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Business Studies Project Grade 11

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SUBJECT: Business Studies

PROJECT TITLE: Study and compare SWOT


analysis of two leading public sector companies from
different industries.

TABLE OF CONTENT

Sr NO. Content Page number


1. Acknowledgement 2
2. Introduction to SWOT 4
Analysis
3. SWOT Analysis of Bharat 6
Petroleum Corporation
Limited (BPCL)
4. SWOT Analysis of Bharat 11
Sanchar Nigam Limited
(BSNL)
5. Comparison of SWOT 14
Analysis of Bharat Petroleum
1
Corporation Limited (BPCL)
and Bharat Sanchar Nigam
Limited (BSNL)
6. Conclusion 15

7. Bibliography 16

Introduction to SWOT Analysis

What is SWOT Analysis?


SWOT analysis is a useful technique that can help a company or even an
individual to help them understand their strenghts, weaknesses,
opportunities open to them and threats they will face. The word SWOT
is an acronym for Strengths, Weaknesses, Opportunities and Threats.

Strenghts and weaknesses can be identified by analysing the internal


environment, while opportunities and threats can be identified by
analysing the external environment. SWOT analysis can also be
modified into TOWS (Threats, Opportunities, Weaknesses and
Strengths).

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Meaning of each word in SWOT:

1. Strenghts: It is an inherent capability of the company which can


be used to gain strategic advantages over competitors.

2. Weakness: It is an inherent limitation of the company which


creates strategic disadvantages to the company. This is the area
where companies need to improve the most to remain
competitive in the market.

3. Opportunities: These are favorable conditions in companies


external environment which enables the company to strengten
their position more.

4. Threats: These are unfavorable conditions in companies external


environment which can cause a risk, damage or even failiure to
the company.

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Why do companies need to do SWOT Analysis?
Companies need to do SWOT Analysis so that they can create new
strategies to position themselves better in the market. It also helps the
company to go throught the new opportunites that can give them an
advantage over other companies. Also by anaylsing their weaknesses,
the company can oversee and clear out all the threats that would affect
the company.

SWOT Analysis of Bharat Petroleum


Corporation Limited (BPCL)

What is Bharat Petroleum Corporation Limited (BPCL)?


Bharat Petroleum Corporation Limited (BPCL) is an Indian public sector
company which deals in the petrochemical industry (import/export of
petroleum product). It was founded in 1976 and is India’s second
largest government owned downstream oil producing company after
Indian Oil Corporation Limited. It is based in Mumbai, Maharashtra.

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What are the strenghts of Bharat Petroleum Corporation
Limited (BPCL)?
The strengths of Bharat Petroleum Corporation Limited (BPCL) are:

1. Large Network: BPCL has one of the lagest network of around 16,000
fuel station speard across over the whole indian contigent. Along
with this they have retail outlet in the country also.

2. Research and Development: This is an essential componet for the


company. Their experimentation with crude oil continues in order to
extract more valuable products or improve the efficiency of the ones
that are already on the market. Some of their successful findings are
semi-synthetic 4T engine oil, hydraulic oils, etc.

3. Brand Awareness: The company has a well-established brand


presence in Indian domestic market which helps in getting new
clients. Their prominent products such as Bharat Gas and Mak
Lubricants are really popular in the Indian domestic market.

4. Production Capacity: With the help of their two large refineries


based in Mumbai and Kochi, they are able to meet the market's
constantly expanding needs.

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What are the weaknesses of Bharat Petroleum
Corporation Limited (BPCL)?
The weaknesses of Bharat Petroleum Corporation Limited (BPCL) are:

1. Government Regulations: Since the government owns 53% of the


company, most of their activities are restricted by legislation and
they are unable to turn a profit like private businesses.

2. Employment: They employ more people than they require to carry


out their daily tasks. Increased labor costs translate into lower
profitability as production costs rise.

3. Environmental issues: They have a poor track record when it comes


to environmental concerns because the refining process produces a
lot of pollution. This affects their brand's reputation and may
provoke backlash from customers.

4. Global Presence: Their operations are restricted to only India, a very


competitive market that results the company in a smaller market

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share. If they expand globally, they will undoubtedly increase their
profits.

What are the Opportunities of Bharat Petroleum


Corporation Limited (BPCL)?
The opportunities of Bharat Petroleum Corporation Limited (BPCL) are:

1. New Oil field discovery: If oil prices increase in the future, new oil
fields can be discovered. This will give the company an advantage
over competitors.

