Business environment report Essay Example | Topics and Well Written Essays - 2000 words - 1

Business environment report - Essay Example The oil and gas industry, established after the discovery oil pits near early civilisations and subsequent utilisation of the liquid, is characterised by numerous petroleum products that are because of purification processes accorded the crude oil. Petroleum is a crucial element to the economy with numerous applications across all industries, and it is, therefore, critical to maintain the supply to drive the global economy. Apart from driving the global economy, the industry provides employment chances to many workers around the world. BP plc is a major player in the oil and gas industry and is ranked fifth by market capitalisation as well as revenues. Owing to the significance of this company in the society, it is serves as a prime subject of evaluation based on performance in view various environmental factors. While focusing on environmental scanning, this paper seeks to explore the political, economic, social, technological, legal, and environmental factors that influence BP†™s performance. However, this paper overlooks the physical infrastructure and corporate organisation with regard to governance since these are internal aspects influenced by the institution’s service mandate. ... Governments exercise their regulatory powers in the oil and gas industry through trading policies that seek are geared to ensure sustainability of the much-depended commodity. The recent oil spill at the Gulf of Mexico involving BP asserts the role of political organs in organisations. Following this incidence, President Obama visited the site and offered to increase the work force in efforts to clean up the spill while calling for stronger oversight to avoid such incidences. Evidently, BP has been under enormous scrutiny following the incidence that caused rifts among entities calling for harsh penalties against the company and those assisting in the clean-up exercise (Kapucu 2011, p.23). It lies within the government’s responsibility to ensure that environmental accidents are avoided or responded to promptly. Similarly, the oil industry is often subject to political stability where prices fluctuate owing to harsh economic environments created. Political instability and tensi on affects the cost of production by encouraging hoarding, which creates artificial crisis in the sector. Moreover, diplomatic relations play a critical role in fostering international trade and expansion of multinational corporations. BP is placed in a unique platform that is supported by favourable political structures, which encourage foreign investment and understand the benefits realised by the endeavour. With its headquarters in the United Kingdom, compliance to the European Union’s regulation policies with regard to fuel components is key to BP’s operations. Economic Notably, prevailing economic factors play a major role in influencing the national and international economy. For this reason, it is