Organisations In Their Environment Management Essay
As part of privatization of public utilities/companies, this company was created originally by government and later as a privately owned Public Limited Company (PLC). Its role was to provide the infrastructure for the society. Given the massive pressures on the system, there is both commercial and political pressure to create a profitable and efficient public utilities system. However, there have been substantial criticisms of the public utilities post-privatization.
You have been provided with information indicating some of the issues around the function of the company. Using these and other sources which you may be able to obtain, analyze PLC in the following areas:
You are to provide a write-up in tabular form to be use as ‘Induction Presentations’ as well as this coming discussion on the following matter:
You are required to identify the legal structure and type of the organization and state the purposes such as mission, values, aims, profits, market share, goals, objectives of selected organization (1.1)
Describe the extent to which selected organization achieves the objectives of stakeholders. Identify the stakeholders, conflict of expectations and satisfaction the stakeholders objectives (1.2)
Explain the legal responsibilities of the selected organization and strategies employed to meet objectives of stakeholders (1.3)
Explain how economic systems in your country (Viet Nam) attempt to allocate and make effective use of resources available within the country (2.1)
Assess the impact of fiscal policy, monetary policy economy on selected organization and stakeholders in your country (2.2)
Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization (2.3)
All supplementary information besides the provided materials is required to cite the source and quoted in the appendices.
(Refer in the next page – Company Profile)
Description: BP logo
BP PLC is a British multinational oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by 2011 revenues and is one of the six oil and gas super majors. It is vertically integrated and operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy activities in biofuels and wind power.
BP’s origins date back to the founding of the Anglo-Persian Oil Company in 1909, established as a subsidiary of Burmah Oil Company to exploit oil discoveries in Iran. In 1935, it became the Anglo-Iranian Oil Company and in 1954 British Petroleum. In 1959, the company expanded beyond the Middle East to Alaska and in 1965 it was the first company to strike oil in the North Sea. British Petroleum acquired majority control of Standard Oil of Ohio in 1978. Formerly majority state-owned, the British government privatised the company in stages between 1979 and 1987. British Petroleum merged with Amoco in 1998 and acquired ARCO and Burmah Castrol in 2000.
BP has been involved in several major environmental and safety incidents, including the 2010 Deepwater Horizon oil spill, the world’s largest accidental release of oil into marine waters. In 1997 it became the first major oil company to publicly acknowledge the need to take steps against climate change.
BP in Vietnam
BP arrived in Vietnam in 1989 with many ideas. Over time, it had been able to turn those ideas into reality.
The business in Vietnam includes the exploration and production of oil and gas, the production and distribution of lubricants, and the supply of crude oil to the first local refinery. BP also invested in the growing Vietnamese power industry.
In the early 1990s, their exploration discovered four major gas fields 320km offshore south of Ho Chi Minh City. It resulted in the $1.3 billion Nam Con Son Gas Project. This complex operation involved the development of the Lan Tay and Lan Do fields, the laying of a two-phase offshore pipeline (the longest of its kind in the world) and the construction of the 720 MW Phu My 3 Power Plant in Ba Ria Vung Tau province.
The Nam Con Son Pipeline that BP built, operated, transferred operatorship, and expanded has become a model of sustainable, reliable, and efficient investment project in Vietnam.
BP and Castrol are recognised brand names in the lubricants markets here. Every year, the business grows faster than the market, with a record performance of 2- 3 times growth in 2008 alone.
In 2009, BP Integrated Supply and Trading signed a contract with PetroVietnam to supply crude to Vietnam’s first refinery. The contract is for a minimum of 50% of their foreign crude requirement and is for the next five years (with option for extension).
BP’s work in Vietnam focuses on the areas of environmental protection, poverty reduction, education and training, enterprise promotion, and access to energy.
So far, BP has invested more than US$6 million in community projects across Vietnam, with particular focus in Ba Ria Vung Tau Province where the company operates major production projects.
BP has worked with the UK’s Foreign and Commonwealth Office and Leeds University to help with the training for Vietnam’s government employees and students, has provided over US$620,000 in sponsoring Vietnamese students to pursue graduate studies in the UK. We also initiate and provide financial support to the Marcel Loos Memorial Business Course at Da Nang University. The course covers such topics as modern accounting and business skills, both of them key to Vietnam’s transition to a market economy.
