bharat pertroleum strategy

7/23/2019 bharat pertroleum Strategy

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XAVIER INSTITUTE OF MANAGEMENTBHUBANESWAR

Strategic Management Project

On

Major Integrated Oi and Ga! "om#an$

S%&mitted &$ '

A&(i!(e) A*+*U,,-./01 Section B


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Ta&e o2 "ontent!

Acknowledgement................................................................................................. 3

BUSINESS MO3E4S.............................................................................................3

BP(formely known as British Petroleum)................................................................4

International Organisation with Similar Business Model (Chevron Corporation).4

Government Organisation with Similar Business Model (BPCL)..........................4

Domestic Organisation with Similar Business Model (eliance Oil and Gas).....6

Comparison of Business models of BP and Chevron....................................7

Acti5it$ S$!tem Ma#..........................................................................................8

ow!"ost(BP")..................................................................................................8

#i$ersi%ed(BP)....................................................................................................&

'ision ission and *+,ecti$es Analysis..............................................................-

*/0"................................................................................................................ -

12............................................................................................................... --

Evaluation of ONGCs Mission Statement....................................................-

Evaluation Of Shells Mission Statement.....................................................-3

EXTERNA EN!"RONMENT ANA#S"S.............................................................-4

P15 Analysis................................................................................................-4

IN3USTRIA4 ENVIRONMENT ANA46SIS..........................................................-

P*51 9i$e 9orce "om:etiti$e Analysis.......................................................-

STRATEG6 OF "4OSEST "OMPETITOR 7i*e* S(e8........................................-7

"OMP4EMENTORS FOR BP.............................................................................. -7

HISTOR6 9 EVO4UTION OF Oi and Ga! Ind%!tr$.........................................-7

0*;52 A5..................................................................................................-8

FUTURE OF IN3USTR6.....................................................................................-&

SI:E OF IN3USTR6 7Acro!! T(e Word8.........................................................

Re!o%rce tran!ition!........................................................................................-

+E6 SU""ESS FA"TORS...................................................................................

'A


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Acknowledgement

= e@:ress my heart!felt gratitude to all those who ha$e +een instrumental

in hel:ing me with the re:ort or ha$e +een associated with the re:ort in

e$ery way and made the ,ourney a worth!while e@:erience.

= thank my +atch mates and our senior +atch for ha$ing shared their

$alua+le insights and e@:eriences that went a long way in hel:ing me in

the successful com:letion of our re:ort.

ast +ut most im:ortant = thank :rofessors Anshuman 5ri:athy and Amar

/ayak who :ro$ided me with the o::ortunity to undertake the :ro,ect

and for e@tending his com:lete su::ort in choosing the :ro+lem and

arri$ing at the solution.


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BUSINESS MO3E4S

BP(formerly known as British Petroleum)

Va%e creation!+y adding $alue to each stage of their o:erations right

from e@:loration to marketing. m:hasis on o:erating across the full

hydrocar+on $alue chain to ensure ma@imum :ro%t to shareholders.

"nternational Or$anisation %ith Similar Business Model &Chevron

Corporation'


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Government Or$anisation %ith Similar Business Model &BPC'

B%!ine!! mode incor#orate! In2ormation S$!tem


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(omesti) Or$anisation %ith Similar Business Model &Relian)e Oil

and Gas'


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Comparison of Business models of BP and Chevron

;e will com:are the +usiness models on +asis of criterias.

"=5=A BP "he$ron

S%!taina&e

"om#etiti5e

Ad5antage

BP stri$es to +e safety

leader in its industry and a

res:onsi+le cor:orate

citien.

a,or focus is to enhance

safety and risk

management and earn +ack

lost trust due to the oil s:illcrisis.

"he$ron categories

:artnershi: as the

cornerstone of its a::roach.

