Innovation ampRiskManagement of British

Petroleum

[Pick the date]

Innovation ampRisk Management of BritishPetroleum

ContentsIntroduction3

Innovation3

Strateigic mamagement3

Globalisation3

Creativity4

Competive Advantages of innovation4

BP Innovation Strategy and Programs6

New product Development of BP7

BP Managing the process of risk7

Conclusion8

APPENDIX8

Global innovation strategy of BP9

British Petrolum Global Environment10

Pestle11

Stakeholders and their interest12

Reference14

[Type text] Page 1

Innovation ampRisk Management of BritishPetroleum

IntroductionThis report is an indication of the potential strength andweaknesses of company strategies implemented in the pursuit oftheir competitive advantage including the challenges that areconfronted by the organisation during their procedure ofapplying an effective innovation strategy within theorganisation One would also scrutinise how the development innew innovative strategy of the organisation is reacting tothe increasingly World wide business challengine requirementsby using the acadamic concept debated in lecture as afoundation of this research and analysisThis report alsoshows a critical examination of the effect of innovativestrategy on BP new product development within theorganisation the future development strategy and thecompetitive advantages of the organisation potentialweaknesses and innovation stratergy

Innovation

Innovation can be define as the movement of transforming anidea or creation in to goods and services that generates valuefor consumer In business terms innovation frequently resultswhen concepts are implemented by the company in order to meetconsumer satisfacton and expectation ie government orsociety

[Type text] Page 2

Innovation ampRisk Management of BritishPetroleum

Strateigic mamagementStrategic management is the procedure of laying down anorganisation purposes of existing by creating policies andstrategy to accomplishe these purposes resources must beallocated to implement this strategy this can be consider asthe top level of Management accomplishments this task can beperform by the Chief Executive Officer (CEO) or by theexecutive team

Globalisation

Globalisation is a process of universal integration towardstremendous trade economic culturecommunication andfinancial exchange globalisation has been going on for quitea long time but has been more frenquently used since the 90sand that increases the production of goods and services

Creativity

Creativity is the action of transforming new inspiredknowledge in to reality and can be regarded as the knoledgeto perceive the world in new ways it includes two forms of

[Type text] Page 3

Innovation ampRisk Management of BritishPetroleum

practice thinking or imagine the new idea and bring in tobeing the new idea An entrepreneur is an individual whopreffer to run his or her own business responsibility andassuming the possibility of risk to accomplished profit Whenan opportunity arises an entrepreneur sees it set up anappropate strategy to achieve and manage it for a return inrevenueEntrepreneurship should be promoted not only by start-ups but also by large organisations one would assume thatlarge organization are not capable of maintaining anentrepreneurial attitude and the reason been that they desireto have a high capacity of sales so they pay attention onoperational innovation One would argue that technologiesshould be joint to construct new innovations so both start upand large corporations should work together to overcome larkof entrepreneurship

Competive Advantages of innovation

An organisation strategic path is a mixture of its missionvision strategies and its fundamental value (ie) thecustoms that drive the business Culture Without a clear senseof direction organisation will tussle to make calculateddecision when distributing resources aligning their workerefforts quantify performance and improvement against targetThe human resource departement has numerous roles fromtraining hiringrecruiting reimbursement and improvement ofall employees This can be accomplish on a regular basesincluding several responsibilities its all come down to thesize of the organisation and what industry they are in Humanresources comprises of individuals and their abalitiesskills practices policy including the structure thatimpacts employees performancebehaviour and attitudes Porterstated that the cost involve in employee motivationincluding their skills is vital for competitive advantagesThe human resource departement plays a dynamic part inrespects to goals setting and integration within anorganisation it bring strategic plan that can be seen as atool that infulences resources to create competitive

