The Planning Function at BP

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The planning function consists of a number of different steps, including situational analysis, alternative goals and plans, goal and plan evaluation, goal and plan selection, implementation and monitoring/control. The situation at BP is that the company is working to shake off the effects of the Deepwater Horizon disaster. While that issue remains in litigation, the company is continuing onward with its operations, building out its revenues and exploration capacity. The company has remained consistently profitable (MSN MoneyCentral, 2012). The general operating environment is positive, given the oil prices are relatively high and oil prices are a critical determinant of profitability. Oil currently trades at $97.12 per barrel (AP, 2012). With increasing demand from the developing world, including China, setting the pace of oil demand and with global production having flatlined, oil prices are only going to continue to increase in the future (Aizhu, 2011). The company's business model and key competitors are not subject to significant change either in the past several years or in the coming years either. The biggest change to the company would be in the form of legal action pending from the Deepwater Horizon, and whatever changes to the industry are mandated in the Gulf of Mexico as a result of that disaster. The planning function at BP starts with the same base strategy. Essentially, planning begins with seeking out new sources of oil and then planning how to extract

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