Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

BP

Company Report
by

Shingirayi Kandi

on 9 August 2013

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of BP

BP is one the largest vertically integrated oil & gas companies in the world
Operations include exploration & production of gas & crude oil; marketing & trading natural gas, power & natural gas liquids
Headquartered in London
About 79, 700 employees
BP History
Origins traced back to 1901 when William Know tried to explore oil in Persia
The first commercial oil discovery was made in the Middle East by BP in 1908
In 1935, the company renamed the Anglo-Iranian Oil Company
Its explorations expanded into North America (mainly Alaska), South America, Africa and Europe
From 1998 BP has grown through a series of mergers & acquisitions
Business Decription
BP is an international oil and gas company
It operates its products in more than 80 countries, in Europe, the US, Canada, Russia, South America, Australasia, Asia & parts of Africa
Provides its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products
It operates through: - exploration & production - refining & marketing - other business & corporate
Major Brands
Aral
ampm
ARCO
BP
Castrol
Wild Bean Cafe
Outline
Company Overview
Safety & Risk Management
Environmental Effects
Business Ethics
Sustainable relationships to survive shifting politics & attitudes
Alternative sources of energy
Global reputation
Major Challenges
BP Progress Report
Mohammad Khan
Nou Li
Shingirayi Kandi
Omotolani Olapoju

Group Members
Company Overview
BP Management Structure
BP Leadership
Culture at BP
Current Issues at BP
BP Progress Report
Future Trends
Recommendations
Conclusions
BP fuelling the future
BP Organisational Structure
BP has a tall & vertical structure
Clear lines of authority, responsibility & delegation- top down
Chain of command - who reports to whom
Work specialization (division of labour)- according to skills, qualifications.
Span of control- CEO incharge of the executive management which runs the organisation
Bureaucratic type of organisation Max Weber: Labour is divided with clear definitions of authority and responsibility, positions are in hierarchy of authority, personnel are selected and promoted based on qualifications, management is separate from the ownership, rules and procedures ensure reliable & predictable behaviour e.g BP Code of conduct
Administrative principles by Fayol: 14 general principles & the 5 key principles of management
Contingency view: universalistic view then is moving towards the case view
Management Theories
Management Structure
The executive team: •Executive Vice President, Safety & Operational Risk
•Group General Counsel
•Chief Executive, Refining and Marketing
•Executive Vice President, Exploration
•Executive Vice President, E&P Production
•Chief financial officer
•Executive Vice President, Corporate Business Activities
•Executive Vice President, E&P Strategy & Integration
•Executive Vice President, Development
•Chairman and President BP America, Inc
•Executive Vice President and Group Chief of Staff
•Group Human Resources Director
Group Chief Executive Officer is appointed by the board and given power to set up his/her own executive team to run the company
Its management structure is a mixture of vertical functional and divisional approach
BP's vertical structure works best in a stable environment since most of the decisions are made at the top
Top manager direction & control- centralisation & unified direction
Efficient use of resources; economies of scale
Fast response & flexible in unstable environment- each unit is tuned into its environment
Employees grouped together in a single unit
Fosters concern for customers' need- working on a single unit
The nature of the oil industry
Its fit to the environment
BP Leadership
The Learning Organisation approach in which everyone is engaged in identifying & solving problems, enabling it to continuously experiment, improve & increase its capability
Put a company or corporate secretary on the organisational structure with regard to ensuring compliance with statutory and regulatory requirements (ethics, environment)
Transformational leadership approach on the organsiation and people as it is on a rebuilding process to continue
Team management approach should be enforced
Maintain its corporate social responsibility and sponsorhsip programmes for the next 10 years
Industry leader in innovation in technology in the work place
Support for line management as well as improve communication between top senior management & line operations
Recommendations for BP
Current Issues at BP
The Gulf of Mexico- the Deepwater horizon OIl Spill in the Gulf of Mexico also known as the Macondo Blowout which recorded as one of the worst environmental disasters in the US; clean-up costs
TNK-BP partnership in Moscow, Russia. Partners brought distinct corporate cultures to the mix, and relationships are often tense & other scandals e.g. Rosneft
BP & Reliance Industries partnership in India meeting its strategy of forming alliances with strong national partners
Divesting its assets including two of its refineries in the United States, one in Texas City, Texas, and the other in Carson, California
Corporate Socail Responsibility & sponsorhip initiatives e.g. Official partner of the London 2012 Olympics & Paralympics Games
Increasing investment in projects in developing economies like Brazil, Libya, China and Jordan
Future Trends
High concern for production & a recent shift towards having both a high concern for people & production especially in operation risk & safety procedures (Blake & Mouton, The Leadership Grid)
Since 1998 BP has transformed into a megacompany (Transformational CEOs)
The management is a visionary e.g Energy Outlook 2030
Telling style is dominant but since the oil spill it has adopted a rather selling style (Hersey & Blanchard's Situational Theory of Leadership)
Directive leadership (Path-Goal Theory)
Position - hierarchy
Incentives and rewards- encourage excellence
Expert - skills & knowledge
Coercive - replacement of some employees
Use of Power
Value creation for shareholders
Risk taking organisation
Corporate social responsible e.g. change of name from British Petroleum to BP
Believes in talent
As an international company, it sets standards of practice
It has an adaptive culture as witnessed by leadership change, restructuring & improvements in operations
Collection of separate brands
Safety
Culture at BP
Green flowery logos
Green corporate colours
Helois Awards
Beyond Petroleum
Primary source of power is position
Management of risk and operational performance,
Management of people and individual performance
Control of environment
Cultural Web
Negligence of the top management at BP has led to a series of operational blunders & BP needs to be manage its risks in its operations
It is on a recovery path from tarnished image and lost public trust
The company still has great potential & its future looks bright as they were issued 70 operational licences in 12 countries around the world in 2011
They were issued a licence to operate in the Gulf of Mexico again
They have a lot of experience to share with peer competitors, governments, academics, experts and communities around the world
Conclusion
Growing energy demands- increase in demand
Renewable energy limitations- innovation not kept pace with demand
Rise of national oil companies- state owned companies owner over 90% of reserves
Big business backlash- a notion that being big is bad
Ageing talent pool- Efforts have started to develop local talent through operations such as Thunderbird Worldwide Kazakhstan
Global trends
Daft, R.L, Kendrick, M. and Vershinina, N (2010). Management. International Edition Hampshire: Cengage Learning
Datamonitor. (2011). BP Company Profile. Available: www.datamonitor.com. Last accessed 7 January 2012
BP. (2011). Corporate Information. Available: http://www.bp.com. Last accessed 8 January 2012
Balmer, J. Powell, S. and Greyser, S. (2011). Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded. Journal of Business Ethics. 102 (1), 1-14.
References
Full transcript