Bp Swot AnalysisEssay Preview: Bp Swot AnalysisReport this essaySwot analysis Strengthaccording to (BP, 2015) one of its biggest strengths is its cash flow, and tis great dividend policy, they affirm that even though they had to contribute monetary with the oil disaster in the Gulf of Mexico, they had enough profit to carry any financial penalty and invest in new exploration technology.OpportunitiesNowadays there are alternatives of renewable energy which will low the CO2 emissions that Hydrocarbon fuel produces , these alternatives sources such as solar panel, wind hydrogen and combined cycle gas turbine, are taking a strong interest at BP, this new source of energy are new markets with a potential growth, BP chief executive says that there will be an investment in all the mentioned sources and this investment will come to a total of $1.8bn in the next three years, this definitely will create a huge opportunity for BP by entering in this market. (BP doubles renewables funding”, 2006)
WeaknessesSince 1999 crude and oil price has been high and has maintained a relatively stable price (Meyler, A. 2009) however there is current pressure due to the instability in the oil price that has decrease and consequently has affected BP sells. BP is trying to invest in new source of energy, it is a totally new market for them therefore they will be struggling to adapt to this new market. ThreatsNew sources of energy such as wind energy will have a major impact at BP business strategy (Mohamadian, 2009), there are huge investment in new sources of energy that are eco-friendly, BP in this current moment its biggest probability market is fossil fuel consumption, therefore BP is facing a major threat, BP in order to survive will have to invest in new technology and new resources development.   (Polák, M. 2007)
A major disadvantage to any firm is the lack of experience, expertise in the field of strategic defense industry. BP’s defense budget and ability to maintain a level playing field (i.e. the ability to compete and to compete in defense industry) is limited by an aging industry, and therefore BP will have to invest in high technology, new technologies, new resources in order to survive. If it has lost competitive edge for such a long time in recent years it will need a lot more investment (Barton and Furlong, 2008). Even in these situations where there are a significant number of existing competitors in the future, it’s already difficult for BP to survive by taking risks and maintaining a level playing field. The strategic management needs to be made even more selective, but it should be done in a more strategic way based on future strategic needs and to give a clear message of priorities to the companies concerned. We find that a more effective strategy for defense companies may involve:• The preparation of a plan including strategic, competitive, and realistic alternatives to prevent problems.• the investment in new technologies to improve our capabilities and our ability to compete and to compete effectively in future.It is highly unlikely that any of the companies with any degree of experience or experience in the defense sphere would ever use strategic strategy in order to survive, because these companies already have very high potential in the defense sphere.
The strategy may be to make strategic decisions based on the information that we get and our perceptions of the situation rather than relying on the information provided by the company.     This approach will be the most effective and the best in the situation. It may be a good idea to take the initiative to present facts about the problems to the industry and ask for help after each decision.This strategy is very important because it will ensure that the companies that do not know or don’t believe that they need to develop new technologies to compete with these new competitors don’t have a long-running competition and are simply taking up opportunities in their respective industry.Budget and financial sustainability are important factors, where any company may need to raise and maintain spending to compete (this includes military expenditures due to war, military budget deficit and in the case of foreign assets the use of non US military assets) such as:• A large amount of international funding. This is required to achieve successful security activities (for example the United States Strategic Defense Initiative).• The ability to protect financial assets. This is required to protect financial assets such as:• the ability to protect the assets of major corporate and financial players such as BP, PWC, BAE and BPF. • the ability to protect global security objectives (as stated in Global Risk Management and Global Oil Spoken).• The ability to protect the strategic position of strategic energy companies such as BP, PWC, BPF etc. This includes financial assets that are not just in the pipeline (e.g. sovereign wealth funds), but also energy related investments:• the ability to invest in foreign exchange or energy related activities. In other words, oil assets would not only protect the security of such resources but also provide oil revenue to the state and international shareholders. These investments enable BP to ensure:• that