PESTLE analysis of British Petroleum in USA PESTLE analysis consists of six different elements that may help the business improve the certain areas. These are Political, Economic, Social, Technological, Legal and Environmental. The business would analyze each factor individually to find out what they need to do to become efficient and a well-rounded company. British Petroleum (BP) is a multinational oil company that operates in over 70 countries worldwide with 79,800 employees it has become well known company that has generated over $225bn for the economy. This essay will consist the PESTLE analysis of the company operating in USA and the effects that the oil spillage in the Gulf of Mexico in 2010 did to the company’s policies. BP. (2016). Despite British petroleum being the sixth largest energy company in the World it has been involved in safety, environmental and political controversies. This has
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The American government have high levels of taxation on the oil and gas industry, these add up to more than $30 billion a year. energy API. (2016). Due to the high levels of taxation BP are forced to have numerous implications on the way they operate. Socially BP may have lost costumer confidence due to the mistake made in the Gulf of Mexico. Consumers may choose a competitor rather than using BP as they may think that BP is not eco-friendly therefore reluctant to do future business with them this is evident as BP’s sales revenue went from 237.14 billion dollars in 2012 to 145.89 billion dollars in 2015. Market watch. (2015).
Secondly as the public begin to become more aware of the damages that cars do to the environment, the use of public transport increase, therefore there will be a reduction of cars on the roads so a lower amount of petrol needed. This would be harmful for BP’s sales as demand for petrol
The American government have high levels of taxation on the oil and gas industry, these add up to more than $30 billion a year. energy API. (2016). Due to the high levels of taxation BP are forced to have numerous implications on the way they operate. Socially BP may have lost costumer confidence due to the mistake made in the Gulf of Mexico. Consumers may choose a competitor rather than using BP as they may think that BP is not eco-friendly therefore reluctant to do future business with them this is evident as BP’s sales revenue went from 237.14 billion dollars in 2012 to 145.89 billion dollars in 2015. Market watch. (2015).
Secondly as the public begin to become more aware of the damages that cars do to the environment, the use of public transport increase, therefore there will be a reduction of cars on the roads so a lower amount of petrol needed. This would be harmful for BP’s sales as demand for petrol