For more information about the Company, please visit: http://www.bp.com ; http://www.bp.com/sectiongenericarticle.do?categoryId=497&contentId=2000747
Pass is achieved by meeting all the requirements defined in the assessment criteria.
Merit Identify and apply strategies to find appropriate solutions. (M1)
Characteristics / Possible Evidence – relevant theories and techniques have been applied with various parties in the industry, the organisation, and models.
Select and apply appropriate techniques. (M2)
Characteristics / Possible Evidence – a range of methods and techniques have been applied indicating current trends, economic environment and methods used.
Present and communicate appropriate findings (M3)
Characteristics / Possible Evidence – An appropriate structure and approach have been used to prepare a report. Present data using a range of methods e.g. tables, diagrammatical and graphical forms.
Distinction Use critical reflection to evaluate own work and justify valid conclusions
Characteristics / Possible Evidence – Ability to show evaluation has taken place using defined criteria such as development towards corporate objectives and plans, roles and function of agencies and appropriate use of advertising.
Take responsibility for managing and organising activities (D2)
Characteristics / Possible Evidence – Ability to show with evidence the areas of substantial activities / projects or investigations have been planned, managed and organised with respect to competition and a clear explanation of responsibilities and implementation of business and organisational plans.
Demonstrate convergent, lateral and creative thinking (D3)
Characteristics / Possible Evidence – An innovative and creative thought has been used to identify mission, objectives and responsibilities of APL as well as investigate related government and economic policies affects the company.
The assignment should have a cover page that includes the assignment title, assignment number, course title, module title, Lecturer/tutor name and student’s name. Attach all the pages of assignment brief/cover sheet with your report and leave them blank for official use.
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This is an individual assignment.
Content sheet with a list of all headings and page numbers.
A fully typed up professionally presented report document. Use 12 point Arial or Times New Roman script.
Your assignment should be word-processed and should not exceed 3,500 words in length.
Use the Harvard referencing system.
Exhibits/appendices are outside this limit.
The assignment should not contain a bibliography – but should contain a list of any references used in the assignment.
You assignment must be submitted as hard copies and in electronic form (CD) for checking.
NOTES TO STUDENTS for suBmission
Check carefully the submission date and the instructions given with the assignment. Late assignments will not be accepted.
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Failure to achieve a PASS grade will results in a REFERRAL grade being given.
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A report on British Petroleum
Jubred A. Peñano (Lecturer)
Unit1: Business Environment
Banking Academy, Hanoi
BTEC HND in Business (Finance)
Word number: 4895
Prepared by: Máº¡c Äình Minh – Eric – F05C
Registration No: ITP F05 – 136
Submission date: 20th November, 2012
Table of Contents
British Petroleum is big foreign company invest and operate in Viet Nam market. They have objective, vision, mission, and goal to success in Viet Nam.
BP has to meet objective of differences stakeholder to satisfy them and achieved the objective.
Operate in Viet Nam BP had to care about responsibility of company with employees, government, Business and Ethics, and Public Relation and Corporate Image. BP responsibility makes BP better and popular in Viet Nam. It also protects environment and social. Make out life better and safer.
When operate in Viet Nam, Bp have to follow law and policy of Government. That Why law and policy in Viet Nam affect BP in many differences ways. Global economy also affects directly Viet Nam economy and BP.
BP group is a leading multinational oil and gas in the world. BP gives consumers the world fuel for transportation means, living for energy, lighting and heating, PETROCHEMICAL PRODUCTS CONSUMER DEMAND FOR DAILY.
With 29 facilities exploration and exploitation of oil and gas, 17 oil facilities with a total staff of up to 92,000 people.
BP logo named after the sun god Helios in the ancient Greek legends with illustrations of the most dynamic source of energy in all its forms, from oil and gas to solar energy – which daily the company brings more than ten million customers around the world.
BP is one of the first oil companies in Vietnam in the 90s of the last century.BP in Vietnam with investment in two main business lines in the oil and gas industry: upstream – exploration and exploitation – and downstream – the production and consumption of products.
In the field of lubricants, two world famous brand lubricants and lubricant present in Vietnam is BP and Castrol lubricants. With diverse products, lubricants BP and Castrol meet all the demands of consumers as well as industry.
