British Petroleum Strategic Management Case Study

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1.1 Introduction of the company

Strategic management defined as a method to handling company resources to attain its objectives and goals. This report will critically analyse the practices of British Petroleum that operates in energy industry. British Petroleum is among the biggest gas and oil businesses, which delivers light, mobility products as well as service to people across the world. The organisation has its headquarters in London and was found in 1908 (BP. 2025). British Petroleum (BP) has gained an experience of around a century, and has transitioned within an incorporated energy business doing products, examination, distribution, and purification of gas and oil and also renewable sources of energy. Vision of BP is become an international leader within the energy industry, renowned for its pledge towards sustainability, brilliance and safety. The company aim to form long-term value for its stakeholders and also at the same time contribute to wellbeing of communities within energy sector (Mission, Vision & Core Values of British Petroleum. 2024).

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Furthermore, the mission of the company is to reimagine energy for overall planet and people. It is committed to offering reasonable, sustainable, and reliable energy solutions to fulfil wants of present and future. The strategic objective of BP is to grow the upstream, concentrate the downstream, as well as invest with discipline in change or transition (BP. 2025) Further, it also involve minimising its carbon footmark, amplifying investment within clean energy and exploiting technology in order to attain operational brilliance . The organisation operates within around 70 regions around the world, and its key products involve refined goods, natural gas, crude oil, lubricant, renewable energy, like wind power and solar gas. The service offered by the company involve oil products, refining and exploration to retail and marketing of gasoline and other products related to energy. In addition, the company generated a revenue of 189 billon US dollars in the year 2024 (Operating revenue of BP from 2005 to 2024). The employee size in BP in the year 2024 has been 100,500 (BP: Number of Employees 2010-2025 | BP. 2025).

1.2 Current Business Scenario

British Petroleum is presently circumnavigating a fast evolving international business atmosphere, characterised through ever-changing marketplace dynamics, amplifying regulatory strains, and a rising focus on sustainability. The energy industry has been experiencing a revolution, with a growing emphasis on decreasing carbon releases and clean energy (Hasan et al, 2024). In addition, the energy industry is intensely competitive, with numerous chief players challenging the company’s share in the market.

Competitors such as TotalEnergies (TTE), Shell and other developing renewable energy organisation puts substantial challenges on the company’s profitability and growth. Historically, the company has been a chief player within gas and oil domain, though the growth of renewable energy and evolving customer needs for cleaner sources of energy are changing the competitive forces. At present, the company ranks among the highest gas and oil companies worldwide, however it is dealing with great force to familiarise with the evolving industry environment. The competitor of the company has taken significant steps to expand their energy portfolio by investing significantly within sustainability practices and clean energy (Strielkowski et al, 2021). British Petroleum’s comparative performance within the sector is solid, yet it falls behind is some aspects in context of energy revolution pace.

Strengths of BP involves is worldwide presence; the company has presence in around 70 countries which offers it with a competitive advantage. It has a robust brand presence and an extensive history that increases investor and customer confidence in the company. Further, its other strengths involve diversification and advanced technological integration. The company has progressively expanding its energy portfolio, and made investment within latest technologies. Although, the few instances in like Deep-water Horizon oil spill, has resulted into significant reputational damage, impacting its relationships with customers and stakeholders (Hoang et al, 2021). Further, despite of this effort to expand, the company still intensely depends on gas and oil for substantial segment of its revenues.

Furthermore, core competencies of BP lies within its proficiency in oil purification, extraction, and also exploration, and its wide infrastructure network. The company also have robust abilities in energy handling and technological creation and innovation that are crucial within an industry where operational effectiveness is important (Deshmukh et al, 2023). In addition, the company’s recognised relation with local bodies and governments offers it with a beneficial position in tapping into new marketplaces and circumnavigate legal challenges.

Moreover, competitive advantage of the company is within its technological proficiency, brand establishment or recognition and widespread presence worldwide. BP’s long-lasting relations with stakeholders and governments globally also aid to uphold a steady market presence, also during unstable periods. Along with this, its financial power enables it to make investments within new energy renewables and technologies, placing the organisation for development in the long run, inspire the present market issues. Although, the company experiences a progressively competitive landscape since competitors such as TTE and Shell took aggressive steps within renewable energy domain (Akaev and Davydova, 2023). For retaining its competitive edge, a main weaknesses is BP’s slow place in shift towards renewable, clean energy. Thus, the company’s capability to transition to clean energy, and also at the same time upholding its gas and oil operations would determine its growth in the future.

