ORGANIZATION DESIGN AND
CHANGE
GROUP PROJECT
BHARAT PETROLEUM CORPORATION
LIMITED(BPCL)
SUBMITTED BY: GROUP 8
ROLL NO.
ADARSH SINGH
173062
TARUN BAJAJ
173115
TULSI KHANDELWAL
173116
UTKARSH SRIVASTAV
173117
VINAY SINGH BAURA
173118
VINAYAK MITTAL
173119
YASH LAMBA
173120
YASHI SINGH
173121
YASHIKA
173122
Table
of
Contents
ORGANIZATION OVERVIEW ............................................................................................ 3
BHARAT PETROLEUM CORPORATION LIMITED (BPCL) ............................................................. 3
BPCL HAS A NUMBER OF KEY STRENGTHS, INCLUDING: ......................................................... 3
BPCL ALSO FACES A NUMBER OF CHALLENGES, INCLUDING: ............................................... 3
BPCL'S RECENT ACHIEVEMENTS:.................................................................................................... 4
IMPACT OF ISRAELI – PALESTINIAN CONFLICT ON ORGANIZATION DESIGN
OF BPCL .................................................................................................................................. 5
BIO FUELS BPCL ................................................................................................................................... 5
STRUCTURAL RESTRUCTURING OF BPCL ..................................................................................... 5
INTEGRATION IN ITS DEPARTMENTS USING TECHNOLOGY: ................................................... 6
BUILDING COMPAY CULTURE ......................................................................................................... 6
STRATEGIC PARTNERSHIPS .............................................................................................................. 7
RECOMMENDED ORGANIZATION DESIGN CHANGES ............................................ 7
ORGANIZATIONAL CHANGES: ......................................................................................................... 7
PROPOSED CHANGE TO ORGANISATION STRUCTURE............................................................... 8
RECOMMENDATIONS: ........................................................................................................................ 9
IMPLEMENTATION PLAN ................................................................................................................... 9
REFERENCE ......................................................................................................................... 10
INDIVIDUAL ASSIGNMENTS ........................................................................................... 12
ADARSH SINGH (173062) ................................................................................................................... 13
TARUN BAJAJ (173115) ...................................................................................................................... 16
TULSI KHANDELWAL (173116) ........................................................................................................ 17
UTKARSH SRIVASTAV (173117) ...................................................................................................... 19
VINAY SINGH BAURA(173118) ........................................................................................................ 21
VINAYAK MITTAL (173119) .............................................................................................................. 22
YASH LAMBA (173120) ...................................................................................................................... 24
YASHI SINGH (173121) ....................................................................................................................... 26
YASHIKA (173122) .............................................................................................................................. 28
ORGANIZATION OVERVIEW
BHARAT PETROLEUM CORPORATION LIMITED (BPCL )

Bharat Petroleum Corporation Limited (BPCL) is an Indian state-owned oil and gas
company. It is one of the Maharatna companies, which are a group of seven central
public sector companies (CPSEs) that are considered to be the most strategic and
important CPSEs in India. BPCL is headquartered in Mumbai, India and has a strong
presence in the Indian oil and gas market.
 BPCL is engaged in the entire hydrocarbon value chain, from refining and marketing
to exploration and production. The company has a refining capacity of 35.3 million
metric tonnes per annum (MMTPA) and a marketing network of over 19,000 petrol
pumps and 6,000 LPG distributors. BPCL also has a presence in the exploration and
production sector, with a portfolio of over 20 blocks in India and abroad.
 BPCL is a major player in the Indian oil and gas market and plays a vital role in the
country's energy security. The company is also a major contributor to the Indian
economy, generating revenue of over ₹1 lakh crore in FY 2021-22.
 Apart from its core business of refining and marketing petroleum products, BPCL has
ventured into other areas such as renewable energy, natural gas, and various alternative
fuels
BPCL HAS A NUMBER OF KEY STRENGTHS, INCLUDING:





Strong brand presence
Extensive marketing network
Integrated business model
Financial strength
Government support
BPCL ALSO FACES A NUMBER OF CHALLENGES, INCLUDING:



Competition from private sector players
Volatile oil prices
Regulatory risks
Despite these challenges, BPCL is well-positioned to continue to grow and play a leading
role in the Indian oil and gas market. The company has a strong track record of profitability
and growth, and it is backed by the Indian government.
BPCL'S RECENT ACHIEVEMENTS:
1. In 2021-22, BPCL achieved a record high revenue of over ₹1 lakh crore and a net
profit of over ₹10,000 crore.
2. In 2022, BPCL commissioned its new 9 MMTPA refinery in Bina, Madhya Pradesh.
3. BPCL is also expanding its renewable energy portfolio and has set a target of
achieving 5 GW of renewable energy capacity by 2030.
BPCL is a leading oil and gas company in India with a strong track record of performance.
The company is well-positioned to continue to grow and play a leading role in the Indian oil
and gas market.
IMPACT OF ISRAELI – PALESTINIAN CONFLICT ON ORGANIZATION
DESIGN OF BPCL
The recent war is having a significant impact on BPCL's organizational design. BPCL is
becoming more agile, resilient, and risk-averse. BPCL is also investing more in digital
transformation and improving its supply chain management capabilities. These changes are
designed to help BPCL better manage the risks and challenges associated with the current
war situation.
BIO FUELS BPCL:
 On the Israel-Palestine conflict, Union Minister Hardeep Singh Puri said such
crises make the energy transition faster towards biofuel, renewables etc (1).
 In response BPCL is in the process of setting up three 2G Ethanol Bio-Refineries
in the states of Odisha, Madhya Pradesh and Maharashtra. The Bio-Refineries are
expected to produce Ethanol 100 KL per day. (2)(3)
 BPCL is forced to alter its organizational structure in order to make it more
flexible and adaptable to shifting market condition
 To lessen its need for Middle Eastern oil. BPCL has reevaluated its strategy
and is more focused on diversification of sources of energy.
STRUCTURAL RESTRUCTURING OF BPCL:
To handle the effect of the ongoing crisis. The company is focused on streamlining its
operations and improving its efficiency., shown by the recent HIERARCHY changes
including the appointment of new executives and the reassignment of existing executives.
Here are some of the most notable staffing changes at BPCL:





Arun Kumar Singh was appointed as the new Director (Refineries) of BPCL. Singh
has over 35 years of experience in the oil and gas industry, and has held various
senior positions at BPCL.
Sandeep Kumar Gupta was appointed as the new Director (Marketing) of BPCL.
Gupta has over 30 years of experience in the oil and gas industry, and has held
various senior positions at BPCL.
Dharmendra Pradhan was appointed as the new Director (Finance) of BPCL. Pradhan
has over 25 years of experience in the oil and gas industry, and has held various
senior positions at BPCL.
Arvind Kumar was appointed as the new Executive Director (Corporate Affairs) of
BPCL. Kumar has over 20 years of experience in the oil and gas industry, and has
held various senior positions at BPCL.
N. Vijaya Gopal was reassigned from the position of Director (Marketing) to the
position of Director (Human Resources).
INTEGRATION IN ITS DEPARTMENTS USING TECHNOLOGY:
In light of the Israel Palestine conflict BPCL has introduced long-linked technology for
sequential task interdependence to promote integration in its structure.
TECHNOLOGY UPGRADES ON STORAGE & REFINING

Upgrades to Mumbai refinery which resulted it to process more than 70 grades of
crude.
 Storage upgrades to all refineries to meet demand
 MES: Manufacturing Execution System
E-TECHNOLOGY





SAP – Early adapters of ERP
SCADA - Supervisory Control and Data Acquisition
Effectively monitors pipelines of >1900 KMs spread across India
ASTRONOVA – Apron Fuel Management System for Aviation Gasoline
Smart cards, Fleet cards
TRANSPORTATION

Live GPS tracking for vehicles
 Smart Fleet™ services
 Reverse Logistics
COMMUNICATIONS

Retailing/Consumer services
 Value First – Mobile platform for dealers
 Transparency portal – For customers
 In Out stores
BUILDING COMPAY CULTURE
BPCL has focused in reinforming its shared valued, with the help of the following initiatives
PROJECT ‘ENTRANS’

SAP platform for better value-added service and ease of employee incentives
PROJECT ‘CALIBER’

360-degree feedback system for employee grievances
 Improved leadership initiatives among employees with learning inputs
PROJECT ‘BEYOND TOMORROW’

Value addition and culture development

Talent and behaviour enhancing among employees
PROJECT ‘CUSECS’
 Customer focused initiatives (E.g., “Pure for sure”)
STRATEGIC PARTNERSHIPS:
The need for secure and stable energy sources BPCL is forming and strengthening strategic
partnerships with countries to reduce dependence to Arab oil.








