Smart objectives of bp
Task Three
SMART Objectives of BP
BP Objectives are prepared according to SMART (Specific, Measurable, Achievable, Realistic, and Timed).That means it should be particular about what we are going to achieve and should quantify about the objectives.
There are a several types of objectives that all can be done in the SMART format.
- Process objectives
- Impact objectives
- Outcome objectives
- Personal objectives
BP’s five year plan objectives are,
- Increase profitability by 20%
- Increase production
- Financial gain by serving to the increasing demand
- Build brand value that was affected by the oil spills
Five year development plan for BP
Business plan is a statement about company’s future goals and plans to achieve those goals. This can be externally focus or internally focus.
BP’s Strategies in progress can state as,
- Upstream growth
- Downstream turnaround
- Alternative Energy: focused disciplined Corporate simplification
In the upstream will focus on cost and capital efficiency to deliver profitable growth. In the downstream will drive further efficiencies and a focus on quality and integration. They will maintain their disciplined approach to alternative energy and will continue to unlock corporate efficiency through a culture of continuous improvement.
Five year development plan for BP
|
# |
Objective |
Strategy |
Actions |
Performance Indicators |
Time Period |
|
1 |
Increase profitability by 20% |
Research and development |
Hire most qualified researchers |
Innovative ways of doing things |
One year |
|
2 |
Increase production |
Acquisition of north sea area. |
Negotiations with governments and agreeing for a joint profit sharing. |
Coming into an agreement with relevant governments |
Two years |
|
3 |
Financial gain by serving to the increasing demand |
Sales and Marketing approaches to increase market share |
Recruiting experienced sales and marketing people and objective training |
Acquiring new market opportunities, increase the market share |
One year |
|
4 |
Build brand value that was affected by the oil spills |
Communication and promotion strategy |
Using new media opportunities of social media to build brand name again, invest in CSR activities in Go Green. |
Reduce the black mark |
3 years |
Evaluating and implementing the plan
In corporate strategy, Johnson, Scholes and Whittington present a model in which strategic options are evaluated against three key success criteria
- Suitability (would it work?)
- Feasibility (can it be made to work?)
- Acceptability (will they work it?)
(Source-: http://en.wikipedia.org/wiki/Strategic_management)
# |
Objectives |
Time Line |
|||
1 year |
2 year |
3 year |
4 year |
||
|
1 |
Increase profitability by 20% |
X |
|||
|
2 |
Increase production |
X |
X |
||
|
3 |
Financial gain by serving to the increasing demand |
X |
|||
|
4 |
Build brand value that was affected by the oil spills |
X |
X |
X |
Conclusion
When it is mention about the strategic management and the leadership strategic planning is a major part of it. Strategic planning can divide in to three stages as strategic Analysis, Strategic Options and Evaluation and Implementation. The British petroleum Corporation is a well established organization in petroleum industry and here it is mentioned about the strategy and competitive advantages of the BP and the technical tools which could they can use to analysis situations. The porter’s five forces investigation helps identify the competitive environment BP analysis their market for Quality production.
There are so many competitors like Solar, sharp in the market and BP establish with mass production. By doing the SWOT analysis it’s helping company to identify the internal and external environment of the company. BP is focused on customers and they believe in their productions.
They used the oil plus solar power combination and they used product segmentation, improve cost efficiency and some more strategies to increase their profits. They have created value through technology and this is a barrier for their competitors.
Company can use strategy clock, Ansoff growth matrix tools to analysis their position in the market. To develop strategic options first it should identify the external context and priorities and clusters. Then it should develop the strategic options. SOP matrix is best tool to identify the strategies of the company.
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