1.1 Identify the purposes of different types of organisation.
BP is a multinational oil company which is the third largest energy company and the fourth largest company in the world. (none, 2012)
1.1.1 Company legal structure.
BP is one of the first oil companies in Vietnam in the 90s of the last century. BP joined in Vietnam and investment in two main business lines in the oil and gas industry: upstream – exploration and exploitation – and downstream – the production and consumption of products. (Anon., 2010)
They are limited company and are one partnership of Petro Viet Nam Corporation.
1.1.2 BP vision, mission, values, goal, objectives.
On BP magazine (2006) John Mingé (BP Vietnam’s director general) said that Bp Viet Nam vision is “BP vision is to be the leading gas supplier and grow the Business further in line with the country’s needs in a mutually beneficial way” (Anon., 2006)
BP Mission is: “From finding, extracting and refining oil and gas, to developing advanced bio fuels” (Anon., 2012)
BP Viet Nam goal is: “Optimal exploitation of the economic benefits can be obtained from the gas and other potential gas fields form a closed cycle value.” (leader, 2012)
Short term objectives:
“BP profit of $ 5.4 billion in the three months ended on 30-9, a successful return compared with a loss of $ 1.4 billion in the previous quarter. BP says it has plans to increase its quarterly dividend by more than 12% to 9 pence (14.4 cents) per share” (Báº£o, 2012)
Long term objectives:
Since joined to Viet Nam, Bp committed long-term business objectives and commitment to the overall development of the economy of Vietnam. Especially is the industrialization and modernization of the country.
As a part of process, BP value are:
1.1.3 Comments about vision, mission, goal, objectives, and values of BP.
Viet Nam has joined to WTO that is good opportunity for BP to become leading in gas and oil supplier in Viet Nam. Viet Nam government are very welcome with foreign company and encourages them develop in Viet Nam. According to (Decree 108/2006/ND-CP of the Government) enterprises enjoy preferential tax and land. That is advantage for BP to done the vision and success in Viet Nam markets.
Finding, extracting and refining oil and gas, developing advanced bio fuels are main task of BP. They should improve and develop their skill, quality, and associated with environmental protection.
By analysis short term and long term objective BP Viet Nam can control the company and have strategy for BP in the Future to make company better, earn more benefits, and have make BP become biggest company in the oil and gas market.
BP has big value because they are a big and importance company in Viet Nam. They also affect Viet Nam economic, they make Viet Nam economic grow and improve life style of many Viet Nam people.
In general, BP vision, mission objective and goal are very clearly. BP wants to earn more profits and also associate with environmental protection. BP purpose in Viet Nam is finding, extracting, refining oil and gas, developing advanced bio fuels, it is clear that vision, mission, objective and goal are very suitable with Viet Nam, they are going to be success and they can be achieved it purpose in Viet Nam.
1.2 Describe the extent to which an organization meets the objectives of different stakeholders.
1.2.1 Three broad types of stakeholders in BP:
Internal stakeholders (employees, management)
Connected stakeholders (shareholders, customers, suppliers, financiers)
External stakeholders (the community, government, pressure groups)
Each of them has influence to BP so that BP needs to understand them to achieve satisfaction from those groups.
Influence of Stakeholders to the company
Table above shows influence of differences stakeholders to the company.
We have stakeholder mapping depend on power, influence, interest, and aspirations.
Figure: stakeholder mapping
Management (key players): Management are key players because If no one controls BP’ employees, BP will not operate and develop without management.
Employees (key players): Employees are importance, they work well and hard working will bring many benefits for BP.
Customers (keep satisfied): Customer has power in market because they influence benefits of BP so satisfaction customer is necessary for BP.
Suppliers (keep satisfied): Suppliers only care about their benefits so that why BP just needs to keep satisfied with suppliers.
Shareholder (keep informed): Shareholder maybe doesn’t have power in make decision but they are investing money in BP. That why BP should keep informed.
Financiers (Keep informed): Financiers are always looking for interest of BP. So that BP just keeps them have minimal effort.
Government (keep satisfied): Government create laws and allow for BP to work in Viet Nam so that they influence BP. That reasons why BP should keep them satisfied.
Local authority (keep satisfied): They influence BP because they are direct control BP in local, so that keep them satisfied is necessary.
1.2.2 Stakeholders objectives:
Each types of stakeholder have differences objectives. Table below is my evaluation the extent to BP achieves the objectives of three stakeholders.
