Beyond Petroleum”, and other effective marketing strategies to get recognized in the market and also to expand their customer base.
• The company also participates aggressively in the CSR activities that help them to gain an advanced position in the market.
• The organization has also taken proper steps and measures to better their brand positioning in the wake of the recent unfortunate happenings of clients mishandling and accidents.
• The organization also has a loyal customer base that give the organization a global leadership in this same industry.

Weaknesses:

• The company has experienced many incidents of oil spills and disasters that have potentially affected the brand image of the organization. Also, the activities have led to certain fatalities and other environmental damages that had cost the company quite a fortune.
• Since being a major face in the oil industry, the organization has remained unable to penetrate other business profiles.
• The company executives are not potential and their poor ways of client and business handling had further contributed negatively to their brand image.
• The recent focus on reducing the usage of fossil fuel and the environmental and climate changes have affected the business of the organization.
• The organization has also led to the closure of many oil wells, resulting into poor economic cycles which has also affected the brand image of the organization.

Opportunities:

• Since the organization has been dealing in the fuel industry for a long time, therefore, it has the potential to become a recognised name in the alternative fuel or oil industry as well.
• The organization can also take into account the strategies to expand spatially, across nation. This will give them a better reach and the customer can get expanded.
• The organization can also spread across the developing countries and partner with other oil industries to develop their infrastructure and also for developing infrastructures for clean oil, which will benefit them.
• They can also focus on their export market more, as that will increase their annual profit.

Threats:

• The organization is posed with high rate of competition in the world market, in the same field.
• The organization also faced with high rate of competition by the organizations who are dealing in the alternative oil options.
• The company is faced with a number of environmental policies that are affecting it business.
• The company is also faced with various government regulations, while dealing in their own country, as well as while conducting their exporting business.
• The company has also been posed with many lawsuits regarding its oil spilling incidents and business handling.

PESTEL Analysis

Political Factors:

The political factors affecting the business of the organization are,

• Trade policies,
• Inter- country relations,
• Geopolitical variability,
• Lobbying,
• Government imposition of choosing from the sustainable energy sources.

Economic Factors:

The major economic aspect is that the economy of many country is dependent upon the business conducts of the organization. Therefore, the affected profitability of the organization will impact negatively on the economy of other countries.

Social Factors:

• Changing climatic conditions,
• Changing environmental conditions,
• Kyoto Agreement of 1992.

Technical Analysis:

The organization does not include certain use of technical tools in their business conducts, which have been provided by the governmental organizations that have recently been solved and refined.

Environmental Factors:

• Climatic conditions.
• Increasing focus on the sustainable forms of energy.

Legal Factors:

The organization is posited with many lawsuits due to its oil spills incidents and poor customer handlings.