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Global corporate strategy can be defined as the aspect that enables managers of an enterprise in terms of presenting their manufactured goods and services in front of the international customers in an effective way (Franko, 2006). This type of tactics plays very important role in an organization. This is because by complying with all such type of approach an effective presence in an international market can be marked by the managers of an enterprise. This report is based on the case study of British Petroleum. It is the multinational oil and gas company, that has it’s headquarter in London, England. It has its operation established in approximately 80 countries. This report basically showcases different type of challenges as faced by the managers of an enterprise. In addition to this, it also depicts about various types of networking related strategies by as used by managers of British Petroleum with an aim to enhance their effectual presence at global market. It also suggests various ways of creating a high performance culture to the chairman of an organization.
There are various ways identified that is used by two very successful major players in the oil, gas and petrochemical industry named as British Petroleum and Shell with an aim to address the challenges as faced by them (Wynne, Weisbord and Leary, 2009). In this respect, all the challenges are identified as well as overcome by the managers both corporations are enumerated as below:
Corporate governance is the practice that emphasizes various types of rules, policies and practices by means of which workings of an enterprise are directed and controlled (Corporate Governance, 2014). In addition to this, by complying with the aspect relating to the corporate social responsibility an effort of an enterprise can be directed in a way to work towards the protection of environment and benefits of society in an effective way. British Petroleum and Shell is facing various types of issues regarding the corporate governance that is affecting the working of an enterprise in a negative way. It comprises of following such as lack of transparency within an organization along with inequitable treatment of the employees working in an organization (Issues in Corporate Governance, 2014). In order to deal out with the issue relating to the lack of transparency related approach, managers of both corporations has directed their efforts in terms of forming strict governance related principles. With the help of this approach regular check can be maintained with respect to the work and performance of an employees working within an organization. However, on the basis analysis it has been assessed that with an aim to deal with the particular identified issue competitors of both organizations named as Mobil and Total has complied with the aspect relating to the code of good practices where work of each individuals are specifically defined (Schwab, 2008). In addition to this, with an aim to address the issue relating to the inequitable treatment of the employees working within an organization manager of both British Petroleum and Shell has directed efforts in terms taking assistance from various types of discriminations related acts. By seeking help from such type of approach only they have directed various kind changes in their existing corporate governance related principles. Beside this, there is one corporate social responsibility related issue identified that is currently being faced by the managers of both enterprise such as British Petroleum and Shell. It is of lack of compliance with environmental related norms (Stonehouse, 2007). With an aim to address this issue, managers of both organizations has directed their efforts in terms of directing various kind of changes in their environment and sustainability related norms and regulations so that workers are an enterprise are able to get clear picture with respect to the same and accordingly to which they are will be able to direct their varied efforts in an effective way.
It is being counted under another challenge which is required to be address by the managers of both British Petroleum and Shell. By seeking various types of variation in the existing culture of an organization corporation goals and objectives relating to the improving the operational effectiveness of an enterprise can be met. It has been analyzed that British Petroleum is relying on the culture where individuals are given chance of pressing their opinions in an effective way. This type of culture is called by the name of persona culture (Blackman and et.al., 2013). By complying with all such type of approach innovative solutions to the specific problem can be identified which ultimately leads to enhance the operational effectiveness of the corporation. In the similar way, in order to improve the performance and operational effectiveness of corporation, managers of Shell has directed their efforts in terms of employing diverse, innovative and result oriented team that are motivated to work the betterment and excellence of an enterprise. On the other hand, their competitor named as Mobil and Total has complied with such type of challenge with the help of training and development programs for their employees (Nath and Das, 2012). Thus, it can be said that operational effectiveness and performance of an organization can be improved if managers tends to comply with all identified improvement types of programs.
