The Operation Of British Petroleum Commerce Essay

The Operation Of British Petroleum Commerce Essay This project examines the operation of British Petroleum (BP) in the light of established international business theories. Two major aspects are considered; Globalisation strategy and corporate social responsibility ethics. Although certain failings are highlighted BP is assessed to perform optimally on both counts. A conclusion is drawn and certain recommendations with respect to the style of research are made in the final section. Report Contents The report assesses the operations of British Petroleum to establish to which degree the operations of BP are in line with related management theory. The project starts with a brief introduction on the business of BP. This sets a stage and develops a context for further discussion. The second section discusses the research method adopted in the preparation of this project. Several methods are explored and the most feasible selected as the method of choice. The third section looks at BPs operations in two respects; international trade and globalisation strategy, and corporate responsibility and ethics. The final section of the project is a conclusion that summarises the main themes highlighted in the work, noting its achievements and limitations and sets the stage for future research. At this stage some recommendations are also made. Introduction British Petroleum (BP) is a global Oil and Gas company with its headquarters in the UK. It is one of the worlds largest businesses by virtue of its revenues. On is corporate website, it terms its self as one of the worlds largest companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products for everyday items. As of its financial year end 2009, it owned 22400 service stations around the globe, it owned operations in 30 countries around the world, it employed 80,300 people in different countries, it owned 16 refineries around the world (with the biggest in Houston Texas), it produces 2.3 million barrels per day and owned oil reserves of about 18.3 Billion barrels (BP web 2010) Research Methods This project aims to assess the operations of BP. It takes into focus two major issues in global business and strategy; International trade globalisation strategy and ethics including aspects of corporate social responsibility. The management literature proposes several qualitative research methodologies (Bryman, 2004). These methodologies include; surveys, questionnaires, case studies, focus groups, experiments and interviews (Bryman, 2004). Pursuant to the aims of this project, a case study approach is employed in which I consult several documents which discuss management theory (detailed in Hill, 2009) and I examine how their application in practice basing on the case of British Petroleum. I use the BP website as a core source to derive information for this purpose. Given the lack of resources, other research methods such as interviews, questionnaires and focus groups are impractical. The next section details the operations of BP and the related theoretical underpinnings. British Petroleums globalisation strategy Globalisation refers to the current trend where the world is becoming a global village by effectively inter-knitting, national boundaries are being relaxed and countries are increasingly dependent on each other for survival. Globalisation presents significant opportunities to businesses as well as challenges. Firms that can cope with the trend enjoy larger markets, cheaper resources and therefore higher profitability. Firms that are unable to compete efficiently are faced out. As highlighted above BP is a global company with a highly acclaimed globalisation strategy. The success of this strategy could be attributed several (three main) factors as discussed below. First-mover advantage The history of BP can be traced back to the establishment of the Anglo Persian Oil Company, a subsidiary of the Burmah Oil Company in 1909. This firm explored the Persian golf for many years and was converted to the British Petroleum company after the Second World War. Scanty reports show that the firm expanded tremendously by 1960 developing its operations beyond the Persian golf into North America. Most importantly it established a significant presence in the North Sea by being the first company to find Oil in Alaska (BP web, 2010). The above indicates the length to which BP has gone to establish itself as one of the worlds biggest and most successful companies. New Trade theory suggests that first movers can benefit enormously from certain economic and strategic advantages in terms of operations. The theory argues that for those products where economies of scale are significant and represent a substantial portion of world demand, the first movers in an industry can gain a scale based cost advantage that later entrants find almost impossible to match (Hill, 2009. p 187). First mover advantage can potentially explain the structure of the Oil and Gas industry. The industry is made up of few big players and many small players in the Western world where competition is free. In other countries such as Kuwait, Saudi, Russia, China, Iraq and Qatar competition in the industry is restricted and the major oil exploiters are government owned. BP has established itself in most of the western world due to its first mover advantage. It is able to cut costs in its operations and derive benefits from economies of scale and scope. Many firms can compete effectively in Oil exploitation, exploration, extraction