Security of Income
Increase in Income
Receiving goods and services
Paying reasonable price for those goods and services
Wide range of choices
Organisation is meeting relevant legal requirements
Dose not harm the outside environment
Table: Company stakeholder’s objectives
Security of Income: They have not achieved this objective. In 2004, Bp has violated labour rights, employee salary used to pay taxes and do not pay enough wages to employees. (Vân, 2011)
Skill and career development: They have achieved this objective. Because BP is company depends on employee’s skill, commitment and behaviour at work, so that they achieved this objective.
Increase in Income: They have achieved this objective. May 3-2008, in the first wage increase for employees, each employees of BP salary are to be raised from 30% to 40%. (Há»“, 2009)
Each stakeholder has different influences to BP. That why BP need to achieved their objective to satisfy them. BP had almost achieved stakeholder objective, however they still need try to satisfy all stakeholder objective.
To satisfy stakeholder objective BP used increase salary, have program to training skills for employees, protect environment, and create more jobs for local employments.
1.3 Explain the responsibilities of an organization and strategies employed to meet them.
Each organisation is subject of the rules. Rules can be law or other realm of ethics, there are five responsibilities are:
Social responsibilities: “The obligations that the organisation has towards the people and the environment in which the company operate.” (Anon., 2010)
Environmental responsibilities: This is responsibility of BP to protect environment in local where they operate. It involves legislation and regulation, ecological relevant to business, green concerns.
Ethics and business: “Ethics is about the codes of moral principles that people follow with respect to what is right or wrong. Ethical principles are not necessarily enforced by law, although the law can incorporate moral judgements.” (Anon., 2010)
Management responsibilities: “Responsible not only to the organisation’s owners, but also has responsible to:
The local community
The general public (and government)” (Anon., 2010)
Public relations and corporate image responsibilities: Responsibilities of company about corporate image of company in the mind of the general public, and perhaps more specifically, in the minds of potential customers. (Anon., 2010)
1.3.2 Example and The strategies employed by BP to meet them:
Help poor people in Viet Nam and over the world
Create more jobs for employments
Contribute to the social work
Build house, school and hospital for poor people.
Develop circle of activities to more local.
Help local authorities in social activities
Cleaning, waste treatment
Help other people to cleaning and waste treatment
Mining and processing in accordance with procedures and safety compliance.
Workers waste cleanup on local where company operate every day
Propaganda to the people so that all people aware of environmental protection
Ethics and business
Produce the product with right quality and safety for consumers.
Trading in fake goods, pirated goods, not taxpayers.
Improve the quality of products by producing advanced technology
Enhanced inspection and survey products on the market
Improve the quality of their products instead of finding ways to affect competitor
Listen and care staff
Listen and care customer
Listening to staff and try to satisfy them
Listening to customer feedback to improve the quality of products
Control the company follow the rules of Government
Public relations and corporate image
Maintain and preserve corporate image.
Maintaining corporate image with loyal customer
Maintaining corporate image with employees.
Right corporate image advertising and other activities to keep the company image
Ensure product quality and to keep their commitments to customers.
Keep their commitments to employees.
Responsibilities above of BP make BP become good organisation, it also bring success and make BP become company that can be trusted in Viet Nam market. These responsibilities show that BP provide about social, environment, and care about customer, employees.
2.1 Explain how economic systems attempt to allocate resources effectively
2.1.1 Definition of economic system.
According to Eric85:
“1. Economic system is the set of institutions and mechanisms by which a society provides answers to the three fundamental questions.
2. Economic system organized way in which a state or nation allocates its resources and apportions goods and services in the national community.
3. Economic system is Basic means of achieving economic goals that is inherent in the economic structure of a society. Major economic systems are capitalism, socialism and communism.
4. Economic system is the system of production, distribution and consumption.” (Eric85, n.d.)
2.1.2 Types of economic system.
Each country has their ways to approaches economic system. According to Hitesh Bhasin there are three types of economic system:
Market economy: A market economy system is relies on consumers to economic resources.
Command economy: The state control the public interest. They deciding which goods to make and how to make them. What is available are decided by government planners.
The mixed economy: It is mixed, among the world economies. All command systems has in a market sector.
2.1.3 Specify the economic system of Vietnam and the way Vietnam allocate and make effective use of resources within the country.
Viet Nam is developing country, either the State or the consumer control the economic so that why specify the economic system of Viet Nam is the mixed economy.