[Type text] Page 4

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

ContentsIntroduction3

Innovation3

Strateigic mamagement3

Globalisation3

Creativity4

Competive Advantages of innovation4

BP Innovation Strategy and Programs6

New product Development of BP7

BP Managing the process of risk7

Conclusion8

APPENDIX8

Global innovation strategy of BP9

British Petrolum Global Environment10

Pestle11

Stakeholders and their interest12

Reference14

[Type text] Page 1

Innovation ampRisk Management of BritishPetroleum

IntroductionThis report is an indication of the potential strength andweaknesses of company strategies implemented in the pursuit oftheir competitive advantage including the challenges that areconfronted by the organisation during their procedure ofapplying an effective innovation strategy within theorganisation One would also scrutinise how the development innew innovative strategy of the organisation is reacting tothe increasingly World wide business challengine requirementsby using the acadamic concept debated in lecture as afoundation of this research and analysisThis report alsoshows a critical examination of the effect of innovativestrategy on BP new product development within theorganisation the future development strategy and thecompetitive advantages of the organisation potentialweaknesses and innovation stratergy

Innovation

Innovation can be define as the movement of transforming anidea or creation in to goods and services that generates valuefor consumer In business terms innovation frequently resultswhen concepts are implemented by the company in order to meetconsumer satisfacton and expectation ie government orsociety

[Type text] Page 2

Innovation ampRisk Management of BritishPetroleum

Strateigic mamagementStrategic management is the procedure of laying down anorganisation purposes of existing by creating policies andstrategy to accomplishe these purposes resources must beallocated to implement this strategy this can be consider asthe top level of Management accomplishments this task can beperform by the Chief Executive Officer (CEO) or by theexecutive team

Globalisation

Globalisation is a process of universal integration towardstremendous trade economic culturecommunication andfinancial exchange globalisation has been going on for quitea long time but has been more frenquently used since the 90sand that increases the production of goods and services

Creativity

Creativity is the action of transforming new inspiredknowledge in to reality and can be regarded as the knoledgeto perceive the world in new ways it includes two forms of

[Type text] Page 3

Innovation ampRisk Management of BritishPetroleum

practice thinking or imagine the new idea and bring in tobeing the new idea An entrepreneur is an individual whopreffer to run his or her own business responsibility andassuming the possibility of risk to accomplished profit Whenan opportunity arises an entrepreneur sees it set up anappropate strategy to achieve and manage it for a return inrevenueEntrepreneurship should be promoted not only by start-ups but also by large organisations one would assume thatlarge organization are not capable of maintaining anentrepreneurial attitude and the reason been that they desireto have a high capacity of sales so they pay attention onoperational innovation One would argue that technologiesshould be joint to construct new innovations so both start upand large corporations should work together to overcome larkof entrepreneurship

Competive Advantages of innovation

An organisation strategic path is a mixture of its missionvision strategies and its fundamental value (ie) thecustoms that drive the business Culture Without a clear senseof direction organisation will tussle to make calculateddecision when distributing resources aligning their workerefforts quantify performance and improvement against targetThe human resource departement has numerous roles fromtraining hiringrecruiting reimbursement and improvement ofall employees This can be accomplish on a regular basesincluding several responsibilities its all come down to thesize of the organisation and what industry they are in Humanresources comprises of individuals and their abalitiesskills practices policy including the structure thatimpacts employees performancebehaviour and attitudes Porterstated that the cost involve in employee motivationincluding their skills is vital for competitive advantagesThe human resource departement plays a dynamic part inrespects to goals setting and integration within anorganisation it bring strategic plan that can be seen as atool that infulences resources to create competitive

[Type text] Page 4

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

IntroductionThis report is an indication of the potential strength andweaknesses of company strategies implemented in the pursuit oftheir competitive advantage including the challenges that areconfronted by the organisation during their procedure ofapplying an effective innovation strategy within theorganisation One would also scrutinise how the development innew innovative strategy of the organisation is reacting tothe increasingly World wide business challengine requirementsby using the acadamic concept debated in lecture as afoundation of this research and analysisThis report alsoshows a critical examination of the effect of innovativestrategy on BP new product development within theorganisation the future development strategy and thecompetitive advantages of the organisation potentialweaknesses and innovation stratergy

Innovation

Innovation can be define as the movement of transforming anidea or creation in to goods and services that generates valuefor consumer In business terms innovation frequently resultswhen concepts are implemented by the company in order to meetconsumer satisfacton and expectation ie government orsociety

[Type text] Page 2

Innovation ampRisk Management of BritishPetroleum

Strateigic mamagementStrategic management is the procedure of laying down anorganisation purposes of existing by creating policies andstrategy to accomplishe these purposes resources must beallocated to implement this strategy this can be consider asthe top level of Management accomplishments this task can beperform by the Chief Executive Officer (CEO) or by theexecutive team

