ASSIGNMENT

The Impact of Globalization and Technology Changes (British Petroleum Company Case Study)

Globalization refers to the increase in internalization of economies for different nations. A global is an economy where there are free movement of goods, services, people, skills, and ideas from one geographical border to the another. Without artificial obstacles such as tariffs, it is possible for an economy to expand bringing complications on the company’s competitive business environment. However, globalization comes with some challenges that can affect the operation of the company across the different international boarder. Change in technology also has several impacts on the company organization’s operations. Technology includes the institutions, and duties involving the creation of new knowledge and translation of such knowledge into outputs, products, processes, and materials. It is important for company organizations to evaluate the impact of technology changes on the organization. this paper will assess the impact of globalization and technology changes on British Petroleum company organization. It will also describe how the industrial organization model and the resources-based model can help the company to earn more returns. It also studies how the vision statement and mission statement of the company influence its overall performance. Finally, it will explain how different category of stakeholders within the company impacts on the overall performance.

Globalization

Globalization refers to the growing economic interdependency among nations and their organizations as a reflection in the flow of commodities and services, financial capital, and knowledge across the borders of different countries. It has much impact on the British Petroleum company organization. it explains how different competing firms out do each other within the existing global economies. In the British Petroleum company, there are different organizations which offer competition to compete the company out. However, the strives to come up with strategies to make it be at the top in the global market. The company obtain their capital revenue from other rich countries and buy raw materials in other countries to aid in the production process of oil. There are oil drilling machines which are bought from different developed countries and used to extract the petroleum which they sell to other international markets across the globe. The globolization result in an increase in the range of opportunities for the company to be more competitive. The company focus on the strategic management process and culturally choices to enhance the effective operation of the company. Globalization has enabled the company to expand its market through the creation of a relationship with different nations. They company is now able to sell more of its products in different countries resulting in more profit to the company. Globalization is therefore important in the British Petroleum company because it allows effective competition in the global market.

Technology

Technological change has many impacts on company operations. Through the study of the internet, the company can anticipate how to create value for in future and the anticipation of the future trends. The internet has also enabled the company to promote its product through the creation of a website where many people can access information on the company services. Social media like Facebook makes the company publicize its products and get more market networks. Strategic competitiveness is possible through the application of wireless communication. The company is now able to get different information on the market competition by using different social media to obtain the necessary information that will enable it to expand its market. New technologies on data analysis techniques have enabled the company to analyze its market value to apply effective measures to respond to the requirements of such data. The company can evaluate its performance by checking the progress in the marketing trend that is available in the data. Technology is fundamental because it ensures that the company gets the important information on the market trends. The company will now be in a better position to lay out strategies on how to manage their products to win more customers.

Industrial-Based Model

Industrial organization model refers to the model where a group of firms operates to influence each other to earn more in the market. The company utilizes this model to enable it to improve its service delivery. There is cooperation with other companies which produce petroleum to measure the level of competitiveness that the company has in the global market. This also helps the company in opening the arena of competitiveness (Ansoff, 2014). For instance, British Petroleum company is now considered to offer services that are generally dealing with oil and petroleum. Coordination with other related companies enables the company to influence the other and improve more on its performance. The company is now at the top of the market because most of the customers have confident in different products that the company produce. Through the model, the company can identify government policies that may affect its way of operation in different global markets. The company will find out the better ways to cater to the customs duties that may affect the volume of the company return.

Resource-Based Model

The resource-based model is a model which applies the assumption that each organization has unique resources and proficiencies. This uniqueness is the base the firm will apply to accomplish its strategy and its ability to earn above the standard. The company utilizes human resources and available capital to maximize its returns. There are three types of resources that the company utilize. They include physical, human and organizational (Cullen, 2010). The individual company resources may sometimes not yield the required output. According to this model, the company can evaluate its performance over time by using unique resources and capabilities without consideration on the company’s structural characteristics. The company uses this model to utilize the available labor. The company can use the available resources to help in production to expand on its value of returns in the global market. The company uses the available oil deposits and exploit maximumly to obtain maximum profit.

Vision

The company has a vision that focuses on being the best in the global market. Though this vision, the company stakeholders can identify the objective of the firm and perform toward achieving this mission. Many people will be able to identify its weakness by focusing on the success of the company’s business operations. Individuals who are responsible within the company will always be active to participate in the company activities to make the company put into practice the vision of the company. This will make the company be at the peak of the market because its vision focuses on customers satisfaction.

Mission

The company mission is to reach out the available markets globally to maximize the returns and satisfy the customers’ needs. The British Petroleum company’s primary focus is to reach out the global market and satisfy the needs of the buyers of their products. Through this mission, the company focuses on the production of quality goods that are prefered in the global market. Giving the customer is a priority has also enabled the company to succeed in the global market. this is because they produce quality petroleum that most of the people buy.

Stakeholders

There is a team of stake holders which enable the company in the establishment of relationships. These stakeholders have a direct impact on the company vision and mission. They enforce the performance of the company by supporting the company to meet its market targets (Michael, 2013). Outsourcing the performance of stakeholders has enabled the company to enjoy a competitive advantage. The company can crate relationships with different global business organizations to enable them to to win more market in the competitive world. The managers in the company are committed to helping in making rational decisions and performance of different actions that will enhance the performance of the stake holders by giving them guidelines on how to crate their business networks.

Reference

Ansoff, H. I. (2014). Implementing Strategic Management. Prentice-Hall International, Englewood Cliffs, NJ.

Cullen, B. (2010). International Business, Strategy and The Multinational Company. Harvard University Press.

Michael, A. (2013). Strategic Management: Concepts and Cases Competitiveness and Globalization. New York: Oxford University