and refining, and therefore they turn to engage in the provision of support services such as distribution or the derivation of chemicals for other manufacturing industries. Competitive advantage Porters findings on national competitive advantage can be extended to understand why BP locates in the regions it does. BP is a global firm but has operations at varying degrees in about 30 different countries world wide (BP web, 2010). Despite operating significantly in 30 countries, its products and services are available in over 100 countries (BP web, 2010). Porters diamond asserts that the degree to which a nation is likely to achieve international success in a certain industry is a function of the combined impact of factor endowments, domestic demand conditions, related and supporting industries and domestic rivalry (Hill, 2009. p 191). Hill (2009) argues that based porters theory a profit seeking firm should localize its operations in those countries where such activities can be performed optimally. BP operates in Africa, Asia, Australasia, Europe, North America and South America. In Africa, it operates in Joint Ventures with firms in Egypt, Angola and Algeria. Its choice to operate only in join ventures in this country can be explained by the political economy of these countries. These countries cannot be termed as full democracies and are often susceptible to civil crisis. Operating as a joint venture, curbs the firms risk in the event of a political crisis but allows it to enjoy the revenues to be derived from its operations. It also has a huge presence in the Southern regions of Africa but in these regions it engages more with the marketing of its solar energy concepts. This region is rich in natural resources (sunshine) but the development of energy networks is very poor. The countries in this region rely heavily on hydroelectricity which is usually not sufficient to provide for industries and households. BP also operates as joint ventures in Asia with operations in Pakistan, Vietnam, Indonesia, China, South Korea and Malaysia. It manufactures lubricants and solar panels in China and India where labour is cheap. BP does not explore petroleum in Australasia. Its operations in this region are geared towards the provision of solar energy. BP operates as a stand alone entity in much of Europe. Its operations in Russia are partly owned (joint venture) by a Russian company. It has major exploration and production facilities in Canada, Trinidad and Tobago, Venezuela and Columbia. These regions are rich in natural gas and oil necessitating BPs localisation to the areas. Products Hill (2009) noted that Raymond Vernon developed the product lifecycle theory after his realisation that firms had to keep innovating in order to maintain a demand for their products and ensure growth in revenues. The theory can be used to explain the globalisation trends, innovation drive and product mix of British Petroleum. BP currently produces a wide range of energy products including oil, natural gas, wind energy, solar energy, bio fuels and petroleum based lubricants. Two decades ago, its primary product was Oil. Research and development in the industry has led to the introduction of cleaner and more sustainable forms of energy. These forms of energy are widely regarded as the future of the Oil and Gas industry. Speculators believe that at some point in time oil will be faced out as coal was faced out with the discovery of oil. BP has realised the fact that oil as a product has reached its maturity stage and its demand might diminish with the advent of new forms of energy. The firm has taken a colossal position in the new energy market by running a major portfolio of energy products representing the mix of all bespoke and innovative new forms of energy. Unlike televisions for example, Oil cannot be re-engineered and further developed. Innovation by modification is therefore difficult. BP has turned the focus on energy efficiency i.e. researching and developing ways in which energy can be saved. Instead of devising faster or stronger energy which might be impossible BP has turned the focus to the development of equipment and usage techniques that will save energy through low consumption. This encompasses innovation that fuels the demand for its products. Ethics and Corporate Social Responsibility As Hill (2009) emphasized ethical issues in international business are brought about by political, legal, economic and cultural differences in between countries- what is considered normal practice in one country might be considered unethical in another (p. 124). The ethical challenge, I will argue, is significantly increased for global firms. BP for example operates in all the different continents of the world. In keeping with Hills argument ethics is relative and context dependent. In certain countries, it is ethical to employ young people. In the UK, all employees must be above the legal age of 18 to gain full employment. The legal age changes significantly between countries varying from 16 to 21. Most multi national firms deal with this challenge by devising a set of corporate values which govern their operations in all regions. BP web (2010) argues that the company is driven by four major values; progressive, responsible, innovative and performance driven. In terms of being responsible, BP asserts that We are committed to the safety and development of our people and the communities and societies in which we operate. We aim for no accidents, no harm to people and no damage to the environment. This