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CORPORATE STRATEGY

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CORPORATE STRATEGY
Strengths:
BP is ranked at the world’s 3rd largest energy company and is positioned as a multinational oil company headquartered in London that: Operates petrochemical businesses worldwide through the network of its subsidiaries and retail brands(Amoco; ARCO; BP Express, BP Connect; BP Travel Centre; ampm; Burmah Castrol etc) Participates in London Stock Exchange, IPO in New York Stock Exchange. and is listed in the FTSE 100 Index; BP Amoco strong brand loyalty for oil; Strong brand management driven by the ‘Beyond Petroleum’ slogan. BO Q3 net profit increase by 83% due to record oil and gas prices. The indicator amounts to $53.43 per share compared to $21.27 during the same period in 2007.

Weaknesses: Launch of controversial business with the Baku-Tbilisi-Ceyhan pipeline; Increase in petrol prices in the UK; Explosion of BP refinery in Texas that caused 100 injuries and 15 deaths in 2005; Criminal charges due to the spread of 270.000 gallons of crude oil in the Alaskan tundra in 2006; Toxic spill of 2,000 gallons of methanol in the oil field (Prudhoe Bay) managed by BP. Closing of Alaskan oil wells.

Opportunities: 8 b. USD investment in the research of alternative fuel methods, including hydrogen, natural gas, wind and solar over the forthcoming decade; Expansion of frontier areas suitable for BP’s future reserves (post-Soviet Union territories); Extension of strategic oil and gas acquisitions in North Sea area; Launch of more flexible price policy to compete main rivals; Threats: Environmentally unsound policies due to oil and toxic spills; Occasional refinery explosions; Corrosion in pipelines; Competition from Shell and Chevron Ceasing operations in a number of potential locations with their further re-branding (Conoco); Sale of corporate-owned stations; More than 5.000 shortages within coming months; $66,71 per barrel creates considerable tensions for running oil business;

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