Non-Market Analysis of British Petroleum (BP) Research Paper

Non-Market Analysis of British Petroleum (BP) - Research Paper ExampleAlso, an analysis of costs tangled in non- market happenings and their repercussions have in like manner been discussed in this paper. Non- market surroundingss involve variety of issues, interests, informational, and institutional affects that invariably impact the market environments of any public corporation. David brim and David Bruce Allen (2010)i have rightly stated that non market strategies recognize that businesses are social and governmental beings, not just economic agents. Because companies create a distribute value, a plethora of actors seek to influence them formally through laws and regulations, and informally, through social pressure, activism, and efforts to shape the public perception of business. Companies cannot escape this. Smart executives, therefore, engage with their social and political environments helping shape the rules of the game and reducing the risk of being hemmed in by extern al affairs.British Petroleum is no exception to this norm. Therefore, the non- market environments that BP faces also impact its market environments. Take the recent non- market happening of oil spill on the shores of US Gulf of Mexico, BP is prudent for operational errors for the disaster. The phoner is responsible to bear non- market cost for cleaning the oil spill. These costs are stated to surpass $20 billion, and will drastically impact the financial statements of the company. The company is presently debating the issue of dividend distributions. Any impact on dividend is bound to carry uncontrollable and far reaching consequences on market forces, and thereby on the section prices of the company. The market for the shares of BP has crashed down because of the public and political hue and cry against BP. Accordingly, the market and non market forces are interrelated. A firms activities in its market environment can generate non- market