BP Global: Future Strategy Sustainability

BP Global: Future Strategy Sustainability British Petroleum (BP) is the worlds one of the largest and leading petroleum product manufactures. It has headquarters in London. It operates from 29 countries. Though it has faced safety and environmental controversies in the history of its operations it could overcome all negative images through a concrete focus and consistent efforts towards sustainable developments. BP operates throughout the world in locations, terrains and climates that are tremendously diverse and frequently challenging. However, BP aims to minimize its environmental impact by taking a systematic and disciplined approach to operations, using sophisticated risk assessment techniques that directly inform its business plans. Therefore, BP is incorporating its environmental management systems into the group-wide operating management system that helps BP to set priorities for operations based on assessment of the key risks, including those related to environmental and social performance. BP believes this integration will promote greater efficiency and consistency across the business. It has formulated a set procedure to conduct, at least annually, a formal process to identify and assess risks and emerging issues, including environmental and social issues. Main aim of BP is to manage environmental and social risk during every phase of its operations viz. launching new projects, carrying out day-to-day operations and bringing a project to a close. BP strives to minimize the impact on the environment by identifying risks during the project set-up and using technology to reduce or remedy any impacts. The firm is investing in a broad portfolio of alternative energy businesses and RD, while advocating a carbon price and public funding to support such new technologies. The firms greenhouse gas efficiency achievements will be vulnerable to a shift towards unconventional fossil fuels. Climate change creates both threats to BP through market changing technologies, and opportunities, such as increasing natural gas sales at the expense of coal. BP partly manages these risks by applying an internal carbon price to new projects and through its policy influence. Through its clean energy investments BP is hedging against dramatic changes to the worlds energy mix. In this assignment, we have taken up the BPs sustainability report of 2009 and studied its activities enabling it to achieve sustainable growth. We also assessed its capabilities, current position and forecast its future sustainable growth. British Petroleum Limited (BP) Introduction Website: http://www.bp.com Location of Headquarters: 1 St. Jamess Sq., London, SW1Y 4PD, United Kingdom Sector Industry: Basic Materials Energy Nature of Business: Oil Natural Gas Business Wind Solar Energy Business Bio-fuel Business Energy Security Energy Diversity Business Technology Partnership Products: BP petroleum and derived products BP service stations Air BP Aviation Fuels Castrol motor oil ARCO gas stations am/pm convenience stores Aral service stations solar panels Historical Background: BP (NYSE:BP) is one of the worlds largest oil and gas companies in terms of production capacity. In 2009, the companys exploration and production segment produced approximately 2.53 million barrels of oil per day as well as 8.48 million cubic feet of natural gas per day while the companys refining throughput averaged 2.28 million barrels/day. BP expands its production capacity through improved rig equipment and technology as well as expansions into other countries. As of April 2009, BPs operates in 29 countries including Mexico, Russia, Algeria, and many others in the Middle East and Africa. While BPs global reach gives the company an ability to access untapped reserves, many of its operations are exposed to political risk in those countries. In particular, BPs Russian operations faced significantly managerial problems in 2008, but these tensions eased in January 2010 with the appointment of Maxim Barsk to CEO. BP has been involved in a number of environmental, safety and political controversies during its history, including the 1965 Sea Gem incident and the 2010 Deepwater Horizon oil spill. Its primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100 Index. It has a secondary listing on the New York Stock Exchange. BP on the Sustainability: Before we predict BPs position in future, let us first have look in to its present position and future plans for protection of environment, commitment to society and efforts towards economical growth and sustainable development. Present: BP operates responsibly with better corporate governance and management systems. BP strives to deliver secure and affordable energy while addressing the global issues and climate change. Efforts are made to develop large scale business towards the production of alternative energy sources with low carbon emissions. BP has given utmost importance to safety reliability of operations. But the accidents and fatalities have not been on reducing trend, which can have a major impact on it sustainable growth. BP focused on low carbon or green house gas emissions, biofuels, and operations that can emit fewer pollutants. People Management: There is clear focus on training development of the workforce and reward and recognition system but there is no clear evidence of integration of people development with its diversified business requirements. Community Initiatives: BP has made efforts to build a strong mutually beneficial relation with society wherein they work. Future Plans: In BPs business strategies especially for the sustainable growth, there are many ways forward, but certain parameters are clear. The response must be integrated, global and balanced in terms of social, economic and environmental solutions. BP plans to focus on major public policy issues such as climate change, environmental protection and human rights. The future plan is to show that everything