In 2011, According to associate professor, Ph.D. Ngo Quang Minh : “Communist Party of Vietnam construction undertakings in Vietnam, a market-oriented economic system of socialism.” (Minh, 2011)
In 2012, congress defined economic innovation management mechanism. Remove focus bureaucracy, building new mechanism in accordance with objective rules and the level of development of the economy, to create motivation manufacturing business units to improve labour productivity, quality and efficiency of the planning mechanism in business accounting method socialism, the principle of democratic centralism. (DÅ©ng, 2012)
One of the basic directions to accomplish that goal is “to develop the market economy socialist orientation”, paying special attention to understand and address the major relationships, including the relationship “between the market economy and socialist orientation”. XI Congress of the Party is determined, one of the three strategic breakthrough “Completing the institutional market economy socialist orientation”. (DÅ©ng, 2012)
National financial restructuring is a task that many countries in the world have been made. However, the financial restructuring of a country will also face the challenge, is to develop and implement policy. After 25 years of renovation, Vietnam’s economy has experienced rapid development in many aspects, economic institutions socialist-oriented market gradually developed and perfected. Average growth rate of the period 2001 – 2010 was 7.26%, per capita GDP in 2010 was $ 1,204, the size of the GDP in 2010 at current prices 3.4 times compared to 2000, making Vietnam out of water poverty, underdevelopment, and narrow the gap in living standards compared to other countries in the region. (ThÄƒng, 2012)
The way Vietnam allocates and makes effective use of resources within the country.
Allocation and efficient use of financial resources with advanced process-oriented role of state financial resources. Specifically:
Focus state capital development and economic infrastructure essential techniques. At the same time, create mechanisms and policies to attract investment of social resources infrastructure development, gradually shifting resources from the state to people, invest in environmental science and technology, education and training, health care; promote autonomy for business; development of social safety nets; innovation mechanism of state capital investment and financial management mechanisms for now owned by the State. (ThÄƒng, 2012)
National financial restructuring is required to improve the efficiency of mobilization and use of financial and resource allocation. There by, contributing to maintain the security, financial and monetary stability, to create conditions that promotes rapid and sustainable economic growth.
Viet Nam is mixed economy, Government create mechanisms and policies to attract investment of social resources infrastructure development. That is big opportunity for BP to invest and operate in Viet Nam. That easier for BP to success in Viet Nam markets.
2.2 Assess the impact of fiscal and monetary policy on business organizations and their activities
2.2.1 Definition of macroeconomic policy
Government policy aimed at the aggregate economy, usually to promote the macro goals of full employment, stability, and growth. Common macroeconomic policies are fiscal and monetary. (Anon., 2008)
2.2.2 Impact of fiscal and monetary policy on Vietnam economy
Resolution No. 01/NQ-CP 3 May 01, 2012 of the Government on the key measures of direction and implementation plan of socio-economic development and the state budget in 2012 and the measures practical, consistent with the actual situation; operating simultaneously focus on directing, implementing a number of measures to remove difficulties for business, marketing support as follows:
Extension of the 06 month time limit to pay value added tax in April, May and June 2012
50% reduction of land rent payable in 2012
Extension of 09 month deadline for corporate income tax from 2011 and earlier but not paid to the state budget
Excise tax exemption in 2012 for fishing and households producing salt.
Extended up to 12 months term payment of land use for the project investors with financial difficulties. Provincial-level People’s Committees for consideration and decision grace period specific to each project, the project team after reports of the Standing Council of the same level.
Implementation of appropriate measures to enhance the attraction, accelerate the disbursement of foreign direct investment (FDI), which focused on attracting a new wave of investment, large-scale and high-tech.
Implementation of measures to remove difficulties and to create favourable conditions to encourage production for the field, offering the advantage, especially in the areas of agriculture, tourism and services.
In the early months of 2012, although more difficult due to the impact from the outside and in the country, but by identifying the objectives and implementation of proactive deployment, positive, effective mechanisms policies and measures in accordance with the striving, the efforts of the industry, at all levels, the business community and civil society, the economy has achieved positive results initially. Inflation curb low; macroeconomic basic stability; social security guaranteed. However, production difficulties; purchasing power of market decrease; economy has been growing, but the growth rate is lower than the same period in 2011. So focus to overcome difficulties and create favourable conditions for the production associated with support for the development of the market, but remains consistent in the implementation of the inflation target, macro-economic stability, ensure social security, step-by-step implementation of economic restructuring in the direction of improving the quality, efficiency and competitiveness is a key task in the operating direction of the Government to ensure that the implementation meets the highest indicators of socio-economic development in 2012 has been set.