VRIO Analysis

Utilising the VRIO framework, British Petroleum competitive edges could be moreover evaluated. Key dimensions of the model in context of BP are as follows:

• Value: Technological abilities, brand value and extensive gas and oil infrastructure are significant assets which donate its market positioning. 
• Rarity: the Company’s position as among the biggest energy businesses offers it rare accessibility to wide resources as well as operational competencies. Though, its several competitors have similar abilities (Adjei and Ackah, 2023).
• Imitability: Though the company’s infrastructure and technology could be imitated by its competitors, its international network and long history are extremely tough to replicate. 
• Organization: The Company is well placed to leverage its capabilities and resources, with a robust corporate structure, worldwide reach and financial resources.

Porter’s 5 forces model

Forces	Impact
New entrants’ threat	Low; as the energy sector has great entry barriers such as requirement for technical proficiency, legal barriers and more.
Bargaining power of suppliers	Moderate; BP’s providers of raw materials and equipment have moderate power of bargaining, though its purchasing power and international reach aids to eliminate such risk (Appiah et al, 2021).
Buyer’s bargaining power	High; particularly with growing shift to alternative energy resources.
Substitutes’ threat	High; rising want for renewable energy sources, represents a substantial threat to the company’s business.
Competitive Rivalry	High; competition is mainly intense with renewable energy industry. BP faces fierce competition from TTE, Shell and other leading and emerging energy companies.

Moving ahead, British Petroleum is presently at the maturity phase of business lifecycle. BP’s organisational design it designed to assist both conventional gas and oil operations as well as developing renewable energy practices. Though, the organisation required to familiarise its structure to nurture innovation and quicken its shift towards clean energy (Capobianco et al, 2021). The strategy of BP should evolve in order to inscribe external forces and also at the same time remain competitive within both developing and legacy marketplaces.

2. Environmental Analysis and need for change

2.1 PESTEL Analysis

Political Factors:

The energy industry is extremely influenced through political aspects, mainly within regions where the company works. Political unpredictability, government rules and energy policies within oil-rick areas pose dangers or risks to the business operations of the company. For instance, the company experiences extreme inspection from global organisations and governments regarding its environmental initiatives and carbon releases (Al-Haidous et al, 2021). In addition, the political landscape within regions like European Union (EU) and the US is pressurising for rapid shift to renewable energy, generating both opportunities as well as threats for the company.

Economic Factors:

The global economy straightaway effect the company profitability and revenues. Economic inflations or recession impact demand of oil, as observed at the time of pandemic when prices of oil fall drastically. While, recovering markets can result into increased energy usage. The company should also handle varying rates of oil that could substantially affect its profitability. Along with this, the worldwide push towards decarbonisation and economic sustainability is forcing the company to expand its energy portfolio, with augmented investments within renewable, clean energy (Hasan et al, 2024).

Social Factors:

Evolving preferences of customers and social nature are pivotal aspects influencing the company. Rising public understanding about environmental degradations and climate change has pressurised the company to employ more clean energy solutions. There is a rising want for energy solutions which are environment-friendly and sustainable. Such transition is pushing the company to quicken its shift from crude oil or fossil fuels towards renewable, clean energy sources, like hydrogen, wind and solar energy (Strielkowski et al, 2021). Failing to match with such expectations can lead to loss of consumer faith and eventually share in the market.

Technological Factors:

Technological innovation is a main driver of shift or change within the energy industry. Success of the company is partially reliant on its capability to adopt and make investment in latest technologies like energy storage appliances, edge-cutting drilling tools and more. Innovation within energy effectiveness and carbon capture and storage can aid the company to fulfil its environmental objectives and also at the same time remain competitive (Hoang et al, 2021). Though, it experiences challenges aligning with the fast pace of technological improvement, mainly within renewable energy industry, in which other competitive players are leading.