Globalisation

Globalisation is a process of universal integration towardstremendous trade economic culturecommunication andfinancial exchange globalisation has been going on for quitea long time but has been more frenquently used since the 90sand that increases the production of goods and services

Creativity

Creativity is the action of transforming new inspiredknowledge in to reality and can be regarded as the knoledgeto perceive the world in new ways it includes two forms of

[Type text] Page 3

Innovation ampRisk Management of BritishPetroleum

practice thinking or imagine the new idea and bring in tobeing the new idea An entrepreneur is an individual whopreffer to run his or her own business responsibility andassuming the possibility of risk to accomplished profit Whenan opportunity arises an entrepreneur sees it set up anappropate strategy to achieve and manage it for a return inrevenueEntrepreneurship should be promoted not only by start-ups but also by large organisations one would assume thatlarge organization are not capable of maintaining anentrepreneurial attitude and the reason been that they desireto have a high capacity of sales so they pay attention onoperational innovation One would argue that technologiesshould be joint to construct new innovations so both start upand large corporations should work together to overcome larkof entrepreneurship

Competive Advantages of innovation

An organisation strategic path is a mixture of its missionvision strategies and its fundamental value (ie) thecustoms that drive the business Culture Without a clear senseof direction organisation will tussle to make calculateddecision when distributing resources aligning their workerefforts quantify performance and improvement against targetThe human resource departement has numerous roles fromtraining hiringrecruiting reimbursement and improvement ofall employees This can be accomplish on a regular basesincluding several responsibilities its all come down to thesize of the organisation and what industry they are in Humanresources comprises of individuals and their abalitiesskills practices policy including the structure thatimpacts employees performancebehaviour and attitudes Porterstated that the cost involve in employee motivationincluding their skills is vital for competitive advantagesThe human resource departement plays a dynamic part inrespects to goals setting and integration within anorganisation it bring strategic plan that can be seen as atool that infulences resources to create competitive

[Type text] Page 4

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Strateigic mamagementStrategic management is the procedure of laying down anorganisation purposes of existing by creating policies andstrategy to accomplishe these purposes resources must beallocated to implement this strategy this can be consider asthe top level of Management accomplishments this task can beperform by the Chief Executive Officer (CEO) or by theexecutive team

Globalisation

Globalisation is a process of universal integration towardstremendous trade economic culturecommunication andfinancial exchange globalisation has been going on for quitea long time but has been more frenquently used since the 90sand that increases the production of goods and services

Creativity

Creativity is the action of transforming new inspiredknowledge in to reality and can be regarded as the knoledgeto perceive the world in new ways it includes two forms of

[Type text] Page 3

Innovation ampRisk Management of BritishPetroleum

practice thinking or imagine the new idea and bring in tobeing the new idea An entrepreneur is an individual whopreffer to run his or her own business responsibility andassuming the possibility of risk to accomplished profit Whenan opportunity arises an entrepreneur sees it set up anappropate strategy to achieve and manage it for a return inrevenueEntrepreneurship should be promoted not only by start-ups but also by large organisations one would assume thatlarge organization are not capable of maintaining anentrepreneurial attitude and the reason been that they desireto have a high capacity of sales so they pay attention onoperational innovation One would argue that technologiesshould be joint to construct new innovations so both start upand large corporations should work together to overcome larkof entrepreneurship

Competive Advantages of innovation

An organisation strategic path is a mixture of its missionvision strategies and its fundamental value (ie) thecustoms that drive the business Culture Without a clear senseof direction organisation will tussle to make calculateddecision when distributing resources aligning their workerefforts quantify performance and improvement against targetThe human resource departement has numerous roles fromtraining hiringrecruiting reimbursement and improvement ofall employees This can be accomplish on a regular basesincluding several responsibilities its all come down to thesize of the organisation and what industry they are in Humanresources comprises of individuals and their abalitiesskills practices policy including the structure thatimpacts employees performancebehaviour and attitudes Porterstated that the cost involve in employee motivationincluding their skills is vital for competitive advantagesThe human resource departement plays a dynamic part inrespects to goals setting and integration within anorganisation it bring strategic plan that can be seen as atool that infulences resources to create competitive

