Category: BP

In this research, there are several areas of interest and which forms the basis of the research. The research proposal will follow a standard form proposal. As such, the following areas will be covered; foremost, the problem will be sufficiently defined in the title ‘Problem definition’. This section will be followed by definition of the objectives of the research.

In this section, the goals that the researcher will be aiming to achieve will be precisely established and as such, they will form the basis of the research (Kline & Littlefield 217). This section will be succeeded by research design. This section is the blueprint of the entire research.

This is because, there will be several notions covered including the study questions, specification of the relevant data, the type of data that will be collected and also the manner and steps to be followed in analyzing the data collected.

In order to come up with a superior research design, good research questions will be generated and the researcher’s orientation will be sufficient (Scholastic, Inc 32). The methodology section will follow this section.

This section will be essential as it will act as the guideline system for an effective solving of the underlying problem that the researcher is intending to research on. It will be constituted if specific components among them being tasks, phases, techniques, tools as well as methods (Saikku 95).

This will be followed by the limitations of the study section. In this section, every possible aspect that has the ability to diminish the effectiveness of the entire research process will be noted and possible ways of avoiding these limitations will be established (Colten 75). The interpretation section will then follow. In this section, the results of the research will be refined.

The main aim of this refining is to ensure that there is clarification of the results. After the refining of the results, the researcher will come up with suggestions as well as recommendations (Freudenburg et al. 66). This area is also significant as it will concentrate on advising the Company on how it can resurface itself to once again become a competitive force in the market.

This will depend on the results of the research has found by the researcher. Finally, the researcher will conduct a general overview of the entire research process. In this section, the important areas of the research will be identified and thereby concluded (The National Commission 55).

Significance of the study

This research is important as it will establish the negative notion existing among the direct and the indirect stakeholders and therefore enable the Company come up will the most effective strategies that will help reform the Company’s perception by the stakeholders.

In addition to this, the study will assist greatly as it will establish the areas of its operations that need improvement with regard to the Louisiana swamp and therefore assist it to put up measures that will see the area become bearable once again (Butlerb 72).

There are several ways in which this research will help the BP Company improve its position in the industry with its competitors as well as customers. Foremost, the research will establish the opportunities that that the competitors have not yet identified and therefore take advantage of the situation and in this way, it will be a notch higher as compared to its competitors.

In addition to this, the research will enable the Company come up with long term strategies concerning the conservation of the Louisiana swamp and as such, it will be seen as an effective corporate social responsibility strategy and therefore, the brand image will be greatly rebuilt and regain its competitive advantage (Kline & Littlefield 227).

This research will also be useful in rediscovering its position among the customers. This research will help the Company establish that not only conserving the Louisiana swamp but also the neighboring area will greatly facilitate the change from negative perceptions to positive perceptions with regard to the company by the customers (Vijayakumar 25).

Interpretation of the research

From the description of the results, it is clearly evident that the Company was desirable with a large number of people having positive perceptions on the Company.

With reference to the impact of oil leakage on BP oil products from BP Company, it is clear that a significant number of individuals were happy to be associated with BP Company and were regular customers to its products (Butlerb 45). However, right after the oil spill disaster, a significant number of customers seized to be BPs stakeholders.

However, a big number of individuals had plans to buy from the Company in the future. This is supposed to mean that there is still hope for the Company to recover its lost customers if it indeed initiates ways in which it will recover from the soiled name owing to the oil spillage (Scholastic, Inc 20).

Considering the likelihood of buying the Company’s products as compared to the products from the competitors, the oil disaster would lead to a significant shift from the Company and turn to the major competitors. It is also clearly evident that even minor competitors would be advantaged at the expense of BP (Butlerb 44).

However, a small number of individuals stuck to the company’s products. This means that the company must establish effective measures to make up for its mistakes in order to avoid the massive loss of customers to the competitors (Freudenburg et al. 50).

With regard to the effect of messaging on the intention of buying the oil products from the Company, it is clear that the Louisiana swamp played a significant role in the deciding whether a customer would buy the products from the Company or not.

This means that the Company, in order to maintain its success and competitive nature, it must take care of the ecosystem. Failure to this will impact hard feelings among the customers and as such, the performance of the company would fall or decline drastically (Butlerb 47).

With regard to the perceptions concerning the oil spillage as well as products from BP Company, a large number of people believe that perceptions of the image of the Company turned from positive to negative owing to the oil spillage (The National Commission 69).

