The Business Case
BP has an aspiring story. They almost never existed. After 7 years of drilling and tapped outresources, George Reynolds, an explorer employed
by William D‘Arcy, found oil. In 1908, a
year later, the Anglo-Persian Oil Company was in
business and Mr. D‘Arcy was exceedinglywealthy. The company that almost wasn‘t, now BP, still holds its headquarters in London and
has six subsidiaries (Castrol, Wild Bean Café, ARCO, ampm, and ARAL). BP offers a range of products consisting of natural gas, oil, wind, solar, and biofuels. The company is present on fivecontinents in over 100 countries and has franchises worldwide.BP is a publicly traded company and their operations are overseen by a Board of 15 members,including Robert Dudley, CEO. A lot can be said for this team, who is doing more than just
keeping BP afloat during the company‘s own financial crisis. As of November 2, 2010, BP
reported a $1.785 million profit after losing just over $17 million due to the Gulf oil spill monthsearlier. Despite the financial drain from the oil spill, BP is only about $3 million short of whereit was in Novemb
er of 2009. The company‘s stock
, while having plummeted in the summer of 2010 to a mere $26.75 per share, are now at a healthier $40.06 per share. Despite the challengingeconomic conditions and the oil spill fiasco, BP is still managing to stay financially stable andrestore investor confidence.In this paper, BP will be analyzed on how it measures up to its competition in the energyindustry. Its subsidiaries will be briefly mentioned in the Internal Analysis and franchises willonly be mentioned where or if they impact corporate numbers. For the External Analysis, thisreport will solely examine the petroleum business as a source of energy and not on its presencein everyday products such as plastic, tires, asphalt, Vaseline, and nylons, to name a few. Thesole focus of this paper will be on BP Global, the oil company and its other forms of energy.
BP‘s mission statement is actually
that which their acronym (unofficially)
stands for, ―BeyondPetroleum.‖
BP has been in the business of providing energy for over 100 years. Their goal is to continue to provide energy but in a new, healthier, eco-friendly way. They want to create a diverse energy
mix that is ―secure, stable, and lower in carbon.‖
How can BP return to profitability, restore consumer confidence, and find a way to stand outamongst competitors while struggling with the economic crisis and the Gulf oil spill?
mployed by William D‘Arcy
, George Reynolds struck oil.1909
Anglo-Persian Oil Company is born.1912
BP opens its first service station in Minneapolis, Minnesota.