that is done, and every product and service that are provided, is delivered in an environmentally and socially sound manner. The challenge is to adapt, to become more sensitive to the wider world with change in environment. The future plan mainly boils down to the environmental protection and economy growth. BP needs to integrate its future strategies in all its business units to bring the transparency for verification against a common factor on a single platform. There is a clear focus on developing value leaders in future with strong HR strategies. The focus is more on integrating the HR policies across its operations to improve the skills and knowledge of the people. IT must also help BP to develop future leaders who can be visionary to achieve sustainable growth. Even though future plans of BP clearly focus on economy development, workforce development and environmental excellence but the community development appears to be in the last bench of the agenda as the concrete evidence of plans to reach Phase 4 or 5 of the sustainability model is not available with respect to community development. BP Today: Today BP displaying the following characteristics: Systemic plan to integrate human resource functions to reduce cost/increase efficiency Focus on value add training/development opportunities i.e. waste reduction, lean principles Undertakes community projects where cost-benefit can be exemplified. BP The Good Days By the early 1990s, a newly envisioned BP appeared to be adopting a strategic approach (Phase 5) towards sustainability. Like its competitor Shell, BP too strategically placed itself to move beyond petroleum. It committed itself in inventing alternative energy sources and technologies. It also committed itself to the Kyoto Protocols and greenhouse gas emissions. BP also ventured into social and community sustainability efforts, working towards enhancing the efforts in the respective local communities. These efforts were incorporated to its corporate strategy as part of five broad spectrum of business policy: ethical conduct, employees, relationships, health, safety, and environmental performance, control and finance. BPs vision was to market itself as the greenest fossil fuel producer in the industry: Their Beyond Petroleum won two PR Week campaign of the year awards and the gold Effie from the American Marketing Association. Ogilvy, the firm behind the slogan ironically still boasts of Beyond Petroleum as a successful case study in its website. BP CSR Disaster: Unfortunately for BP, the carefully marketed CSR plan went awry with the gulf oil spill. The oil spill taught the world rather brutally, that the heart of the relationship between BP and society did not lie in honest commitments. Chastened by the Exxon Valdez disaster, BP along with every player in the oil industry became rather religious on CSR initiatives. CSR actually poses a problem in such a situation in that it muddies the waters. Beyond Petroleum, the marketing campaign was the result of painstakingly long plan spread over years-but that was all it was, a carefully constructed marketing plan for external stakeholders that suggested CSR was at the heart of BP, but did little to show any evidence of it. BPs isnt out there to lead the green revolution. Their actual business is to make money for its shareholders; in BPs case by producing energy, mainly from fossil fuels. Today, not only has their motto come under external pressure, but has also instigated soul-searching within BPs ranks. Todays marketplace demands a lot more from corporations to establish long term sustainability. It should begin with a basic principle: A successful company must embrace corporate responsibility in all its forms-both internal and external. While BP did an excellent job externally for many years (see Sustainability Portfolio below), it requires much more in-depth introspection from management to get the internal vision re-aligned. Strategies of BP Today BP has a sound platform on which to achieve their commitment to combine growth with the discipline of performance and strategies. So the concept of sustainability is already part of business today. But it also demands a deeper, broader, more creative level of engagement than conventional environmentalism. Climate Change, demographic change and poverty are the three major trends that will set the corporate sustainability worldwide The BP has challenge to create a future energy mix that meets three of these objectives sufficiency; security; and sustainability of the energy. But there are hard political choices involved in agreeing to cut emissions and accepting the implications for energy. The company drives the necessary innovation or deployment of emerging low carbon technologies in the operation. In the drive for efficiency, BP will collaborate with the vehicle manufacturers on advanced engine technology and lubricants and provide better and cleaner transport fuels through less energy intensive processes and increase the energy efficiency of their facilities and equipment BP was the first energy company to be widely recognised as accepting the obligation to act on climate change. They have invested nearly $4bn in low carbon business since 2005 and commitment to invest $8bn in alternative energy in coming years. BP are creating long-term options for the future in new energy technology and low-carbon energy businesses. They will be also enhancing capabilities in natural gas, which is likely to be a vital source of relatively clean energy during the transition to a lower-carbon economy and beyond. BP will utilize the best talent inside and outside the company to develop and apply the technology associated with their business challenges. They have the right people in the right places with the right skills. They have developed a new leadership framework and extensive training programmes to build the professional skills of employees, BP will focus on operations and fostering a culture of operational