Another segment is not aware of the effect of the oil spillage disaster on the perceptions of the Company (Scholastic, Inc 28). However, a small number of individuals were adamant in believing that the oil spillage had negative effects. Generally, all these beliefs are supposed to mean that most people are aware of the extent of negativity on the perceptions about the Company.

In addition to this an equal number of individuals are ignorant of the fact that the oil spillage indeed has negative effects on the perceptions of the Company (Kline & Littlefield 200). However, this number consists of individuals who, if they are ignorant of this fact, they are loyal to the Company and they don’t believe that the Company is declining (Vijayakumar 22).

On familiarity of the oil leakage problem, just a small number of individuals did not know about the existence of such a disaster. A small number were aware of the tragedy but were not concerned about it. However, a considerable number was aware of the tragedy and were keen on the unfolding of events (Saikku 80).

This means that the disaster was a great but negative event. In addition to this, it means that the people are concerned with the ecosystem and as such, they are ready to follow up on the issue to see the culprit, that is the BP oil Company, faces the consequences. The smaller number not aware of the disaster means that there is a category of people who are not concerned with the ecosystem (Freudenburg et al. 56).

Generally, if the Company would like to see all these negativities go into oblivion and as well regain its lost customers, it is essential that it conducts sufficient research and establish the best ways possible to clean its image (Colten 70).

Recommendations

From the data analysis, it is worth noting that there are a number of specific strategies that the company can implement in the Louisiana region. However, the recent negative perceptions of the Company with regard to the oil spill disaster have proved to be a challenge to the Company (Kline & Littlefield 212).

The Company can effectively use this information to understand its customers’ perceptions of the organization and its product portfolio in the marketplace through initiating desirable recovery projects. For instance, it can use this information to publicly assume the responsibilities of water purification in the Louisiana swamp to make the ecosystem regain its original nature (Saikku 85).

In addition to this, the Company can resolve to conduct some more research on what the people prefer the Company do in order to clean its name. Moreover, the company should use the information to assess whether there is a necessity to change the brand name to avoid further tarnish and regain its competitive nature (Butlerb 55).

Further recommendation is that the Company should make use of the findings of this research to preach a message that, when considering undertaking the oil business operations, it is necessary that the industry regulatory authority sufficiently assesses the conditions of the mining area.

In addition to this, the regulation authority should assess the effectiveness of the mining capability of the Company in order to avoid another oil spillage disaster in the future (Scholastic, Inc 30).

Final Observations, Suggestions and Recommendations

It is advisable that the Company makes use of the findings of this research in an effort towards regaining its competitive power. In addition to this, the Company should largely concentrate on rebranding itself through ensuring that Louisiana swamp is re-established to its original nature (Butler 47).

Moreover, the Company should seek to conduct some more research on what the individuals, both the direct as well as the indirect stakeholders, prefer the Company to do in order to clean its name so that the negative perceptions are eliminated.

In addition to this, the company should use the information as well as the results of this research to assess whether there is indeed a necessity to change the brand name to avoid further tarnish and regain its competitive nature (Scholastic, Inc 32).

The Company can also liaise with other environmental bodies to further improve the region hit by the effects of oil spillage disaster.

For instance, with reference to the concerns raised owing to the oil spill, the Company can liaise with the education board to pass a message to potential investors in the oil industry that it is essential that a company pays keen attention to the environment, especially the area surrounding the oil mines (The National Commission 69).

Further recommendation is that the Company should make use of the findings of this research to preach a message that, when considering undertaking the oil business operations, it is necessary that the industry regulatory authority sufficiently assesses the conditions of the mining area.

In addition to this, the regulation authority should assess the effectiveness of the mining capability of the Company in order to avoid another oil spillage disaster in the future (Vijayakumar 32).

The Company should see its established long term Louisiana swamp conservation strategies as opportunities and as a corporate social responsibility rather than looking at is as an own imposed burden. With this said and done, the Company will indeed reestablish itself as a competitive force and regain a high market share just as it had enjoyed just before the disaster.

Works Cited

Butlerb, Anne. Louisiana Swamp Tours: The Definitive Guide, Gretna: Pelican Publishing, 2009. Print.

