The executive brief will cover BP’s strategic business unit alternative energy and its three main products: solar, wind and biofuels. The critical evaluation showed the external and internal influences of BP’s strategy in this business field as well as the strengths and weaknesses. There is a higher awareness towards the climate change because of environmental disasters. The people are looking for sustainability and energy saving products. Today, governments have a high influence on alternative energies. Spending subsidies and cutting them of in economic and financial crises influences the company’s strategy.
BP Solar is one of the world leading companies in selling solar modules. Focusing on end-consumers and project-work, the company tries to penetrate its 100 country large market with high quality and inexpensive products.
BP Wind is only operating in the US. Using joint ventures and own wind parks, the company tries to become of the leading wind companies in the US. As the result, BP Wind is highly addicted to the economic and political development of the country. Higher investments and entering new markets outside the US can help to lower the risks.
BP Biofuels is highly connected to the core business of BP: oil and gas. The company is investing more than $2 billion in research and development in the last years to create efficiency sugarcanes. The plant is perfect for the use of biofuels and shall reduce the amount of fossil fuels in the transport industry. But the outcome is quite unsure and the focus is only in two main markets: Brazil and US. An expansion into the Asian market can be important to secure new market in which the demand for transportation will increase in the next decades.
Overall, the alternative energy is just a small part in the BP Company but it will become more important in the future. Promotion campaigns can help to show the company’s commitment in this area and it maybe helps to reclaim trust.
Table of Contents
- Executive Summary
- Table of Contents
- 1. Introduction
- 2. Analysis and critical evaluation of bp's strategic position
- 2.1. External Analysis
- 3. Analysis of the bp's strategic direction
- 4. Critical evaluation of bp's strategy
- 5. Conclusions
- 6. Recommendation
- 7. Appendix
- 8. References
Objectives and Key Themes
This executive brief critically evaluates BP's alternative energy strategy, focusing on its solar, wind, and biofuels initiatives. The analysis examines the internal and external factors influencing BP's position in this sector, assessing its strengths and weaknesses within the broader context of the energy market's transition towards sustainability.
- BP's strategic positioning within the renewable energy market.
- Analysis of the external factors influencing BP's alternative energy strategy.
- Evaluation of the performance and challenges of BP's solar, wind, and biofuels ventures.
- Assessment of BP's competitive advantages and disadvantages.
- Recommendations for improving BP's strategy in the alternative energy sector.
Chapter Summaries
1. Introduction: This chapter introduces BP's history as a leading oil and gas company, its current global operations, and its organizational structure, which includes three strategic business units (SBUs): BP Oil, BP Gas, and BP Alternative Energy. The executive brief focuses specifically on the BP Alternative Energy SBU and its key product areas. The chapter sets the stage for a detailed analysis of BP's strategy within the renewable energy sector, highlighting the company's overall context and the scope of the subsequent evaluation.
2. Analysis and critical evaluation of bp's strategic position: This section delves into the external factors impacting BP's renewable energy strategy. It notes the mature state of the oil industry, increasing competition in the gas market, and the developing nature of the solar energy market (representing renewable energy in this context). The chapter explores the societal shift towards sustainability, increased awareness of climate change, and the growing investments in alternative energy technologies. However, it also acknowledges the risks associated with political and economic instability and the potential impact on energy security. The analysis uses the industry life cycle model to illustrate the contrasting positions of BP's established oil and gas businesses versus its nascent renewable energy endeavors. The external analysis forms the foundation for understanding the challenges and opportunities facing BP's alternative energy initiatives.
Keywords
BP, renewable energy, alternative energy, solar energy, wind energy, biofuels, strategic business unit (SBU), sustainability, climate change, energy security, competitive advantage, market analysis, industry life cycle, external factors, internal factors, strategic evaluation.
BP Alternative Energy Strategy: Executive Brief - Frequently Asked Questions
What is the purpose of this executive brief?
This executive brief provides a critical evaluation of BP's alternative energy strategy, focusing on its solar, wind, and biofuels initiatives. It analyzes internal and external factors influencing BP's position in this sector, assessing its strengths and weaknesses within the context of the energy market's transition towards sustainability.
What are the key themes explored in this brief?
Key themes include BP's strategic positioning within the renewable energy market; analysis of external factors influencing its alternative energy strategy; evaluation of the performance and challenges of BP's solar, wind, and biofuels ventures; assessment of BP's competitive advantages and disadvantages; and recommendations for improving its strategy in the alternative energy sector.
What is the structure of the executive brief?
The brief includes an executive summary, table of contents, introduction, analysis of BP's strategic position (including external analysis), analysis of strategic direction, critical evaluation of the strategy, conclusions, recommendations, appendix, and references. Each chapter is summarized within the document.
How does the brief analyze BP's strategic position?
The analysis considers both internal and external factors. External factors include the mature oil industry, increasing competition in the gas market, the developing solar energy market, the societal shift towards sustainability, growing awareness of climate change, increased investments in alternative energy technologies, and risks associated with political and economic instability. The industry life cycle model is used to compare BP's established oil and gas businesses with its newer renewable energy ventures.
What are the key takeaways from the chapter summaries?
The introduction establishes BP's history, current operations, and organizational structure, focusing on the BP Alternative Energy SBU. Chapter 2 delves into the external factors impacting BP's renewable energy strategy, contrasting its established fossil fuel businesses with its newer renewable energy initiatives. The remaining chapters (3-6) cover the analysis of strategic direction, critical evaluation, conclusions, and recommendations, though the details are not fully outlined in the provided summaries.
What are the key words associated with this executive brief?
Key words include BP, renewable energy, alternative energy, solar energy, wind energy, biofuels, strategic business unit (SBU), sustainability, climate change, energy security, competitive advantage, market analysis, industry life cycle, external factors, internal factors, and strategic evaluation.
- Quote paper
- André Schröder (Author), 2011, Evaluating BP´s Renewable Energy Strategy, Munich, GRIN Verlag, https://www.grin.com/document/194717
