MN6098QA The Practice of Management (PoM) Assignment Sample

Introduction

The management is stated as the practice and principles which assist in managing and organising the operations effectively so that goals of the business can be met. The current study is based on a comparison of two companies, BP and Shell. BP is a British multinational company headquartered in London and is one of the supermajor companies dealing in gas and oil. On the other side, Shell is another company dealing in the same industry and is headquartered in London as well. Both the companies belong to the same industry, that is oil trading and the market chosen is based in the UK. There are large numbers of competitors present in this industry, like Chevron, ExxonMobil, Petrobars, Aramco, Gazprom and many other different types of companies dealing in the same industry. The customers of these types of companies include commercial airlines, private pilots, JV operators, military, national oil companies, GA and FBO and many other different types of consumers. According to the latest trends, it is clear that this industry has contributed nearly $13.2 billion to the UK economy in 2023 (UK Oil and Gas Annual Report 2024, 2025). Also, there is a trend which emphasises companies to invest more in AI, renewable energy, carbon reduction and many other related activities. The present report will outline and evaluate the market and financial position of both the companies. In addition to this, the use and compliance of the CSR policies and practices of both the companies will be done in a comparative format.

Reference materials and sample papers are provided to clarify assignment structure and key learning outcomes. Through our Assignment Help UK, guidance is reflected while maintaining originality and ethical academic practice. The MN6098QA The Practice of Management (PoM) Assignment Sample demonstrates practical application of financial analysis, ratio evaluation, and CSR assessment in organisational management.

Main Body

Financial and market performance of BP and Shell

For the business to operate well, the effective type of financial performance must be managed well. The main objective of the company is to earn a profit. In case the effective type of profit will not be earned by the company, then the management of the business activities will not be good. Thus, it is necessary for the companies that they manage their financial performance effectively. For this, the certain ratios are calculated for assessing the performance of both the companies and make effective comparison for both the companies.

Ratio analysis of both the companies

With the evaluation of the efficiency ratio of both the companies, it is clear that they are effectively efficient in managing all their operations. Within the case of BP plc, the inventory turnover is 57 days, and it implies that the company can convert its inventory into sales. On the other side, in case of Shell plc it is 40 days which is more effective. It is due to the reason that Shell plc can convert the inventory into cash in less time as compared to BP plc. In against this, for the receivable turnover, both the companies have the same result that is both takes nearly 7 days to get the receivables turn into cash. This simply means that both the companies are efficiently performing and need to work on reducing the inventory turnover days so that the inventory can be quickly converted into cash (Li, Trencher and Asuka, 2022).

The liquidity refers to the effectiveness of the company in terms of how fast they can convert the liquid assets into cash for making the working better. With the liquidity ratio of BP, it is clear that the company is having good liquidity as they have 1.2 times the current asset for paying off every current liability. Although there is the improvement of increasing this ratio as ideally, there is a requirement of twice current asset for paying of a single current liability (Oshilalu, Ajiboye and Oshilalu, 2021). In against this, the liquidity position of Shell is slightly better as the current ratio and quick ratio is more in comparison to BP. 1.4 is the current ratio and 1.13 is the quick ratio for Shell, and this is a better position in comparison to the results of BP. According to the ideal quick ratio, there needs to be 1 quick asset against every current liability. Thus, Shell has 1.31, which implies that the company has 1.31 of quick assets for paying off every current liability. Although there is not much difference in the ratios of both the companies, it is necessary for them to maintain good liquidity. Thus, it is recommended to both the companies that they must try to restructure their debt and accelerate the receivables.

The companies operate for earning profit, and in case the profitability of the companies will not be effective, then it implies that the objectives have not been attained well. Concerning the net profit ratio, it is clear that both the companies have less profitability. As the chart indicates, BP has 7.45 % and Shell has 6.11 % of net profit margin. This implies that although the company is earning profit, the ratio of profit is much less. Thus, it is essential for both companies they try to manage their expenses and invest in marketing so that the sales will increase. Further, with the return on asset, it is clear that both the companies are having near result which is 5.44% and 4.77% respectively for BP and Shell. This ratio indicates how much of the profit is generated from its total assets. The results outline that both need to work on improving this ratio by using effective asset planning along with having good management of inventory and trying to increase the net income (Rahman et al, 2025). On the other side, return on equity reflected that the position of BP is better than Shell. The ROE outlines the capability of the company in managing the capital invested in the company. In this case, BP is more efficient in managing the invested capital as compared to Shell. Hence, with the profitability ratio, it is clear that BP is working more efficiently in comparison to Shell in managing its profits.

