Ambiguity Aversion and Household Portfolioâ€Free Samples to Student

Question: Discuss about the Ambiguity Aversion and Household Portfolio. Answer: Introduction: The purchase of any item or assets in belief that it can produce maximum benefits or income in near future is called as the investment in general terms. In economics, goods are purchased to use them in the near future not in present conditions to generate maximum income or money is called as the investment. Residential, non-residential, human capital and inventory are some types of investments (Bodie et al, 2014). The technique of risk Management which includes different varieties for investment within any portfolio is called as the investment diversification. The reason to select investment diversification in economics is that different varieties of investments within any portfolio will produce higher returns on an average basis and also low risks associated with it as compared to investments which are done on individual basis within any portfolio. The diversification for household assets can be measured using the Gini Index. This index has been preferred for household diversification as it has both statistical and theoretical properties for the analysis and also all findings will be done by comparing equality diagonal with the Lorentz curve (Gaudecker and Von, 2015). Further, it measures all household distribution by directly comparing across population using certain specific weights. The index can be measured using the formula as, The households during the diversification can also be classified into various components like superannuation, vehicles, business value, home value, bank accounts, trust funds, cash investments, equity investments, other assets value or insurance policies. From all these, bank accounts, superannuation and equity investments shares the largest part in households investment portfolio (Macours and Vakis, 2014). The household suffer various risks during the investment like health risk, expenditure risk or income risk associated with labour market. Further, there are several other factors as well which determines investment risk for the households like age, net worth, income, occupation, social interaction, living place, and educational attainment. The household assets which are constrained with liquidity and who have more income or net worth have more chances to diversify their investments. The demographic factor like age will also affect diversification as increase in age will increase investment diversification factor and with less risks (Fransen and Mazzucato, 2014). The relation between social interaction and educational attainment will also enhance chances for more diversification in the investment and also reduces chances of risks on the investment within portfolio. If there is less investment on different assets, then there will be more chances of risks associated with household investment and will affect diversification of household assets. Further, the risk or returns for every household will be different and will depends on different categories like their income, net wealth, employability, age, living place and many more. Corporations: From the economical perspective, it has been found that diversification has certainly increased the borrowing capacity for most of the companies and corporations all across the globe. There are carious drivers which are associated with the corporate diversification like investment efficiency, productivity, financial constraints, and information asymmetry or agency conflicts (Hartzell et al, 2014). The diversification in corporations will provide more opportunities related to investment and capital funding. The corporations who are looking to expand their business operations and market share will be mostly affected by the diversification. The diversification enables corporations to transfer their capital for different financial projects at expenses of other financial resources. These also reduce risks associated with cash flows and provide more access for the credits in order to enhance business operations. The diversification in corporations has enhanced cross pledging effect which certainly provides more finance for the companies to invest in order to enhance business operations (Junior and Funchal, 2013). The various empirical studies also define the investment advantages and different financial resources for the corporations from the diversification factor. It has also analysed that different credit constraints has also enhanced efficiency to allocate internal resources of finance in case of extreme harsh market conditions. The diversification will help in such cases to the companie s to provide advantages of investment and at the same time also enable the corporations to allocate resources on more cost effective projects rather than on projects which are less efficient. Further, diversification in case of corporations can be defined in two stages that are on the basis of Herfindahl index and on the basis of segments which are associated with the corporations. The Herfindahl index is mainly sum associated with percentages for net revenues on the reportable segments associated with the corporations (Najeeb et al, 2015). If there is one segment then the indexs value will be one and these provides its closeness to zero for the corporations which are more diverse in nature. The corporation diversification defines negative relationship among growth opportunities and leverage. These also provide more growth opportunities for the corporations which have high leverage. The companies which are large in size have high diversification level and bankruptcy risks are also low which provides more credits facilities for such corporations (Damodaran, 2016). If corporations have not enough credit facilities then there will be more chances of bankruptcy resulted in lower degree level for diversification. Tangibility resources of corporations will provide more chances for diversification and reduces debt characteristics of the corporations in order to provide maximum leverage benefits. Government: It is the responsibility of the governments to protect funds of the public and also to manage publics investment for achieving all investment objectives for liquidity, return and safety. Generally, if more risks associated with investment portfolio then there will be more opportunities for better returns. The Management for risks needs to be done effectively to achieve all objectives of the investment. Diversification is the medium which can be efficiently used as strategy to manage all the risks associated with the investment (Government Finance Officers Association, 2016). Government needs to implement targeted risk profiles which include constraints or objectives of investment, risk tolerances, current risks or liquidity requirements for the market. This type of profile helps to create framework to make all investment decisions on individual basis which reduces market risks and establish required structure for investment portfolio. Further, appropriate risk profile will help the government to determine diversification level. There are various risks associated with diversification related to government like interest rates, credit risk and liquidity risk (Dimmock et al, 2016). These risks can affect various business operations and other loan rates which can affect both the households and the corporations. If the interest rates for loans will be low, then there will be more chances for individuals and corporations to take loans so that can effectively invest on various objectives. Conclusion: From the above discussion, it is evident that the various government policies are affecting the diversification level for both households and corporations. The bank rates needs to be reduced in order to enhance more investment opportunities for households and corporations as these will also create lower risk level for various financial activities. The various external factors like inflation or globalization may also affect the level of diversification. It is also observed that if there will be more investment then there will be more chances for more returns due to diversification and also reduces risk levels associated with different financial resources. References: Bodie, Z., Kane, A. and Marcus, A. (2014) Investments, 10e.USA: McGraw-Hill Education. Damodaran, A. (2016) Damodaran on valuation: security analysis for investment and corporate finance (Vol. 324).USA: John Wiley Sons. Dimmock, S., Kouwenberg, R., Mitchell, O. and Peijnenburg, K. (2016) Ambiguity aversion and household portfolio choice puzzles: Empirical evidence. Journal of Financial Economics, 119(3), pp.559-577. Fransen, S. and Mazzucato, V. (2014) Remittances and household wealth after conflict: A case study on urban Burundi. World Development, 60, pp.57-68. Gaudecker, H. and Von, M. (2015) How does household portfolio diversification vary with financial literacy and financial advice?. The Journal of Finance, 70(2), pp.489-507. Government Finance Officers Association (2016) Diversifying the Investment Portfolio. [Online]. Available at: https://gfoa.org/diversifying-investment-portfolio (Accessed: 25 April, 2017). Hartzell, J., Sun, L. and Titman, S. (2014) Institutional investors as monitors of corporate diversification decisions: Evidence from real estate investment trusts. Journal of Corporate Finance, 25, pp.61-72. Junior, J. and Funchal, B. (2013) The effect of corporative diversification on the capital structure of Brazilian firms. [Online]. Available at: https://www.scielo.br/scielo.php?pid=S1519-70772013000200006script=sci_arttexttlng=en (Accessed: 25 April, 2017). Macours, K. and Vakis, R. (2014) Changing Households' Investment Behaviour through Social Interactions with Local Leaders: Evidence from a Randomised Transfer Programme. The Economic Journal, 124(576), pp.607-633. Najeeb, S., Bacha, O. and Masih, M. (2015) Does heterogeneity in investment horizons affect portfolio diversification? Some insights using M-GARCH-DCC and wavelet correlation analysis. Emerging Markets Finance and Trade, 51(1), pp.188-208.

