British Petroleum

Take e very(prenominal)place refers to the purchase of star order by the separate and technic from each one(prenominal)y deals with erudition of a listed gild by one or more companies which be at give fiscal and economic part than the beau monde being acquired. BP is on verge of a coup detat and the avocation paper presents compendium of the friendship. The confede balancen is British owned and it has branches in various(a) countries around the globe.The institution is found in naught industry and its one of the biggest and most valued goose egg supply and distribution institution in the initiation. Theoretic eithery the history of the follow is very complicated as its very rich, varied and unique status. The by-line paper gives complete analysis of businesss facing the family specially the one entangled before and later the drastic rock crude oil give out in the Gulf of Mexico and consists of references to various journals, vexation literature, and sc holarly literature materials.This paper describes the activities and discusses the conventional reasons for a coup detat, their advantages and disadvantages, and strategic considerations that sewer be made to pr flusht a work equal to(p) putsch. Introduction British petroleum (BP) caller-up is an international energy production and supply caller-up with its head sucks London, join Kingdom. By margin BP is the 3rd boastfulst energy connection and the 4th biggest federation in the world (Datamonitor , 2009, p, 45).The participation has operated in the energy sector for many years and it has gained reputation of being faithful hence it has instilled consumer loyalty across the spectrum. This high society has experienced rapid modifications and advancements in science and engineering science and presents numerous challenges to the confederacy in relation to in-person safety and quality concern and also it entails issues like production costs, clever ownership of pro perties and products, contest and monopolies.The go with is public held and its sh ars atomic number 18 traded in study(ip) timeworn exchanges planetaryly including the London stock exchange, New York Stock alternate and other(a) stock exchanges in major(ip) cities all over the world with the trading symbol BP (Coffee, et al, 2000, p 98). The organisational original mission was to impart consumers with the right mixed bag of products, at the right quantities and monetary value, and to provide excellent guest service through trained representatives.The arrangement current mission is command by mention core values excellent node service, compassionate for people, entrepreneurial spirit, respect for all, building plastered relationships, doing the right thing, giving anchor to communities, and creating shareholder value (Weston,2000 ,p ,87). BP success is based on mutually in effect(p) partnerships with diverse and competitive suppliers, allowing the company to deli ver a wide assortment of superior, yet low-cost products and function, combined with superb customer service, and focused towards change magnitude shareholder value.The company employs over 210,000 employees and tends to serve more than a ccc million customers worldwide (Van & Schroeder, 1984, p 29). With the current problems facing British crude oil in the Gulf of Mexico following the deepwater rig explosion which was caused by what has been set forth as the worst US ecological disaster ever, the Companys share worth has fallen steeply and according to some commentators this could trigger a coup detat of the business by one of its big opponents such as EXXON MOBIL, type or even PETROCHINA (FINANCIAL TIMES, 2010, p 34).The catastrophe has plunged the companys stock price as well as its reputation, and public image following the catastrophe occupy led to speculation regarding the company come toover over collect to the concomitant that the company is experiencing financia l problems, keen-sighted losses as a result of oil loss and poor discourse and caution of the oil spill (Arm sozzled, 2003, p, 23). The above mentioned issues pee-pee been viewed by many to founder been caused by poor leadership and decision fashioning techniques in regard to the steering the management handled the oil spill.With the current troubles facing British Petroleum (BP) in the Gulf of Mexico, there is calamity of science or putsch and and then a research paper which tries to come up with the relevant culture in seek to establish some of the major reckons that have been influencing the pass judgment takeover (Ansell & Park, 2003, p 47), Identification of Industry and likely takeover Competitors The company is found in the energy industry and mainly concentrates in oil exploration, supply, and distribution.The industry deals with all assortments of energy products including oil, wind, solar, hydro power and other related energy products and go. This industr y is one of the most contended ones with many rivals who produce similar products and services . The top competitors of BP overwhelm EXXON MOBIL . SHELL and PETROCHINA with SHELL being the strongest rival of BP (Maxwell , 2002, p, 29). The company has a global presence and has assets in most areas of Africa especially underlying and western Africa, China and South Ameri toilette states like Venezuela and Uruguay, but the United States and Russia are its largest market.As mentioned earlier, BP is the third largest energy company in the world and the fourth part largest company in the world (K win, 2008, p, 87). The possible competitor for the takeover has been indentified to be Exxon Mobil for the reason that the company is Ameri weed owned and its summonss and consummation over the years have been above par compared to other rivals. Companies like event and Petro china though internationally recognized, their trading trading operations are non augment like those of Exxon M obil (Johnson, 2010, p 19). Description of the Organizational ProblemsDifferent brass sections experience contrary problems depending on the nature of the organization, the economic situations, the semipolitical interruptions, and the human hoo-hah. Once these problems reach at bottom a corporation, it tends to affects the organization core responsibility to extent of being otiose to provide adequate and quality services to its clients and individuals relying on it. The occurrence of these problems passel be a very damaging issue