636 - APPLIED MANAGEMENT

Assessment 1: project proposal

TEACHER: MR. CHRIS BURGESS

CASE: - BP New Zealand holdings

Submitted by: - Prithvipal singh (student id-100618)

And

Gurpreet singh (student id-100694)

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 TABLE OF CONTENTS
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BRIEF INTRODUCTION OF BP NEW ZEALAND:........................................................5
PROBLEMS AND CHALLENGES...................................................................................7
RESEARCH OBJECTIVE:.................................................................................................8
PROBLEM SOLVING MODEL:........................................................................................9
1st problem (SWOT analyses for heavy competition).........................................................9
IMPLITATION: ............................................................................................................10
2nd problem (poor planning).............................................................................................10
IMPLEMENTATION:...................................................................................................12
3rd problem (armed robberies)..........................................................................................12
IMPLIMENTATION:....................................................................................................13
RESEARCH METHODS:.................................................................................................13
How................................................................................................................................13
Where.............................................................................................................................14
When..............................................................................................................................14
PLAN:................................................................................................................................14
REFERENCES:.................................................................................................................15

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BRIEF INTRODUCTION OF BP NEW ZEALAND:

The British Petroleum Company of New Zealand was established in 1946. More than 50% of the

company was owned by the New Zealand Government and 49% by Anglo-Iranian Oil. By 1949,

BP petrol was selling in most part of the New Zealand.

The name BP New Zealand Ltd. took birth in 1957 when New Zealand government sold their

shares in British petroleum to the company in 1955.

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A lot of changes took place in 1970s for example in 1972 BP New Zealand took 60% interest in

Europa. The collaboration of both groups became New Zealand’s largest marketer of petroleum

products. Both companies continued their work independently with two different brands till 1989.

More changes were noticed in 1980s, with unleaded petrol, CNG and LPG becoming available

for New Zealand drivers. The New Zealand oil industry was deregulated in 1988. In the

upcoming year BP shield took over the Europa brand. Image of BP has changed recently with the

introduction of BP Helios, which we see at present from 2001.

In 1999, BP became the first oil company in New Zealand to introduce service stations with solar

powered canopies above the forecourt, there are 17 such service stations operating around the

country today.

Presently, More than 300 BP service stations are operating throughout New Zealand and more

than 1700 employs are working in them.

The product and services are as follow:

For business

• BP Fuel card

• Lubricants

• BP Distributors

• MSDS (Material safety data sheets)

• RUC (Road user charges)

• Environmental safety guide

• BP Technical helpline
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 • Retailer Login

At the stations

• Wild Bean Café

• BP Gift Card

• BP Ultimate

• BP Fuel Range

• LPG

• BP Super wash

• Lubricants

• AA Rewards

On the road

• BP Locations and Trip Planner

• BP Fuel card

PROBLEMS AND CHALLENGES

• One of the biggest business problems of BP New Zealand is competition because day by

day new players are coming in the market and affecting the sale of BP main reason what

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 we find behind it is that other brands are giving the same services what BP is offering to

the customers .

• Apart from facing the competition poor planning is also a big problem which resulted in

massive controversies like BP oil spill in the Gulf of Mexico made the matter even

worse this event was one of the biggest disasters in the oil industry till now. Environment

activists and people around the world strongly condemned this action of BP and all

because of this the image of BP among the people become bad and some people started

an online campaign on social networking website like Facebook of boycott BP and New

Zealanders played a prominent role in it.

• Another big problem of BP New Zealand is security because a lot of armed robberies

happened recently and because of this a sense of insecurity grew amongst the customers.

On 06th July 2010 an armed man robbed a BP station in Wellington and took cash and

cigarettes from the station. People started to buy petrol from other station and this also

results in a drop of sales for BP New Zealand.

RESEARCH OBJECTIVE:

The main objective of this report is to find out and analyse that why good performance and

customer satisfaction is disappearing from the BP service stations.

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PROBLEM SOLVING MODEL:

1st problem (SWOT analyses for heavy competition)

• STRENTH: the biggest pro about having an competition is that you have to work hard

and better then your competitors and you have to achieve the goals or the targets set by

the management so in the case of BP New Zealand it’s a good thing that they have

competitors because it will help their workers to work hard and achieve the goals before a

certain time and when employees give their 100% to the work it will work positive for

the employee and the company also. Employees will receive extra experience in

performing under pressure, usually on an unfamiliar instrument and in an

unfamiliar setting. This experience helps them adjust them working in different

conditions Employees will get motivation because they want to get rewards like

employee of the moth or a promotion or may be a cash reward they will do it all when

they have a competitor to compete with.

• WEAKNESS: the basic con of heavy competition is that Employee work under pressure

because they knows that he had limited time so they will try to do the task quickly

keeping the time limit in mind this may be sometime results in a poor outcome this also

results in lack of quality in the product or service. So BP New Zealand also has to keep it

in mind.

• OPPORTUNITIES: In the shadow of competition there is a great opportunity that you

can cover the important trends occurring in your local area as well as across the nation
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 before your competitor do it your company have a good chance to give their best

performance and to justify the product as compare to other competitors. There are also lot

opportunities for the high level management and employees of BP New Zealand to show

their talent and hard work.