SCA Essay Sample

SCA Essay SampleHaving a good example to work from is a great way to start writing your own sample SCA essay. That example has to be able to stand on its own without making you get hung up on the details. It should only help you to develop the actual SCA essay writing process.The steps to take are to find an article that you think is pertinent to your essay and will set the tone for your overall idea, and then write something similar. Make sure it is readable and will hold your interest. In other words, keep it short and simple.It is also important to remember that no matter how good you think your sample SCA essay is, your application as a beginner needs to be carefully scrutinized to make sure it is being written in accordance with the guidelines set by the Society of Creative Anachronists and the Associated Order of the Freebooters. Then it is up to you to follow the same guidelines.Although a sample SCA essay is the easiest thing to write, it is not sufficient for anyone. You sti ll need to learn how to actually write one properly, so that you don't just impress your Society friends, but also yourself.Most people who are in the SCA who are reading their sample SCA essay will find that it is not the best thing they have ever seen, and may even find that their friends have created something better than they did. That's because everyone does not have a major idea when they start out. So, it is important to know how to make the best out of the example that you choose to work from.Making a record of your steps to follow and then putting them in writing is just one part of 'writing from the heart', but you will also need to see that you are working in the SCA as a student, so that you are writing not only from your experiences as a student but also from your real life experiences. This part of writing SCA essays is another reason why sample SCA essays are so helpful to beginners.Remember that while a sample SCA essay is only useful for those who are in the SCA, it is important to understand that there are other aspects of the SCA that must be taken into account as well. For example, achieving the rank of Abbot is not just a matter of reading and re-reading your article and letting it sink in.