2owe$er the com:any is

neck dee: in litigations with

the court in cuador

charging "he$ron with -8Billion


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BP"

nergiingBusiness

@:loration

!BP(Bharat

Petroesourcesimited)

e%ning

!utli:lere%neries

arketingCnergiing

9uelingAutomo+iles

9ueling =ndustries 9ueling 2omes 9ueling skies

Acti5it$ S$!tem Ma#

4o


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BP=ntegrated oil and

gas

(#i$ersi%ed)

3@tracting oil andgas

!reaching reser$oirs

o$ing oil and gas

!mo$ing it from landE sea to makeuseful :roducts

aking fuel and:roducts

!re%ning and:rocessing crude oil

arketing andselling non!

renewa+le energy

! at ser$icestations:orts to

make tri:s :ossi+le

arketing andselling of renewa+le

:roducts

!s:ecialied outlets

BP alterati$e fuels

BP +iofuels

! to reduce glo+algreen house gases

7 E #

! +illion dollars:ending :er yr

3i5er!i=ed7BP8


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'ision ission and *+,ecti$es Analysis

All com:anies in consideration for analysis o:erate in all continents

mentioned and are into the :roduction of di$ersi%ed :roducts. 9or analysis

:ur:ose let us choose the following two organiations!eading ow "ost *rganisation ! ONG"

eading *rganisation with #i$ersi%ed ProductC1er$ices F SHE44

ONG"

To &e go&a eader in integrated energ$ &%!ine!! t(ro%g(gro )no


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SHE44

Vi!ion

5o +e the 5o: Performing and ost Admired e%nery in Asia

Mi!!ion

To )ontinuousl+ deliver shareholder value ,+-

anufacturing and su::lying oil :roducts and ser$ices that satisfy

the needs of our customers

"onducting our +usiness in a safe en$ironmentally sustaina+le andeconomically o:timum manner

O&jecti5e!

.e are )ommitted to deliver sustaina,le e/)ellen)e in ,usinessperforman)e ,+ fo)usin$ on the follo%in$-

Bene%t our shareholders

ealise the :otential of our :eo:le

eet our customer reGuirements

a@imise re%nery margins

1afeguard asset integrity

#eli$er structural cost reductions

1ustain a ro+ust management system

#eli$er continuous sustaina+le 2ealth 1afety 1ecurity and

n$ironmental e@cellence

*e+ Attri,utes of Su))ess ! a) 1trong customer focus

+) arge :roduct di$ersi%cation

Evaluation of ONGCs Mission Statement


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To &e go&a eader in integrated energ$ &%!ine!! t(ro%g(gro )no


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EXTERNA EN!"RONMENT ANA#S"S

PESTE4 Ana$!i!

Politi)al 0 e$al Anal+sis -1 "rude oil is one of the mostnecessitated worldwide reGuired commodity. Any slightest Iuctuation in

crude oil :rices can ha$e +oth direct and indirect inIuence on the

economy of the countries. 5here are innumera+le factors which inIuence

the :rice mo$ement of crude oil in throughout the world. ike methods

and technology using for increase the oil :roduction storing u: of crude

oil +y rich and :ros:erous countries changes introduced in ta@ :olicy

social and :olitical issues etc

E)onomi) 0 2inan)ial Anal+sis -1 only a certain :ro:ortion of crude oilcan +e con$erted into motor fuels. 5he demand for kerosene the original


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distillate e@tracted from crude oil has gone down with the s:read of

electricity. 1o other re%ned :roducts ha$e +een de$elo:ed and non!

$ehicular uses de$elo:ed for them. 1ome of the :roducts diJer little from

motor fuelsK for instance na:htha e@tensi$ely used to make nitrogenous

fertiliers and chemicals is little diJerent from :etrolK and ,et fuel is $ery

similar to kerosene. 5hus re%neries %nd markets for their :roducts in

many industries other than motor trans:ort.