[Type text] Page 4

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

practice thinking or imagine the new idea and bring in tobeing the new idea An entrepreneur is an individual whopreffer to run his or her own business responsibility andassuming the possibility of risk to accomplished profit Whenan opportunity arises an entrepreneur sees it set up anappropate strategy to achieve and manage it for a return inrevenueEntrepreneurship should be promoted not only by start-ups but also by large organisations one would assume thatlarge organization are not capable of maintaining anentrepreneurial attitude and the reason been that they desireto have a high capacity of sales so they pay attention onoperational innovation One would argue that technologiesshould be joint to construct new innovations so both start upand large corporations should work together to overcome larkof entrepreneurship

Competive Advantages of innovation

An organisation strategic path is a mixture of its missionvision strategies and its fundamental value (ie) thecustoms that drive the business Culture Without a clear senseof direction organisation will tussle to make calculateddecision when distributing resources aligning their workerefforts quantify performance and improvement against targetThe human resource departement has numerous roles fromtraining hiringrecruiting reimbursement and improvement ofall employees This can be accomplish on a regular basesincluding several responsibilities its all come down to thesize of the organisation and what industry they are in Humanresources comprises of individuals and their abalitiesskills practices policy including the structure thatimpacts employees performancebehaviour and attitudes Porterstated that the cost involve in employee motivationincluding their skills is vital for competitive advantagesThe human resource departement plays a dynamic part inrespects to goals setting and integration within anorganisation it bring strategic plan that can be seen as atool that infulences resources to create competitive

[Type text] Page 4

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

advantages In the future sustainable business stratergy mightnot be sufficient unless it possess control over uniqueresources that are capable of creating a unique advantage(Porter M 2013)

Competitive advantages arises when an organisation innovateand gain or grows qualities that permit them to outdo itscontenders Management is to produce the groundwork of aninnovative organisation the main step is to officiallyincorporate innovation within the strategic management programof senior leaders to a degree that a small number of companieshave done so far Doing so innovation can beencouragetrackmanage and quantify as a main component withinthe companyrsquos development aspirationsIt is important thatexucitives take advantages of current talent for innovation bytaken clear steps to nurture an innovative culture that isbuilt on trust between employees This is to increase theprobabilities to inspire and sustain innovation SucessfulManagement team has to deal with three important area oftechnology the delay with time between the period ofdevelopment and the commercialisation of the manufacturedgoods or service Insight when making evaluations and planningin to the future is very had finally the readyness orcapabilities of engineers to come up with ideas and themanaging of the development

A roadmap can be define as the big portrait of activities anorganization should carry out in order to introduce or launcha particular product within an agreed time frame It isnormally accomplished by the cross functional team that gatherthem self to innovation and develop the plan Correct planwithin an organization will increase the value of theorganization The most important of all is to concentrate onthe process instead of the outcome However when applyingnative optimization folder management and scenario planningshould be joined together successfully including social andmonetary funds must be taken in to consideration in theprocess of developing a road map (BPcom 2014)

[Type text] Page 5

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Advantages amp Disadvantages of Globalisation Globalisation has breakdown the physical or geographicalrestrictions and business obstructions that have been keepingbusinesses from accomplishing their full potential Theability for a company to innovate or to gain new valuegenerating ideas of partners suppliers customer employeesand other parties outside its national boundaries has becomemore faddish Globalisation as a result has increase international tradeConsumer around the world are enjoying varieties ofmanufacture goods and servises that they would not have accessto without globalisation they will only have access tonational made product and services Increase internationaltrade has drove great economic growth world wide by providingaffordable prices for goods and services generating new jobopportunities and increase in employees earning power

Globalisation can be a good thing for universal trade itsalso has it devastating consequence social political andeconomic disturbance Ever since the world economy has becomeso interconnected if lager economies face any form of risk(ie) recession the consequence are felt world wide (ie)loss of jobs businesses and decrease in trade Oppositiongroup towards globalisation started that the gap between therich and the poor is greater ever since the start of theindustrial revolution

Five Drives of Globalisation

Technological drive --Technology has set the platform or thefoundation for modern-day globalization Innovation intransportation technology has dramatically changed theindustry the most important change is the improvement of