The market ratio is a financial metrics which assist in managing and comparing the market prices with the company and the other competitors. According to the EPS ratio, BP is at 87.78, and Shell is at 2.88. This implies that BP is providing more earnings per share to its shareholders in comparison to Shell, which is good for BP. On the other side, the price-earnings ratio is better for Shell plc, and this implies that the current market price is not expensive and the investors are willing to pay for getting a proportion in the total earning of the company. This is good for Shell in comparison to BP plc as the company has a higher price-earnings ratio, which is good for the company. Thus, with the help of the market ratio, it is clear that both the companies have similar market positions, and this needs to be improved more (Luo, 2024). It is necessary because when the market position is evaluated well, then it will provide a better base for the company to improve the working.

CSR policies of both the companies and compliance with UN SDG 2030

While working in a highly competitive environment, it is necessary for the companies they effectively try to protect the environment and the surroundings. It is necessary for the reason that the business operates in the external environment and makes use of the available resources. Thus, it is the responsibility of the companies they protect the environment. Also, there are many different discharges from the operations of the company, which can impact the environment (Duttagupta et al, 2021). So it is the responsibility and duty of the companies that they must perform some activities which assist in reducing these impacts. For this, it is mandatory for the companies they comply with various CSR strategies. Corporate Social Responsibility (CSR) is stated as the accountability of the companies which they have to fulfil in protecting the environment and supporting the welfare and development of the community. This is a business model to be followed by all the companies for being socially accountable towards all the stakeholders of the company.

BP is investing high in environmental sustainability and conservation for managing and maintaining its CSR. The company has already spent billions of dollars in renewable energy research and development along with implementing the new and cleaner fuel facilities. Also, currently, they have the largest solar energy in the world and this implies that the company is continuously working to protect the environment. Also, according to the sustainability report of BP, the company manages the CSR by making safety its priority (Khan and Kazmi, 2024). For this, the company is complying with various safety leadership principles. The compliance with these principles motivates the employees to work better, and as a result, the different fatalities and injuries at the workplace are eliminated. With the application of the various leadership principles, it is clear that BP plc was able to manage and reduce the number of incidents.

Along with this, BP plc also complies with the Extractive Industries Transparency Initiative (EITI), which aims to promote accountability and transparency within the working. This includes transparency in every working associated with the company. All these strategies assist BP plc in meeting the Sustainable Development Goals (SDG). The SDG goals are prepared by the United Nations to effectively protect the environment and planet along with people and the surrounding environment (Gusov et al, 2022). Thus, as a result, BP plc, by working on the various CSR strategies, is capable of managing and fulfilling the SDG goals as well. For instance, BP plc promotes SDG 5, which supports gender equality and empowering women within the company. According to the report of 2023, it was seen that 7 out of 11 positions within the leadership team of BP were held by women. Along with this, since 2020, the company has been supporting business enterprises led by women, and till now, they have supported nearly 500 such ventures. Similarly, BP is supporting many different types of SDG goals through their work and operations.

On the other side, Shell is also taking measures to manage and maintain a good CSR strategy within the company. This is necessary because when a business operates sustainably, then it will be improving its competitiveness, and companies can earn a good market position. This is crucial because when the effective type of the environment and the surroundings is protected, then it will be assisting the company in creating a better position within the working of the company. For the CSR strategy, Shell is implementing good strategies, and as a result, they aim to achieve net-zero emissions by 2050 and generate higher value for their shareholders. This is crucial because when the stakeholders of the company are happy and satisfied, then automatically, the overall efficiency will be improved (Ite, 2022). In 2020, many different injuries and fatalities took place per 100 million working hours. Thus, to mitigate this issue, Shell complies with the Powering Progress strategy, which includes a focus on safety along with considering the core values and also integrating the safety approach to the plan within the facilities and all the areas of functioning.