commitment can be seen in the fact that BP reporting covers all aspects beyond financial reporting including health, safety, human rights, environment and energy. BP is at the forefront of the cleaner energy debate. It does its bit by engaging in energy saving initiatives and constantly researching on cleaner ways in which energy can be produced and delivered. It has diversified strongly into the green energy industry engaging in the production of liquefied petroleum gas, fossil fuels and renewable energy. A major part of corporate ethics that has been pervasive in the management literature in recent years is corporate social responsibility. Hill (2009) argues that multinational corporations such as BP have power that comes from their operations and their ability to move production from country to country. Considering for an instance the revenues generated by BP annually, I find that the corporations revenues is higher than the GDP of many countries. Social responsibility advocates that managers should consider more than just the economic consequences of their decisions (hill, 2009). More importantly, importance should be placed on the social consequences of decision making. The European commission defines corporate social responsibility as A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (EC website, 2010). It basically refers to the companys interactions with its surrounding communities and looks at how the company strives to promote development and social cohesion and participates in maintaining the environment within such communities. A firms community is a major stakeholder of the firm and thus needs to be considered. BPs financial reporting incorporates major aspects such as its social responsibility, its strive for cleaner energy, its contributions towards preserving the environment and its strive to improve sustainable extraction of energy. Communities take corporate social responsibilities seriously especially when it comes to Oil and Gas firms. This is largely as a result of the potential dangers that can arise from their operations with these communities. Recent crises have ranged from large explosions with severe casualties to major spillages with the destruction of flora and fauna. -A review of the BP 2010 Oil spill crisis BP faced a deep water horizon drilling rig explosion which killed 11 of its off shore workers and injured 17 other workers. The rig gushed out over 5 million barrels of crude oil into the Mexican Golf between April and July 2010. The spill was catastrophic and so were its effect on wild life, the fishing industry, the tourism sector and the surrounding neighbourhoods. In response to this BP set up a crisis management program. It publicly apologized for the distress it caused and undertook to foot the clean up costs. The company has currently set up a $20 Billion dollar fund to manage the after-effects of the crisis. During the crisis, BP showed effort employing several techniques to attempt to stop the leakage. It also arranged a compensation plan for those affected by the crisis. This attests to the fact that BP takes its corporate social responsibility and ethics very strongly. Hill (2009) also notes the social contributions or social investments of BP in Algeria. Hill notes that BP realised its communities in Algeria lacked clean drinking water and created two desalination plants to produce clean what for the public. To add to this, the company provided water cans to help residents transport water from plants to their homes. Conclusions Summary of findings This study has examined the operations of BP in the global context to see how certain management concepts are applied in practice. Two aspects; globalisation strategy and corporate social responsibility were reviewed. BP is found to have a sophisticated globalisation strategy which it has fortified over the years. This helps it to compete efficiently and to remain one the worlds leading corporations. Again, BP is found to have a robust stance towards corporate social responsibility and ethics. Its industry is hazardous and it is pruned to corporate disasters such as spills and explosions. BP has managed to keep these to a minimum and when they do occur, BP has taken necessary steps to manage the crisis and limit the damage Limitations This work is limited in the fact that it strongly relies on public information sources to assess the operations of BP. Several aspects could have been better scrutinized and invaluable insights drawn through other research methods such as interviews with key workers and focus groups to draw varied opinion. Due to the limitations in space (number of words) the aspects discussed can not be reviewed in greater detail. Future research Recommendations This research has examined BPs operations in light of established theory but has not confirmed if such a method of operation is optimal. It might be interesting to investigate whether the product strategy, globalisation strategy or their approach to ethics and corporate social responsibility affect their performance or contributes significantly towards the achievement of organisational goals and objectives. The limitations highlighted above also provide avenues for future research into the area. Several theories have been propounded in the management literature. Their understanding will only be facilitated by examining how these theories are applied in practice or by investigating the contributions of such theories to management practice. In light of this argument, this form of study is encouraged.