[Type text] Page 6

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

commercial jet and aircraft One would also reflect on thefact that technology in the form of communications (ie)text email television telephone and broadcasting hascontributed in the making of globalisation Some of thedifficulties face by this technology is the normal traderelated measure

Political drivers-Relaxed trading rule and relaxed marketsleads to lower prices and allowing foreign direct investmentin nearly all over the world The establishment of GATTGeneral Agreement on Prices and trade) 1947 and the WTO 1995as well as the continuing opening and privatization in EasternEurope are only some examples of latest developments

Market driver-As national market becomes flooded theopportunities for growth are limited and global expanding isway BP choses to overcome this situation Common customerneeds including opportunity to use global marketing channelsand transfer marketing to some extent are also incentives tochoose internationalization

Cost drivers -Sourcing efficiency and costs differ fromcountry to country and global firms like BP can take advantageof this fact Other cost drivers to globalization are theopportunity to build global scale economies and the highproduct development costs in this day and age

Competitive drivers - Cultural barriers can be very vital indoing businesses in a foreign country However with theprocess of globalization and increasing global trade isunavoidable different cultures will meet and blend togetherPeople from different cultures find it very hard tocommunicate not only due to language barriers but alsocultural differences The issue of ethic is another factordespite international trading laws and declarations countries

[Type text] Page 7

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

continue to face challenges around ethical trading andbusiness practices

BP Innovation Strategy and ProgramsBp spend over 5 hundred million dollars on research anddevelopment each year employing over 1500 scientist andtechnologist at seven major centre across the world thisinternal experties is part of a larger worldwide innovationeco system BP work a long term program with universitmajorsuppliersresearch instituteindustry partner and also aventuring business identifing and investing in entrepreneurialbusiness Seismic imaging underpin BP core strength as anexploria its allow them to see oil and Gas deep below theground by transforming sound wave in to 3D picture BP hasdevelop new ways of acquiring high resolution images belowdeep waters and has transform the industry in the speed andquality of seismic survay across wide desert plains BP hasinvested in Super computer for commercial research to keepthem ahead as well as discovering more oil and Gas Anotherprogram is the BP enhance oil recovery (EOR) technologyimprove the parcentage of oil they can recover from an oilfield BP lowcell EOR is a breake through technology thatuses low sell water to release more oil from the rock lowcell has the potential to unlock more than 5 hundred millionbarrel of oil with the world first full scail deployment dueto start up by 2016 in the north sea Bp is also helpingdrivers to use less energy through their advance fuel andlubricant working with vehicle manufacture in developing thenext generation fuel efficient engine BP scientist hascreated castrol edge with titanium fluid strength technologywhich physically changes how engine oil behave under extremepressure reducing friction and double the oil field strengthBP belive in turning innovation in to action by deployingtheir technology across their businesses recover more from untouch corner of existing field and deliver energy safely andsustainable to the world

[Type text] Page 8

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

New product Development of BP

The advantage of developing a new product within an

organisation such as British Petroleum is to generate

financial value for its shareholders and also solve a problem

In the process of doing so BP always ensure that the product

has an unique advantage that will interest customers and

courses increase in sales that will improve the financial

position of BP Screening of the new product by Bp is the

first stage of assessing whether the product is worthwhile or

not One would agree that it is helpful for BP to collect

information in advance of the companies engagement in new

product development regardless of the financial benefits and

services presented to both BP and their customers

commercialisation of product can also be a disadvantage This

can be an issue were by the new product created involves old

technology that can be used in the production of biofuel is

completely different from the technology used in the

production of diesel fuel An example of this is when shell UK

introduce a biofuel product that replace with diesel fuel

because of that a lot of employee in the company face the risk

of laid off British Petrolum got in a joint venture with DSM

in 2012 with the intension of advancing the development of a

changing technology that will convert sugar in to renewable

diesel this agreement reflect the relationship that started in

2009 amoung BP and Martek Biosciences Corporation This

innovative technology offers a form of alternative to the

[Type text] Page 9

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply This technology uses biological