2. Increasing Demand: The demand for gas and oil is rising daily in line
with the growing population. Thus, the management must monitor it
by maintaining a supply that is adequate to meet the demand in the
market.

3. Forgien Market: The company has a chance to grow into the


international markets and can expect significant financial profits. If
the company establishes relationships with numerous influential
foreign parties, this will be possible.

4. Funding: There are more and more investors in the market, the
company can raise money by issuing new shares.

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What are the threats of Bharat Petroleum Corporation
Limited (BPCL)?
The threats of Bharat Petroleum Corporation Limited (BPCL) are:

1. Electric Motors and Appliances: The company may see a decline in


demand for its product as a number of customers move to the new
market segment and use electric cars and solar appliances like
induction cooktops.

2. Stiff Competition: Reliance, Essar, HPCL, and other well-established


domestic companies pose a serious threat to the company.

3. Regular Price Fluctuations: The Middle Eastern countries experience


frequent price fluctuations in crude oil due to its erratic extraction,
which ultimately affects the prices of their products.

4. Environmental Laws: As people's awareness of environmental issues


grows daily, the company's growth may be impacted by the
introduction of new laws pertaining to these issues.

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SWOT Analysis of Bharat Sanchar Nigam
Limited (BSNL)

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What is Bharat Sanchar Nigam Limited (BSNL)?

Bharat Sanchar Nigam Limited or also commonly known as BSNL is a


public sector telecommunication company. It was founded in 2000 and
is under the ownership of the Department of Telecommunications,
Ministry of Communications, Government of India. It is based in Delhi,
New Delhi.

What are the strenghts of Bharat Sanchar Nigam Limited


(BSNL)?
The strengths of Bharat Sanchar Nigam Limited (BSNL) are:

1. Backed by government
2. Extensive infrastructure in remote areas
3. PAN India reach
4. Vast experience
5. Strategic alliances with IT and hardware companies
6. More than 65% market share in rural India market
7. Excellent network coverage across India
8. More than 90 million people are subscribed to BSNL
9. Huge optical-fibre infrastructure

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What are the weakness of Bharat Sanchar Nigam Limited
(BSNL)?
The weakness of Bharat Sanchar Nigam Limited (BSNL) are:

1. Declining market proportion


2. Incapable of keeping clients
3. Innovation and service image issues
4. Ineffective rural resources
5. unable to maximize network performance
6. Unhealthy work environment in government agencies
7. Low brand loyalty and little brand visibility

What are the opportunities of Bharat Sanchar Nigam


Limited (BSNL)?
The opportunities of Bharat Sanchar Nigam Limited (BSNL) are:

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1. strategic alliance with manufacturers of smartphones
2. collaborating with other Telcom to retain customers
3. enhancing intangible assets (knowledge, skill, drive, and an aging
labor force)
4. Privatization of BSNL

What are the threats of Bharat Sanchar Nigam Limited


(BSNL)?
The threats of Bharat Sanchar Nigam Limited (BSNL) are:

1. fierce and extensive competition


2. Framework of government regulations
3. portability of phone numbers
4. costly network deployment
5. subscribers with low incomes
6. Electricity shortage in rural areas

Comparison of SWOT Analysis of Bharat


Petroleum Corporation Limited (BPCL) and
Bharat Sanchar Nigam Limited (BSNL)

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Strenghts:
 Both are government owned
 Both have a good spread of netwok in rural and urban areas
 Both are well known domestic public sector companies

Weaknesses:
 Both have to obey government regulations
 Both have low visibillity in the international market

Opportunities:
 Both can be private companies in near future
 Both can have strategic alliance with forgien investors, companies
etc.

Threats:
 Both have fierce and extensive competition with other private and
public companies
 Both have a chance to lose market due to other replacable products
 Both have to be careful with fluctuations of prices of products.

Conclusion

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After looking into both SWOT Analysis, We can conclude that both
Bharat Petroleum Corporation Limited (BPCL) and Bharat Sanchar
Nigam Limited are government owned companies, which provide a
wide range of products/coverage in the domestic market of India. Both
companies are well known in the Indian market. Both companies have
tough competition with other private and public sector companies and
can have strategic alliance with forgien investors, companies if, they are
privatised.

Bibliography

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 https://iide.co/case-studies/marketing-strategies-of-bsnl/
 https://iide.co/case-studies/swot-analysis-of-bharat-petroleum/
 https://en.wikipedia.org/wiki/Bharat_Sanchar_Nigam_Limited
 https://en.wikipedia.org/wiki/Bharat_Petroleum
 www.google.com
 ISC Business Studies Class XI textbook

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