Living at Home Versus Living in an Apartment Essay

People do not realize how different living at home and living in an apartment is until they compare the two. Other people don’t realize it until they are actually out on their own. There are many differences when a person is living at home compared to living in an apartment. In this essay we will look at the differences of the two. One difference between living at home and living in an apartment is how the bills get paid. When living at home parents or whoever the person lives with pays all the bills and buys all the food. Even if the person has to pay for anything while living at home, I’m sure it is just a small portion of what all the bills come out to be. When living in an apartment the person has to pay their own bills and buy your own food. This means that they have to find somewhere that is affordable for them. Some apartments have bills like electricity, water, and sewer/garbage included in the rent. If the person needs help buying food they have a program out there that they can sign up for food stamps at the local social services office. They also have places that have food pantries that gives people a food basket. Some towns also have a place for people to go and eat like the Salvation Army or a church. This is one major difference of living at home versus living in an apartment. Another difference between living at home and living in an apartment is making sure the person has everything they need. When living at home with the person’s parents or whoever they live with, they already have or have bought all the necessities that they will need for a place like furniture, pots and pans, cleaning supplies, stuff for hygiene, etc. When a person is living in an apartment they have to buy everything that they are going to need for the apartment. That means that the person has to go out and buy their own furniture and everything else that they want for their place. A person can watch for garage sales or even go check out some thrift stores. The Salvation Army gives a person a voucher to go to their store and get some stuff for their new place if they have it in stock. They even help out with furniture to. Some stuff the person will probably want brand new like their silverware and dishes. Another difference between living at home and living in an apartment is all about how clean the place is. When someone lives at home or with whomever they live with they usually want their place nice and clean. They want everyone that lives there to help with the cleaning and to maintain a clean home. When a person lives in an apartment they are the one that decides when to clean the place. Also they are the one to decide how clean they want their place and if they are going to try and maintain a clean place. Some people like their house spotless while others don’t really care if their place is clean or not. Maintaining a clean home means a lot to others when they come over to visit. The final difference between living at home and living in an apartment is being independent. When a person is living at home they have rules to follow. Some rules may be easy to follow like cleaning up after oneself, help with the cooking, and maintain a job or go to school. Other rules may be harder to follow like if the person has a certain time to be home and if certain people that they hang out with are not allowed to be at the person’s house they are staying at because they don’t like or get along with them. When a person is living in an apartment they are on their own. They are the one that picks the rules. When living in an apartment a person can come and go as they please. Also they can do whatever they want. Just be careful when living in a person’s own apartment because some people go crazy and have all kinds of parties. If the neighbors call the cops the landlord has a right to evict them. If they get evicted it makes it hard for them to get an apartment the next time they are looking for one. In conclusion, everybody now has some of the differences between living at home and living in an apartment. It’s all up to them to decide if they want to stay living at home or move into an apartment. Everybody has their own way of thinking and choosing what they want to do. If they want to move into an apartment a person could keep an eye out for stuff they will need so they will have it by the time they move.

A Review of Proposal Essay Topics for College Students

A Review of Proposal Essay Topics for College Students Get the Scoop on Proposal Essay Topics for College Students Before You're Too Late Remember your essay is about solving problems, thus a solution ought to be a highlight of the essay. Whichever problem solution topic you select, you'll be able to produce every reader interested, raise some critical questions, and talk about the issues of urgent importance. Until you get a detailed and very clear comprehension of the various concepts you won't able to answer the majority of the questions in the true test. Characteristics of Proposal Essay Topics for College Students Curriculum proposal topics is a means to try. Students can also locate some research based topics on food in the particular list below. To write a strong argumentative essay, they should begin by familiarizing themselves with some of the common, and often conflicting, positions on the research topic so that they can write an informed paper. Researching and picking an intriguing topic is the most important point of writing an essay. Furthermore, once you take a look at the answers it looks easy however that's not correct. Deciding upon a topic is an essential issue that partly estimates final success of the job. The very best topic for an essay is the one that you want to know more about, because if you want topic you're able to research it well and make a very good conclusion. Professional writers just want to use the very best research materials for their work. Qualitative design is going to be utilised as it will permit the experience of more complex facets of people been studied. Now you have lots of topics covering a number of fields to pick the very best one for you. The best method to undergo expert certification training is classroom training. What You Must Know About Proposal Essay Topics for College Students In addition, you're going to be required to compose an essay which will be discussed while the Oxbridge style tutorial will occur. You will probably be requested to format your essay proposalin a certain sort of format. You may have to use a particular format for your student undertaking. As you start to learn about the essay writing process it's important to provide time to your writing. You will surely get an accessibility to a valuable bit of writing. Keep a Journal Another manner that you're able to enhance your writing is to maintain a journal. An excellent way to begin a college essay writing is to write about something or somebody you admire. Not everybody can write the very best essay and should you don't have enough time to do the suitable quantity of research and compose the paper within the deadline, you might find yourself struggling and stressing out. The first thing which you've got to do whenever you are going to get started working on your paper is to write up a proposal. It is very important to mention that the idea doesn't need to be a good one. Plan of action here, your task is to explain how you intend to attain the proposal. Think of some helpful points, proposals, and argumentation, which could help determine the reader, help them understand the issue, and inspire them to try to repair it. You need to know how to compose a strong statement that may be proven with good evidence. Before writing your proposal you should do the next things. As soon as your proposal becomes accepted, it is possible to then go right ahead and compose the complete paper. Proposal Essay Topics for College Students Features You may write a very simple essay on the proper age to vote or appropriate age to be in a position to purchase alcohol. A class in civil law and greater education rights is essential. The teenagers will further be assured they will stay anonymous. Proposal essays are typical in company and science classes and professions, but are also helpful for a range of distinct disciplines. If you're serious about getting free money for school, you should do everything only to make your scholarship letter perfect. On our site you'll find a lot more useful special information that is certain to be helpful for junior and higher school kids from, like common home task essay about Hamlet, in addition to, for instance, application essays for college for future students. You ought to be able to convince the reader that you're the absolute most deserving student to obtain the scholarship.