Signed Exploration and Production Sharing Agreement with Oman.
Acquired 20% stake in exploration block in Australia
Acquired 50% stake in Brazil's Encana Brazil Petr oleo along with Videocon
Increase its refining capacity at its Kochi refinery from the current 9.5 MTPA to 15.5
MTPA by 2016-17.
Various exploration activities through its wholly owned subsidiary Bharat Petro
Resources Limited in in Australia, Indonesia, Mozambique, UK, Brazil etc.
BPCL in October 2000 acquired 61.65% stake in 3 million metric Tonne Numaligarh
Refinery.
Expansion of Numaligarh Refinery Limited from 3 million Metric Tonne Per Annum
(MMTPA) to 9 MMTPA
Commissioned in May 2011, Bina Refinery came up with a Joint Venture with Oman
Oil Company with 50% stake of each.
RECOMMENDED ORGANIZATION DESIGN CHANGES:
Agility, resilience, risk management, supply chain management, digital transformation,
innovation, customer focus, and people development should be the main focuses of BPCL's
organizational design. These adjustments will assist BPCL in more effectively managing the
risks and difficulties related to the current operating environment.
ORGANIZATIONAL CHANGES:
DIVERSIFICATION OF SUPPLY CHAIN:
 Develop a more flexible supply chain with alternative energy sources including
biodiesel, solar energy, 2G bio-ethanol, hydrogen, to prevent reliance on any single
region.
OPERATIONAL RESTRUCTURING:

To counter this challenge, BPCL must consider strategic organizational changes. This
could involve revising pricing mechanisms, exploring alternative energy sources, and
enhancing operational efficiency.
 Implement more robust operational practices such as lean sigma six management and
flexible working models to cope with market volatility.
STRATEGIC BUSINESS UNITS (SBUS):
 Establish SBUS for alternative energies, which would operate semi-autonomously to
navigate the regulatory and technological challenges unique to this sector.
RISK MANAGEMENT ENHANCEMENT:
 Develop a central risk management unit with the authority and capability to make
real-time decisions to mitigate geopolitical risk impacts.
HUMAN RESOURCE DEVELOPMENT:
 Invest in human capital to prepare for the necessary skills in crisis management,
international business, and negotiation.
 Introducing training programs for Risk assessment and identification, Emergency
planning and preparedness, Crisis communication etc.
 Competency Modelling- Recognize competencies and capabilities of employees to
bridge gaps through appropriate training and developmental programmes
 Multi-skilling- Encourage employees to take up initiatives in new technological and
managerial areas like Enhanced Fuel Proposition, Add-on Stores, One Stop Truck
Shops, Customer relationship management solutions, Tracking Customer Receivables,
Monitoring Credit management, Inventory Management etc.
PROPOSED CHANGE TO ORGANISATION STRUCTURE:
Hybrid structure:





Divisional structure and Marketing function directly reporting to the CMD.
Divisional structure-
Caters rapid expansion by saving efforts on integration aspect.
Better control in lieu of rapid expansion.
Better accountability of Profits achieved which is required in environment of
increasing tie-ups and joint ventures.
Direct reporting of Marketing to CMD

Customer needs are well communicated to the higher management.
 Strategy of the organization is well communicated to lower staff and sales force.
RECOMMENDATIONS:
SHORT-TERM:
BPCL should implement crisis management protocols and negotiate contracts that include
mitigating supply disruption risks.
MID-TERM:
The company should invest in strategic partnerships and alternative energy sources, and
reevaluate its operational and organizational efficiency
LONG-TERM:
BPCL must incorporate a continuous review mechanism for organizational design to ensure
its structure remains aligned with the rapidly changing external environment.
IMPLEMENTATION PLAN:
A detailed implementation plan should be developed, with clear milestones and
accountability structures, to operationalize the recommended changes. This plan would
require a cross-functional task force with executive sponsorship to drive the change
management process.
The above case study is speculative and serves as a conceptual framework for understanding
potential impacts on an organization like BPCL in the face of geopolitical turmoil. An actual
assessment would require comprehensive internal data from BPCL and a detailed analysis of
the geopolitical situation's developments.
REFERENCE
1.
India's Net Zero Emissions Target Little Too Long-Term: Hardeep Puri, Outlook
Planet (OCTOBER 09 ,2023) https://planet.outlookindia.com/news/india-s-netzeroemissions-target-little-too-long-term-hardeep-puri-news-416078
2.
Government’s Ethanol Blending Programme to be a game changer for India
https://www.bharatpetroleum.in/pdf/Draft-Press-Release-World-Biofuel-DayV30e0922.pdf
3.
BPCL on renewable energy https://www.bharatpetroleum.in/sustainability/bpcl-onrenewable-energy/did-you
know.aspx#:~:text=BPCL%20is%20in%20the%20process,maize%20stalk)%20using
%20indigenous%20technology.
4.
Crude oil deficit to high inflation: How can the Israel-Hamas war impact Indian
economy? — Explained, Nitika Prasad, The Mint, 24 October
https://www.livemint.com/economy/israelhamas-war-impact-crude-oil-deficit-towider-cad-how-the-middle-east-conflict-can-hit-the-indian-economy11698081267465.html
5.
Why is India edgy about Israel's war? The threats that loom over India, The
Economics Times , 15 october,
https://economictimes.indiatimes.com/news/economy/foreign-trade/why-is-indiaedgy-about-israels-war-the-threats-that-loom-overindia/articleshow/104436341.cms?utm_source=contentofinterest&utm_medium=text
&utm_campaign=cppst
6.
What Israel-Hamas war means for India’s oil market, Down To Earth , Friday 03
November 2023, https://www.business-standard.com/article/companies/videoconand-bprl-complete-acquisition-of-encana-corp-108091900013_1.html
7.
Shaping the Destiny of a Public Sector Enterprise
https://www.bharatpetroleum.in/about-bpcl/infoline-detail.aspx?id=infoline/shapingthe-destiny-of-a-public-sectorenterprise#:~:text=Following%20the%20Hydrocarbon%20Vision%20Report,Custom
er%20Service%20and%20Customer%20Satisfaction).
8.
BPCL arm acquires stake in two Australia shale gas blocks, Economic times , Aug 20,
2010, https://economictimes.indiatimes.com/industry/energy/oil-gas/bpcl-armacquires-stake-in-two-australia-shale-gas-blocks/articleshow/6381952.cms
9.
Videocon and BPRL complete acquisition of Encana Corp, Business Standard ,
https://www.business-standard.com/article/companies/videocon-and-bprl-completeacquisition-of-encana-corp-108091900013_1.html
INDIVIDUAL ASSIGNMENTS
SUBMITTED BY: GROUP 8
ROLL NO.
ADARSH SINGH
173062
TARUN BAJAJ
173115
TULSI KHANDELWAL
173116
UTKARSH SRIVASTAV
173117
VINAY SINGH BAURA
173118
VINAYAK MITTAL
173119
YASH LAMBA
173120
YASHI SINGH
173121
YASHIKA
173122
ADARSH SINGH (173062)
MCKINSEY’S 7s FRAMEWORK
McKinsey 7S Framework for BPCL Due to Israel-Palestine Conflict
STRATEGY:



