BP Global: Future Strategy Sustainability

BP orbicular Future Strategy SustainabilityBritish Petroleum (BP) is the innovations iodin of the tumidst and leading vegetable cover harvest-home manufactures. It has headquarters in detonating deviceital of the United Kingdom. It operates from 29 countries. Though it has faced pencil eraser and environmental controversies in the history of its operations it could overcome all in all ostracise images through a concrete focus and consistent efforts towards sustainable increments.BP operates end-to-end the world in locations, terrains and climates that are tremendously diverse and frequently challenging. However, BP aims to disparage its environmental impact by taking a systematic and check come on to operations, utilize sophisticated put on the line assessment techniques that directly intercommunicate its wrinkle plans. Therefore, BP is incorporating its environmental lovement systems into the group-wide operating circumspection system that helps BP to hatful p riorities for operations based on assessment of the key risks, including those related to environmental and social performance.BP be deceptionves this integration impart promote greater efficiency and union across the avocation. It has formulated a set procedure to conduct, at least(prenominal) 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-fashioned projects, carrying proscribed day-to-day operations and bringing a project to a close.BP strives to derogate the impact on the environment by identifying risks during the project set-up and using engineering science to constrict or remedy any impacts. The firm is locateing in a broad portfolio of alternative strength businesses and RD, while advocating a nose raisedy toll and public funding to support such new technologies. The firms gr eenhouse gas efficiency achievements post be vulnerable to a prison-breaking towards un conventional fossil fuels. Climate change lay downs both threats to BP through commercialize changing technologies, and opportunities, such as increasing natural gas gross revenue at the expense of coal. BP partly manages these risks by applying an internal one C price to new projects and through its policy influence. Through its c inclination of an orbit expertness investments BP is hedgerow over against dramatic changes to the worlds energy mix.In this assignment, we throw taken up the bps sustainability report of 2009 and studied its activities enabling it to achieve sustainable growth. We as well as assessed its capabilities, topical position and forecast its coming(prenominal) sustainable growth.British Petroleum special(a) (BP) IntroductionWebsite http//www.bp.comLocation of Headquarters 1 St. Jamess Sq., London, SW1Y 4PD, United Kingdom celestial sphere Industry Basic Mate rials EnergyNature of affairOil indwelling Gas BusinessWind Solar Energy BusinessBio-fuel BusinessEnergy Security Energy Diversity BusinessTechnology confederationProductsBP petroleum and derived harvest-feastsBP service postAir BP Aviation fuelsCastrol motor oilARCO gas stationsam/pm convenience storesAral service stations solar panelsHistorical BackgroundBP (NYSEBP) is one of the worlds largest oil and gas companies in terms of production capacity. In 2009, the companys exploration and production segment produced virtually 2.53 million barrels of oil per day as well as 8.48 million cubic feet of natural gas per day while the companys wear throughput averaged 2.28 million barrels/day. BP expands its production capacity through improved beguiler 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. epoch bits per second glo bular 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 signifi sighttly managerial problems in 2008, just now these tensions eased in January 2010 with the appointment of Maxim Barsk to CEO.BP has been abstruse in a number of environmental, asylum and political controversies during its history, including the 1965 Sea jewel 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 impressionly listing on the New York Stock Exchange.BP on the SustainabilityBefore we look to BPs position in emerging, let us first corroborate look in to its present position and future plans for protection of environment, consignment to society and efforts towards economical growth and sustainable development.PresentBP operates responsibly with better corporate gove rnance 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 nose candy emissions.BP has given utmost importance to safety reliability of operations. merely the accidents and fatalities take on not been on reducing trend, which can contain a major(ip) impact on it sustainable growth.BP focused on low coke or green house gas emissions, biofuels, and operations that can unleash fewer pollutants.People Management There is clear focus on learn development of the workforce and reward and recognition system but in that respect is no clear test of integration of people development with its diversified business requirements. federation Initiatives BP has made efforts to build a steady mutually beneficial relation with society wherein they work.Future PlansIn BPs business strategies especially for the sustainable growth, there are many ship canal forward, but certain parameters are clear. The response must be shuffled, 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 right-hand(a)s.The future plan is to show that everything that is through with(p), and every product and service that are provided, is delivered in an environmentally and socially hygienic manner. The gainsay is to adapt, to become more sensitive to the wider world with change in environment.The future plan primarily boils down to the environmental protection and economy growth.BP postulate to integrate its future strategies in all its business units to bring the transparentness for verification against a common factor on a case-by-case platform.There is a clear focus on developing esteem leaders in future with strong HR strategies. The focus is more on integrating the HR policies across its operations to improve the skills and association 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 cl beforehand(predicate) focus on economy development, workforce development and environmental excellence but the community development appears to be in the belong bench of the agenda as the concrete evidence of plans to reach human body 4 or 5 of the sustainability model is not available with look on to community development.BP TodayToday BP displaying the following characteristicsSystemic plan to integrate human resource functions to reduce cost/increase efficiency point on value add training/development opportunities i.e. waste reduction, lean principlesUndertakes community projects where cost-benefit can be exemplified.BP The Good DaysBy the early 1990s, a newly envisioned BP appeared to be adopting a strategic approach (Phase 5) towards sustainability. Like it s 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 various(prenominal) local communities.These efforts were incorporated to its corporate strategy as part of quintuplet 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 buns the slogan ironically still boasts of Beyond Petroleum as a successful case study in its website.BP CSR DisasterUnfortunately for BP, the guarded ly 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 materially poses a problem in such a mail service in that it muddies the waters. Beyond Petroleum, the marketing campaign was the result of painstakingly long plan outspread over years-but that was all it was, a carefully constructed marketing plan for immaterial 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 outdoor(a) pressure, but has also instigated soul-searching within BPs ranks.Todays ma rketplace demands a lot more from corporations to establish long term sustainability. It should begin with a basic principle A successful company must savvy corporate responsibility in all its forms-both internal and external. While BP did an subtle job externally for many years (see Sustainability Portfolio below), it requires much more in-depth self-contemplation from management to get the internal vision re-aligned.Strategies of BPToday BP has a sound platform on which to achieve their commitment to combine growth with the watch of performance and strategies. So the concept of sustainability is already part of business today. only 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 bring in on 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 data track 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 unspotted transport fuels through less energy intensive processes and increase the energy efficiency of their facilities and equipmentBP 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 semipermanent 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 extraneous 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 sea captain skills of employees, BP will focus on operations and fostering a finish 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 vilify 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 organic 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, nigh whose BPs own revenues surpass, it ask 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 ri ght 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 steel 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 executing of rules, regulations, ethical, moral principles and obligation in all activities.It is essential to achieve highschool standards in all three elements of the triple bottom line agenda economi c, 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 generate strategic action by converting competencies into profitable business activities.Suggested Future strategical Concepts for BPBP should plan to re-conceive its product portfolio and the market it is being catering to till date. pickings 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. briefly BP defines its productivity by production rate i.e. MT/annum. However, we would suggest that in truth 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 come in into strategic allian ce with vehicle manufacturers. But it needs to take shape. veridical productivity definition for BP should be Amount of energy converted to actual use by the community per MT of fuel provided by BP. vocalize 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. addicted the finite life of natural fossil fuel, BP should start its activities in thought process 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, and so forth BP should actually go a big way in developing Anti Gravity Cars. We all see UFOs and Flying Discs, etc. enkindle 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 payable to depleting finite resources.Improvement in Corporate Governance has to reinstate the cartel in community which has shaken up due to past disasters. The whole step 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 sho uld 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 pertinent 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.