British Petroleum Case Study

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Company overview: BP is a British multinational energy corporation headquartered in London. The company is involved in all areas of the oil and gas industry, including exploration, production, refining, distribution, marketing, petrochemicals, power generation, and trading. BP has sales and operating revenues in excess of $375 trillion (in 2011) and employs over 83,000 people (Company information, 2012). BP is divided into three business segments: upstream, downstream, and alternative energy. In the upstream segment, the company is responsible for activities in exploration and production; midstream transportation and processing; and trading of natural gas. The downstream segment focuses on refining, manufacturing, marketing, transportation, and supply and trading of products to wholesale and retail customers. The alternative energy segment is committed to exploring renewable and alternative energy sources such as wind energy and other lower-carbon resources (Company information, 2012). BP currently operates in 54 countries on six continents. In Africa, BP has operations in Egypt and South Africa. In Asia and the Middle East, operations occur in Mainland China, Hong Kong, India, Indonesia, Iraq, Japan, and Saudi Arabia. BP’s European operations occupy France, Germany, Italy, Russia, Turkey, and the United Kingdom. In North America, BP operates in Canada, Mexico, and the United States. Brazil (in South America), Australia, and New Zealand are also home to BP operations (Company information, 2012). Types of market systems: In a market economy, such as China or France, prices for goods and services are influenced by supply and demand (Free market economy, 2010). A command economy, found in Saudi Arabia, is controlled by the government and is, therefore, less susceptible to financial downturns and inflation (Command economy, 2010). This will most likely mean lower

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