if they are strenuous to evaluate and solve (Kesler, 2008, p 49).With the British Petroleum (BP) company, there a bug outnce of issues and problems that has been constantly hounding it. Most of the organizations problems and causative agent for the possible takeover have possibly resulted from the oil spill in the Gulf of Mexico and miss of teamwork and toughacity building in relation to the employees during the fixing of the oil cap to reduce massive leakage. Due to this, there have been reduced prices of the companys stocks all over the world over callable to market fears of possible losses and public loss of confidence in the company.The increase failed management in the corporation resulting from the management poor skills in handling crisis has sometimes been leading its operations to the wrong direction. The poor handling of the oil spill by the company executives is one vertical eccentric of the management inanition and the probable cause of the proposed takeover . It must be agreed that BP has been face with lack of skilled and effective managers purposeing effective managerial services thus leading it into poor leadership and decision making answeres (Lochhead, 2009, p 67).As we have noned, most of the problems faced in this organization have been caused by the oil spill and ongoing economic recession, and others are related to unfitness of workers to work together. Since there was poor handling of the oi l spill, the company has been in bad relationship with the neighboring community and it has non been able to foregather its loving responsibility function due to constant bickering and interference from the American government (Snell & Dean, 1992, p 50).In conclusion, the major issues contributing to the proposed takeover of BP is the liaison of financial problems relating from the management of the oil spill, whereby the company has spent billions of shillings in arrogant the spill and at last the company has been forced to sell some of its assets in Russia to cover the costs, and this has not been going well with majority of shareholders due to fact Russia is one of its biggest market. Lack of trust from consumers and American government is another factor that has led the company to opt selling its assets to its competitors (Maxwell, 2002, p 98).BP Proposed coup detat Definitively, takeover refers to purchase of one company by the other and technically deals with encyclop edism of listed company by one or more companies which are at better financial and economic position than the company being acquired. Takeover occurs in situations where a company wants to save itself from financial problems and also happens in situations where the company wants to secure limited market, channels of distribution, consumers and supplies.In any kind of organization, takeover or acquisition are quite significant since they play a major role towards the overall achievement of the given business or organization. This has to be make in a delicate manner that ensures all areas and positions of the organization have been dandyly considered. When the issue of takeover is being discussed intimately in a given business or any other kind of organization, it is very important to think of the manner in which the operation impart be coordinated and thus employ the necessary forcefulness and practices which shall shape up the work of the organization .It is important to not e that, without managing the human aspect and all other resources being utilized in the business, it may not be possible to achieve the goals and missions of the organization (Stern & Chew, 2003, p 90). One of the major reasons for British petroleum proposed takeover is as a result of the financial and social problems resulting from the oil spill in the gulf Mexico. From NEWSWEEK Journal of 04. 06.2010, the spill has costed the company sums of money to the tune of over 19 billion dollars binding both the cost of cleanup and compensation to individuals affected and penalties to the American government. The performance of the company has dwindled in the recent days and in the first quarter of the year the company has made losses amounting to over 20 billion dollars. Since unified takeover entails two key types that include hostile and genial takeover, BP takeover assumes that of hostile nature for the reason that the company is un exiting to make in any dialogue relating to acquis ition of its major assets.Hostile takeovers generally occur in situations where the board of directors is un giveing to relinquish its position and the company, while the company is performing way below par in terms of operations and financial management. This is the racing shell with BP since the company CEO Tony Hayward has not viewed it has a possibility and has publicly stated that on a number of media outlets. A takeover in ensuring there is such form of safety can essentially include a number of one or more different components within the totality of the institutionalized system.Such safety provisions include change in an organization and necessary management, safety policies, organizational procedures, and other tweak procedures and responses which have been put in place (Liu, 2006, p, 65). Advantages of BP takeover 1. One major advantage of BP proposed takeover is that once realized, the firm which was poorly managed prior to the acquisition impart undergo expensive man agement and performance rectification due to changes that go out occur in its management structure .The changes in corporate structure including modification and replacements of executives and senior staff will guarantee and habitue the organization dented reputation. For the reason that the organization acquisition will involve a moderate debt to equity ratio, the company will also bawl out terms the acquisition deal since it poses a controlling stake in the global market (Van & Schroeder, 2008, p, 20).The company goodwill in the world is very passing rated and possible acquisition of the company assets will entail the purchase of this valuable non- tangible asset hence provide opportunities for making more specie from the sale. 2. The company shareholders will also benefit from the returns emerging from the acquisition due to fact the company has a positive capital value attributed from large shareholder base ,assets and properties it owns in the world.With immense global pre sence, the BP buyout will sanction employees and shareholder interests as maintaining the company effectiveness, efficiency and loyalty (Fox, et al, 2008, p, 87). The company benefits from strong market share and sound economic position hence even after the buyout, the company products will still stay on favorable in the global market due to the consumer confidence established before the oil spill. 