Paper Topic:
You need understanding of the impact of economic forces on the market position and financial performance of a company. This assignment is intended to reinforce your knowledge in this area.
- The impact of economic forces on market position and financial performance The company in consideration is British Petroleum alternative energy which was incorporated in the united kingdom in the yare 2005 . The company is operating in the energy industry and is listed in various stock exchanges in the world . It was started by a company which was incorporated in the year 1901 for the purpose of dealing with oil exploration and refinery . After it was incorporated , the old company British petroleum sold off it 's derivative businesses so that they can
run the current business . The company has over 500 subsidiaries based in various parts of the world and they record revenue of over 250 billion annually and currently talks as a company which records the highest sales in terms of petroleum products and exploration income
The companies products include ARCO , Castro which is a lubricant , Amoco Aral , LPG this a gas , Asphalt , Bitumen , LNG , Solar renewable , EGAS Aviation Fuel , Petrochemicals and many others not mentioned . Companies operating in the same industry with BP include Exxon Mobil , Royal Dutch /Shell , Chevron Texaco and Mobil (Rocsearch (2006
The main objectives or activities of this company are to explore and produce of crude oil , natural gas , refining the crude oil , marketing oil and related products , supply and transportation and the manufacture and marketing of petrochemicals with a growing presence in gas and power and in solar power generation . Vision "Our aim is to be successful in everything we do by delivering outstanding performance . The test of success will be our ability to generate strongly competitive returns in a sustainable manner that aligns us with society (Company website
There are many factors that affect the operations of this company in the energy industry . The factors that affect the operation of this company include technological change , change of prices of raw materials , change of prices of alternative products , the government policy , performance over other industries , activities and political stability in the Middle East and many others . In normal circumstances , the price of a commodity is determined by forces of demand and supply and the price at which supply is equals to demand it is called equilibrium . However , the equilibrium price at times falls or rises beyond the equilibrium when the demand of the product increases . At such a situation , a short fall is recorded and the suppliers respond by increasing the price of the commodity until the equilibrium price is reached . The converse is true If the price gets beyond equilibrium point , suppliers will supply more of the product thus the price will tend to come down until it reaches equilibrium point . Therefore equilibrium price is the price in which the buyer and the seller are willing to buy or sell at different market prices . The equilibrium price is determined as shown by the graph below
S
Surplus
Price Equilibrium
Deficit
Demand
Q Quantity
Factors affecting the performance of the company
As mentioned earlier there are a number of factors that affect the performance...
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