British Petroleum Case Analysis

British petroleum group was founded in the 1900s after the discovery of huge oil reserves in the Arabian Peninsula and Persia which is modern day Iran. The original name of the company was Anglo-Persian Oil Company and was registered as a company operating under the British Empire. Due to increased demand of oil, the company was forced to expand its oil reserves to Alaska and the Northern Sea and it was then renamed as British Petroleum due to the nationalization process present in Iran (Managi, 2007). Since its formation, British Petroleum has remained a globally oriented company that has largely focused on the market of Europe and America as it produced goods that most industrialized countries depended on and could not readily produce by …show more content…
Virtually, the company’s presence is felt in almost each country in the world and it employs 115,200 employees from hundreds of diverse professions. In 2012, the company’s revenue was at $279 billion with a return of $4.7 billion without exceptional. Currently, BP has a market capitalization of 180 billion that represent a contribution of nearly 1 million shareholders. According to the 2012 operation records, BP had a turnover of 2.3 million barrels of crude oil produced, 8.9 cubic feet of natural gas and over 7 million barrels of petrochemical output. This huge amount of product output is amazingly sold to only 40 countries in the world basically in North and South America, Europe, Asia and some parts of Africa. BP has managed to realize this global network by realizing the fact that it can still extend its cooperation and merger with dozen other companies that begun in 1980s. For this reason, the number of subsidiary companies for BP is linearly uncountable. According to Ody and United States (2001), there is not even a single list showing even half of the complete global network of the company. However, there are notable examples of important mergers of BPs history that have taken place over time. In 1990 and 1999, BP merged with two American firms Amoco (founded in 1889) and ARCO (founded 1860) respectively. In 2000, there was a merger with Burmah Castrol which was taken as an acquisition. These two events are the main mergers that extended the global network of BP Company, resulting to multiple subsidiaries for the group and also reorganization where I was deemed necessary. This meant that there was huge sell off of most of the little firms that could not fit into the company’s adjustment process. In 2002, there was an interesting merger that was followed by an increase in the