science in the process of converting sugar in to diesel fuel

This biodiesel has the abality to reduce the green house

gasemission up to 60 when compaired to traditional fossil

fuel

BP Managing the process of risk

Risk is anything that can derail what an organisation istrying to achieved risk can be managedelay but it can not beavoided there are two types of risk country and commercialrisk and can be manage through quantitative and qualitativemethods BP uses their treasury team to manage risk bymanaging cash flow reduce interest rate on their loan andcurrency hedging When assessing the risk and benefitconnected with new invention engineering and science plays avital part for BP to become accustomed to new technologybefore managing the profitable know-how throughdevelopmentmarketing and finance The final cost of executingnew invention within BP can eliviate in to Millions whenconsidering the design installation manufacturing andmaintenance because of that a very high funds is needed Therisks towards adopting new technology are far more expensivewith less return The risk is not only connected with cost butalso with time new products are generally technicallyinnovative the integration period often tends to sufferdelays before production can begin so significant profits canbe established This then relates to the old saying time is

[Type text] Page 10

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

money and is reflected throughout the investor expectationswith new technology frequently comes risk of disruptionaffecting corporate and commercial targets

ConclusionOne would conclude that innovation is an ongoing practice

In the facilitation of innovation one must first identify the

ups and downs in the business world in connection to

technologydemographics customerscompetition and the

importance in the adaptation to change by means of

introducting a culture that is built within the policy of an

organisation like BP In achieving this goal Management should

focus on external customers to recognise some of the problems

affecting them including the fear to adapt to change should

be eradicated from the minds of employee through effective

communication BP innovative strategy has been introduce in

a manner that its competitors can not duplicate their

product New product development procedure is a vital process

to guarantee that businesses follow the correct step in the

direction of implementing an innovative product into the

market This gives organisation such as British Petroleum to

implement a plan that keeps development inline failure in

[Type text] Page 11

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

doing so is very costly In the oil and gas industry company

such as BP is investing in 3D Seismic imaging and enhance oil

recovery (EOR) technology applying the new product

development process is a major accomplishment BP new

innovative technology offers a form of alternative to the

present biodiesel and renewable dieselBP has now

demonstrated the idea of this technology at a experimental

scale and BP is confident that sugar to diesel technology has

the possibility to deliver financial sustainable and scalable

renewable diesel supply Finally to achieve more BP employee

should have a more clear understanding of the appropriate

range of technology and system to identify and measure

significant sources of knowledge and information

RecommendationFor BP to be more effective in producing oil expecially

from the north sea in a lesser time frame BP should invest in

to more Enhanced oil recovery technology this could solve the

problem of having to wait too long to get the production of

[Type text] Page 12

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

oil my recommendation is that BP should invest more in

enhanced oil recovery to get more percentage of oil from the

ground As long as the technology is concerned Its important

that BP should invest in this technology and use this

technology to get more oil from the earth

[Type text] Page 13

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

APPENDIX

OrganisationalStructure of BP

[Type text] Page 14

CFO COB HSECHIEF EXEC

OIL

BPEXPPROD

BPMARREFINI

NGBP CHEMICAL

NampSAMERICA

C E O

EUROP ASIA

USAAFRICA EUROP

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Global innovationstrategy of BP

To clearly explain BP global strategy one would explain theirMission Vission and their core values

MissionStatement

Bp mission is to become a simple organisation that put theirfocus in generating the maximum valueand not essentially themost volume through their production They are alsoreinforceing their portfolio of maximum return and lengthylife time of upstream assets However building a high qualitydownstream business

VisionStatement

BPrsquoS aim is to build worth for shareholders and suppliers ofenergy in the safest way for the world They make every effortto be the best a responsible commercial national and aworthy company

Core Values

[Type text] Page 15

SE ASIA AUSTRAILIA S AMERICA

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Safety- This is of a massive importance to BP when it comes tothe safety of their work force environment and producing safer energy for the world

Respect- They abide by the rules behave in an ethical manner by showing respect for all with a great value for diversity ofpeople

Excellence - BP strive towards excellence by organise anddiscipline management system by maintaining the rules andvalue set for the organisation or by correcting things thatare wroung

Courage- Their courage excell them to achieved the best resultduring difficult time and stood up for their belife

One team- They belive in achiving more together despite theindividual strength but also put the teams intrest in front ofthe company personal need

British Petrolum Global Environment

Strength

British Petrolum is enjoying stroung brand Loyalty within the oil andGas Industary

