Operating Model

An international energy company with a main concentration on oil and gas is called British Petroleum (BP). To satisfy the growing need for low-carbon energy solutions and reduce its dependency on fossil fuels, BP has been diversifying its operating model in recent years. BP acknowledges that the global energy landscape is shifting towards a low-carbon future. By expanding into low-carbon industries such as renewable energy, BP may lessen its exposure to the hazards that come with fossil fuels, like fluctuations in prices and climate change. Second, according to BP, there are a lot of prospects for expansion in the low-carbon and renewable energy sectors. BP can access new markets by growing into these areas. By diversifying into these markets, BP will be able to access new markets for earnings. Third, there is a growing demand from BP's customers for low-carbon energy options. BP can better serve its customers and hold onto its competitive advantage by diversifying its holdings. BP has established an objective to attain net zero emissions by the year 2050. Reaching this objective requires diversifying its operational model. 

Three main components form the foundation of BP's operating approach for diversification:

 Integrated energy systems: BP is attempting to combine its low-carbon and renewable energy operations with its oil and gas operations. This will enable BP to provide a wide range of energy solutions to its clients. 

Cooperation with nations, communities, and businesses: BP is collaborating with governments, communities, and industry to support them in realizing their aspirations for net zero emissions. Becoming the leading company in the shift to low-carbon energy is BP's objective 

BP is making significant investments in digital technology and innovation. This will help BP cut expenses, increase efficiency, and create new goods and services. Although BP's diversification operating model is still in its early stages, the business has already achieved a great deal.

 Characteristics of BP's diversification operating model 

High level of standardization and integration: To achieve operational excellence across its varied businesses and markets, BP uses shared services, global processes, and common technology platforms. 

Concentrate on innovation and growth: To expand its operations and satisfy consumer demands, BP is making significant investments in digital technologies, low-carbon energy solutions, and renewable energy. 

Customer-centricity: BP is committed to providing customers with secure, reliable, and environmentally friendly energy solutions. BP's commitment to sustainability is demonstrated by its objective of reaching net zero emissions by 2050 and by the significant investments it is making in low-carbon technology and renewable energy sources.

 References

Our business model | What we do | Home. (n.d.). Bp Global. 

https://www.bp.com/en/global/corporate/what-we-do/our-business-model.html