To this data must be added the explosion of the Horizon deepwater mobile offshore drilling unit in the Gulf of Mexico on April 20, 2010. This week marks the 10th anniversary of this event – a decade that has seen significant legal changes. Legal implications include an acceleration of state separation between commercial and law enforcement authorities; increased regulation and safety measures for the offshore drilling industry; new precedents on the extent of contractual set-off and its interaction with federal sanctions; and a mass claims procedure, in which the constitutional principles of causation and standing were discussed. Previously, the company had operated two legal panels: one for its UK and the other for its international operations. In a number of countries, the legal framework and institutions are not strong enough to protect an organization`s intellectual property rights. A company should carefully consider before entering such markets, as this can lead to the theft of the organization`s secret sauce and thus to the overall competitive advantage. Some of the legal factors that bp Plc management should consider when entering a new market are as follows: BP PLC is under constant threat due to various factors. These include environmentally harmful policies that mainly lead to toxic oil spills that are expensive to clean up, sporadic refinery explosions that cause widespread destruction, and lawsuits that are constantly brought against them for their unhealthy environmental activities. BP PLC is not immune to intense competition from energy companies such as Shell and Chevron.
Culture and the way society does things influences an organization`s culture in an environment. The common beliefs and attitudes of the population play a huge role in how Bp Plc`s marketers understand customers in a particular market and how they shape the marketing message for consumers in the oil and gas industry. The social factors that Bp Plc`s management is expected to analyse for the PESTEL analysis include: Energy giant BP has examined its global, UK, US and Singaporean legal advisers, with 26 companies named in newly launched lists. Factors in the macroeconomic environment such as the rate of inflation, the savings rate, the interest rate, the exchange rate and the business cycle determine aggregate demand and overall investment in an economy. While microenvironmental factors such as competitive standards influence the competitive advantage of the company. Bp Plc can use the country`s economic factors such as growth rate, inflation, and industry economic indicators such as oil and gas industry growth rate, consumer spending, etc. to predict the growth trajectory not only of the sector, but also of the company. The economic factors that Bp Plc should take into account when performing the PESTEL analysis are – Different markets have different environmental standards or standards that can affect the profitability of an organization in those markets. Even within a country, states can often have different environmental laws and liability laws. For example, Texas and Florida in the United States have different liability clauses in the event of breakdowns or environmental disasters. Similarly, many European countries provide healthy tax breaks to companies operating in the renewable energy sector. Before entering new markets or setting up a new business in an existing market, the company should carefully consider the environmental standards necessary to operate in those markets.
Some of the environmental factors that a company should consider in advance are: Since BP operates in different parts of the world, each area has its own policy choices. This would include, among other things, the application of new tax laws, strict employment regulations, the escalation of terrorist threats and competition rules in different countries. These factors improve or worsen BP`s business. To win the favor of governments, BP funds political campaigns. For example, in the United States, it has paid pressure groups to look after its political interests (Juhasz, para. 3). In some areas, political factors have influenced the operational decision-making strategy, which has led to the introduction of various production technologies. Following several appeals, the courts rejected BP`s argument that proof of the causality or traceability of the oil spill was necessary before the plaintiffs could recover the economic losses under the settlement agreement. The courts ultimately concluded that certification of the comparator category and approval of the agreement`s claims litigation framework did not violate federal law or stand-by-stand requirements under Article III of the U.S. Constitution. In fact, the parties had the right to agree on a mechanism to determine causation, and such an agreement was not flawed under federal law, although it relaxed typical standards of causality.
This is a landmark decision in class action case law, showing how long important legal principles can be extended in a collective resolution context. PESTLE is a strategic planning analysis tool that involves political, economic, social, technological, legal and environmental forces that influence business operations and competitiveness (Haberberg, Rieple, 105; Allen, p. 54). This analytical tool allows an organization to strategically prepare for the changes that need to be made to its structure, or simply to give it an overview of the various external influences it needs to consider (Henry, 51; Kotler). Political influence had a major influence on the progress of the lucrative oil trade (Hanke, para. 1; Kemp). Bp Plc`s PESTEL analysis is a strategic tool for analyzing the organization`s macro environment. PESTEL stands for – Political, economic, social, technological, environmental and legal factors that impact bp Plc`s macro environment.
Changes in macro-environmental factors can affect not only Bp Plc directly, but also other players in the oil and gas industry. Factors in the macroeconomic environment can affect Porter`s five forces that shape strategy and the competitive landscape. They can affect the competitive advantage of individual companies or the overall profitability of the oil and gas industry. Legal factors affected BP`s business. In the United Kingdom, for example, the enactment of the Age Discrimination and Disability Discrimination Act has affected the company`s operations in that country. In addition, some countries have also increased the minimum wage, adopted health and safety laws and adopted strict employment regulations. Political factors play an important role in determining the factors that may affect bp Plc`s long-term profitability in a particular country or market. Bp Plc operates in the oil and gas industry in more than a dozen countries and is exposed to various types of political environment and political systemic risks. To succeed in such a dynamic oil and gas industry in different countries is to diversify the systematic risks of the political environment.
Bp Plc can accurately analyze the following factors before entering or investing in a particular market – Mauer, Richard and Anna Tinsley. “Gulf oil spill: BP has a long history of legal and ethical violations.” McClatchy. McClatchy newspapers. 2010. Web Links If you want to analyze the political and economic factors that influence BP, PESTLE analysis is for you. To examine BP`s strengths and weaknesses, SWOT analysis is perfect. Both analyses can be found here. Economic factors primarily determine how BP acts and makes strategic decisions. For example, the recent global recession has reduced its profit margin, interest rates affect the cost of capital and thus overall growth and expansion, and exchange rates affect the cost of exporting and importing its energy products. BP`s supposedly unhealthy environmental policies could weaken consumer confidence in its products (Williams and Curtis, 114).
In some regions, the high rate of inflation has led workers to demand higher pay, which has increased operating costs, and higher growth in national income in some countries has increased demand for their products, especially solar panels. In February 2022, the Climate Action 100+ investor initiative released the Climate Action 100+ Net Zero Company Benchmark. One of the indicators of the benchmark (Indicator 7) concerns climate policy engagement and, in particular, companies` positions on a number of specific areas of climate policy. In recognition of investors` interest in this issue, we have set out in the following paper BP`s high-level positions in response to these specific areas of climate policy. These do not seek to be exhaustive. Our goal 8 is to place new expectations on our relationships with business associations around the world. It has been observed that “changes in social trends can affect a company`s demand for products as well as the individual`s availability and willingness to work” (“PESTEL Analysis”, paragraph 4). For example, england`s aging population has increased the cost BP provides to pension funds because its workers are likely to live even longer.
The world`s population is growing at a breakneck pace (“Population Growth, para. 2 »). This means that demand for petroleum products is likely to increase in the coming years (Hayward, para. 7). As more and more people worry about environmental issues, BP will need to change the nature of its products to meet this need. On the 10th. In August 2010, the Judicial Panel on Multidistrict Litigation consolidated pre-litigation proceedings in the U.S. District Court for the Eastern District of Louisiana for most federal cases.
In addition, a group of Transocean companies that make up the owner, operator and employer of the Horizon oil rig and deepwater crew have filed a lawsuit under the Admiralty Act to limit their liability.
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