Colten, Charles. An unnatural metropolis: wresting New Orleans from nature. Louisiana State, Belmont: Cengage Learning, 2005. Print

Freudenburg, William, Robert Gramling, Davis Matt & Dennis Cohen. Blowout in the Gulf: The BP Oil Spill Disaster and the Future of Energy in America. London: Prentice Hall, 2006. Print

Kline, Benjamin & Rowman, Littlefield. First Along the River: A Brief History of the U.S. Environmental Movement, Mittenzwei: GRIN Verlag, 2009. Print.

Saikku, Mulla. Down by the riverside: the disappearing bottomland hardwood forest of southeastern North America, Belmont: Cengage Learning, 2006. Print

Scholastic, Inc. Oil Spill: Disaster, New York City: Scholastic Inc, 2010. Print

The National Commission. Deep Water: The Gulf Oil Disaster and the Future of Offshore Drilling, Oklahoma: Cengage Learning, 2011. Print

Vijayakumar, Honnungar. British Petroleum Oil Spill Crisis and Aftermath: Corporate Governance, Lanham: Rowman & Littlefield, 2011. Print.

Introduction

BP is an organization involved in oil and gas industry globally, its headquarters are in London, Britain. BP is one of the largest global companies and is involved in activities such as exploration, refining of crude oil, distributing, generating power and production of renewable energy among other roles.

The company operates in over 80 nations across the globe and manages more than 22,400 gas outlets globally (Cheremisinoff and Davletshin 443). The United States division is the largest outlet for BP and thus plays a huge role to the organization as far as revenue generation is concerned.

Current Business Problem

With the division in the US being the most important for the company, the Gulf of Mexico oil spill has had many negative effects to the company. The oil spill led to deaths of 11 people, loss of trust in the company, destruction of the surrounding ecosystem and a bad reputation for the organization (Farrell 43).

Tourism, marine life and the ecology were enormously affected in the coast by the oils spillage. BP has already spent over $3.12 billion on the spillage on actions such as containing the spillage, responding to the disaster, drilling the well, payment of grants to the states affected by the spillage, payment of claims and costs to the federal government (Cheremisinoff and Davletshin 443).

The spill was the largest oil disaster in the history of the industry in regards to off shore drilling in the United States. The problem is identifying the challenges the company is facing in the United States after the oil spillage and the impact of this event by applying ethical perspectives.

BP Competition

BP is a global company that faces huge competition from other organizations that deal with oil, gas, and petrochemicals. There exist huge competition within the industry as well as in other industries in regards to the supply of gas, fuel and meeting other needs of the energy sector, commerce, industrial, and for home use (Hitt et al. 50-54).

There is need by organizations to cut costs and management of BP to focus on efficiency and gaining support of the market. Some of the main competitors of BP include Total, ExxonMobil Corporation, Chevron Corporation, Schlumberger Limited, and ConocoPhillips among others (Hitt et al. 65). These companies are involved in the energy sector in the United States.

Population Sample

The sample population shall be 150 individuals from the areas affected by the Gulf of Mexico oil spill as well as staff of BP. The geographical area shall be mainly in the Louisiana Coast and shall include organizations and individuals in the region. To be eligible as a respondent, one must be a resident of the area.

Steps in the Research Process

The research shall involve the development of the survey, which includes the various stages that shall be applied in conducting the research. This will include use of questionnaires. The descriptive data analysis shall include the presenting of the results after the profile of each respondent has been analyzed and the information recorded.

The measurement scale analysis will evaluate the measurement scale analysis that shall be employed in the analysis of the information. The assessment section assesses the results after the analysis and is essential in determining the recommendations and developing a conclusion for the study. The recommendations and conclusion shall be necessary to the management in the future determination of BP’s path.

BP is one of the most outstanding oil and gas world companies. Despite the power and success of this company it is impossible to appeal to every representative of the world market that is why most popular companies focus on the target market or subsets of the overall markets. Identifying the target market is one of the most important methods to have a success at the world market.

It is necessary to know the customer in order to satisfy their demands. Different factors about target market such as population, interests, the level of life and the level of business activity should be taken into account. There are a lot of questions that should be put during identifying the target market:

• How large is your target market now? How large has it been? How large can it become in the near future?
• What are the geographical boundaries of your target market?
• How many people use your products? What do you know about these people?
• How sensitive is your target market to price changes?
• What are the trends in your market?
• How mature is your market (shrinking, growing, and stable)? (Griffin 33).

The target market of BP has been broadened from its foundation. The products of BP are sold in Europe, Africa, Asia, the North and South America and Australasia (Maharg-Bravo, Swann and Cox 39). The market is growing now and it will be broader in the near future. First of all, the company should focus on the potential customer itself.

