Economic analysis of BP company

BcA. Bc. Zhu Cheng, BA

Master's thesis

Abstract:

This thesis focuses on the economic analysis of company BP (British Petroleum) between 2014 and 2018. With a history of over one hundred years, BP is a vertical integrated company which conducts business in all areas within the oil industry.The objectives of this diploma thesis are the following: analysing the overall financial status from 2014 to 2018; understanding the different tools of economic analysis can be used in corporate governance, for instance, the evaluation of key performance indicators, the levels of competitors, the potential threat and new opportunities, investigating the factors from different aspects which may influence the industry and the company, proposing the suggestions to adjust the company’s strategy for the future development. The findings of the thesis are following: external environment analysis which includes oil demand, oil consumption and also the oil price change; internal analysis of company’s profile, board of directors’ details, financial analysis of BP from 2014 to 2018 with interpretation of selected ratios. Besides, SWOT analysis, PEST analysis and Porter’s five forces are implemented in practical parts and the results are explained. In the end, there is a discussion about BP’s oil crisis in 2010, after that in conclusion the key figures of BP’s financial performances are presented, and recommendations for BP’s further development are provided.

Keywords

economic analysis, financial analysis, profitability, liquidity, gas and oil industry, oil price, SWOT, PEST, Porter’s five forces model

Language used: English

Date on which the thesis was submitted / produced: 27. 11. 2019

Thesis defence

• Supervisor: Ing. Jiří Mach, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management