British Petroleums Marketing Strategy in a Changing...

BP s Marketing Strategy in Changing Business Environment 1. Introduction Multinational corporations operating in complex and diverse political, economic, social and cultural environments have to improve, adjust and develop their marketing strategies on a regular basis (Bamberg, 2009:46). Changing environmental factors create new conditions for their operating, which often require considerable and serious changes in strategic decision-making and positioning of companies. Inflexible and rigid firms will cease to be competitive in the market every time changes occur (Fight, 2006:85). The aim of the present report is to identify the past and present changes in marketing strategy of British Petroleum, which have occurred under the†¦show more content†¦Generally, it is possible to observe two main tendencies. First, British Petroleum attempts to hedge political risks in the oil producing countries by means of partnership and deals with the governments. For instance, BP signed a contract with the Russian state-run oil company Rosneft in 2009 (Hernandez, 2011:1). Second, the company evacuated its personnel from northern Africa because of growing political instability in Tunisia, Egypt and Libya. Simultaneously, BP develops its cooperation with emerging economies in Asia, which are more politically stable, namely India (Hernandez, 2011:1). These changes were necessary in order to avoid political risks in the countries, which prove to be the leading producers of oil. Geopolitical instability in the world and political tensions in these countries can be viewed as important factors that have led to the fluctuations in oil prices, which may be illustrated by the following graph. As it may be grasped from the graph, crude oil price reached its maximum in 2008 and constituted as much as $91.48 per barrel (IBP Oil, 2011:1). The period from 2002 to 2008 was marked by the gradual rise in crude oil prices. In 2009, the indicator was equal to $53.56, and oil prices started growing again (IBP Oil, 2011:1). It may be argued that fluctuations in crude oil prices are also the result of economic influences. It is obvious from the graphShow MoreRelatedHess3375 Words   |  14 PagesThe Hess Corporation is a leading pioneer in the energy industry sector, which conducts Marketing and Refining (Mamp;R) as well as Exploration and Production (Eamp;P) operations in 23 countries. They have a concentrated focus in the exploration, production, purchase, transportation, and sale of crude oil and natural gas as well as markets refined petroleum products, natural gas, and electricity. This company owns thousands of Hess gas stations, which include small convenience stores or Dunkin DonutsRead MoreWhy Professional Development Is So Important Essay2882 Words   |  12 Pagesand importance of professional skills development will be proved from the macro social trends, market economy, environment situation and angles of enterprises and personal development. 2 Discussion The answer is sure for the demand for professional skills. â€Å"Recent figures show that organizations are becoming increasingly diverse† (Eden, Michelle and Daniel, 2009). From a global business perspective, basically all the companies are focusing highly on the talents needing and training. â€Å"InvestmentRead MoreThe Gulf Coast Oil Spill Extending the Theory of Image Restoration6493 Words   |  26 Pagescorporate image of BP has been severely challenged. The company has used many strategies to preserve and restore the corporate image, and has sought means to mitigate the intensity of the ongoing threat to individuals, businesses, and a delicate ecosystem. Among these means are interacting with individuals and interest groups through social media channels. Benoit’s (1995) theory of image restoration discourse posits various strategies corporations use to restore their image during a crisis. The BP crisisRead MoreIsis Paper13397 Words   |  54 Pagesliterature in the international business, strategic management, organiz ation design, and information system (IS) disciplines this paper develops a conceptual framework for analysing information management in the global enterprise, providing a basis for organising existing literature on the topic and for creating a map of the ï ¬ eld. This framework is structured around four domains: global business drivers, global business strategy, global business model and global information strategy. It highlights the role