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Bp Oil and Gas

In: Business and Management

Submitted By nisha0711
Words 558
Pages 3
The oil, gas and petrochemicals industries are highly competitive. Within the oil and gas the competition is very strong. There are other countries that supply the fuel if there is a need for commerce, industry and the home. With the competitive industry so much pressure on the prices, affects oil products marketing and requires continuous management focus on reducing unit costs and improvements that are needed(Wikinvest, 2012). The implementation of group strategy requires continued technological advances and innovation including advances in exploration, production, refining, petrochemicals manufacturing technology and advances in technology related to energy usage (Wikinvest, 2012). At BP, the way that the company works could be the competitor’s worse enemy if they knew what technology BP uses. Oil, gas and product prices are a worldwide supply and demand. Just before oil price increases have resulted in increased cost inflation. Because of that, increased oil prices may not improve margin performance. In addition to the effect on revenues, margins and profitability from any fall in oil and natural gas prices, a long period of low prices. . If demand is elastic, it simply means that consumers will buy more oil when the price comes down. They will buy less when the price goes up. There are other reasons why consumers increase or decrease consumption, but price is the main driver of demand. Rapid material and change in oil, gas and product prices can impact strategic decisions based on results. When the marginal product of labor curve rises, the firm experiences increasing marginal returns that are the marginal product of an additional worker exceeds the marginal product of the previous worker (Wikinvest, 2012). This time the rate of oil increase in total product is accelerating. When the marginal product of labor curve falls, the firm experience marginal…...

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