Agamemnon Vs. Achilles Essays - Trojans, Achilles, Iliad, Agamemnon

Agamemnon Vs. Achilles Agamemnon vs. Achilles During the ancient Greek period the people believed that the gods lived on Mt. Olympus and could do whatever they wanted to. The leader of the gods was Zeus; he was the most powerful god. The gods had the power to intervene with the mortal lives if they felt that it was necessary. The Iliad is an epic poem. In the story of the Iliad the two main characters were Achilles and Agamemnon. Achilles was seen as the great Greek hero, he was the strongest man alive at the time. His father was a god but his mother was only a mortal. He was bathed in the river Styx as a child and he became almost immortal. The only piece of his body that could be injured was his heel. In the beginning of the story we find out that the gods are angry with Agamemnon because he has been mean to a holy man. The gods in turn sent a huge plague down onto the people. The gods Apollo was responsible for starting the plague, he was convinced by the holy man to seek revenge upon the people. Agamemnon was the King of Mycenae; he was very similar to Achilles. Agamemnon was the leader of his army and was very proud of his army. Although he never took any big risks in battle, he always took credit for everything and wanted the largest share of plunder after it was all over. He shows no emotions, and does not trust his army, and is always testing them. Agamemnon is not well liked by his people, but he is respected. Agamemnon is always trying to get something for himself in any situation. This can be seen when the gods request that he returns Chryseis, a prize from a battle that he won. Agamemnon will not return the girl unless he receives Achilles prize of war, Briseis. Agamemnon says to his two servants Go along, both of you to Achilles quarters and take his charming Briseis by the hand to bring to me. And if he balks at giving her I shall be there myself with men-at-arms in force to take her- all the more gall for him This shows his lack of respect and care for other peop le. He thinks that he deserves anything that he desires, but he is wrong. Chalcas was a seer to the Greeks. He told Agamemnon that he did not approve of his doings, and that he brought calamity, and that Agamemnon was from the depths of hell. These word from Chalcas show that the seer did not think that Agamemnon was very good person, and that what he did was wrong. Everyone on the other hand loved Achilles. Even thought he possessed superhuman strengths, and held a close relationship with the gods he had many character flaws that did not allow him to strive in all aspects that he could have. His flaws did not allow him to act with the nobility and integrity that he could have. Unlike Agamemnon, Achilles shows his emotions, but he cannot control them. He strives to reach glory in every aspects of his life, and when he cant he becomes angry and cannot control himself. When Agamemnon belittled him by taking his lady away from him, his rage built up inside and he refused to fight anymore. Although Achilles is consumed by the bloodlust, pride and wrath, he also shows that he has emotions in the final book when he allows the desecrated body of Hector to be returned to his family and friends. Even though Hector killed Achilles best friend, he does the noble thing and allows the body to be returned to its original home. Achilles cried with the old man about the loss of loved ones, and he allows the man to take the body. As you wished, sir, the body of your son is now set free. He lies in state. At the first site of dawn you shall take charge of him yourself and se him. Now let us think of supper. This quote shows that Achilles believes in tradition, it is Greek tradition to celebrate the closing of a deal by