BPCL's strategy should be to maintain its position as a leading oil and gas company in
India, while also expanding its operations in the Middle East.
The company should focus on developing new technologies to extract oil and gas from
shale and other unconventional resources.
BPCL should also invest in renewable energy sources, such as solar and wind power.
STRUCTURE:
BPCL is a vertically integrated company, with operations in exploration, pro



duction, refining, marketing, and distribution of oil and gas.
The company has a strong presence in the Indian market, with a network of over 15,000
retail outlets.
BPCL also has a growing presence in the Middle East, with operations in Oman and
Abu Dhabi.
SYSTEMS:
BPCL has a robust system of controls and procedures in place to manage its operations.


The company uses a variety of information technology systems to support its business
processes.
BPCL also has a strong focus on safety and environmental protection.
STAFF:



BPCL has a workforce of over 12,000 employees.
The company has a strong culture of innovation and continuous improvement.
BPCL also offers its employees a variety of training and development opportunities.
SKILLS:



BPCL has a strong skills base in all aspects of the oil and gas industry.
The company has a team of experienced and qualified professionals who are able to
manage complex projects and operations.
BPCL also has a strong focus on developing new skills and technologies.
STYLE:



BPCL has a decentralized management style, with a high degree of autonomy given to
its business units.
The company has a culture of open communication and collaboration.
BPCL also has a strong focus on customer satisfaction.
SHARED VALUES:
BPCL's shared values are:





Safety: The company is committed to providing a safe and healthy work environment
for its employees and contractors.
Integrity: The company is committed to conducting its business in an ethical and
honest manner.
Customer Focus: The company is committed to meeting the needs of its customers in
a timely and efficient manner.
Innovation: The company is committed to developing new technologies and products
to improve its operations and meet the needs of its customers.
Teamwork: The company is committed to fostering a culture of teamwork and
collaboration.
IMPACT OF ISRAEL-PALESTINE CONFLICT:
The Israel-Palestine conflict has a number of potential impacts on BPCL, including:



Increased risk of supply disruptions: The conflict could lead to disruptions in the supply
of oil and gas from the Middle East, which could impact BPCL's operations.
Increased costs: The conflict could lead to increased costs for oil and gas, which could
impact BPCL's profitability.
Increased reputational risk: The conflict could damage BPCL's reputation, particularly
if the company is perceived to be taking sides in the conflict.
RECOMMENDATIONS:
BPCL should take the following steps to mitigate the risks and impacts of the Israel-Palestine
conflict:




Diversify its supply chain: BPCL should reduce its reliance on oil and gas from the
Middle East by diversifying its supply chain to other regions, such as North America
and Africa.
Invest in energy efficiency: BPCL should invest in energy efficiency measures to
reduce its consumption of oil and gas.
Develop a renewable energy portfolio: BPCL should develop a portfolio of renewable
energy projects to reduce its reliance on fossil fuels.
Engage in dialogue with stakeholders: BPCL should engage in dialogue with its
stakeholders, including its employees, customers, and investors, to explain its position
on the Israel-Palestine conflict and to address their concerns.
By taking these steps, BPCL can mitigate the risks and impacts of the Israel-Palestine conflict
and protect its long-term interests.
TARUN BAJAJ (173115)
The Israel-Hamas war presented both challenges and opportunities for BPCL. By adopting a
strategic approach, strengthening its systems, upholding its shared values, fostering a
supportive leadership style, investing in its workforce, and cultivating essential skills, BPCL
can effectively manage the risks and capitalize on the opportunities arising from this complex
geopolitical situation.
ELEMENT OF
THE 7S MODEL
STRUCTURE
DESCRIPTION
IMPACT ON BPCL DUE TO
ISRAEL-HAMAS WAR
BPCL is exposed to the risks
BPCL's organizational structure associated with the war, such as
and its position in the global oil disruptions to oil supplies, price
fluctuations,
and
reputational
market
damage.
STRATEGY
BPCL's strategic approach to
managing the risks and
opportunities associated with
the war
BPCL should diversify its sources of
oil and gas, invest in renewable
energy sources, and strengthen its
risk management capabilities.
SYSTEMS
BPCL's systems and processes
for managing the risks and
opportunities associated with
the war
BPCL should have robust risk
management frameworks, crisis
management protocols, and business
continuity plans in place.
SHARED
VALUES
BPCL's commitment to human BPCL
should
maintain
its
rights,
environmental commitment to these values while
sustainability, and corporate operating in the context of the war.
social responsibility
STYLE
BPCL's leadership style and its BPCL's leadership should be
approach to managing the war
transparent,
accountable,
collaborative, and innovative.
STAFF
BPCL's employees and their BPCL should invest in training and
skills and experience in development programs to enhance
managing the risks and its employees' skills in risk
opportunities associated with management, crisis response, and
the war
negotiation.
SKILLS
BPCL's employees' skills and
abilities to manage the risks and
opportunities associated with
the war
BPCL's employees should have a
range of skills, including risk
assessment, crisis management,
business
continuity
planning,
negotiation, and conflict resolution.
TULSI KHANDELWAL (173116)
McKinsey's 7S framework
This management model that identifies seven factors to organize a company in a holistic and
effective way. The model includes soft elements (shared values, skills, style, and staff) and
hard elements (strategy, structure, and systems). The impact of the Israel- Palestine
confliction each of these variables as it pertains to Bharat Petroleum Corporation Limited
(BPCL):
STRATEGY:
The ongoing conflict can significantly affect BPCL's strategy. With the Middle East being a
crucial region for oil production, any instability can disrupt BPCL's supply chains, affecting
their strategic procurement and pricing models. In response, BPCL might need to:



Develop alternative sourcing strategies to mitigate the risk of supply disruptions
Re-evaluate their pricing-strategy to accommodate the volatility in oil prices
Shift long-term strategy to include a more significant investment in alternative energy
sources to reduce dependency on volatile regions
STRUCTURE:
The conflict could necessitate a change in BPCL's organizational structure. With the increase
in uncertainty and risk, BPCL might need to become more agile and responsive to change. This
could involve:



Decentralizing decision-making to allow for quicker responses to changing conditions.
Establishing new departments focused on risk management and geopolitical analysis.
Restructuring the supply chain management teams to focus on diversification and
alternative sourcing.
SHARED VALUES:
Shared values are at the core of the 7S framework and define the underlying principles of the
organization. The conflict may test BPCL's core values by:



Highlighting the importance of sustainability and corporate responsibility, encouraging
a move towards greener energy sources.
Reinforcing the need for resilience and adaptability as core values within the corporate
culture
Stressing ethical considerations in sourcing and partnership decisions, potentially
leading to a reassessment of alliances and business relations.
STYLE:
The style of management and leadership within BPCL would need to adapt to the conflict
situation. Leadership style impacts how the company responds to crises, so BPCL might need
to:



Adopt a more participative leadership style to involve more stakeholders in the
decision-making process during times of crisis
Encourage a culture of flexibility and innovation to quickly adapt to unforeseen supply
chain disruptions or market changes
Strengthen the internal communication style to ensure transparency and maintain
morale during turbulent times.
SYSTEMS:
Systems refer to the processes and procedures that underpin day-to-day operations. The
conflict's impact might be seen in:



The need for more robust risk management systems that can predict and mitigate the
impacts of geopolitical risks
Refined logistic and inventory management systems to handle supply chain volatility
Enhanced information systems to provide real-time data on global events affecting the
energy market
STAFF:
The workforce at BPCL would be affected by the conflict in various ways:



Staff may need additional training to handle the increased complexity and risk
associated with operating in a volatile environment
There may be a need to recruit specialists in geopolitical analysis, international trade,
and crisis management
The morale and engagement of staff may be impacted, necessitating stronger focus on
internal communication and HR support systems
SKILLS:
The skill set required within BPCL would likely shift as a result of the conflict. This could
mean:



Increased emphasis on risk assessment, crisis management, and strategic foresight
skills.
Upskilling the workforce in areas of supply chain management, alternative energy
sources and global market analysis.
Greater focus on negotiation and relationship-building skills to manage international
partnerships and alliances.
UTKARSH SRIVASTAV (173117)
Analysis of the impact of the Israel Hamas war according to the McKinsey’s 7s framework
for BPCL:
STRATEGY:



Diversify the supply chain to reduce dependence on volatile regions.
Invest in alternative energy sources to mitigate geopolitical risk.
Develop crisis management protocols and risk mitigation strategies for supply
disruption.
STRUCTURE:



Consider the creation of a dedicated division for managing international relations and
strategic resource security.
Enhance operational efficiency through lean management practices and flexible
working models.
Explore the establishment of semi-autonomous Strategic Business Units (SBUs) for
alternative energies.
SYSTEMS:



Implement real-time risk analysis systems to monitor and respond to dynamic
geopolitical conditions.
Strengthen information systems for tracking supply chain diversification and
alternative energy investments.
Develop human resource programs for skills in crisis management, international
business, and negotiation.
SHARED VALUES:


Ensure that the core values of integrity, sustainability, and ethical behavior remain
intact while adapting to geopolitical challenges.
Promote a culture of adaptability and resilience in the face of uncertainty.
STYLE:


Encourage leadership styles that prioritize flexibility, adaptability, and strategic
decision-making in response to geopolitical volatility.
Foster a culture of quick decision-making and innovation in response to rapidly
changing market conditions.
STAFF:


Invest in training and development programs to equip employees with the skills
needed to navigate crisis management, international business, and negotiation.
Ensure that employees understand and embrace the company's values and adapt to
changing circumstances while upholding those values.
SUPERORDINATE GOALS:

Establish superordinate goals that emphasize the importance of energy security,
sustainability, and the company's role in the global energy marketplace.
The suggestions above are aimed at helping BPCL adapt to the impact of the Israel-Palestine
conflict and remain resilient in a challenging and dynamic environment, all while upholding
its core values and mission in the oil and gas industry.
VINAY SINGH BAURA (173118)
The Impact of Iseral – Palestine war on BPCL by using McKinsey 7s frame work
STRATEGY:
BPCL's core strategy revolves around solidifying its position as a leading oil and gas
company in India, while simultaneously expanding operations in the Middle East. The
company aims to stay innovative by focusing on developing modern technologies for
extracting oil and gas from unconventional sources, like shale. Additionally, BPCL is
committed to investing in renewable energy, such as solar and wind power, to diversify its
energy portfolio.
STRUCTURED:
As a vertically integrated company, BPCL manages exploration, production, refining, and the
distribution of oil and gas. Its footprint in India includes a vast network of over retail outlets.
SYSTEM:
To manage its operations effectively, BPCL has a robust system of controls and procedures
in place. The company heavily relies on various information technology systems to
streamline its business processes. Safety and environmental protection remain at the forefront
of its operations.
STAFF:
BPCL fosters a culture of innovation and continuous improvement. The company prioritizes
employee development, offering various training opportunities.
SKILL:
The company boasts a robust skill set in the oil and gas industry, with a team of experienced
professionals capable of handling complex projects. BPCL not only emphasizes existing
skills but also actively invests in developing new talents and technologies.
STYLE:
Fostering a decentralized management style, BPCL grants significant autonomy to its
business units. Open communication, collaboration, and a strong focus on customer
satisfaction are ingrained in its culture.
SHARED VALUE:
BPCL's shared values centre around safety, integrity, customer focus, innovation, and
teamwork. These values guide the company's operations, ensuring a safe work environment,
ethical business conduct, and a strong dedication to customer needs and technological
advancement.
VINAYAK MITTAL (173119)
Impact of War on the Variables of McKinsey's 7s Framework: A Case Study of Bharat
Petroleum Corporation Limited (BPCL)
STRATEGY :
War can disrupt operations, supply chains, and markets, forcing companies to change their
strategies. For example, BPCL may need to find new sources of crude oil if its existing
suppliers are disrupted by war.
STRUCTURE:
War may require companies to decentralize their decision-making and/or merge businesses or
lay off employees to reduce costs. BPCL may need to delegate more authority to its regional
offices in order to be able to respond quickly to changes in the market.
SKILLS:
War may require companies to hire employees with new skills and train existing employees
on new skills. For example, BPCL may need to hire employees with experience in crisis
management, risk management, and security.
SHARED VALUES:
War may require companies to emphasize values such as teamwork, cooperation, and
sacrifice. BPCL may need to emphasize the importance of teamwork and cooperation in order
to be able to respond effectively to the challenges of war.
STYLE:
War may require companies to become more decisive and agile, and to be more transparent
and accountable. BPCL may need to make faster decisions and be more willing to take risks
in order to respond to the challenges of war.
SYSTEMS:
War may require companies to invest in new systems to improve their efficiency and agility,
and to change their existing systems to comply with new regulations or reduce costs. For
example, BPCL may need to invest in new IT systems in order to be able to track its inventory
and supply chain more effectively.
STAFF:
War may require companies to hire more employees or provide support to employees who are
affected by war. For example, BPCL may need to hire more employees in its refineries and
distribution canters in order to meet the demand for fuel.
IMPLICATIONS FOR BHARAT PETROLEUM CORPORATION LIMITED (BPCL)
As a state-owned oil company, BPCL plays a vital role in India's economy. In the event of
war, BPCL would need to ensure that it can continue to provide fuel to Indian consumers and
businesses.
To do this, BPCL would need to:
•
Diversify its supply chain
•
Develop contingency plans in case its existing suppliers are disrupted
•
Invest in new technologies to improve its efficiency and agility
•
Be prepared to support its employees who are affected by war
By taking these steps, BPCL can ensure that it can continue to play its vital role in India's
economy, even in the event of war.
YASH LAMBA (173120)
The impact of the Israel war on the variables of McKinsey's 7s framework on BPCL
are as follows:
STRUCTURE:
The recent conflict has forced BPCL to alter its organizational structure in order to make
it more flexible and adaptable to shifting market conditions. For instance, three 2G
Ethanol Bio-Refineries are being established by the company.
A new crisis management team must be established by BPCL in order to supervise the
business's reaction to the war. This group may be in charge of creating and carrying out
backup plans, liaising with authorities, and keeping in touch with staff members and
clients.
STRATEGY:
In addition to evaluating its exposure to the conflict and identifying any potential
possibilities or dangers, BPCL must reevaluate its strategic priorities. To lessen its need
on Middle Eastern oil, the company, for instance, is concentrating more on developing
alternative energy sources including biodiesel, solar energy, 2G bio-ethanol, hydrogen.
SYSTEMS:
It is recommended BPCL focus on implementing new risk management systems in the
short term. This is because the Israel war is a complex and unpredictable situation, and it
is important for BPCL to be able to identify, assess, and mitigate the risks associated with
the conflict.
In the medium to long term, BPCL should also develop new supply chain strategies to
reduce its reliance on oil from the Middle East and to mitigate the risks of supply chain
disruptions. This will help to make BPCL more resilient to future geopolitical events.
SKILLS:
Through a range of methods, such as official training programs, on-the-job training,
coaching and mentoring, and self-directed learning. BPCL should provide training to
employees on
1.
2.
3.
4.
5.
Risk assessment and identification
Emergency planning and preparedness
Crisis communication
Decision-making under pressure
Leadership and teamwork
STYLE:
The corporate culture of BPCL has changed as a result of the war. The company's current
priorities include customer satisfaction, innovation, and agility.
In addition to encouraging its staff to come up with fresh concepts and solutions to
problems, BPCL is now increasing its investments in research and development. This is
demonstrated by the sheer volume of new goods and services that BPCL has introduced
recently, including a new line of high-performance fuels and an updated digital customer
support platform.
These days, BPCL is more concerned with client satisfaction. More customer feedback is
now being gathered by BPCL. The introduction of BPCL's new customer support
platform makes this clear.
STAFF:
Recent adjustments to BPCL's workforce in light of recent Israel - Palestine conflict
indicates that the business is concentrating on increasing productivity and optimizing its
processes. The selection of fresh executives with backgrounds in risk management,
customer service, and digital transformation implies that BPCL is also concentrating on
becoming more creative and adaptable.
The reassignment of current executives implies that building BPCL's talent pipeline is
another priority. Given that N. Vijayagopal was moved from Director (Marketing) to
Director (Human Resources), it appears that BPCL is dedicated to fostering employee
growth and enabling them to realize their full potential.
SHARED VALUES:
BPCL's recent crisis has led to some changes in the way that the company interprets and
implements its shared values. BPCL is now placing a greater emphasis on the following:
1.
2.
3.
4.
5.
Customer focus
Innovation
Operational excellence
Sustainability
People
YASHI SINGH (173121)
How the Israel-Palestine war can impact the variables of McKinsey’s 7s framework STRATEGY:
Reduce reliance on limited sources – BPCL’s primary goal in this situation should be to
enhance resilience by reducing reliance on limited sources. To achieve this, long-term
contracts can be signed with multiple crude oil suppliers from diverse regions.
Supply chain and Operations - Investments in renewable energy sources will reduce high
dependence on fossil fuels. The strategy will adapt to the increased risk of supply chain
disruptions and higher operational costs.
STRUCTURE:
New Division - The internal structure will undergo changes and more efficient, better
equipped to handle the risks associated with the ongoing war. New divisions may be created,
focusing on alternative energy and risk management, or existing operations streamlined. In
particular, a new risk management division should be established to assess and mitigate risks
linked to the war.
SYSTEMS:
Technology and advanced supply chain management systems will be developed, and
investments in cutting-edge technologies will drive down operational costs.
Real-time tracking and risk assessment – Real time tracking of crude oil and petroleum
products implemented to swiftly identify and respond to supply disruptions. This includes the
adoption of real-time risk assessment systems, diversification of procurement methods, and
technological upgrades.
SKILLS:
Training and education - Employees will receive training to thrive in this changing
environment. This includes education in crisis management, international business, and
negotiation. Additionally, they will gain new skills in alternative energy technologies to stay
ahead in the evolving environment.
STAFF:
Hiring more employees with relevant skills - Staffing adjustments will be made to align with
BPCL’s strategy and structure. This may involve hiring more employees for newly
established divisions or making reductions in other areas to streamline operations.
Fresh talent with expertise in risk analysis, international relations, and alternative energy is
sought.
STYLE:
Adaptability - The decision-making style will evolve to foster greater agility, responsiveness,
and adaptability.
Decentralized, dynamic style and motivation - A shift towards a more dynamic, decentralized
approach to decision-making is on the horizon. The organization aims to motivate employees
to embrace this style and adapt swiftly to the ever-shifting landscape.
SHARED VALUES:
A fundamental shift in shared values is in progress, moving towards a culture of adaptability
and sustainability. These values will be the driving force behind motivation, inspiring
BPCL’s employees to see them as the guiding principles of the organization.
They not only reflect the organization's commitment to thriving in dynamic environments but
also inspire a sense of purpose among its workforce. The organization's journey towards
these values ensures it remains agile and capable of enduring change while simultaneously
contributing to a more sustainable and responsible future.
YASHIKA (173122)
The Israel-Palestine war could have a significant impact on the variables of McKinsey's 7s
framework for Bharat Petroleum Corporation (BPCL).
STRATEGY:



BPCL as a leading oil and gas company in India, has traditionally focused on refining,
marketing and distribution of petroleum products. Its strategy has also involved
diversification of products.
The war could disrupt BPCL's supply chain of crude oil and other petroleum products.
BPCL may need to develop a new strategy for sourcing crude oil and other petroleum
products.
Additionally, the war could lead to a decrease in demand for BPCL's products, hence
they may also need to develop a new strategy for marketing its products
STRUCTURE:



BPCL has a hierarchical structure with divisions and departments dedicated to various
functions such as refining, marketing etc.
The war could also lead to changes in BPCL's organizational structure. For example,
BPCL may need to create a new division to deal with the challenges of operating in a
war zone. This division could be responsible for security, logistics, and other critical
functions.
Additionally, BPCL may need to decentralize its decision-making process in order to
be more responsive to the rapidly changing situation on the ground.
SYSTEMS:



BPCL has a well-established structure for managing, refining operation, supply chain,
distribution network etc. They also use information technology systems for the same.
The war could also disrupt BPCL's information technology systems. This could make
it difficult for BPCL to track inventory levels, manage its supply chain, and
communicate with its customers and employees. They may also need to develop new
systems.
Additionally, the war could increase the risk of cyberattacks on BPCL's systems.
SHARED VALUES:



BPCL’s core values are integrity, customer focus, innovation and sustainability. The
war could also challenge BPCL's shared values.
BPCL may need to compromise on its commitment to safety and environmental
protection in order to operate in a war zone.
The war could lead to an increase in corruption and other unethical behavior hence,
they may also need to be more vigilant in preventing corruption and other unethical
behaviour.
STYLE:



BPCL’s leadership style was influenced by a mix of hierarchical decision making.
The war could also lead to a change in BPCL's leadership style.
BPCL's leaders may need to become more authoritarian in order to make quick
decisions in a rapidly changing environment.
BPCL's leaders may need to focus more on short-term survival than long-term
planning.
Overall, the Israel-Palestine war could have a significant impact on the variables of
McKinsey's 7s framework for BPCL. BPCL will need to carefully monitor the situation and
take steps to mitigate the risks and capitalize on the opportunities that arise from the conflict.