excellence and continuous improvement across all their activities. BP is a diverse and inclusive company where everyone can achieve their potential. BP will be able to demonstrate clearly how technology improves performance and improve the safety factor. BP will able to reduce its hydrocarbon emissions to water and hydrocarbon emissions to air, the burning of waste gas, carbon dioxide emissions, emissions of non-greenhouse gases, such as nitrogen oxides and sulphur oxides significantly.. BP will be using its landholdings as a base for solar generation of electricity. BP focus is on four key businesses: biofuels, wind, solar and carbon capture and storage. Their goals are no accidents, no harm to people and no damage to the environment. Company will work to achieve this through consistent management processes, ongoing training programmes, rigorous risk management and a culture of continuous improvement. Community development must be focused on BP as an integral part of CSR rather than initiating just as a compensatory act for the damage caused to public and environment. As a company with extensive operations in developing nations, some whose BPs own revenues surpass, it needs to carefully manage aspects such as human rights approach and maintaining ethical business practices. BP would be stick with its commitments towards safety concerns, security, safe operations and accountability in all the locations. BP shall plans to further improve operating and cost efficiency right across the company, from refineries and marketing operations in the downstream to procurement, drilling and project management in the upstream efficiency and reduce costs for profit growth. BP will develop the culture of innovation in all their operations. BP continues to access new business opportunities, with new agreements in other countries. To increase its financial flexibility, BP shall plans to reduce its debt, now about $23 billion, to $10 billion within 18 months. BP has to establish new ways of communication with all stakeholders to improve the brand image and reputation across the globe. BP shall view the corporate governance as a strategy for long run sustainable growth and survival. They should also ensure that board should be structured appropriately to ensure the implementation of rules, regulations, ethical, moral principles and obligation in all activities. It is essential to achieve high standards in all three elements of the triple bottom line agenda economic, environmental and social performance. Focusing on any one at the expense of the others is not sustainable. BP shall build competitive advantage by procuring and multiplying resources create abilities over them and developing synergy of resources and capabilities. Core competencies enable BP to formulate strategies and draw strategic action by converting competencies into profitable business activities. Suggested Future Strategic Concepts for BP: BP should plan to re-conceive its product portfolio and the market it is being catering to till date. Taking a holistic view of the market, BP should mould the goods to cater to the energy needs of the community and not just oil or natural gas. Presently BP defines its productivity by production rate i.e. MT/annum. However, we would suggest that real productivity of BP product can happen when the firm follows up its product till its life cycle. It has already started activities in this direction by entering into strategic alliance with vehicle manufacturers. But it needs to take shape. Actual productivity definition for BP should be Amount of energy converted to actual use by the community per MT of fuel provided by BP. Say for example a Diesel Engine operated by Heavy Fuel (a product of BP) operates at about 30 to 35% efficiency. 10,000 Kcal of Energy provided by the oil is converted to just 3500 Kcal of another form of energy which again is not utilized to 100%. Hence BP should redefine productivity so that the benefit is directly transferred to the community. Such activity would be a win-win situation from BP as well as society at large. BPs one of the strategic management thoughts should be to secure its own future competitiveness. Given the finite life of natural fossil fuel, BP should start its activities in thinking differently on each different use of fuel. Let us take an example of transportation. All vehicles use fossil fuel. Scientists have already come out with hybrid cars, solar cars, compressed air cars, etc. BP should actually go a big way in developing Anti Gravity Cars. We all see UFOs and Flying Discs, etc. Can this earth not produce such vehicles? This is no fancy idea, BOAC have a specific RD drive for such vehicles. They already have achieved some success lifting about 3gm material. Ultimately, we aim at developing competencies by BP in a wider scope of business which would then not get jeopardized due to depleting finite resources. Improvement in Corporate Governance has to reinstate the confidence in community which has shaken up due to past disasters. The pace of expansion activities has overshot the governance speed. Here comes the role of strategic leadership. Two of the key qualities of an effective leader are to anticipate and envision. BP needs to provide more stress on these two aspects. We are aware that as and when there is a need, the fossil fuel prices are raised and there is no one to question them. BP should analyze in further details as to what extent the suppliers contribute to the competitive dynamics of oil business (this is one of the key pillars of the Porters 5 force model and extremely relevant one for BP). A simple coordination between the oil rig, VLCC and met department can effectively reduce cost to BP substantially. Many times this is not done because there is no stringent specific target or cap on total cost of product/MT. This effort will not only help BP outperform its competitors, but also can pass on the benefit to the customers for benefit of the community.

