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

Pest analysis - Essay ExampleBPs industry beas are vast spanning to include embrocate and gas exploration and production, refining, marketing and supply of petroleum products, manufacturing and marketing of Chemicals, Gas & Power generation and the manufacture of Photovoltaic (solar) cells (Corporate Watch 2008). Like any other(a) international business, BP has its own strengths and weaknesses and can trace its achievements and failures to certain political, economic, social and technological factors. This report seeks to delve into the PEST analysis of the company based on which a reflection of where the company is coming and its direction for the future shall be outlined. Method for growth and Reasons for choosing the method Seen as one of the barometer companies of the British economy (Corporate Watch 2008), facts and figures forthcoming from the companys website indicates that as at the close of 2009, the companys sales and other operating revenues excluding customs, duties a nd sales taxes stood at $239 jillion. With a total of 16 refineries across the world, the company employed 80,300 as at 31 December 2009. With this, the replacement cost profit for the company over the same period 2009 was $14.0 billion (BP, 2010). BPs key method that has seen the company through its rapid growth rate is the concentration on its present capital territories rather than starting sensitive ventures and investments. For instance having 62% working interest in the Tiber prospect in the Gulf of Mexico, the company keeps investing extensively in deepwater exploration and development, and through an combative entry into onshore natural gas (Fox, 2010) of which its greatest concentration is the Tiber prospect is. The reason why the company has chosen this method can be confirm by the global economic meltdown that was experienced the world-around. With the economic crunch, it was almost unwise to start anything new when one had old ventured to grow. PEST Analysis incumbe nt position of the company BPs current position in the todays economic climate is best illustrated by its annual reporting for the form ending 31 December 2010. The report touches on all three business segments of BP which are Exploration and Production, Refining and Marketing and Gas, Power and Renewable. (Aruvians Research, 2008). match to the report, the companys total asset for grade ending 2010 was $272,262m as compared too $235,968m for year ending 2009. With liabilities, the companys total liability for year ending 2010 was $176,371m as against $133,855m for year ending 1999. This brings the net asset as of 31 December 2010 to $95,891m as against $102,113m for 2009 (BP Summary Review, 2010, p. 21). With regards to group cash flow, the cash and cash equivalent for end of year 2010 was $18,556m as against $8339m for the same period 2009. Generally, the company did not perform impressively well in 2010, which is a good yard measure of the companys present state as against 200 9. With regards to replacement cost for instance, the company recorded a loss of 26.17 per ordinary share (BP Summary Review, 2010, p. 17). Reasons for this movement can be traced from the PEST analysis of the company below. Political BPs three business spectrums are Exploration and Production, Refining and Marketing and Gas, Power and Renewable. Coincidentally, these are aspects of petrochemical trade that is undertaken by