Jimi Hendrix vs Kurt Cobain essays

Jimi Hendrix vs Kurt Cobain essays History has always been marked by great music. Every generation has its own unique genre; from classical to swing, people have always found a song or a melody that seemed as if it was written just for them. However, truly great music is created by a certain type of genius. It takes more than the average guy to forge a classic like Stairway to Heaven. Two men in the late twentieth century were such masterminds: Jimi Hendrix and Kurt Cobain. While both will live forever in musical infamy, they will remain legends for different reasons. One of the most important factors in becoming a rock legend is bringing about a revolution, opening people to something bold and new. Kurt Cobain, along with his band, Nirvana, changed rock music forever. In a time when music was becoming mass-produced, emotionless muck, Cobain brought about something that was repulsively beautiful and alive. He introduced grunge rock to the world: music filled with screaming distortion, tremendous angst, and overwhelming passion rarely seen from the generation that invented the term whatever. Nevertheless, let us not forget a similar revolution, which took place over a decade earlier. In an era when hippies wandered free and drugs were just mind expanding, another such musical phenomenon occurred. A young black man caught the ear of millions with his awe-inspiring guitar tunes. This man was Jimi Hendrix. Unlike Cobain, Hendrix wrote music to support and inspire his followers, as opposed to creating a method of shock treatment through music . Hendrix created brilliant melodies along with lyrics that touched the hearts of all who would listen. One habit that both musicians shared was the ability to excite and invigorate listeners, especially live audiences. Cobain had the ability to make thousands of slackers stand up and scream for more. Throughout his many tours, Cobain always arrived to a packed venue fi ...

Antitrust Law Case Essay Example | Topics and Well Written Essays - 750 words

Antitrust Law Case - Essay Example The antitrust laws are enforced by the public and private sectors. The United States department of justice antitrust division and the federal trade commission divide the responsibility for investigating and litigating cases under the Sherman act, and they also consider potentially anticompetitive merges under the Clayton act. In the private sector, any person that is injured in his business or property by a violation of antitrust laws is at liberty to bring an action in court. A prevailing plaintiff is entitled to recover treble damages, costs of suits and also attorney’s fee. The private parties are sanctioned to obtain injunctive help to prevent threatened damages or losses. Most antitrust lawsuits are mostly by private litigants in search of damages for breach of federal and state antitrust laws. The Sherman act is not explicit about the prohibited conduct. On the Other hand, the Clayton act is a bit particular about activities that may be illegal. However, only when such c onduct substantially lessens competition or leads to the creation of monopoly in any line of commerce neither of any that it is defined in the status. The selling gasoline for less than cost violates the act because, Section 1 of the Sherman act contracts, partnership or conspiracies in restraint of trade, prohibits every contract, combination, in the form of trust or otherwise or conspiracy in restraint of trade or commerce among the several states or with foreign nations. A restraint of trade can be defined as an agreement between two or more individuals or entities that affect the process of competition. On the other hand, under this approach also contracts for the purchase and sale of a single