Legal Factors:

Legal aspects, like safety guidelines, cooperate governance and environmental regulations, plays crucial role within the company’s operations. BP has death with legal issues in the previous times, and that has resulted into considerable financial and legal consequences. Presently, the company should adhere to firm laws governing environmental safeguarding, organisational responsibility as well as carbon emissions (Deshmukh et al, 2023). Legal problems associated with investment in renewable energy and environmental influence evaluations are continuous, and the company should circumnavigate such complicated legal environment cautiously.

Environmental Factors:

Environmental issues are at the centre of the business strategy of the company, mainly since BO shifts to more clean energy solutions. The international demand for climate action has led to amplified legal pressure on the company to decrease its carbon footmark. The progress of the company relies on its capability to eradicate environmental concerns, like oil spills, as well as its dedication to minimising emission of greenhouse gases (Akaev and Davydova, 2023). In addition, the company’s environmental strategy requires to line up with its sustainability objectives.

2.2 SWOT Analysis

Strengths

The company’s operations span around 70 regions, offering a substantial competitive edge. Such global footmark enables BP to expand its risks as well as access numerous energy marketplaces. Further, British Petroleum is an established leader within gas and oil sector with a history of market leadership and innovation. In spite of hindrances such as Deepwater Horizon Oil Spill, the company’s brand remains solid in several marketplaces. The company has an extensive history of technical innovation within oil purification, exploration, as well as energy creation (Manjily et al, 2024). Its research and development practices renewable energy tools and carbon capture position the organisation well. The company’s considerable financial resources allow BP to make considerable investment in sustainability, technology and research projects.

Weaknesses

A substantial segment of the company’s revenues still comes from gas and oil that exposes BP to risks related to varying prices of oil and rising demand for renewable energy. The involvement of the company in the Deepwater Horizon tragedy and also its succeeding legal challenges have damaged BP’s reputation. Though the company has made significant strides to recover, these events still impact trust of consumers and connections with the stakeholders. Though the company has begun investing within cleaner, renewable energy, the speed or pace of shift had been slowed in comparison to other competitive players (Adjei and Ackah, 2023). It hamper the capability of the company to invest in rising want for renewable energy.

Opportunities

The international transition to renewable energy represent substantial opportunities for the company to expand its portfolio. Diversifying its investment within hydrogen, wind and solar energy could aid the company line up with upcoming demands in the market. Further, new tools and technologies in energy storage, renewable energy, and carbon capture represent opportunities for the company to lead within sustainability efforts and at the same time uphold profitability (Appiah et al, 2021). Along with this, partnership with governments, research organisations or energy companies on renewable energy schemes can offer the company with valued resources and expertise, improving its shift to renewable energy.

Threats

The company faces tough competition from both conventional and emerging gas and oil companies like TTE and Shell and new companies within renewable energy industry. Moreover, firm environmental laws globally, mainly related to pollution and emission can lead to increase compliance costs as well as operational hurdles for the company. The energy sector is greatly susceptible to variations in prices of oil, economic recessions and geopolitical strains. Dependence of BP on gas and oil for revenue makes its susceptible to such market transitions. In addition to this, within the present financial environment, ESG criteria are progressively impacting investment decisions (Capobianco et al, 2021). Since investors shift away from domains seen as unsustainable, the company experiences a drop in investment, restricting its capacity to mobilize resources for diversification and innovation.

Effectiveness of BP’s response to environmental factors

The company has taken significant steps for inscribing the environmental influences recognised via SWOT and PESTLE analysis. For example, BP has committed to attain net zero emissions by the year 2025 or sooner, and aid the world to get to net zero (BP. 2025). And for this the organisation is making investment in solar power as well as wind power stations. Such commitment lines up with the worldwide trend to decolonization as well as places British Petroleum as a progressive or forward looking organisation. Although, the company’s response to such environmental aspects has not been deprived of hurdles. BP’s shift to renewable, clean energy had been slower in comparison to other competitors, as well as its consistent dependency on gas and oil for revenue remains a considerable weak area (Manjily et al, 2024). In addition, the company’s practices to augment its image after the Deepwater Horizon events have been hindered by persistent disbelief of stakeholders and consumers.