External Environment

Chapter 4 The External Environment The Environmental Domain Organization Environment is composed of all elements that exist outside the boundary of the organization that have the potential to affect all or part of the organization. Its domain is the chosen field of action. The environment comprises several sectors or subdivisions of the environment that contain similar elements (ie. industry, raw materials, human resources, market, technology, financial resources, economic conditions, government, sociocultural, and international. Task Environment – includes sectors with which the organization interacts directly and that have a direct impact on the organization’s ability to achieve its goals. oIndustry, raw materials, market sector and hr and international sectors †¢General Environment – includes sectors that might not have a direct impact on the daily operation of a firm but will directly influence it. oGovernment, sociocultural, economic conditions, technol ogy, and financial resources sectors †¢International Context oDomestic sectors can be affected by international events Environmental UncertaintyResponding to the need for information. 2 Ways the environment influences organizations: (1) the need for information about the environment and (2) the need for resources from the environment. Uncertainty applies to sectors that the organization deals with on a regular basis, the task environment, and this must be analyzed along dimensions of stability and degree of uncertainty. †¢Simple Complex Dimension concerns environmental complexity, the heterogeneity, or the number and dissimilarity of external elements relevant to an organization’s operations. ^ in external factors and ^ in # of organizations in that domain = ^ complexity †¢Stable-Unstable Dimension refers to whether elements in the environment are dynamic oIf an environmental element remains the same over a period of months/ years = ^ stability FRAMEWORK FOR AS SESSING ENVIRONMENTAL UNCERTAINTY Environmental Complexity SimpleComplex Environmental ChangeStableLow Uncertainty Low number of external factors Low change Low-Moderate Uncertainty High number of external factors Low change UnstableHigh-Moderate Uncertainty Low number of external factors High changeHigh UncertaintyHigh number of external factors High change Adapting to Environmental Uncertainty Positions and Departments †¢An ^ in complexity and uncertainty in the external environment = ^ in # of positions and departments in the firm, which in turn ^ internal complexity Buffering and Boundary Spanning †¢The purpose of buffering roles is to absorb uncertainty from the environment. Buffer departments (hr, purchasing, finance, legal) surround the technical core (primary org. function) and exchange resources and information between the organization and the external environment. Some firms rid the organization of buffers and expose the technical core to the uncertain environmen t opening up the organization and making it more fluid and adaptable. †¢Boundary-spanning roles link and coordinate an organization with key elements in the external environment. Primarily concerned with exchange of information to: oDetect and bring in to the organization information about changes in the environment, and oSend information into the environment that presents the organization in a favourable light. †¢Business intelligence and competitive intelligence is necessary to analyze large amounts of data and find patterns.Differentiation and Integration †¢Organizational differentiation is â€Å"the differences in cognitive and emotional orientations among managers in different functional departments, and the difference in formal structure among these departments. † †¢When the external environment is complex and unstable, organizational departments become highly specialized to handle the uncertainty in the external sector. †¢High differentiation = difficult to coordinate between departments, so integrators become essential additions. †¢Uncertain environments = high level of differentiation and integration Organic vs. Mechanistic Management Processes Mechanistic Organizational System: ^ stability = ^ Formal structure and control imposed on employees †¢Organic Organizational System: v stability = v Formal structure and control imposed on employees oRules were loosened, free-flowing, adaptive, and decentralized MechanisticOrganic 1. Tasks are broken down in specialized, separate parts 2. Tasks are rigidly defined 3. Strict hierarchy of authority, control, and rules 4. Highly centralized at top of organization 5. Communication is vertical1. Employees contribute to common tasks of the dept. 2. Tasks are redefined through employee teamwork 3. Less hierarchy of authority, control, and rules . Decentralized 5. Communication is horizontal Planning, Forecasting, and Responsiveness †¢Planning and environmental forecastin g becomes necessary in uncertain environments contributing to