Projects 1,3,5 Math Problem Example | Topics and Well Written Essays - 750 words

Projects 1,3,5 - Math Problem Example Both of these particular dishwashers are 24 inch dishwashers, which makes them comparable. They both offer front control operation on their doors, and both offer a 1 year limited warranty. At first, it appears that the Hotpoint dishwasher will come out on top, as it starts out with the lower price point, beating out the sale price of the GE by a difference of $70.10, and beating the non-sale price of the GE by $110.00. Is it worth the additional hundred dollars to get the GE? The approximate operating cost per year of the Hotpoint is $24, while the GE has an approximate annual operating cost of $29. This brings the price difference up to $75.10 on sale or $115 standard for the first year. Whether or not this price difference is worth it, depends strongly on whether or not the additional features that the GE brings to the table are worth it to the person making the purchase. The GE offers a lower decibel level (it runs quieter than the Hotpoint), has a hard food disposer and water fil ter, has six different wash levels (two more than the Hotpoint), a stemware holder, a steam prewash setting, the silverware rack on the door (instead of contained in the lower rack itself), and nylon racks instead of the PVC racks that the Hotpoint has to offer. ... /Appliances-Dishwashers-Disposers-Dishwashers-Built-In-Dishwashers/h_d1/N-5yc1vZc3njZ1z10atjZ1z141o3Z1z10atj/R-203604506/h_d2/ProductDisplay?catalogId=10053&langId=-1&storeId=10051#.UR52tmewV8E Hotpoint Front Control Dishwasher in White: http://www.homedepot.com/Appliances-Dishwashers-Disposers-Dishwashers-Built-In-Dishwashers/h_d1/N-5yc1vZc3njZ1z10atjZ1z10atj/R-203547883/h_d2/ProductDisplay?catalogId=10053&langId=-1&storeId=10051&superSkuId=203153378#specifications (Insert name and box number here) MA120 BID:294 February 18, 2013 Project 3: Systems of Equations Part A: Solving a System of Linear Equations BID: 294 [a]x +3y-z=4 2x-[b]y+7z=12 x+2y+[c]z=18 ----------------------- 2x+3y-z=4 2x-9y+7z=12 x+2y+4z=18 ------------------------ x = 38/29, y = 46/29, z = 98/29 The url used to solve this equation was: http://wims.unice.fr/wims/en_tool~linear~linsolver.en.html Part B: Applications of Systems of Linear Equations The stopping distance of a car traveling at 25 mph is 61.7 ft. and fo r a car traveling at 35 mph it is 106 ft. The stopping distance in feet can be described by the equation y = ax2+ bx, where x is the speed in mph. What is the stopping distance for a car traveling 55 mph? 625a+ 25b = 61.7 1225a+ 35b = 106 ---------------------------------- a = 0.056057142857143, b = 1.066571428571429 3025a+ 55b =y 169.572857143 + 58.6614285714 = y y = 228.234285714 The stopping distance of a car traveling 55mph would be 228.23 ft. (Insert name and box number here) MA 120 BID: 294 18 February 2013 Project 5: Linear Programming Applications An automobile manufacturer makes cars and trucks in a factory that is divided into two shops. Shop 1, which performs basic assembly, must work five man-days on each truck, but only two man-days on each car. Shop 2, which performs finishing

