Functional structure- once an organisation grows beyond a very basic level of size and complexity, it has to start dividing responsibilities. This system is based on the primary activities that have to be undertaken by an organisation such as production, finance and accounting, marketing, human resource and research and development. Convergence system- This is where previously separate industries begin to overlap in terms of activities, technologies, products and customers. Johnson et al 2008). C3.2 develop a change management strategy with stakeholders Management strategy is an arrangement to manage stakeholders according to the level of power and level of interest. It is a key concept for business to survive /grow by responding to any environmental changes.
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It is vital to develop a system songs that heart involves stakeholders in the planning of change. The systems need to be appropriate, applicable and workable in the organisation chosen. Most importantly concentration must be devoted to the most influential stakeholder. Stakeholders include government, suppliers, competitors, owners, customers, unions and these can be internal stakeholders or external stakeholders. It's important for Bp to have knowledge of its business surroundings for them to identify market segments to fulfil customer need. The expectations of bp will certainly be an increase in profit maximisation, growth in market share, capital investment, high product quality and high quality performance. Systems to involve stakeholders A system is a structured collection of parts that are highly incorporated to accomplish an overall goal. The system has various inputs, which go through certain processes to generate certain outputs, which collectively, accomplish the overall required goal for the system. So a system usually brings in stakeholders to perform in different aspects to achieve organisational objectives. (Online) Configuration system - an organisations configuration consists of the structure, processes and relationships in the course of which the organisation operates. The reason for configuring challenges is vital to organisational success.
If bp as an organisation does not respond to change, this will affect its entire resources adversely. Human resources normally includes the restructuring Redundancies Interviewing Hiring Training layoffs Physical resources mainly affect the non-current assets of an organisation such as Equipment Vehicles buildings reputation Financial resources have an impact and it may also have a huge one on the costs of training. The organisation bought together a project team to develop Andrew oilfield, located in the north sea. Since discovery about 20 years earlier, attempts had been made to develop the field, but each conceptual plan universities floundered and Andrew had gained a reputation as being too difficult to achieve economic sanction. Bp brought in consultants who coached Bp engineers and contractors in ways of working together and "think out of the box" to solve andrews technical and economic problems Interviewing is paramount for the succession of Bp's organisational aims and objectives. Bp has to have the right employees in place so as to be able to compete with its competitors in the ever changing environment. C.1 developing systems to invovle stakeholders in bp stakeholder is a person, group, or organisation that has direct or indirect stake in an organisation because it can affect or be affected by the organisations actions, objectives and policies. Stakeholders in every organisation play a very important role in day to day running of an organisation.
The spillage polluted the water and hence affecting the resident's livelihood and it also affected the wildlife. Bp had to come up with a strategy to stop the spillage which resulted to large sums of money being spent. Bp has changed and responded to change by striving to secure and make sure that it isn't affecting the environment since they are big campaigners of climate change and going green. In the case of bp, management was dissatisfied with the way tony hayward Group Chief Executive handled the mexico oil spillage. Tony hayward resigned and this called for replacement of new management. C2.3 Assess the resource implications of the organisation not responding to change There are severe resource implications to an organisation such as bp for not responding to strategic change. The response should be implemented at the right reviews time and bp's call to sort out the spillage needed a response at the time; had they not responded and acted as efficient as possible their reputation would have been damaged further.
Bp agreed to the demands of the politicians (foreign trade regulations and social welfare policies) to compensate the residents affected by the spillage. All these problems needed Bp to change its strategies. The world is advancing in technology and for it to compete in the ever changing business world, Bp has to be ready to change and adapt to those changes. The organisation has come up with programs that can help its staff to have knowledge of the new and advancing technology; For instance they needed to improve on the machinery that they use to drill. Bp has advanced in technology by using sophisticated technologies and tried- and true techniques to be able to find oil and gas. The company also incurred a loss when they lost alot of oil in the spillage which affected their financial situation. The spillage affected their market share by its price dropping in the global market; the other factor which affected Bp was the environmental factor.
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AC2.2 Assess the book factors that are driving the driving the need for strategic change According to johnson, Scholes, Whittington (2006) "the major influence of change in organisations is categorised as six factors namely political, Economic, essays social, technology, environment, and Legal otherwise known as the pestel. E-economic: Business cycles, gnp trends, interest rates, money supply, inflation, unemployment, and disposable income. S-socio-cultural: Analyzing the population demographics, income mobility, life style changes, Attitudes to work and leisure, consumerism, levels of education. T-technology: Has unleashed a process that has been called "perennial gale of creative destruction."Technological change can make established products obsolete overnight and simultaneously create host new product possibilities. Thus technological change is both creative and destructive both an opportunity and a threat. E-environment: specifically stands for 'green' issues, such as pollution and waste.
L-legal: embraces legislative constraints or changes, such as health and safety legislation or restrictions on company mergers and acquisitions. Internal the employment of a new leader. Benchmarking exercise against external organisation Senior management dissatisfaction with the status equo employee -management conflict. Bp has been affected by the political and the environmental aspect. It had a spill in the usa which had an intervention of the politicians. The organisation had to respond to the demands and controversy from the media, consumer and politicians of the state by changing alot of its strategies in place.