Managers of both enterprise such as British Petroleum and Shell complies with both internal and external sources with an aim to recruit people within an enterprise (Bartlett and et.al., 2013). With an aim to achieve the retention of skilled workers, managers of both organizations such as British Petroleum and Shell tend to direct their efforts in terms of linking the reward with the performance of employees (Jindal, Jee and Thakur, 2011). This type of approach motivates employees to work better and with the help of this aspect corporation objective with respect to the retention of skilled labour force can also be met in an effective way. In addition to this, it has also being analyzed that both enterprises organizes various types of training and development related programs for their employees and with the help of it retention of skilled workers can be carried out. Beside this, in order to carry out the retention of workers in organization competitors of both identified corporations relies on favorable environment type of practices where employees are freely allowed to present their view in front of the management of an enterprise in an effective way (Viswanathan and Dickson, 2007). This helps in terms of raising the morale of employees and it will also motivate them to get associated with an organization for the longer period of time. Overall, it can be said that by solving all the identified issues in an effective way working of an enterprise can be proved (Maumbe, 2010).
The competitive environment for the oil and gas company like British Petroleum is changing. This type of situation is occurring in front of the managers of an organization because of the presence of large number of competitors in the field of natural oil and gas industry. Further with this, there is the presence of uncertainty is being seen in the oil and gas industry. However uncertainty can be weeded out by the enterprise by framing an appropriate type of networking related strategies in an effective way. This is to be framed after performing thorough analysis of an environment (Parry, 2012). Besides having all these types of limitations, managers like British Petroleum have to direct their efforts in terms of framing an effective tactics for their industry with an aim to ensure both financial and operational success of an enterprise. This is done by British Petroleum with the help of two type of strategy which tends to enable them in order to mark success in both competitive and global environment as with the help of these identified tactics supply and expansion in new market can be made possible for an enterprise (Qin, 2012). It comprises of following such as strategic alliances and mergers and acquisitions etc. Strategic alliance is the type of tactic where two organizations are agreed to share their resources with an aim to take mutual benefit from the project. With the help of strategic alliance type of approach managers of British Petroleum are able to develop an effective process within an enterprise. It will also enable them to earn more profits and sales from their competitors that are of Shell and Mobil. Overall it can be said that with the help of strategic alliance expansion in the other market can be made possible. This has been done by British Petroleum by merging with one of the most famous oil manufacturing company in Indian named as Reliance industries (BP and Reliance Commence Strategic Alliance for India, 2011). In the similar way, with aim to flourish in Russia market British Petroleum has merged with the company such as Roseneft. In both cases they have used the tactics like strategic alliance
Such type of alliance will be proved as beneficial aspect for the company (Roseneft strategic alliance with BP, 2011). This is because, with the help of it British Petroleum is able to enhance the condition relating to the sales and profits within an enterprise as on the basis of analysis of case it has been found out that India is amongst the emerging market where large number of consumption rate is assessed with respect to the oil, gas and petrochemical related products. On the other hand, by complying with such type of approach better quality and wide range of goods and services can be offered to the consumers and with the help of this strategy market share of an enterprise can also be enhances. Further with this, by complying with strategic alliance type of practices managers of British Petroleum are able to direct their efforts in terms of assessing the competitive environment of nation in an effective way. It is with the help of such type of practices only an effective presence of corporation can be marked in global environment (Turner and Gardiner, 2007). However, it can be critically evaluated that the effectiveness with respect to such type of alliance occurred when the organization to which British Petroleum has aligned is competitive enough and possess great working experience in the field. It is due to the presence of such type of aspect only financial and operational success of an enterprise can be achieved. In addition to this, in strategic alliance the risk of sharing proprietary information also occurs which causes its significant affect on the marketing and product related strategies as made by the managers of an enterprise.