So)io1Cultural Environment -1 #emand for latest and greatest

:roducts ser$ices and a::s are high and oil and gas :ro$iders need to

kee: u: with these demands. 5here still remains concerns a+out

en$ironment haards which need to +e addressed.

Te)hni)al Environment -1n$ironmental analysis and testing methods

are an integral :art of any current and future re%ning acti$ities. 5odayHs

:etroleum re%ning industry must +e :re:ared to meet a growing num+er

of challenges +oth en$ironmental and regulatory.

Environmental Anal+sis - 15he natural reser$es are dwindling. a,or

focus should +e to ensure +est o:timiation of :roduction techniGues.


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IN3USTRIA4 ENVIRONMENT ANA46SIS

PORTER@S Fi5e Force "om#etiti5e Ana$!i!

Porter! Force! Ana$!i!

-. T(reat o2 Ne< Entrant!*5here are thousands of oil and oil

ser$ices com:anies throughout the world +ut the +arriers to enter

this industry are enough to scare away all +ut the serious

com:anies. Barriers can $ary de:ending on the area of the market

in which the com:any is situated. 9or e@am:le some ty:es of

:um:ing trucks needed at well sites cost more than L- million each.
http://www.investopedia.com/features/industryhandbook/porter.asphttp://www.investopedia.com/features/industryhandbook/porter.asp


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*ther areas of the oil +usiness reGuire highly s:ecialied workers to

o:erate the eGui:ment and to make key drilling decisions.

"om:anies in industries such as these ha$e higher +arriers to

entry than ones that are sim:ly oJering drilling ser$ices or su::ort

ser$ices. 2a$ing am:le cash is another +arrier ! a com:any had+etter ha$e dee: :ockets to take on the e@isting oil com:anies.

. Po


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had +een chartered and oil +ecame the dominant fuel of the th century

and an integral :art of the American economy.

5he %rst oil cor:oration which was created to de$elo: oil found Ioating on

water near 5itus$ille Pennsyl$ania was the Pennsyl$ania ock *il

"om:any of "onnecticut(later the 1eneca *il "om:any). 0eorge 2.Bissell a /ew ?ork lawyer and Names 5ownsend a /ew 2a$en

+usinessman +ecame interested when #r. Ben,amin 1illiman of ?ale


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FUTURE OF IN3USTR6

-. 0lo+al demand for liGuid hydrocar+ons will continue to grow. 0rowth of

:o:ulation and consumer class in Asia will su::ort oil demand increase.

5he main increase in consum:tion will come from trans:ortation sectors inde$elo:ing countries.

. 0as consum:tion will grow faster than oil consum:tion. 5he greatest

:otential for gas consum:tion growth is in "hina while the uro:ean

markets ! ussias traditional clients ! will continue remain stagnant.

3. /owadays the standard of fuel consum:tion de:ends on car ty:e and

sie. According to the e@isting standards the a$erage fuel consum:tion for

cars :roduces in -6 will +e 3-.- milesCgallon (eGui$alent to 6& lC-

km).


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Re!o%rce tran!ition!

5he immediate outlook for oil remains :ositi$e gi$en the

commoditys constrained su::ly :icture. =n :articular while the ;esterneconomies e@hi+it sluggish growth :ros:ects glo+al oil consum:tion is

e@:ected to get a +oost from sustained strength in "hina the iddle ast

"entral and 1outh America that continue to e@:and at a healthy rate.

According to the nergy =nformation Administration (=A) which :ro$ides

oMcial energy statistics from the


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*$er the last few years a Guiet re$olution has +een resha:ing the energy

+usiness in the


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Management

Team! working towards a single o+,ecti$e and

adeGuate decentraliation ensures Guick and

eMcient decision making

Aigned Re!o%rce! esource allocation and distri+ution is :lanned

centrally. oreo$er attem:ts to cross!sale and

u:!sale ha$e :ro$ided :ositi$e results in

re$enue growth

bharat pertroleum strategy

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