The paper 'Strategy Development in the Global Oil, Gas & Petrochemical Industry - British Petroleum " is a good example of a management case study. The global oil and gas industry is characterized by a set of paradoxes in which the large and growing yet complex business environment provides immense opportunities for growth yet is ridden with the pitfalls that may result in organizational and social failure. In the pursuit of maximizing shareholders’ value, oil and gas companies often ignore other stakeholders, resulting in issues in corporate governance, business ethics and corporate social responsibility.
As a result, dangerous explosions have occurred in BP’ s refineries and Shell’ s operations have resulted in environmental damages (M& As). As a result of globalization and developments in the global industry, markets and technology, oil and gas companies operate in a very complex business environment. Organizations get access to resources through joint ventures but their success depends on the synergies of the various assets. Lack of synergies, insufficient knowledge management and organizational learning lead global alliances to fail. Therefore, BP needs to adopt organizational learning more seriously so that it can prepare itself for changes in the business environment rather than respond to such changes.
Only this will allow the company to resolve the paradox between maximizing employee performance and maintain corporate social responsibility. Introduction The oil and gas industry now spreads across various countries. Multinational companies engaged in exploration, production, refining and distribution of oil and gas companies have to operate under diverse business, economic and political factors. As a result, they are faced with issues and paradoxes that are not limited to a particular national or business context. In this paper, I will analyze the corporate governance and ethical issues that prominent oil and gas MNCs, British Petroleum (BP) and Shell, have faced in terms of the stakeholder theory and the agency theory.
Then, I will discuss BP’ s globalization strategy in terms of transaction cost theory and the resource-based view. Finally, I will discuss the managerial strategy that BP needs to adopt in the context of the complex business environment so that it can adapt to chaotic situations.
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