Overall, British Petroleum should make its transition towards renewable energy fast and expand its revenue channels to familiarise to the fast evolving energy sector. Through integration of new tools and technologies as well as inscribing environmental issue, the company can reinforce its market positions as a leading business within the worldwide energy industry. 

3. STRATEGY IDENTIFICATION AND IMPLEMENTATION

3.1. Strategy to overcome challenges

Most organisations including British Petroleum has faced many challenges during Covid-19 pandemic. Because of pandemic negative impacts, the company has changed its business strategies and move towards the cost conservative approach in order to sustain and remain competitive in the energy sector. British Petroleum cut down the hydrocarbons spending at the same time keeping energy-transition strategies on track. The company has announced severe cost-effective measures but still there was a question that whether the demand of oil will ever return to pre-Covid levels (Collins, 2020). In spite of efforts to diversify into the green energy industry, BP highly depends on the oil and gas in terms of earnings. This dependency exposes the organisation to the whims of volatile oil prices that directly impacts its financial situation. It is important for the company to focus on new strategy to improve operational effectiveness and financial stability. A proper strategy can be selected for the BP by Ansoff Matrix.

Ansoff Matrix

Market penetration: This concept is related to increasing sales of existing goods in existing market.

Market development: This strategy pays attention on selling existing goods in the new market.

Product development: In this strategy, an organisation launch new products to existing market (Pereira Ferraz Soares Ferreira and Marques, 2024).

Diversification: It is the concept of entering into completely new market with new products.

From analysis, it has identified that British Petroleum must focus on market penetration strategy. Under this strategy, the company focuses on renewable energy sources along with oil and gas in the markets where BP already operates. The company should invest more in renewable energy in order to present themselves as unique worldwide. BP can invest in wind, solar and other green energy sources. This strategy will be profitable for the business because most businesses and people are preferring green energy sources due to its benefits. It will allow British Petroleum to diversify its business operations and minimise its reliance on fossil fuels.

Strategy formulation refers to the method of using the proficiency to provide support to the future objective of the organisation. There are two strategy tools which are given below:

Incremental Decision Model

In this model different expansion stages take over and these phases are divided into smaller steps. Each successive announcement of the element improves activity to the previous statement. It involves:

Design and development: The model utilise design and development stage each time while new feature or new products have to be produced (Harris, 2023).

Testing/experimenting: It checks the performance of each existing function within the system under development and extra functionality.

Implementation: After testing phase, the team confirm that everything is working according to planning.

Figure 1: Incremental Life Cycle Model

(Source: Verma, 2015)

Advantages of model

• There is less threats and little awaiting time
• Various development cycles can take place
• More flexible in working easier to test

The Rational Model

This model utilises a structured and logical procedure in order to reach at the best potential solution through evaluating alternative and utilising data. The idea of logical selection is easy to view in commercial theory (Bhui, Lai and Gershman, 2021). For instance, most individuals require to get suitable products at base price, due to this, the business will determine the benefits of specific target group like how valuable or appealing is it. It includes seven phases such as;

• Define problem
• Identification of target market
• Produce alternative solution
• Evaluate solution
• Choose best solution
• Apply decision
• Measure the decision

Figure 2: Rational Model

(Source: Rational Decision Making Model, 2025)

Advantages of model

• It is scientific method and based on facts
• Low possibility of errors than other approaches
• Allow decision-makers to act on complex issues

3.2 Implementation of strategy

Strategy implementation refers to the procedure of changing the strategic plan into the action. It is necessary for changing the strategies into actionable stages, aligning resources and making sure organisational alignment. The activities which are mentioned below are necessary to apply the business strategy efficiently and successfully.

Step 1: Tactical structure and market research

Goal: British Petroleum aims to increase investment in green energy solution to achieve financial stability by 15% within next 2 years.

In line with the market penetration growth strategy of Ansoff Matrix, British Petroleum increases sells of existing products like renewable energy solutions. The company focuses on wind, solar and other renewable energy other than oil and gas. First of all, market research would be conducted to know how many companies are offering renewable energy (Tawse and Tabesh, 2021). Market research helps in evaluating the demand of renewable solutions. Through market research, BP gains the valuable insights regarding latest market trends as well as competitive landscapes in the energy sector.