Porters Five Forces Analysis In Companies Business Essay

Porters Five Forces Analysis In Companies Business Essay The Environmental analysis can be defined as a study of environment within the organization for the purpose of locating environmental factors that effect on the operations. For the purpose of analysis the business environment we can categorize in to three levels: Internal environment, Operating environment and General environment. This can be shown in figure as below. STEEPLE Analysis By the STEEPLE analysis we can examine that which external factors can be influenced the organizations ability to achieve its vision and mission. FACTOR EVENTS Social Factors The life styles of the peoples is changing due to economic crisis therefore, they change to use energy for sometime People would like to use bio fuel rather than normal fuel due to reduce environmental pollution Technical Factors The International Energy Agency states that alternative energy markets will be underpinned by technological breakthroughs. technology is the key to competitiveness in the alternative energy industry; The government spending for research on bio fuel and other alternatives Environmental Factors BP should highly concern on Environmental Law Responsibility of Oil Spill damage Economic Factors Due to economic crisis there is a declining demand for energy There is a increasing demand for Alternative energy sources Political Factors The global energy market is becoming more unstable because of geopolitical instability. Encouragement of the government towards more sustainable forms of energy due to CO2 emission Legal Factors According to the environmental law, responsible for Payments on oil spill damages Transportation safety Ethical Factors Charitable giving Investment on development programme Table 01. STEEPLE Analysis Source: EU (2004) The European Union Greenhouse Gas Emission Trading Scheme, EUROPA, http://europa.eu.int/comm/environment/climat/emission.htm [Accessed 22nd May 2011]. Porters Five Forces Analysis The Analysis of Porters five forces help to assess where the power of BP lies in Market and also helps to analyze the attractiveness of the industry. In addition to that we assess the current strength and future strength needs to plan in the BPs competitive position as shown: (Source: http://notesdesk.com// porters-five-forces-model.jpg -Accessed on 23rd may 2011) Potential Entrance Strict government policies and requirements High technological focus on alternative energy industry Large initial capital is required Threat of Substitutes Alternative energy due to higher cost Competitive Rivalry High exit barriers High fixed costs High stakes for Shell Renewable and low stakes for BP Solar. Bargaining Power of Buyers Low volume of buyer Low information of buyers High availability of substitutes Bargaining Power of Suppliers Low concentration of alternative energy suppliers (principally just BP Solar and Shell Renewable) Strategic Group Analysis Helps identify who the most direct competitors are and on what basis they compete. We can decide that SHELL is the major competitor in the industry for BP in both geographic coverage and service diversification by analyzing SGA as follows: SWOT analysis for BP Strengths World third largest energy company Strong Brand loyalty Financial strength of the company. It has vertical integration operation system. Weaknesses Increase the petrol price in UK Has to paid criminal charges due to spread huge amount of oil in the Alaska Sea in 2006. Reduce in natural gas and crude oil production. Opportunities Has high investment capacity Research to investigate alternative fuel such as Hydrogen, Solar, Wind and natural gas Increase demand for natural gas in USA and Europe countries. Implement more flexible price polices to face their competitors. Treats Unsound policies related to Environment after oil and toxic spill in 2006. Explosion of refinery tunnels in occasionally Has big rivals such as Shell and Chevron Instability in some oil and gas producing countries and regions Task Two Strategic Options and role of corporate parent Strategic Options is an important facet and it helps to craft companys alternatives and provide safe and keep up the competitive situation. The international requirements for energy for the next 20 years are such that hydrocarbons are still going to have a leading part in meeting that energy demand. BP supports emissions trading mechanisms as a means of putting a value on carbon in order to make appropriate investment decisions. Corporate Mission of the BP BP mentioned that there goal for next few years to realize the latent impending of their advantage base by improving the efficiency and effectiveness of everything they do. They will dynamically drive cost and capital efficiency whilst at the same time maintaining the first main concern of safe and reliable operations. Objectives of the BP BP has some objectives for their growth in 2015. And all employees are working as a team to achieve company goals. Average 1-2% p.a. volume growth to 2015 Underpinned by upward resource base and quality through preference Key sources of growth beyond 2015 will come from: Increasing deepwater Leveraging expertise in gas Managing worlds enormous oilfields Enabled by application of technology Source-: http://www.bp.com/sectionbodycopy.do?categoryId=2contentId=7065607 Values and ethics of the BP BP is a compilation of resources and there people working together. To attain business objects they focus on sustaining and encouraging their leaders and staff. And they maintain recruitment stands and developing people skills at every level. BP is a well distinguish organization and wants to do some different in the world. BP is a performance driven company which is competitively booming. Through all this they prefer high ethical stand. Directions and methods of Strategic Options BPs direction is clear and it is the unrelenting pursuit of competitive leadership in respect of cash costs, capital efficiency and margin quality. The Strategy Clock is another suitable way to analyze a companys destructive position in comparison to the contributions of competitors. The Ansoff Growth matrix tool which is helps businesses to decide their product and market growth strategy. Figure 02.Ansoff Market mix (Source-: http://tutor2u.net/business/strategy/ansoff_matrix.htm) Evaluating strategies at BP SOP Matrix is a tool which can use to identify the company relevant strategies through external environmental factors. As an example BP Opportunities and treats as below and by indentifying the external environmental factors can recognize the relevant strategies options. Has high investment capacity Invest in HR development and through that develop the skills of the staff members. A same time invest in market opportunities. RD to investigate alternative fuel such as Hydrogen, Solar, Wind and natural gas By research can find the best alternative and company can give attention to that. Extension of acquisition of North sea area Can develop deep sea oil well. Increasing demand for