BP is part of the three FTSE 100 IPO new york stock and the London Stock Exchange

Wickness

The texas BP refinary blast in 2005 that 15 people loose their life and 100 got injuries

BP golf of mexico desistar in 2010

BP decision to close down [Type text] Page 16

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Bp has been ranked as one of the super Majorrsquos that dominate the oil and Gas industry

the oil well in Alaskan

Opportunities

BP has expended its operation in different continent around the worldto increase competitive adva ntage

BP has invested in alternative sources of energy to increase its competitive advantage overit direct competitors

BP decision to come up with a flexable pricing policy to increase its competive advantages

Threats

Increase competision between BP and its directcompetitors (ie) shell and chevron in the industry

The continus increase of power of the organision ofthe petrolum exporting countries

Political instability and terrosisem face by BritishPetroleum around the world

Pestle

Political The increase demand of china economy is cousing world energy market to become

[Type text] Page 17

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

volatile that creates tension around the world

World Leaders and Government around the world are boosting the idea of more sustainable forms of energy to reduce damage to the environmental

Economical

Increase in alternative energy is expectedto rise to 6 in the year 2030

Increase energy supply has the abalities to strengthing an economy

Social Emission trading world wide is on the way to become a legal requirement because of the kyoto treaty of 1992

Nations around the world are beginning to raise interest over the sustainability of future energy(ie) wind turbine soler panels hydro electeicity and more

Technology

This is of a great importance to alternative sources of energy and that wasstated by the international energy agency (iea)

It is also vital to create competitive advantage among its competitors in the alternative form of energy supply

Environmental

World wide interest in the area of sustainable energy for the future (ie) wind turbine Solar pannels and more

The creation of the international energy agency (iea)

[Type text] Page 18

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Legal World leaders are creating new lawrsquos to protect the environment

Emission trading world wide is on the way to become a legal requirement

Stakeholders and their interest

Stakeholders are divided in to two different categories (ie)internal and external stake holder with different interestsand importance BP stakeholders are different starting fromGovernment organisation pressure groups or individuals thatare directly or indirectly involve within the organisation BPengages with different stakeholders by using variety ofcommunication network such as email letter fax and telephonebut Shareholders and analysis by yearly and one-to -onemeeting to keep them up-to-dated Example of Some of the stakeholder interests and power are listed below

Stakeholders Interest High-power Low Power

Workers Jobswages NA

[Type text] Page 19

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Customers Low Pricesgood qualityof services

NA

Manager Running theday to dayaffair of theBusiness

NA

Environmentalist

Environmentalissue

NA

LocalCommunity

freshwaterDevelopmentchanges inlandscape

NA

Director Interest ofthe Business

NA

Reference

Hard aground (2014) Disaster in prince Williams [Online]Available from lthttpwwwadncomevosstoriesEV294html gt[Accessed 507 2014]

Annual report (2014) Building a strong safety BP[Online] Available fromlthttpwwwbpcomenglobalcorporateinvestorsannual-reportinghtml gt [Accessed 5 07 2014] BP biofuel(2014) growing alternative[Online]Available from lthttpwwwbpcomenglobalcorporatepressfeaturescastrol-edgehtmlhtml gt [Accessed 5 August 2014]

[Type text] Page 20

Innovation ampRisk Management of BritishPetroleum

Climate change (2014) hotter than we thought[Online] Available from lthttpwwwfoecoukblogclimate-change-hotter-we-thoughtgt [Accessed 5 August 2014]

Answer (2014) Valdes principle [Online] Availablefrom lt httpwwwanswerscomtopicvaldez-principlesixzz2mBVtUFrogt [Accessed 5 August 2014] Valdez principle (2014) who will subscribe [Online]Available from lthttpwwwnytimescom19890910businesswho-will-subscribe-to-the-valdez-principleshtmlpagewanted=allampsrc=pm gt [Accessed 1 December 2014]

httplinkspringercomarticle101007BF00383794page-1

Tutor2u (2014) Business strategy leadership models[Online]Available from lthttpwwwtutor2unetbusinessstrategyleadership-models-styleshtml gt [Accessed 14072014] College lifestyles (2014) Guide to studentleadership [Online] Available from lthttpcollegelifestylesorg201110cl-student-leadership-1gt [Accessed 12072014]