How to Use Quand, Lorsque, Lors de, and Pendant

Time doesnt have to be a point on a clock or any other exact measure. It can be a moment or a duration, simultaneous actions or repeated actions, and every discrete difference in between. Thats what the following analysis of these time-related expressions is all about. Were going to look at  the differences between the conjunctions quand and lorsque, the similar-looking expressions lorsque  (conjunction) and lors de  (a preposition), and the temporal prepositions lors de and pendant. This may sound like a mouthful, but its actually pretty straightforward once you know the story behind these words to see how theyre utilized. Here are explanations and examples to help you use all of these correctly in French sentences. Quand versus  Lorsque The conjunctions quand and lorsque both mean when. They are interchangeable when they indicate a simple correlation in time, although lorsque is a bit more formal. However, quand and lorsque each have unique, non-interchangeable meanings as well. Quand (When) 1.  Temporal correlation (interchangeable with lorsque) Je marchais quand tu mas tà ©là ©phonà ©.   I was walking when you called me.Quand je tai vu, javais peur.   When I saw you, I was afraid.Je te verrai demain quand jarriverai.* I will see you tomorrow when I arrive. 2.  Repetition correlation (meaning chaque fois que) Quand il est là  , elle ne parle pas.   When(ever) he is there, she doesnt speak.Quand il sera là  , elle ne parlera pas.*   When(ever) he is there, she wont speak. 3.  Quand as  interrogative adverb Quand vas-tu arriver?   When are you going to arrive?Je ne sais pas quand il reviendra.   I dont know when he will return. Lorsque (When) When the action that follows  lorsque  or  quand  has not yet occurred, the subsequent  French verb must be in the  future  tense, whereas in English the present tense is used. 1.  Temporal correlation (interchangeable with quand) Je marchais lorsque tu mas tà ©là ©phonà ©.   I was walking when you called me.Lorsque je tai vu, javais peur.   When I saw you, I was afraid.Je te verrai demain lorsque jarriverai.   I will see you tomorrow when I arrive. 2.  Simultaneous opposition (meaning alors que or tandis que) Jai crià © lorsquil a fallu courir.   I screamed when / whereas I should have run.Je crierai lorsquil faudra courir.   Ill scream, when / whereas I should run. Lorsque versus Lors de (During, At the Time of) Lorsque and lors de may look similar, but thats all they have in common. Lorsque  is a conjunction. Meanwhile,  lors de is a preposition  used to provide the background for another action; it means at the time of or during. Lors de son anniversaire, elle à ©tait contente.   At the time of her birthday, she was happy.Je suis arrivà © lors du mariage.   I arrived during the wedding. Lors de versus Pendant (During) Be careful not to confuse the prepositions  lors de and pendant. They can both be translated by during, but lors de refers to a single moment in time, while pendant indicates a duration of time. Il à ©tait content lors de son sà ©jour.   He was happy (at some point) during his stay.Il à ©tait content pendant son sà ©jour.   He was happy during his (entire) stay.Il à ©tait content lors de son anniversaire.   He was happy (for a moment) on his birthday.Il à ©tait content pendant son anniversaire. He was happy during his (entire) birthday.Il a travaillà © lors des trois dernià ¨res annà ©es.   He worked (at some point) during the last three years.Il a travaillà © pendant les trois dernià ¨res annà ©es. He has worked (throughout) the last three years.