Another type of strategy which is used by managers of British Petroleum is related to mergers and acquisitions. Merger is type of practices where two separate companies combined together with an aim to form new company. On the other hand, acquisition is another type of approach where one company is purchased by another corporation. Here in acquisition no new company is formed. The aspect relating to the merger is to be directed by the managers of British Petroleum by merging with the one of the famous US oil manufacturing company such as Amoco. It is through this way only organization has mark their presence in global market. Amoco is the oil manufacturing company operating in United States of America (Business: The Company File BP and Amoco in oil mega-merger, 2011). Now together both companies are called by the name of BP Amoco. Such type of mergers and acquisition type of practices will be proved as beneficial aspect for an organization. This is because with the help of it more funds can be generated by the firm with respect to the research and development type of activities. On the other hand, by combining the efforts of two different types of organizations, monopoly in competitive oil and gas related market environment can be created by the managers of an enterprise such as British Petroleum. In addition to this, with the help of it more focused marketing and product related tactics can be created by the managers of corporation which will ultimately leads to ensure financial and operational related success in future. However, such type of practices possesses its biggest disadvantages in job losses of many individuals. This has also being seen in the case BP and Amoco where merger of new group announced that it would cut the job of around 6000 employees. This type of activity leads to decrease the morale of workers and also causes its significant affect on the image of company which may hamper the working of an enterprise in future (Cepiku and Savignon, 2012). Overall, it can be said that the aspect relating to the uncertainty and risk related condition can be met by managers of an enterprise if they tends to direct their varied efforts in terms of framing an effective strategy with respect to the same. This has been effectively directed by the managers of British Petroleum and it is the reason why they have established their remarkable presence in global market. It has also leads to them in terms of increased profits and sales (Andermann, 2012).
There are various types of management and leadership abilities identified that are required in British Petroleum chairman, Carl-Henric Svanberg with an aim to make BP as simpler and efficient corporation that basically focuses on improving the behavior of employees and also helps in creating high performance cultures. It is by complying with all such type of skills only objective of British Petroleum chairman that they have specified in their annual letter can be met by them in an appropriate way. The wants of the buyers can also be fulfilled by the managers of an enterprise by complying with such type of abilities in an appropriate way (Wang, 2006). These all identified skills that can be used by chairman of British Petroleum are enumerated below:
It is the type of leadership skill where workers are given power of presenting their views in front of the managers of an enterprise in an effective way. This type of leadership style will be proved as beneficial aspect for the chairman of British Petroleum named as Carl-Henric Svanberg (Paul, 2008). This is because with the help of it friendly type of environment can be created within an enterprise which helps in raising the morale of employees in an effective way. It will also motivate them in a way to suggest innovative solution to the managers of an organization which ultimately helps in enhancing the profitability and sales related condition of British Petroleum.
By complying with team building related approach an effective presence in global competitive environment can be marked by the chairman of an enterprise (Gnosa, 2013). It is because with the help of team building type of skills an effectual environment of working can be created in an enterprise such as British Petroleum which tends to enable their employees to collectively work towards an objective of corporation in an effective way. On the other hand it also enables managers in a way to create high performance related culture.
With the help of an effective communication related skills goals and objectives of an enterprise can be communicated by the managers to the prospective employees in an effective way which tends to enable them in terms of directing their efforts towards the same (Moon, 2010). This is because it has been seen that workers are well informed about the activity that they need to perform within given specific time limit at that time they will perform their best with respect to the same. These all type of activity will enable chairman of an enterprise such as British Petroleum to effectively rely with this objective of making the working of an organization efficient in an effective way.
High performance work related culture can be created within an enterprise by solving all the problem of their employees that they tend to faces while working (Wienges, 2010). With the help of this skill all the working relating queries are to be solved out by the managers of an enterprise. It has been seen that if employees effectively know their specific area of responsibility within any kind of problem at that time they will contribute their best which will ultimately result corporation such as British Petroleum in terms of increased profits and sales (Steenkamp, 2014).
It is also called by the name of people skill. With the help of good interpersonal skill, work of each individual can be integrated in an effective manner. It will also help in creating positive environment within British Petroleum which ultimately leads to enhance the productivity of an enterprise (Arieff, 2010). In addition to this, by seeking assistance from interpersonal skill problems which is faced by individuals can be identified and according to which chairman of the corporation can direct his varied efforts with respect to solved out the same in an effectual manner.
It has been concluded from the whole report that, in order to frame in effective global corporate strategy for an enterprise. It is required by the managers of corporation such as British Petroleum to clearly address various types of issues and challenges such as corporate governance, corporate social responsibility, recruiting and retaining workforce along with improving performance that are affecting the working of firm in negative way. In addition to this, by seeking assistance from various types of network level strategies such as strategic alliances, mergers and acquisitions, organizations are able to direct their efforts in terms of expanding their operation at international market. On the other hand, by using various types of management and leadership related skills performance of employees can be enhanced.
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