2.2.3 Situation of Vietnam’s fiscal and monetary management
May 27, 2012, the Government held its regular meeting in May 2012, to discuss and decide the following issue:
Reports Government discussed the socio-economic situation in May and the first five months of 2012, the situation made â€‹â€‹Resolution No. 01/NQ-CP on the solution to direct and executive-economic development plan society and the state budget in 2012 and implementing Resolution No. 13/NQ-CP on a number of solutions to solve difficulties for business, marketing support by the Minister of Planning and Investment process.
State Bank executive prudent monetary policy, flexible, credit growth at reasonable levels, contributing both to support economic growth and control inflation target
Ministry of Finance shall assume the prime responsibility and coordinate with ministries, agencies and localities to implement flexible fiscal policy consistent with the monetary policy to increase aggregate demand of the economy according to the proposed plan; focus on promoting Quick disbursement of public investment, disbursement of over-collection by the end of 2011, the paragraph pause Resolution No. 11/NQ-CP 2011
Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance proposed to advance investment plans in 2013 for the project, likely to be completed in 2012, 2013; coordinate with ministries, agencies and localities to overcome difficulties in production and business with appropriate measures by sectors, occupations and regions.
Ministry of Industry and Trade shall direct development of the domestic market, stimulate consumption, reduce inventory, promote production; strengthen trade promotion activities, expand export markets, taking advantage of export opportunities exported to the major markets have recovered; quality control and import restrictions on imports of consumer goods.
In the difficult economic situation, the government has given a lot of incentives and help for businesses, this also affects the operation of BP. BP received government incentives and support to maintain operations and overcome difficulties.
2.2.4 The global economy influences on Vietnam’s economy and BP
Global developments impact on the Vietnamese economy through a number of investment channels such as trade, investment, remittances, development assistance ODA and tourism. Meanwhile, the global economy, particularly in large countries is faced with many difficulties. Thus, when the world’s economic outlook in 2012 not positive, the Vietnamese economy will be affected by a number of different ways can mention the following:
Recession in the United States and Europe could impact on exports. Two regions accounted for 40 percent of Vietnam’s export market, and the recession in the next year in one of the two markets will reduce the demand for imports. The fact of the 2008-2009 global economic downturns, a number of factories have closed and others have to lay off workers due to lack of demand (VASS, 2009). Fortunately Vietnam is partly protected from the negative effects from the decline of advanced economies due to the exports of Vietnam in general is “textiles, apparel cheaper and needs food requirements, which tend to be less cyclical and less dependent on the financial situation “(essential goods). If the European debt crisis worsened in 2012, which could make discount oil, and thus reduce the value of Vietnam’s oil exports and government revenues.
Direct investment and other private capital flows may decrease severe if the crisis in Europe led to a global financial crisis. In the next year, it seems that banks in Europe and has significant transactions with banks in Europe to cut lending to raise funds to prepare to resist the damage. While European banks have limited links with Vietnam, the tightening of global credit markets in general can lead to a decline in loans for Vietnam Nam
Deteriorate in advanced economies, particularly the U.S., will affect the flow of remittances to Vietnam. In a global recession, remittances to Vietnam fell 9 percent from 2008 to 2009, reflecting weak employment conditions in the U.S. and Europe. With growth forecast to slow in both areas, the flow of remittances does not seem to have significant growth in 2012. Recession in the U.S. or Europe could fall in remittances, reducing a source of foreign exchange income and important.
Global economic conditions will affect the tourism industry in Vietnam. Income is not guaranteed in the advanced economies will reduce the need to travel overseas holiday. During the global recession of 2008-2009, the number of international visitors to Vietnam has reduced by 20%. In recent years, China and South Korea account for about 30% of visitors to Vietnam.
Economic recession, lower oil prices make profits of BP reduction. Slow economic growth, consumers reduce consumption, inflation, all of which directly affect the operations and profitability of BP.
