However it must be stressed that this BP is worth investing in despite the fact that they are recovering from such events. BP are equipped with the most experienced staff, dealing with the latest technology in alternative energy, “advanced technologies that will unlock the commercial potential of next generation of befouls”, (report, 2012, p. 78) they have been in business for many years now and are one of the first companies to invest into renewable energy and hydrocarbons too.

Brief history BP, started business in the late 20th century dealing in the production of gas and rude oil, as well as marketing and trading with natural gas and liquids and other fossil fuels needed to fuel the economy needs of the world. The Anglo-Persian Oil Company in 1901 was funded by William D’art his investment enabled George Reynolds who was an explorer to be the first to successfully drill for oil in Persia.

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After a lot of deliberation the firm adopted the British Petroleum (BP), this followed after the collapse of a German business whom were formally in charge of the marketing system, “Anglo-Persian acquired not only a major marketing system, but also what would subsequently prove a most useful name. ” (Herein, 2008, p. 58) Despite the events of the horizon spillage, it is still a renowned oil and gas company, which serves billions of people in more than 100 nations, globally.

Moreover the market of alternative energy is currently developing, however, it’s not as profitable as oil, but it is a good future investment with the recently raising environmental concerns, of global warming caused from greenhouse gas emissions. BP recognized this on time and entered the solar market in the year of 1973 Activities of BP BP has a variety of activities ranging from exploration and production, refining and marketing and alternative energy and many more. Exploration and production BP is one of the major employer in the oil and gas industry.

Namely; BP, Castro, Arc, Oral, amp and Wild Bean Cafe© (report, 2012) Pestle Analysis on BP According to Philip Kettle, macro environmental investigates the process of identifying the external forces that influences a company in producing and selling. For the external business environment analysis of BP, the selected analysis tool is PASTEL. This is because the PASTEL framework helps to identify the relative importance of political, Economic, social, technological, environmental & legal factors affecting the company.

Political Influences The rises in greenhouse gases pollutes the air because of the high demand hydrocarbons, it has caused constant meeting and plans with governments around he world who develop energy policies additionally making it hard for groups or businesses to explore oil, Bp have had to develop alternative forms of energy to be cleaner whilst in business. An example of this is when, President Barack Obama, the US president established a National Commission, “dedicated to making offshore oil drilling safer”, (cocas, 2010) on the BP Deep-water Horizon Oil Spill and Offshore Drilling On May 22, 2010. Public pressure and government policy are mandating that green energy become a bigger portion of the electric grid” (Tug Adam, 2012, p. 226). Economical Influences Despite ten Global economic downturn, ten 011 Ana gas Industry every year Increases in profits, as consumption of energy demand increases. This is the cheapest and harmful way to supply energy, when compared to renewable energy, America and China account has the highest consuming nations in oil and gas therefore they produce global warming.

Bp who supplies these nations have to invest a lot of money and gets help from the government etc. , subsidies to invest in cleaner technologies to provide a safer and cleaner environment. “The charge for environmental remediation revisions in 2011 included $12 million in respect of provisions for new sites (2010 $54 million and 2009 $6 million). In addition, we make provisions on installation of our oil- and gas-producing assets and related pipelines to meet the cost of eventual decommissioning”, (report, 2012, p. 2) Social Influences BP are concerned about the environment too. “BP is taking a number of practical steps, including investing in lower-carbon energy products such as befouls and wind, and ventures focused on sustainable energy solutions; and seeking to manage our own GOGH emissions through a focus on operational energy efficiency’, (report, 2012, p. 0). Technological factors BP needs new technology to invest in clean energy they have already made use of wind mills, solar panels.

With the oil and gas sector demand is very high so they would need more efficient drills to find oil, “BP is a founding member of the Auk’s Energy Technologies Institute (ET) – a public/private partnership established in 2008 to accelerate low- carbon technology development”, (report, 2012, p. 74). Bp is financially established so they would want to invest in technology they would leverage from. Environmental Influences Multinational Monitor has scored BP, gloomily in terms of being environmentally fatty.

It has been named amongst 10 worst corporations, “BP among the top 10 polluters in the United States” (monitor, 1992). Built on its environmental and human rights records. In 1991, based on EPA toxic release data, BP was named as the most environmental polluting company in the US. This reason being through the burning of polluted gases at its Ohio refinery, which it was fined $1. 7 million. In July 2000, BP was made to pay $10 million fine to the EPA for its management of its US refineries. It is also responsible for 104 oil spills between January 1997 and March 1998. Legal factors

The national commission report created by president Obama is one of many legal requirements BP has regulated with and has to abide with most of them. BP bans dishonesty amongst its officials through set policies that are mandatory to be followed. BP SOOT Analysis Strengths Bp has a strong market position despite the oil spill that happened in the Gulf of Mexico, teen nave vertical Integrated operations all over ten world, Ana teen nave a renowned presence about them. Weaknesses The main downfall for BP is that the renewable energy industry and the oil industry are totally different.

BP are not experienced with green energy, they are therefore unserviceable impractical in the alternative energy sector. After the oil spillage, BP has struggled to shed the bad image and therefore tried to sell itself as a company concerned with environmental safety has been a problem. This has caused a lot of controversies and criticism. Opportunities Bp have started to invest in research and development on how other forms of greener energy can be used, in replacement of non-renewable energy.

Current consumers have increased their demand; especially in North America where the demand for natural gas is high. Additionally, the increase in mechanization and reduction of locomotives in China has increased demand for refined products and petrochemicals. Such an increase has boosted the revenue outlay for the company. In Africa, BP has discovered oil and gas spots where it can increase its resources. Finally, due to environmental degradation, the company has resulted to alternative energy business. This implies that the future of the business operations is not at stake.

Threats Other big companies like shell have also invested in solar and wind energy so it is a competition for BP. There are now a lot of environmental regulations that could cost BP if they breach any. Porter’s five forces for BSP Porter’s Five Forces Analysis is used in understanding the sector in which the business organization operates. The focus is on the Barriers to Entry, Supplier Power, Threat of Substitutes, Degree of Rivalry, and Buyer Power. It shows whether the business entity is affected by the five forces in the economy.

Threats of New Entrants Bp have a renowned presence, both positive and negative about them so consumers would think twice before choosing another Buyer’s Power The buyer bargaining power is moderate. Consumer demand for solar energy outpaces the supply, as the production is limited due to slow development of the liar industry. Currently, consumers have moderate bargaining power, as the alternative energy product is rare in the economy Supplier Power As the alternative energy business for BP is with the solar and wind renewable, the supplier power is unusually high.

The business operation is new in the economy; therefore, number of suppliers for the product is small. Threat of Substitutes Presently the threat for new substitutes is weak. This is due to the high price linked with accessing solar energy, to switch is very expensive. Rivalry BP Is not experiencing strong Ministry really Trot Its operations I Nils NAS Eden credited to great production costs of solar energy. Adding up, solar energy requires advanced technological awareness, which is expensive in the sector.

Conclusion BP has experienced a growth of negative reputation and declining profits, after the oil spillage. For it to realize its market leadership, BP needs to transform and further invest into renewable energy industry?focusing openly on the making of solar and wind energy. This is because more people are keen to move to renewable for a cleaner environment, and BSP collaboration with home depot clearly illustrates this cause of the big returns the project has had. With preceding practice and possible income outlay in the solar industry, BP will emerge as the leading company in the sector.