Strategy as plan, strategy as ploy, strategy as pattern. Strategy as position, strategy as perspective, the entire three theorists were talking about the equivalent things to which I do agree with. For an organisation such as bp to prevail in this ever changing market their strategies have to change and not stick to the same strategy for too long because it won't be as effective as it was, timing is of importance to an organisation, where. AC2.1 Examine the need for strategic change in bp all organisations are currently undergoing some type of change. Many of the organisation change programmes arising from management fads such as customs change, business process engineering, empowerment and total quality, branding, reputation. For instance bp had the need to change because of its Experience of controversies regarding business practices, environmental damage, and hazards to workers.
Other large energy companies have come under fire for releasing huge amounts of greenhouse gasses into the atmosphere. For some time, bp is trying to turn a new leaf in its history book toward a more environmentally-friendly future through investments in renewable energy and a support of ethics and compliance initiatives. British Petroleum changed its name to bp and then tried to rebrand itself as beyond Petroleum. As an organisation it's important to change with time and surroundings. There is need for change because of the external and internal developments and internal factors. These factors bring attention to the organisation to formulate and implement strategies to survive in the competitive market. There is need for strategic change because it is also necessary in order to gain competitive advantage enables the organisation to be focused also enables adaptability bp has been able to enjoy a large market share and gain competitive advantage over its competitors because of accepting to change. Change has also enabled Bp to adapt in any environment; For example the company has gone green to protect the environment and have become the big campaigners for going green and change has also enabled the organisation to be focused on what is important.
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Other change initiatives are driven by the need for organisations to reposition themselves in the wake of changing competitive business conditions". Strategic change is context specific in any organisation and the way it is managed has no simple formula or universally agreed framework that will work in all cases (Bologun, 2001). Organisations have different challenges and issues that affect them and when the change process is deemed necessary to undertake, the roadmap is always different per case study. Different theorists have made attempts by giving and emphasised that strategy nurse must be context sensitive. The culture web framework is introduced as a means of addressing the 'softer' issues, which is a critical first step, as barriers to change must be identified. The strategy kaleidoscope will help managers to understand the change context and plan for transition. According to Gray hampel his refered strategies as Strategic decay resume the notion that the value of all strategies, no matter how brilliant decays overtime". D also came up with his own understanding of strategy as Strategic windows and stressed the importance of the timing both entrance and exit of any given strategy (Abell. Henry mintzberg looked at the changing world around him and concluded that there are five types of strategies (Henry mintzberg 1988).
Financial problems, studies bp also has been responsible for the spill in the gulf of Mexico (Online). Task 1, understand issues relating to strategic change in an organisation. The importance of strategic change management in any organisation cannot be overemphasised. Change management has increasingly become a necessary business concept among business firms especially in the wake of the recent dynamic global business environment. Strategy is the direction and the scope of an organisation over the long term, which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. Strategic change management is a systematic approach to dealing with change, both from the perspective of an organisation and on the individual level including adapting to change, controlling change, and effective change. Contributions from the gurus, julia bologun (2001) describes strategic change as "Arising from management trends such as culture change, business process swings, empowerment and total quality.
encouragement of our employees. Internal targets to establish realistic and reasonable targets in the group plan. Any Progress against targets will be reported internally and analysed transparently and in a timely manner so that progress and variations can be understood voluntarily. People and capability, human capability and technology to nurture human capability and ensure that the right technology, skills, behaviours and intellectual property are available for the pursuit of the broad goals. Bp is currently underperforming due. Tnk bp in Russia is currently experiencing power struggles between British executives running it and Russian billionaire shareholders. It's safety record has been questioned. The company has experienced an explosion at the buncefield in 2005 which killed 15workers and the spill in the United States of America which caused pollution. The company has also lost consumer confidence.
In all bp's activities they seek to display some unchanging fundamental qualities, integrity, honesty, honest dealing treating everyone with respect and dignity, striving for mutual advantage and contributing to human progress. The group aims, to have the best competitive writing corporate, operating and financial performance. To improve and to be accessible, inclusive and diverse. To engage the creative talents of their employees, and develop and apply leading Cost- effective technology and intellectual creative to enhance innovation and new ideas. To carry on its business in an environmentally responsible manner, and develop cleaner energy and renewable energy sources. The group is committed to the responsible treatment of the planet's resources and to the development of sources of lower- carbon energy. Bp expresses that their group value fewer than four headings. Performance, people and capability, health, safety and environment, external relationships. Group value performance, compliance with the law and ethics to comply with all applicable laws and regulations in each jurisdiction in which the group operates.
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Print, reference this, published: 23rd March, 2015 6th December, 2017. Bp is most widely associated with its fuel stations and forecourt retail operations; it also has a wide range of activities. The exploration of oils, gas, extraction, transportation, and the processing and selling of fuels. Bp has developed a low carbon energy story strategy such as wind farms and solar power. Bp operates the wild bean Café brand in the uk, europe, south Africa and Australia. The convenience store brand is also in the. However, wild bean Cafés are focused on quality food and coffee, having a strategy of differentiation from competitors offering poorer quality refreshments. Company's Mission, the company aims to be competitive on the low pricing of its fuels, and this is evident on garage forecourts where drops in oil prices have been passed on to their consumers more rapidly than some of its competitors.