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

Non-Market Analysis of British Petroleum (BP) - Research Paper Example Also, an analysis of costs involved in non- market happenings and their repercussions have also been discussed in this paper.   Ã‚  Ã‚   Non- market environments involve variety of issues, interests, informational, and institutional affects that invariably impact the market environments of any public corporation. David Beach and David Bruce Allen (2010)i have rightly stated that â€Å"non market strategies recognize that businesses are social and political 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 external affairs.†Ã‚   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 responsible for operational errors for the disaster. The company 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. â€Å"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 share 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 firm’s activities in its market environment can generate non- market