• THREATS: if the competitors of BP New Zealand are doing better work and giving good

services to the customers and they are satisfied with their services they could take

business away from you or stunt your company's growth so you have to overcome your

threats by applying all the needful. BP have to research that What are the obstacles their

company is facing and have to solve them instantly and are the required specifications for

their products or services are changing or not?

IMPLITATION:

So as far as the heavy competition is concerned if BP New Zealand wants to lead by example for

all the competitors they have to do the SWOT analysis and implement all the required action.

Like for the strength they have to capitalize it. Weakness they have to shore them up. The

opportunities they have to invest in them and threat they have to identify them.

2nd problem (poor planning)

The need for a good plan:

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 • As we heard very often that “GOOD BEGINNING IS HALF DONE” that if we start our

work perfect we are half done so we can only do better in the beginning if we plan

properly in other words we need a good plan so we all know that to run an organization

properly or achieve the goal or destination you need to make a good planning. If a

company uses a good planning technique before starting the journey they will not face

any problem in future. By the good planning company can provide the good service to

their customers. The most valuable benefit the company will get is good market value.

BP New Zealand is lacking in planning a strong and effective log term plan and as a

result there is less sale and share prices are coming down. All because off poor planning

incidents like oil spill in the Gulf of Mexico happened this incident also affected New

Zealand as high officials starts to question about BP New Zealand’s offshore mineral

exploration and exploitation in the New Zealand. So BP has to think that they have to

make strong plans to prevent this kind of disasters in future. These are some factors

which can help them

• TRAINING: formal training is must required for a healthy business the manager or

experienced employee should take initiative by giving formal training to the new staff

although there are some positive and negative side of this like this training could be time

and money consuming for the organisation but it will also enhance the skills knowledge

and performance of the employee not only this but a skilled and trained worker will Save

a lot of time and money of the company.

• MONITRING: another big factor for a good plan is monitoring every machine and

equipment which is used for more than a month should be monitored and then make a

plan of when and how it will be ready to use because 90% of the disasters are result of a

bad machinery

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 IMPLEMENTATION:

BP New Zealand should keep these two big factors in mind that by providing good

training and monitoring all the machinery they can overcome a lot of problems and not

only this they can make their workers more skilled which will naturally result in great

business results ad great revenues.

3rd problem (armed robberies)

Sense of security: “BP New Zealand gas station has been robbed last night” this is the

headline we can easily see or read in a newspaper and its true robberies at BP stations can

be reported may be once in a three or two months. No customer wants to go to a service

station where robbers are waiting for him so BP have to do something to make sure and

convince the people that there station are safe. There are some prime things which should

be there

• Every BP stations must be well-lighted and have video surveillance cameras at the pump.

• Manager should train their staff for any unwanted situation or robbery.

• A secret alarm should be there which connect all the way to nearest police station.

• A big board titled “WE DON’T KEEP TO MUCH CASH” should be there.

• They should be alert every time

BP should give some guidelines to their customers also like

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 • Always remove your keys and lock the doors while you are pumping gas.

• Keep valuable out of plain view in your vehicle ad lock the doors.

• Pay attention to your surroundings.

• Don’t let your cell phone distract you.

IMPLIMENTATION:

In my prospective if they implement all these important measures than they can make

there station and customers safe. Which will help them I there business and give good

feed back to the workplace.

RESEARCH METHODS:

How

• Our group decided that we will Surf internet for most of the information because

both of us have internet at home.

• We did a lot of chatting while preparing our assessment as it was free and we both

of us can show our work to each other.

• Took the help of the text book ad hand outs which was given us by our teacher

Mr. Chris burgess.

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 Where

• Most of the work and search has been done on web at home.

• We also meet personally and discus our work

When

• the moment we formed our team the work was started

• we continued our work till 17-10-2010

PLAN:

DATE NAME OF MEMBERS STATUS

28/10/2010 Chen, Liu and Prithvipal I emailed my work to

singh everyone but . no cotact

05/10/2010 Chen, Liu and Prithvipal I sent sms but no contact

singh
12/10/2010 Prithvipal singh, Gurpreet I discus my problem with

singh mr chris of my team

members not cmmunicating

with me and suggest the

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 name of gurpreet singh as

my team member so Team

of two members is been

formed
13/10/2010 Prithvipal singh and We shared our email and

gurpreet singh mobile numbers. Then we

added each other on skype

and gtalk
14/10/2010 Prithvipal singh and We chated for nearly 4

Gurpreet singh hours and prepared the intro

and find the problems.

15/10/2010 Prithvipal singh and Did swot anlysis and other

Gurpreet singh solutions.

16/10/2010 Prithvipal singh and Our most of the work was

Gurpreet singh done thanx to hand out of

Mr chris and skype and

gtalk

REFERENCES:

History of BP New Zealand: (Retrieved from)

http://www.bp.com/liveassets/bp_internet/newzealand/corporate_newzealand/STAGING/

local_assets/downloads_pdfs/h/history_of_bp_nz.pdf

Product and services: (Retrieved from)

http://www.bp.com/productsservices.do?categoryId=16003806&contentId=7023322

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Problems

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10561333

http://tvnz.co.nz/view/news_business_story_skin/1839707

(Poor planning)

http://www.geekzone.co.nz/sbiddle/852

(Competition and poor planning)

http://www.nzherald.co.nz/business-editors-picks/news/article.cfm?

c_id=1501981&objectid=10662661

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