the organization’s ability to quickly respond to sudden changes in the environment. Contingency Framework for Organizational Responses to Uncertainty CONTINGENCY FRAMEWORK FOR ENVIRONMENTAL UNCERTAINTY & ORGANIZATIONAL RESPONSES Environmental Complexity SimpleComplex Environmental ChangeStableLow Uncertainty Few departments No boundary spanning Non integrating roles Current operations orientation, low-speed responseMechanistic structure: formal, centralizedLow-Moderate Uncertainty Many departments Some boundary spanning Few integrating roles Some planning, moderate-speed response Mechanistic structure: formal, centralized UnstableHigh-Moderate Uncertainty Few departments Much boundary spanning Few integrating roles Planning orientation, high-speed response Organic structure: teamwork, participative, decentralizedHigh Uncertainty Many departments Extensive boundary spanning Many integrating roles Extensive planning orientation, high-speed response Organic structure: teamwork, participative, decentralizedResource Dependence Resource Dependence means that organizations depend on the environment but strive to acquire control over resources to minimize their dependence; vulnerability comes from dependence and negative effects on performance can follow with too much dependence on other organizations. †¢Interorganizational relationships present a trade-off between resources and autonomy Controlling Environmental Resources Responding to the need for resources. Two strategies are adopted to manage resources in the external environment: 1. Establish favourable linkages with key elements in the environment 2.Shape the environmental domain Establishing Interorganizational Linkages †¢Ownership – companies/ use ownership to establish linkages when they buy a part of or a controlling interest in another company giving the company access to technology, products, or other resources it doesnâ €™t currently have access to (ie. acquisitions and mergers) †¢Formal Strategic Alliances – when there is a high level of complementarity between the business lines, geographical positions, or skills of two companies, the firms often form a strategic alliance (ie. contracts, joint ventures) †¢Cooptation, Interlocking Directorates Cooptation occurs when leaders from important sectors in the environment are made part of an organization (ie. board of directors) oInterlocking Directorates is a formal linkage that occurs when a member of the board of directors of one company sits on the board of directors of another company. †¢Executive Recruitment – transferring or exchanging executives to establish favourable linkages †¢Advertising and Public Relations Changing or Controlling the Environmental Domain †¢Change of Domain – organizations can change the domains it is in, in each of the 10 domains specified (ie. t can choose which market its in, what relationships to hold, suppliers, and locations, etc. ) †¢Political Activity, Regulation – political strategy can be used to erect regulatory barriers against new competitors or to squash unfavourable legislations †¢Trade Associations – when work to influence the external environment is accomplished jointly with other organizations that have similar interests †¢Illegitimate Activities – when excessive downward pressure leads managers to adopt unfavourable techniques to reach an ends. Organization-Environment Integrative Framework

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About the negation of God - Free Essay Example

Sample details Pages: 4 Words: 1138 Downloads: 7 Date added: 2019/07/26 Category Religion Essay Level High school Tags: Existence of God Essay Did you like this example? Evidence of the existence of God I want to give you some evidence of the existence of God. Can I share three proofs of the existence of God and then a story of a barber and a believer? I do not know the causes of your atheism? I do not know the causes of your atheism? It may be that you do not believe in God because of your frustration when you look for HIM in the wrong way and cannot find HIM. Or maybe as a result of religious disillusionment, because they wanted to limit you to God within the limits of a particular doctrine or, perhaps, in the postulates of a political party. Don’t waste time! Our writers will create an original "About the negation of God" essay for you Create order I do not know the reasons why but I do know that the first contradiction I see in your atheism is your own denial. When you say that God does not exist, you are already thinking of a concrete Being. That been said, in your mind, you have already defined the God you deny. Other atheists who have had debates and still wrote books about the negation of God, for example, let me mention Christopher Hitchens. Question: If God does not exist, why fight against him? Can you use lives and talents against a non-existent being? If you believe that God does not exist, can you conceive it so well in the mind