natural gas in USA and European countries. Efficient and effective resource allocation to maximize profit. Implement more flexible price polices to face their competitors. By price reducing can get more customers on their products Gas and Oil searching Will help to increase their market values and can demand them among the competitors Threats Strategic Option Unsound policies related to Environment after oil and toxic spill in 2006. Understand the policies and work with less effect to environment Explosion of factory tunnels in occasionally By keeping the brand image without harm can face the problem Has big rivals such as Shell and Chevron To make company as No1. And more promotional works Sold corporate owned stations. Buy the stations Pipeline decomposition Should check the pipeline back and do the needful changers Insecurity in some oil and gas producing countries and regions Should find some more producers in case to use. Task Three SMART Objectives of BP BP Objectives are prepared according to SMART (Specific, Measurable, Achievable, Realistic, and Timed).That means it should be particular about what we are going to achieve and should calculate about the objectives. There are a several types of objectives like process objectives, outcome objectives, personal objective that all can be done in the SMART format. BPs five year plan objectives are, Increase profitability by 20% Increase production Financial gain by serving to the increasing demand Build brand value that was affected by the oil spills BP spends on growing technology budget on potentially most competitively profitable innovations both in open and new power spaces. It is both a strategic option and an opportunity for BP when comparing with the rivals as BP is strategically positioned themselves in a highly innovative RD processes which is unmatchable by the rivals easily. While facing major challenges of dilapidated supplies and defense of supply in oil and gas, global warming and insist for pure energy in major markets, BPs percentage of expend on novel technologies is growing. Five year development plan for BP Business plan is a statement about companys future goals and plans to achieve those goals. This can be externally focus or internally focus. BPs Strategies in development can position as, Upstream growth Downstream turnaround Alternative Energy: alert disciplined Corporate overview In the upstream will hub on cost and capital efficiency to distribute profitable growth. In the downstream will drive additional efficiencies and a focus on quality and incorporation. They will maintain their disciplined approach to substitute energy and will carry on unlock corporate efficiency through a culture of uninterrupted enhancement. Evaluating and implementing the plan In business strategy, Johnson, Scholes and Whittington shows a model in strategic options are evaluated next to three key success criteria such as Suitability, Feasibility, and Acceptability. Recommendations Strategic investments in RD to exploit new market opportunities and to maximize efficient and effective productions. To negotiate with governments and other low and medium sized firms in the industry through a joint profit sharing process to search for new avenues of the market. Recruit experienced and capable sales, marketing and research experts. Re-build the brand value and affinity using new media opportunities like social media to reduce the black mark occurred as a consequence of oil spills. Streamline production and business operations by using just in time (JIT) and creating a agile end at the supplier end of the operations. Conclusion Strategic planning plays a vital role in strategic management and the leadership. Strategic planning can divide in to three stages as strategic Analysis, Strategic Options and Evaluation and Implementation. The British petroleum Corporation is a well established organization in petroleum industry and here it is illustrated through the strategy and competitive advantages of the BP and the technical tools which they could could use to analyze the situations. The porters five forces investigation helped identifying the competitive environment and market situation BP is facing. There are major rivals like Solar, Sharp, Chevron in the market and BP engaged with mass production. By the SWOT analysis company situation and the market position identified which extracts the internal and external environment of the company. BP is focused on customers and they believe in their mass productions over its rivals. Company can use strategy clock, Ansoff growth matrix tools to analysis their position in the market. To develop strategic options first it should identify the external context and priorities and clusters. Then it should develop the strategic options. SOP matrix is one of the best tools to identify the strategies of the company. BP has a decentralized en route for RD units. It also drives the strategic positioning of BP in competition among rivals. Cost advantage exits when company can give same benefits as competitor with lower cost. And differentiation advantage exits when the company can make different benefits or the value to the customer from their products (Broad differentiation strategy). As an Example BP is using combination of Crude oil and natural energy such as solar power to give differentiation to their customers and it is a well successful strategy. STEEPLE analysis also can be used to investigate the external environment in a business operates and concerned with the political, economic, social factors influential industry change and helps to gain a better understanding for external conditions for growth in a market. The porters five forces investigation helps to diversity a competitive environment. For example, BP analyzes the market for Quality oil production. BP entered into solar market in 1973 and produced BP solar in 2000, it was one of main strategy to face current oil crisis and environment issues. BP solar becomes profitable but it is not prominently spread among the public, so government involvement is important to become popular of solar power. BP business plan has advantage in the Research and investigation area. The crude oil plus the solar power combinations was very successful strategy implemented in recently. Products segmentation, explorations and productions, significantly company restructuring, improve cost efficiency, centralized company departments are their current strategies to compete with rivalry and increase company profits. They entered into oil plus solar power combination and they should strategically positioned the product segmentation, improve cost efficiency and enter into new market opportunities through the findings of RD to increase their profits. They have created value through technology innovation and this is a barrier for their competitors. But the opportunity is yet to be scrutinized with more investments to the RD. By a comprehensive situation analysis company can create strategic options to devise organizations external atmosphere and can exploit the potential.