However, in order to formulate a successful strategy, it is critical that a proper strategic management process is followed. This process is a step by step process which involves different stages through which organizational strategy has to pass through in order to be effective. Such process involves a detailed situational analysis i.e. the process of taking into account the external as well as internal factors before framing and formulating an strategy. The situational analysis also allows an organization to set its strategic objectives and bases on such objectives; strategies are designed to achieve such strategic objectives. Further, organizations also need to choose the tactics and then subsequently communicating the same to the stakeholders so that the same can easily disseminated to all the relevant stakeholders.
"Public Relations is the profitable integration of organization's new and continuing relationships with the stakeholders including customers by managing all communications contacts with the organization that create and protect the brand and reputation of the organization"(Cawood,1997)
British Petroleum or BP is one of the oldest companies in this line of business having more than 100 years of experience. Listed on London Stock Exchange, BP was formed during 1909 as Anglo-Persian Oil Company and has successfully transformed itself into one of the highly successful firms in the world. BP claims to be one of the largest energy companies in the world providing efficient fuel for transportation, energy for heating as well as light and offering other retail petrochemical products for use in everyday life.
BP has the presence in over 100 countries with more than 90,000 employees working for it in different countries drilling more than 3 million barrels of oil per day. Such huge level of operations is only possible due to the successful management of the firm in strategic manner through diversification of its brands which cater to the needs of the different segments of the market.
It is also critical to note that British Government has remained one of the shareholders of the firm during 1950s however; the stakes of UK government were subsequently sold during 1970s in order to give the firm more freedom and creativity to flourish as the third largest energy company in the world. BP is technically engaged into the exploration and production of petroleum and petroleum related products, refining them and subsequently marketing them. Apart from this, the firm is also involved into the production of different chemicals such as engine oils etc.
Some Statistics about BP1
As of December 2007,
1. BP had the market capitalization of over GBP 230 Billion.
2. Sales and operating revenue of approximately GBP 284 Billion.
3. Number of total shareholders is in excess of 1 million.
4. Its proven reserves of the gas and oil were approximately over 17 billion barrels out of which 57% of the reserves are oil whereas rest comprises of the natural gas.
5. It produces 2.4 million barrels of oil and 8.1 billion cubic feet of natural gas from its various sites operated at multiple locations across the world.