BP will achieve the goal through increasing the efforts of developing renewable sources and target new market. The company targets the businesses who prefer eco-friendly and green energy sources. The firm also increases the production of low-carbon hydrogen. By gaining all relevant information, the company develops marketing campaigns and ultimately increase sells of renewable energy.

Step 2: Determining resources

Management informs about the new business strategy to the staff members in exchange the company will get support of them. The firm determines the roles and responsibilities of the each department, including operations management, production, supply chain management, sales and marketing, human resource and finance and marketing (Edwards, 2021). The company would change the existing working ways with the help of human resource management. The strategic implementation plan would involve proper planning and allocation of budget to execute the strategy, making sure that the company will not face budget related issues in future.

Step 3: Identify KPIs

Evaluation and monitoring of the strategic implementation process is crucial step as it facilitates to identify the performance of new strategy. It also helps to find out any bottlenecks and issues in the existing business strategy. Some key performance indicators will be utilised to track the performance of business strategy.

Customer satisfaction rate: It is a metric that evaluates how happy or satisfied the customers with the efforts of the company (Agag et al, 2023). British Petroleum will apply the customer satisfaction rate KPI in order to know the experience of the consumers. Through using the metric, BP also identifies the areas of improvement.

Net profit margin: It is a metric which involves all elements of firm’s operation and forecast profits on the basis of current revenue (Widiasmara et al, 2022). BP will use the net profit margin metric in order to identify overall financial standing of business after applying the growth strategy.

Market share: This metric shows the percentage of the market that an organisation controls (Baehre et al, 2022). By utilising the metric, British petroleum understand the competitive position of the company after increasing the efforts in renewable energy category.

Step 4: Continuous improvement

The company pays attention on adapting the plan as well as resources as per requirements on the basis of performance and feedback. The management seeks for feedback from managers, subordinates and workers and collect their valuable review about overall implementation process. It helps to find out the strengths as well as areas of improvement. After knowing the improvement areas, the management will quickly make adjustments in plan to achieve the goal as planned.

Advantages

The business strategy such as; market penetration is highly useful for the British Petroleum. As mentioned above, the company highly focuses on oil and gas and pay less attention on renewable energy. By this strategy, the company will focus on increasing sells of green energy and stand out in the market. Nowadays, government also encourage the businesses and people to use green energy (Krakowski, Luger and Raisch, 2023). Therefore, after investing in renewable energy and reducing dependency on oil and gas, BP will definitely increase its financial health and market share, leading to increased competitive advantage. It facilitates to make large base of customers because people are now choosing the renewable energy sources for their homes.

Disadvantages

However, it is not easy for the company to immediately make changes in the existing working ways and implement new strategies. In the implementation process, the company may face the problem of resistance to change because it is not easy for the staff members to quickly change their working ways and adopt new ways to perform the activities and tasks. Fear of change is a considerable issue in strategic implementation because it hinders the effective execution of new business strategies and initiatives. British Petroleum also may face the supply chain issues and availability of materials and components.

Ways to enhance innovation and readiness to change

Before applying the changes, it is most important for the British Petroleum to make sure the willingness of change. The company would offer the training programs at the workplace so that those staff members who are aware about the green energy learn about the renewable energy sources like solar, wind and hydropower. The organisation would apply the solutions are applied in cost-effective way (Gfrerer et al, 2021). BP manages the different aspects such as; finance, human resources, production, supply chain, marketing and sales throughout the implementation procedure. In addition, the firm would offer the essential support in order to make sure the implementation success.