and then reject it? Dont you think all of these is a little out of place? Of course, I do not intend to prove to you here the existence of God. God does not show himself, you can only feel Him, thats all, He is alive. What I am going to do is this: among the many, many rational proofs that have been adduced to prove the existence of God, I will consider these three as well as the history. The first evidence is common sense. La Bruyere said: I feel there is a God, and I never feel the opposite, this is enough to deduce that God exists. Unamuno, being more violent than the Frenchman in his reasoning, was no less logical. It is not our reason, he shouts from the bottom of his Tragic feeling of life, which can show us the existence of a Supreme Reason The living God, your God, our God, is in me, is in you, He lives in us, and we live, we move and we are in Him. If you study the subject slowly, you will come to the conclusion that Van Steenberghen puts before you when he speaks of hidden God. Men do not rebel against God, because that goes against all reason, but against the abuse that has been committed. of the name of God, Averroes called it Creative Spirit, Aristotle, Organizing Intelligence, Spinoza, Immanent Principle, Maeterlinck, Instinctive Force, Marx, Material Energy, Fichte, Absolute I. For Schelling, God is called Nature, for Hegel, also Spirit For Schopenhauer, Will, for you, maybe, something All those names, friend, are worth to God and are, in fact, the recognition of his existence. The second evidence that I offer you is that which deduced from the hierarchy of causes, which Aristotle already explained. The reasoning is simple: there is no effect without the cause. The chair in which I sit at home was made by a carpenter, using the wood he took from a tree. This thesis is considered somewhat antiquated, but the truth is that its argument is persuasive. If there are created causes that produce effects, there must have been an uncreated cause that gave rise to all the other reasons and these are for the purpose. That Principle, this First Cause, is what we call God. My third test is also Aristotelian. In the world there is change, there is movement, and this movement leads us unerringly to a first immobile Cause, to a First Motor. The physical sciences tell us t hat matter is inert. So, if the matter is inert and the material world moves continuously, it is that there is a Principle outside matter that gives life to movement. When Newton came up with the laws of attraction, he merely focused on the fact of attractive power, but without saying that this power was in the matter. Newton was a believer, and with all his science said he did not recognize any other power apart from God. God explains that the existence of movement and movement is, in turn, another proof of Gods reality. That First Engine that launched the movement of the Universe is also Creator and Personal Being. Now, let me tell you a story. A man went to a barbershop to cut his hair and trim his beard. While the barber made his trade, he engaged in a pleasant conversation with him. They talked about many things and several subjects. Suddenly, they talked about God. The client was a Christian believer, while the barber had many doubts. The barber said: Look, gentleman, I do not believe that God exists, as you say But, why do you say that? the client asked. Well, it is very easy, just go out to the street to realize that God does not exist, or tell me, perhaps if God existed, would there be so many sicknesses? Would there be abandoned, children? If God existed, there would be no suffering or so much pain for humanity. I cant think that there is a God that allows all these things. The client was thinking a moment but did not want to respond to avoid a pointless discussion at that time. The barber finished his work and the client went out of business. As soon as he left the barbershop, he noticed a man with a beard and long, long hair in the street. Apparently, it had been a long time since he had a haircut he looked very disheveled. Then he went back to the barbershop and said to the barber: Do you know something? Barbers do not exist. How do they not exist? asked the barber. If Im here, and Im a barber. They dont exist! said the client They do not exist because if they existed there would be no people with long hair and long beard as long as that man who goes down the street. Ahh, the barbers do exist, what happens is that these people do not come to me. Exactly! said the client that is the point, God does exist, what happens is that people do not go to Him and do not seek Him, that is why there is so much pain and misery. References (2018). Retrieve from https://www5.csudh.edu/phenom_studies/greekphil/greek13.htm Jean de La Bruyre (16451696). Characters. 1885. Retrive (June 28,2018) https://www.bartleby.com/351/16.html (2018, June 27). Retrieve June 28,2018 fromttps://www.youtube.com/watch?v=DW6v8Q_WXe4