3. The BP issue will only involve acquisition of the company shares and assets, and this will entail the concept referred to as strategic takeover.This concept is advantageous to the company and the company acquiring it since the firm will select and buy assets that are favorable to them and they will be able to talk terms the right price for the products without full approval of the shareholder and other regulatory bodies. When it comes to the takeover process, the get is mainly aimed in ensuring that any forms of weaknesses and strengths have been disclosed, and especially the ones w hich might have diverse impacts on the process and operations being carried out.For the reason that the company has huge amount of liabilities and increased level of debt, takeover by its competitors will reduce its taxable income hence leading to reduced tax payments. The company taking over BP will acquire both its assets and liabilities, thus the company will be saved the burden of paying and compensating the victims of the accidents and penalties to the American government.BP take over will promote efficiency gains since it will be able to eliminate corporate value destroying effects that emerge from excessive diversification hence it will be able to reduce the organization debt ratio and increase its equity portion (Dunning, J 2004, and p. 97). Disadvantages of the Takeover There are a number of problems which have to be noted with the BP proposed takeover. To begin with, the acquisition tests to be administered in establishing whether the company is profitable will be very in accurate.This might end up resulting in cases where a very strong company is bought using false benchmarks or current situations without the evaluating the overall organizational position and performance (Mok & Tillaart, 1990, 76). If carry outed as proposed, the organization corporate restructuring will greatly affect employees and its shareholders. The company will be forced to downsize its operations and current workforce hence this will result to increased levels unemployment due to possibilities of employees being laid off.Large number of unemployed individuals will impact on the overall community hence hindering its economic festering and luxuriousness (Liu, 2006, p 58). BP has a global presence and sudden acquisition of its assets in some African and Asian countries will not be interpreted well since majority of people have an intimate touch with its products and mark hence transfer of its assets to other organizations will affect its social bar and responsibility to th e community (Roger, 2008, p ,36). Another issue is that many companies wont agree the bid for BP takeover due to the fear of huge liabilities owned by the company from the oil spill.Most of BP shareholders are large multinational institutions in Britain like insurance and pension funds and the takeover of the company will critically affect the United Kingdom economy thus affecting lives of many Britons and other shareholders all over the world. Proposed bid from its rivals especially Exxon which is an American company will cause diplomatic problems surrounded by the US and Britain. Coming from bitter criticism from president obama, the cold ties will eventually increase if there is a takeover of BP by an American company (Peter & Paulson, 2009, p ,56).Another problem that is likely to happen if the event of the takeover the UK political establishment will lose public confidence for the reason that it does not support operations of the company and form this their would be a likelih ood of political problems in Britain, this is because majority of Britons are shareholders . With controversial handling of the case by American leadership, possible takeover of the company by an American company will be seen as a planned agendum since in many occasions the politicians have said the company could have performed better if it was owned by Americans.Many critics of the proposed takeover argue that transactions between BP and its competitors will harm and dent the long term competitiveness of the company (Kwon, 2008, p, 56). British Petroleum (BP) Strategic Plans BP as one of the most redoubtable companies in the world ,though affected with the oil spill ,it has been conducting a number of business as well as marketing strategies which come up with strategic plans aimed at future day tense performances so that they can prevent future events from happening (Ransom, 2000,p ,76).With the recent oil spill crisis, the organization strategic plans involves restructuring of the management ,employment of competent staff and instilling of concepts of teamwork and works together to both employees and the management. The company productivity and performance have been drastically affected and the institution gross revenue have reduced significantly leading to a drop in its share prices by more than 40 % (NEWSWEEK, 2010, p, 23) . The crisis has reduced its current customer base and at the same time it has reduced the company sales by more 35% .With this issue of underperformance in mind, the company so far is aimed at increasing the its social reputation and sales and at the very time being in a position of formulating major marketing strategies which are applicable and can help it reach all the customers around the world in which the corporation has been delivering its services (Sapienza & Grimm, 1997. p 87). The marketing strategy for the corporation that entails use of economies of scale and wide distribution networks, and the company is anticipating offering some of the lowest prices in the industry.Moreover, the company is promising to offer a low-price guarantee which will ultimately beat any competitors price or match their retail value (Dennet, 2009, p, 154). BP is trying to enlarge their customer base through various marketing venues that include Television advertisements which are aimed to increase brand awareness. Radio advertisements, Digital media (for example e-mail subscriptions and the Internet) which will provide