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation
2.3.1 Government’s industrial policy
Vietnam has made a dramatic transformation in 1989 from a planned industrial focus is coordinated through the distribution of input and output factors are administrative or into a major industry operating under the market mechanism. Moreover, Vietnam achieve
This conversion while avoiding the GDP and industrial output declined sharply as happened in many other centrally planned economies. In 1980, Vietnam’s exports
Men are not enough to pay for half of the import requirements though relatively little of the countries and nearly as no industry of Vietnam can sell the product on the market difficult of Europe and North America. Twenty years later, Vietnam’s export turnover doubled fifty times, industrial products available around the world and contributed the most to the turnover the country’s exports.
Most successful in the development of the industry today is the result of the government’s abolition of barriers to business efforts of foreign direct investment (FDI).
Government remove barriers, industrial development under the market mechanism. BP has a wider scope, not the dominant barriers to market and get the support of the government. That is an opportunity for BP to develop its mining industry in Vietnam.
In some contexts, the power of the market to protect competition in the business and the benefits that competition brings to consumers. Such context is common in developing countries (Viet Nam), where the former state enterprises often dominated an industry and managers in the area has been privatized prefer cooperation than competition.
Competition is the power that most free market economies rely on to ensure that the business meets the needs and wants of consumers. When competition, there is no government must stipulate what businesses produce goods with quantity, quality and price. Direct competition decided the problems with the business.
Competition policy give BP a chance and mining operations in the Vietnam market, while promoting BP constantly evolving to be able to compete with other companies on the market.
2.3.2 Government’s social welfare policy
Social security and social welfare policies and systems solutions to both the minimum living protection of people from risks and extraordinary impact on economic, social and environmental; contributed continuously improve the material and spiritual life of the people. Ensure social security and social welfare is not only protecting the rights of every citizen as stated in the Universal Declaration of Human Rights, but also is an important task of each country in development process. However, the extent, scale and scope of social security and social welfare of the different countries, depending on the concept of socio-political regime, level of development and policy each country.
In Viet Nam, ensuring better social security and social welfare has always been a major policy task of the Party and the State shows the good nature of our regime and means so important for the socio-political stability and sustainable development of the country. In the last decades, on the basis of socio-economic development, along with the continuous improvement of the salary, wages and raise incomes for workers, the Party and State are interested in caring to social security and social welfare of the people.
With welfare policies, social security, government of Vietnam. BP should have a combination of industrial development policy combined to ensure the welfare of BP employees and combined with the local authorities to take the social work helping local authorities.
Policies and poverty reduction solutions are deployed in sync on all three aspects:
(1) Helping the poor to increase access to public services, especially health, education, vocational training, legal aid, housing, clean water.
(2) Support the development of production through land policies to ensure production, preferential credit, agricultural, forestry and fishery, industry development.
(3) The development of essential infrastructure for communes and villages particularly difficult.
Up to now, the poverty reduction achieved many outstanding accomplishments, people sympathize, international appreciation: number of poor households decreased from 29% (2002) to about 10% (2010); inequality between urban and rural areas declined from 2.3 times (1999) to 2 times (2008). Material and spiritual life of the people is improved remarkably. (An, 2010)
Advanced Life workers will directly help improve the quality and performance of BP. Enhanced people’s lives means people’s consumption will increase, increase profits and revenue for BP.
Determination of the Party and State, along with the country’s economic potential is raised is an important basis to ensure better social security and social welfare. However, we also face many difficulties and challenges.
2.3.3 Interest groups and pressure groups
Protect the interests of consumers is an important and urgent task
The information technology developing world, there is no reason that information about goods including: price, quality, warranty ….not been published in a transparent, open and honest to the consumer society. Good information is the same business management agencies took the initiative to protect consumers.
Today the world refers to the soft power of consumers, which is opposed the violation of their rights, and at the same time aggressively to boycott products that harm no gastrointestinal letter and does not exist, will be bankrupt by the aggressive action of the society.
Consumer associations to protect the interests of consumers caused BP to create better quality and more secure to be able to compete in the market and build credibility with consumers. At the same time focus on environmental protection.
BP is great company in Viet Nam market, they should promote the achievements and overcome the limited presence to continue to grow and become the leading group in Vietnam and around the world.
BP Vietnam has basically completed the task, purpose, targets. They also have specific responsibilities to the environment, society and employees. With diverse products, lubricants BP and Castrol meet all the demands of consumers as well as industry.
Full implementations of the legal requirements have committed. Respond properly or may exceed the expectations of our customers in the place where the branch office or around the world. Consult external flow from the public to better understand the customer as well as within the company on matters related to policy.