Leadership group (2014) helping leaders growleaders [Online] Available fromgthttpleadchangegroupcomtoxic-leadershiplt[Accessed 04072014]

Jmcintyre (2014) Function of business management[Online]Available from gt

[Type text] Page 21

Innovation ampRisk Management of BritishPetroleum

httpsjmcintyrewikispacescombbi2o_functions_of_business_managementlt [Accessed04072014]

Business case study (2014) Management styles in oilgas [Online] Available fromgthttpbusinesscasestudiescoukopitomanagement-styles-in-the-oil-and-gas-industryautocratic-and-democratichtmlixzz2YvKxcgqlt[Accessed 1007 2014] Slide share (2014) organisational structure [Online]AvailablefromlthttpwwwslidesharenetKirstyTreziseorganisational-structuresgt [Accessed 100714] httpwwwplanningengineernetteam-development-project-manager-power-and-xy-theory httpswwwyoutubecomwatchv=Gz_L6KuqvFI httpswwwyoutubecomwatchv=JIUTQsJ3dKc

httpswwwyoutubecomwatchv=tWd76xaiVbY

httpswwwyoutubecomwatchv=KylRuO2jo-A

httpswwwyoutubecomwatchv=c29RIGEm_J8

httpswwwyoutubecomwatchv=d7Kga9Be70I

httpswwwyoutubecomwatchv=uu-J1bwKvIU

httpswwwyoutubecomwatchv=uu-J1bwKvIU

httpswwwyoutubecomwatchv=F3E-oGioL3Y

[Type text] Page 22

Innovation ampRisk Management of BritishPetroleum

httpswwwyoutubecomwatchv=Osf68bI_J20

httpswwwyoutubecomwatchv=RrzBOQsZP_Q

httpswwwyoutubecomwatchv=R0i6dhEPSwU

httpswwwyoutubecomwatchv=7xkbkphayxM

[Type text] Page 23

• Introduction
• Innovation
• Strateigic mamagement
• Globalisation
• Creativity
• Competive Advantages of innovation
• Advantages amp Disadvantages of Globalisation
• Five Drives of Globalisation
• Technological drive --Technology has set the platform or the foundation for modern-day globalization Innovation in transportation technology has dramatically changed the industry the most important change is the improvement of commercial jet and aircraft One would also reflect on the fact that technology in the form of communications (ie) text email television telephone and broadcasting has contributed in the making of globalisation Some of the difficulties face by this technology is the normal trade related measure
• Political drivers-Relaxed trading rule and relaxed markets leads to lower prices and allowing foreign direct investment in nearly all over the world The establishment of GATT General Agreement on Prices and trade) 1947 and the WTO 1995 as well as the continuing opening and privatization in Eastern Europe are only some examples of latest developments
• Market driver-As national market becomes flooded the opportunities for growth are limited and global expanding is way BP choses to overcome this situation Common customer needs including opportunity to use global marketing channels and transfer marketing to some extent are also incentives to choose internationalization
• Cost drivers -Sourcing efficiency and costs differ from country to country and global firms like BP can take advantage of this fact Other cost drivers to globalization are the opportunity to build global scale economies and the high product development costs in this day and age
• Competitive drivers - Cultural barriers can be very vital in doing businesses in a foreign country However with the process of globalization and increasing global trade is unavoidable different cultures will meet and blend together People from different cultures find it very hard to communicate not only due to language barriers but also cultural differences The issue of ethic is another factor despite international trading laws and declarations countries continue to face challenges around ethical trading and business practices
• BP Innovation Strategy and Programs
• New product Development of BP
• BP Managing the process of risk
• Conclusion
• Recommendation
• APPENDIX
• Global innovation strategy of BP
• British Petrolum Global Environment
• Pestle
• Stakeholders and their interest
• Reference
• Tutor2u (2014) Business strategy leadership models [Online]Available from lt httpwwwtutor2unetbusinessstrategyleadership-models-styleshtml gt [Accessed 14072014]
• Leadership group (2014) helping leaders grow leaders [Online] Available fromgt httpleadchangegroupcomtoxic-leadershiplt [Accessed 04072014]