efficient ways to disseminate information, coupons, and abandon expert advice and product demonstrationsWithin the business, the strategic plan will be done by incorporating all stakeholders and engaging in appropriate decisions which will promote performance (Johnnson, 2010, p, 46). This proposed strategic marketing plan will entail analysis of the companys strengths, their weaknesses, and measure the amounts of resources at disposal, and then come up with adequate strategic missions which ensure better performance (Madura, 2008, p, 45).When effected, such strategies will have long term effects and will make the company realize its goals within the stipulated time period. Effective leadership and decision making skills, and communication have also been emphasized as a key element towards realization from the oil spill catastrophe. Basically to neutralize the proposed persuasion of takeover, it should be noted that, it is through proper coordination and employment of such long term strategic plans that the corporation will be able to emerge on top of its business operations (Armstrong, 2003, p 29).Recommended alternatives to avoid possible takeover The current oil spill crisis calls for innovative product and development especially in light of the growing negative publicity that is associated with environmental pollution and loss of jobs (Robbins, 2008, p, 76). Therefore, the option that should be pursued by BP is for them to implement and initiate strategic development and manage ment strategies that will make them breathe viable in the energy market.As BP proceeds into the future, they must be hawk-eyed to avoid poor decision making processes which will hinder them in handling major crisis since catastrophes are some times inevitable (Laura & Torrington, 2005, p ,98). BPs biggest risk exposure includes unpredictable economic and political conditions, increased prices in fuel and other supplies, customer retention, and relations with foreign countries. In order to be prepared and least effected, BP must develop strategies that will allow them to remain profitable in an unsteady market.Suggestions would be for BP to remain current on the risks of oil spill and aware of the current and future relations with foreign countries. Another suggestion would be for BP to try and negotiate compensations and government penalties. (Brodie, 2010, p 78). BP has been one of todays most well-thought-of corporations in the history of the world because it has the highest degr ee of business culture as well as ethics. Generally, this organization has been able to create highly rated performance when it comes to organizational effectiveness.The creation of more and more new management groups can be a good approach which can enable handling of the key problems which have been faced within the company and its eventual operations (Sorrow, 2009, p, 89). Also, there should be the presence of a dynamic and diverse workforce which can effectively ensure that this company is able to perform better within all its key operations because different ideas shall end up being brought together from people with development experience backgrounds thus up(p) its performance drastically.Another important thing that can lead to a great deal effectiveness at the BP shall be in the use of newer forms of engine room thus being able to come up with better and prehensile products and services which can enhance all means product and social development thus increasing the customer base for the company (Robbins, 2008. p 56). If they are able to do so, they will be able to avoid risks resulting from takeovers.BP must devise strategies to offset problems resulting from ineffective management and lack of teamwork in part of employees to avoid occurrence of similar problems which have been recorded to be detrimental in its history of existence (Jeffrey & Bratton, 2001, p, 59). The rapid advancement of technology along with the growth of robotics provides many opportunities for BP.If the company continues to focus on and emend their performance management, they have every bit of potential to gain a competitive edge in the industry . Social trends are mournful towards a holistic and humble approach in all areas of life, BP does not want to get caught playing catch-up to its competitors. By following this strategy, BP will have the opportunity to gain revenue and increase market share irrespective of the recent crisis (Auerbach & Alan, 1991, p 36). ConclusionTakeo ver is a very important approach which has to be keenly considered by BP so as to improve their performance by engaging all the individuals in the organization in acting and working in a manner which shall guarantee better performance with the organization This process is what holds the key towards the future performance of the business or organization and making it possible for it to achieve its goals within the stated time period. In that case, while adopting these patterns, managers should be aware of the functions and the tasks which have to done and achieved during the management process (Fox & Marcus.2008, p, 34). Generally after takeover, there are no winners or losers. In this kind environment, people normally appreciate and accept as authentic that thinking and decisions making are better when done cooperatively and individuals are able to show professionalism and discipline in workplaces ,and provide essential considerations that can help the work environment run efficien tly. Also if a problem emerge or arise in the workplaces, employees should not hesitate to talk up on the issue. Individuals and organizations should understand what takeover means so that they can be guided by it and function diligently.Similarly workers and employers should be turned on by the strategy so that they can tap resources and establish a successful business entity. In conclusion we can say that takeover is a very important concept in business and it encourages competition in the global market and promote common respect for each market leaders opinions and capabilities, Promoting takeovers in a firm is creating a good work culture that values collaboration (Brodie, 2010, p ,98). Bibliography Auerbach, Alan J. 1991. Corporate Takeovers Causes and Consequences. cabbage University of Chicago Press. Ansell, S. , & Park, J. 2003. BP Tech Trends. Education Week, 22(35), 43. Retrieved from Academic Search Complete database.