4. LEADERSHIP VALUES TO MANAGE STRATEGIC CHANGE

4.1 Leadership styles and Organizational Performance

Leadership refer to the capability of an individual or a group of people to inspire and direct the employees of the company. Leadership needs developing excellent and challenging decisions, making realistic targets and providing staff members with the expertise and resources to achieve those targets. An effective and strong leader retain the various qualities and traits such as; strong communication, self-belief, executive skills, risk taking ability, adaptability and flexibility, smartness and reactiveness in time of crisis and advance logical and reasoning abilities. There are some effective and beneficial leadership styles given below:

Democratic leadership: It is also known as participative leadership style and this kind of approach is deep-rooted in autonomous philosophy. Democratic leaders motivates the employees to take part in the decision-making process and give value to different perspectives (Hilton, Arkorful and Martins, 2021). Advantages: It enhances the enthusiasm or interest of the staff members in their jobs. It boosts the job satisfaction among the employees and increase innovation in the company. Through using democratic leadership approach, the company encourages workers to think creatively to solve complex problems. Disadvantages: The major drawback of this style is slow decision-making procedure. Leaders may also feel overwhelmed because it require lots of time and efforts.

Delegative leadership: This leadership approach also known as laissez-faire. Delegative leaders trust their workers to take ownership of decisions and work related tasks. Leaders give more power to the staff members so it is considered as less intrusive. It can be highly beneficial style if the team is talented (Kholis, Handoko and Agustina, 2023). Advantages: It allows the skilled and talented employees to leverage their competence and expertise and complete work on time. Disadvantages: Some staff members may be not sure how to use their time and may not be aware about the expectations of the firm. The delegative leadership is not suitable in crisis management due to lack of centralised decision-making.

Transactional leadership: This leadership style emphasises on motivation of staff members through offering rewards or punishment for their performance. Following the instructions, guidance and commands of the leader is the key goal of the workers (Dong, 2023). Advantages: It involves several advantages like clearly defined roles, well-organised reward and punishment system, productive work environment, work well in accomplishing short-term objectives and measurable outcomes. Disadvantages: This leadership style can supress creativity and innovation because of its rigid nature. It assumes that all workers are only encouraged by rewards and punishments.

Autocratic leadership: It is also called authoritarian leadership in which leaders uphold strong control all business operations, decision-making procedure and staff members. This leadership style works best when a leader needs to make quick decisions. Staff members know exactly what is expected of them by the company (Hogg, 2021). Advantages: It offers clear direction, fast decision-making, responsibility and order. It helps in managing crisis in an effective way. It reduces the potential of mistakes because overall process is control by only leader. Disadvantages: However, it hinders the creativity and innovation as leaders do not allow the employees to give creative ideas and solutions to the problems.

Transformational leadership: It is a leadership approach in which a leader motivates their followers or employees with a dreams and after that inspires them to accomplish it. A leader acts as a role model for the team through increasing their engagement in their projects. Transformational leaders usually develop a convincing vision for future. Advantages: It maintains workplace integrity and define clear objectives and vision (Greimel, Kanbach and Chelaru, 2023). Transformational leadership helps to reduce employee turnover ratio and enhances loyalty among staff members. Disadvantages: The leadership approach give priority to the long-term objectives over short-term objectives. It increases the possibility for burnout and needs high level of communication in the workplace.

British Petroleum embraces and applies a democratic leadership approach. In the company all decisions related to business are made by the board members and CEO (chief executive officer). They lead the everyday operations and functions of the company and responsible for implement and supervise the sustainability initiatives. Members of board and CEO make strategic decisions and also involves other managers and executives in decision-making procedure (Agazu, Kero and Debela, 2025). It encourages the collaboration and creativity within the organisation. All leaders and managers of the BP has strong relationships with each other that reflects while applying any business strategy in the company. Democratic leadership style facilitates the company to improve staff member engagement, enhance coordination and higher levels of innovation. Moreover, transformational leadership helps in increasing satisfaction and dedication of the staff members towards their job. The leaders of the British Petroleum extremely concentrates on building positive work environment that further help in boost morale of the employees.

Management of the British Petroleum highly pays attention on the corporate social responsibility (CSR). It is most crucial for the companies to focus on welfare and preservation of the community and environment while focusing on financial benefits. Corporate social responsibility refers to the business model through which organisations make a determined effort to operate business in a way which improve instead of damage the community and environment (Zhang et al, 2021). BP is highly responsible business and through focusing more offering renewable sources, the company directly contributes to the protect environment. In today’s globalised and dynamic world, commercial social accountability is significant as it increases trust and reputation, leading to enhanced business performance. In addition, employees are attracted to the firms that has decent track record for responsible performance like use sustainable and ethical practices. The firm could apply some strategies to make their business more responsible.

