External and Internal Environments Essay Example | Topics and Well Written Essays - 1750 words - 2

External and Internal Environments - Essay Example 2. Influence of the external environment The outcome of an organization as well as the industry to which it belongs depends upon the affect of the external factors. USA is reviving slowly from the catastrophic financial distress. The financial distress wrecked havoc in all the industrial sectors. The banks and financial institutions suffered the most as well as the oil and gas industry (Stephen, 2012). This is because of the reason that the USA government provided significant amount of financial help in the form of rebates and commissions to the oil and gas companies. The financial distress reduced the financial help packages forwarded by the government to the companies by almost half. Thus it is important to analyze how the oil and gas industry adopted to the changing environmental factors. The company chosen for analysis is British Petroleum (BP). There are several factors affecting the outcome of the organization like the political, economical, social, technological, legal and env ironmental (Stigler, 2009). Among these only technological and economical factors are chosen since both these factors have the most significant influence over the outcome of the organization. ... BP has adopted several strategies to tide over the various environmental concerns. To improve the technological efficiency BP concentrated on the rapid improvement of the three most basic and important part of the whole operations. One is achieving operational excellence in the upstream activities, the second one is achieving operational excellence in the downstream operations and the third one is improvising the distribution system (Subramanyam, 2002). The improvement in the above three areas increased the generation of revenue by as much as 10% over the last ten years. The economical conditions are different across different countries from where BP operates. BP adopted the strategy of netting the transactions. Netting helps to bring balance in the overall transactions. Due to different economical conditions of the countries, transactional imbalance sets in. The transactional imbalance is nullified with the help of netting. Over the last couples of decades BO has formed strategic pa rtnerships with several small and medium oil and gas companies (Subramanyam, 2006). Other than that it has performed several mergers and acquisitions. These strategic partnerships and mergers and acquisitions have helped the company counteract the ups and downs of the economy across several countries. 4. Ways in which the company address the forces BP has a dedicated team of experts comprising of technicians, engineers, scientists and field specialists spread across different operational base. These teams of experts usually work far away from the actual operational site. Due the need to innovate and improve the present technologies, BP is contemplating to form dedicated research teams for each operational bases. This way the work load will get distributed (Teoh, 2003). As it is