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British Petroleum Management - Case Study Example

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Employing close to 100,000 people and daily serving millions of customers worldwide, BP handles energy at all levels, from exploration and production to refining and marketing to developing gas, power, and renewable sources.
BP was originally founded in 1909 as the Anglo-Persian Oil Company by William Knox D'Arcy who was given a concession by the Shah of Iran to search for oil in the region. The company expanded slowly, with a few bumps along the road due to the changing political conditions. By 1954, it had formally adopted the title of The British Petroleum Company, and in the 1960s, it started to widen its horizons beyond the Middle East and explore hitherto untapped oil-rich areas, such as Alaska (USA) and the North Sea. Through development and acquisitions, BP has steadily increased its transnational dominance to attain its present towering position in the league of petrochemical giants.
Management functioning is systematic and well organized. Different department heads report directly to the Managing Director. Each of the different department heads have their respective managerial and non-managerial staff working for them. Department heads are responsible for the functions assigned to their departments.
Management philosophy...
The attitude of the top managers is guiding and encouraging and the overall approach to management is somewhat team oriented with emphasis on world group collaboration.
Though, there is inter-departmental communication present in the organization the tasks are defined for each department. Middle managers communicate to top managers but first-line manager are restricted to their respective department heads. So, in a nutshell we can say that the management philosophy of the company is rather participatory though the elements of bureaucracy are also present.
Management Functions

Strategic Plans: The blue print of strategic plan is made to achieve the strategic goal and for this purpose the long term planning is done by the top managers of British Petroleum such as new product development, capturing new markets, conducting research, improving products etc.

Goal Setting: Specific and measurable goals are set for the company on every level which provides the employees and managers with the yardsticks. Strategic goals are set by the top managers for the company related to its profits, sales, growth, expansion and products. Then tactical goals are set in every department such as production and sales targets in production and marketing departments respectively. Similarly, operational goals are set by lower levels

Tactical Plans: Tactical plans are made by the department head in the company to achieve its main target. For instance, four marketing managers plan for different products and different zones or regions.

Operational Plans: Operational plans comprise the schedules made by operational staff as the supervisors in the production facility make schedules and charts to implement their targets of production.

Organizing: The Company organizes its ...Show more


A report on management means the application of overall knowledge of the course and to apply all the knowledge and understanding of management on organization is an uphill task. This report is on the management functions in British Petroleum. The reason why this organization is chosen is that it is the company which has a multinational presence yet it is very British in essence…
Author : irunolfsson
British Petroleum Management
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