Pest analysis Essay Example | Topics and Well Written Essays - 1500 words

Pest analysis - Essay ExampleBPs industry areas are long spanning to include Oil and gas exploration and production, refining, marketing and supply of petroleum products, manufacturing and marketing of Chemicals, Gas & bureau generation and the manufacture of Photovoltaic (solar) cells (Corporate Watch 2008). Like any other international stock, BP has its own strengths and weaknesses and asshole trace its achievements and failures to certain political, economic, social and technological factors. This report seeks to delve into the chap analysis of the troupe found on which a reflection of where the company is coming and its direction for the future shall be outlined. Method for festering and Reasons for choosing the rule Seen as one of the barometer companies of the British economy (Corporate Watch 2008), facts and figures available from the companys website indicates that as at the close of 2009, the companys sales and other operating revenues excluding customs, duties and s ales taxes stood at $239 billion. With a original of 16 refineries across the world, the company employed 80,300 as at 31 December 2009. With this, the heterotaxy cost profit for the company over the same period 2009 was $14.0 billion (BP, 2010). BPs key method that has seen the company through its rapid growth rate is the concentration on its present capital territories quite a than starting new ventures and investments. For instance having 62% working interest in the Tiber prospect in the disconnectedness of Mexico, the company keeps investing extensively in deepwater exploration and development, and through an aggressive entry into onshore innate gas (Fox, 2010) of which its greatest concentration is the Tiber prospect is. The reason why the company has chosen this method set up be justified by the global economic meltdown that was experienced the world-around. With the economic crunch, it was almost unwise to start anything new when one had old ventured to grow. PEST Anal ysis Current position of the company BPs current position in the todays economic climate is best illustrated by its classly reporting for the year ending 31 December 2010. The report touches on all three business segments of BP which are Exploration and Production, Refining and market and Gas, Power and Renewable. (Aruvians Research, 2008). According to the report, the companys hail asset for year ending 2010 was $272,262m as compared too $235,968m for year ending 2009. With liabilities, the companys total liability for year ending 2010 was $176,371m as against $133,855m for year ending 1999. This brings the net asset as of 31 December 2010 to $95,891m as against $102,113m for 2009 (BP Summary Review, 2010, p. 21). With regards to group cash flow, the cash and cash equivalent for end of year 2010 was $18,556m as against $8339m for the same period 2009. Generally, the company did not perform impressively well in 2010, which is a good yardstick of the companys present state as agai nst 2009. With regards to replacement cost for instance, the company recorded a loss of 26.17 per ordinary share (BP Summary Review, 2010, p. 17). Reasons for this performance can be traced from the PEST analysis of the company below. Political BPs three business spectrums are Exploration and Production, Refining and Marketing and Gas, Power and Renewable. Coincidentally, these are aspects of petrochemical trade that is undertaken by