Along with this, Shell is also trying to maintain and meet the climate targets as well. This is necessary because Shell invests highly in managing the energy transition and meeting the climate targets. For this, the company is investing in working on low-carbon energy solutions, non-energy products, LNG, gas and power marketing. With this strategy, Shell is directly contributing to SDG 13, which relates to climate action. This is necessary for the reason that when the climate will be protected then it will be improving the working capability better. Along with this, Shell provides access to energy to around 760 million people where there is not any electricity present (Shell plc Sustainability Report 2023, 2024). Thus, as a result of this, it fulfils SDG number 7, which relates to providing affordable and clean energy. With the comparison of both BP and Shell, it is clear that there is a high requirement of complying with the CSR strategies and ensuring that all the SDG goals are followed. This is necessary because when the SGD goals are followed, then automatically the overall performance and working is improved.

Conclusion

Lastly, it is concluded that for better running of the company the effective type of the management must be needed. To run the business successfully, it is mandatory for the companies that they try to effectively manage the whole working. The study highlighted that for companies to become successful, the financial aspect must be managed appropriately. Also, currently, the competition has increased a lot, and for this, it is necessary for the companies to effectively have a secured position. For this, the companies must have a competitive advantage so that they can attract more consumers. The above report highlighted that both BP and Shell are operating in the similar industry and their financial performance is also similar. Based on the profitability, BP plc was better as compared to Shell. Further, based on the compliance with CSR, it was analysed that both the companies are effectively managing the strategies about CSR. Thus, both companies are investing highly in CSR strategies, and as a result, they can meet the SDG goals better. For the successful working of the companies, it is necessary that they protect the environment and ultimately, it will be improving the overall capability. So it can be inferred that effective CSR strategies need to be followed to ensure that the SDG goals are effectively met. Also, it was analysed that the effective compliance with the SDG goals 2030 is assistive in managing and improving the working capability well.

References

Books and Journals

• Duttagupta, A., Islam, M., Hosseinabad, E.R. and Zaman, M.A.U., 2021. Corporate social responsibility and sustainability: a perspective from the oil and gas industry. Journal of Nature, Science & Technology, 2, pp.22-29.
• Gusov, A.Z., Lylova, E.V., Kolganova, E.V. and Eyeberdiyeva, M.M., 2022. Increasing the social responsibility of oil and gas companies in the context of the green economy formation: Russian and Western experience. МИР (Модернизация. Инновации. Развитие), 13(2), pp.304-321.
• Ite, U.E., 2022. Achieving Sustainable Development Goals through Corporate Social Responsibility. In Business and Sustainable Development in Africa (pp. 179-202). Routledge.
• Khan, S. and Kazmi, S.F.H., 2024. UK environmentally sensitive businesses SDG’s disclosure in their sustainability reports, websites and social media. Journal of Investment, Banking and Finance, 2(1), pp.1-24.
• Li, M., Trencher, G. and Asuka, J., 2022. The clean energy claims of BP, Chevron, ExxonMobil and Shell: A mismatch between discourse, actions and investments. PloS one, 17(2), p.e0263596.
• Luo, Q., 2024, May. Financial Characteristics and Risk Strategy Analysis of Oil Giant Companies under The Background of Global Economic Recession. In 9th International Conference on Financial Innovation and Economic Development (ICFIED 2024) (pp. 442-449). Atlantis Press.
• Oshilalu, A.Z., Ajiboye, A.R. and Oshilalu, F.O., 2021. Performance Evaluation of Major Oil and Gas Companies Diversifying into Renewable Energy Resources. In AIAA Propulsion and Energy 2021 Forum (p. 3370).
• Rahman, M.K., Dalim, H.M., Reza, S.A., Ahmed, A., Zeeshan, M.A.F., Jui, A.H. and Nayeem, M.B., 2025. Assessing the Effectiveness of Machine Learning Models in Predicting Stock Price Movements During Energy Crisis: Insights from Shell's Market Dynamics. Journal of Business and Management Studies, 7(1), pp.44-61.
• Online
• BP Annual Report and Form 20-F 2024. 2025. Online. Available through: <https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/bp-annual-report-and-form-20f-2024.pdf>
• BP Sustainability Report 2023. 2024. Online. Available through: <https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/sustainability/group-reports/bp-sustainability-report-2023.pdf>
• Shell plc Sustainability Report 2023. 2024. Online. Available through: <https://reports.shell.com/sustainability-report/2023/_assets/downloads/shell-sustainability-report-2023.pdf#page=53&zoom=100,0,536>
• UK Oil and Gas Annual Report 2024. 2025. Online. Available through: <https://www.bdo.co.uk/en-gb/insights/industries/natural-resources-and-energy/oil-and-gas-market-overview>