Harmonized Savings Plan at BP Amoco

Harmonized Savings Plan at BP Amoco Description

On August 11, 1998, United States' Amoco Corp. (NYSE: AR) and the British Petroleum Co. (BP) p.l.c. (NYSE: BP) announced the BPC merger with Amoco. This deal was the largest industrial merger to date, and created the world's third-largest oil company, BP (NYSE: BP). This case focuses on the issues surrounding the integration of the employee-defined contribution plans at Amoco and the U.S. subsidiary of BP. One of them was that the premerger plans had very different investment structures. Whereas Amoco had offered its employees only low--cost index funds, BP America had relied on actively managed mutual funds. The new plan, which would have more than 40,000 participants and $7 billion in assets, would have to either choose one of these approaches or integrate them into one single structure.

Case Description Harmonized Savings Plan at BP Amoco

Strategic Managment Tools Used in Case Study Analysis of Harmonized Savings Plan at BP Amoco

STEP 1. Problem Identification in Harmonized Savings Plan at BP Amoco case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Harmonized Savings Plan at BP Amoco case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Harmonized Savings Plan at BP Amoco case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Harmonized Savings Plan at BP Amoco case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Harmonized Savings Plan at BP Amoco case study

STEP 6. Recommendations Harmonized Savings Plan at BP Amoco case study

STEP 7. Basis of Recommendations for Harmonized Savings Plan at BP Amoco case study

Case Analysis of Harmonized Savings Plan at BP Amoco

Harmonized Savings Plan at BP Amoco is a Harvard Business (HBR) Case Study on Finance & Accounting , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Harmonized Savings Plan at BP Amoco is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Harmonized Savings Plan at BP Amoco case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Harmonized Savings Plan at BP Amoco will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Harmonized Savings Plan at BP Amoco case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Finance & Accounting, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Harmonized Savings Plan at BP Amoco, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Harmonized Savings Plan at BP Amoco case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Finance & Accounting Solutions

In the Texas Business School, Harmonized Savings Plan at BP Amoco case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Harmonized Savings Plan at BP Amoco

Step 1 – Problem Identification of Harmonized Savings Plan at BP Amoco - Harvard Business School Case Study

The first step to solve HBR Harmonized Savings Plan at BP Amoco case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Bp Amoco is facing right now. Even though the problem statement is essentially – “Finance & Accounting” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Bp Amoco, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Harmonized Savings Plan at BP Amoco.

The external environment analysis of Harmonized Savings Plan at BP Amoco will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Harmonized Savings Plan at BP Amoco case study. PESTEL analysis of " Harmonized Savings Plan at BP Amoco" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Harmonized Savings Plan at BP Amoco macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Harmonized Savings Plan at BP Amoco

To do comprehensive PESTEL analysis of case study – Harmonized Savings Plan at BP Amoco , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Harmonized Savings Plan at BP Amoco

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Harmonized Savings Plan at BP Amoco

Government policies have significant impact on the business environment of any country. The firm in “ Harmonized Savings Plan at BP Amoco ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Bp Amoco is operating, firms are required to store customer data within the premises of the country. Bp Amoco needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Harmonized Savings Plan at BP Amoco has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Bp Amoco in case study Harmonized Savings Plan at BP Amoco" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Bp Amoco in case study “ Harmonized Savings Plan at BP Amoco ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Bp Amoco in case study “ Harmonized Savings Plan at BP Amoco ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Harmonized Savings Plan at BP Amoco

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Harmonized Savings Plan at BP Amoco ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Bp Amoco can compete against other competitors.

Government Scheme & Subsidies Impact on Harmonized Savings Plan at BP Amoco

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Harmonized Savings Plan at BP Amoco case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Harmonized Savings Plan at BP Amoco

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Bp Amoco needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Harmonized Savings Plan at BP Amoco

Social Factors that Impact Harmonized Savings Plan at BP Amoco

Technological Factors that Impact Harmonized Savings Plan at BP Amoco

Environmental Factors that Impact Harmonized Savings Plan at BP Amoco

Legal Factors that Impact Harmonized Savings Plan at BP Amoco

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Harmonized Savings Plan at BP Amoco case study. PESTEL analysis of " Harmonized Savings Plan at BP Amoco" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Harmonized Savings Plan at BP Amoco case study solution