• Apply a corporate system of philosophies
• Pay more attention on wellbeing and protection of the employees
• Contribute to preserve the natural environment and society
• Remain intelligent about contributing capital
• Do not use unethical practices and greenwash approach to show themselves ethical business

Leaders extremely influence the culture of the organisation because they are responsible for developing the vision, short-term and long-term goals, values and purpose among the staff members. Moreover an effective leader assists staff members in improving and learning new skills, knowledge and abilities and mentoring them to facilitate the company to accomplish its objectives. Leader influences the behaviour of employees that facilitate in building healthy and positive environment. This further helps in developing better place that ultimately increase interest of employees in their work and improve productivity and performance. Leaders lead by example and play a role of motivator while changing ways in the workplace. Through motivation and other strategies, leaders reduce the conflicts, resistance to change and any other problems while executing change in the workplace (Zainol et al, 2021). Strong leader believes in communicate openly and honestly with their employees. Open communication helps in solving the problems quickly. Through effective communication, leaders make sure that no issue remains unresolved. Transformational leadership are the most appropriate style for any kind of changes needed in the organisation. Transformational leaders know very well that how to encourage workers while making changes. Through getting enough motivation, employees support the change and put full efforts to achieve the organisational goals instead of feeling issues with changes. Therefore, transformational leadership helps the British Petroleum to execute their business strategy effectively.

4.2 Recommendations

From above analysis, there are several recommendations for the British Petroleum that can be utilised while applying strategy. Through focusing on these recommendations, the company will achieve success in their upcoming changes.

• It is recommended to the BP to comply with the all rules, regulations and policies related to green energy projects. If the company avoids any environmental rules and acts then they can face the legal problems and penalties. Complying with the relevant policies, the company not only avoid the legal problems but also increase the reputation and image among customers.
• British Petroleum should invest in employee training to reduce the resistance of change. The company must encourage the staff members to take part in the training programs so that they can learn about green energy and its importance for the business (Phillips and Klein, 2023). The organisation can also offer the training on renewable energy policies in order to increase awareness. By gaining sufficient training, the employees will be able to understand how they should perform activities.
• It is recommended to the organisation to create a comprehensive financial plan and allocate money to different business operations like machinery, equipment, infrastructure and workforce. British Petroleum needs to find out the reliable funding sources in order to provide support to the business growth, innovation and operations. The firm should give priority to the sustainable approaches in all business aspects from production to offer goods and services to the customers.
• BP should pay attention on establishing strong relationship with suppliers who source raw materials ethically. If the company maintains the relationship with suppliers then they provide the materials and components on time and it reduces the risk of supply chain challenges. When suppliers supply the materials on time, then the firm can start their process timely and execute strategy efficiently.

CONCLUSION

Based on the above analysis, it can be summarised that strategic management issues of British Petroleum revolves around shifting from a dependency on crude oil to a highly diversified portfolio which involves renewable sources. The strategic response of the company, aimed at inscribing present environmental and market pressures, is concentrate on cost effectiveness and sustainability. Through employing a market penetration plan and amplifying its renewable energy products and service, the company seeks to decrease its reliance on instable prices of oil while investing on the rising demand for sustainable energy solutions.

Although, many limitation of such strategy need to be taken into account. The shift to renewable, clean energy is energy-intensive and needs considerable investment within new infrastructure and technologies. The company might also deal with resistance from stakeholder and staff members who are more familiar with its conventional business practices. In addition to this, reliance of the company on revenue from fossil fuels means the shift can consumer time, as well as there are risks related with market variation, mainly within unstable energy industry.

Moreover, the main assumptions which drove the formulation of new strategy procedure involve constant international force towards environmental sustainability, and also a positive legal landscape for renewable energy. In spite of such drawbacks, the strategy of emphasizing on market penetration in energy industry is suitable in terms of the company. It exploits its current market presence and also at the same time position BP to fulfil upcoming energy wants sustainably. Such approach responds to environmental aspects and also lines up with trends in global energy market, turning it as an ideal strategy for the company within the present climate. 

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REFERENCES

British Petroleum Strategic Management Case Study

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