It is necessary to know why these people are your customers and how they use your products. BP takes into account different groups of consumers and they seek to satisfy all their demands. For example, in October 2005 BP produced a new fuel including three separate products: BP Ultimate 102 Unleaded, BP Ultimate Unleaded and BP Ultimate Diesel satisfying the demands of different groups of consumers (BP in Business 78). Each consumer may choose the necessary fuel.

BP resorts to the use of primary and secondary researches firstly to find out what segments the market is divided into and secondly to assess the particular product requirements for each of them. The main aim of primary research is to find new information that has not been already researched. For example, BP asked their customers about their points of view about the new BP Ultimate range.

Questionnaires, personal interviews, postal surveys, telephone interviews, focus groups are used in primary researches to obtain the necessary information. Secondary research is based on the results that have been achieved in previous studies. For example, BP uses information about the predictions of customers’ future demands.

A proper sampling technique should be used in a good market research. It is impossible to ask every customer about his/her point of view and demands. That is why it is necessary to choose the representatives from different groups from the target market to take into account the changes of their demands.

‘Sampling’ is the process of deciding who takes part in the primary research namely whose point of view should be taken into account. There are a lot of ways to do it namely quota, random, cluster or stratifying sampling. Factually, primary research is used to define the target market namely its personality traits, interests and lifestyles.

BP target market is known as mainly medium-sized businessmen (Amanjeev 47). They are people who use their automobiles nearly every day and the quality of petroleum is very important for them.

It should be noted that there are successful businessmen who can afford themselves a high-priced gasoline and the beginners who do not spend a lot of money and have to save their money buying cheap gasoline. That is why there are different categories of fuel produced by BP catering for all these groups.

The main interest of the consumers is to have a qualitative fuel paying for it not a lot of money. There are a lot of cases when consumers complain to the fuel that spoils their transport. The quality is one of the basic aims for BP that is why this company has become popular among consumers appreciating it.

From the above said, we may conclude that identifying the target market which is made with the help of primary research with the use of different ways of questionnaires is very important at developing and broadening the popularity of the company.

BP has a success as far as it has always focused on the demands of its consumers and done all their best to satisfy these demands from its foundation. The interests of consumers are at the top of BP’s basic aims. The quality is very important to a consumer that is why ‘what’ BP does is as important as ‘how’ they do it (Research and Markets 34).

It should be noted that BP Company is developing now and more and more consumers use their products that makes this company take into account the demands of different groups of their consumers. Target market is a potential client influencing the success of the company.

Marketing Research

In the designing of this study, 19 to 40 year olds will be the sample upon which an approximate 300 will be interviewed or supplied with questionnaires. The purpose of choosing this age bracket is to obtain as many BP users as possible and to make sure that they are informed about the company’s operations as well as problems that have been surrounding the company.

For one to qualify as a participant, the audience will be asked to produce their licenses or recite their license numbers. This will not be indicated in any phase of the study to observe ethics of the study. The purpose of the study is to establish the marketing characteristics of BP through the observation of users’ experience.

The objective of the study will be to investigate the business strategies of BP under their operational model and to compare the current model with the previous. The study is dedicated to any subject interested in venturing into business (shareholders mostly) with BP.

Choosing the Audience

The audience of the study is focused only to grownups with licenses and with experience in the using of BP products. The reasons that youths and unlicensed persons are not included in this study or are not considered the right audience is due to their status, both financially and take on responsibilities.

Users of products are the best target groups when reviewing or investigating on the producers of a product (Benoit 37). In this case, it will give them an insight of the company they secure products and services. Considering the use of BP’s products, licensed people who drive regularly and with active schedules are intended to be the audience of this study.

This is because they connect with the services of the company as well as its products. “On the other hand, investors make a better audience because they take interest in finding out the operational models of the company they invest in as well as its strategic solution to some present problems or plans – reason to cover both groups” (Silverstein & Neil 124)

Audience Analysis

The audience intended for this study is divided into segments that exist in three categories. The first category that represents the first segment is heavy-duty industry investors. Secondly, large scale farmers or farming organizations. Lastly are the normal home-to-work drivers who drive on a daily basis.

If the categories can be classified according to their characteristics, heavy-duty industries would geographically be classified to exist between rural and urban (more of setting than topography). Large-scale farmers are found within up country settings and are likely to represent the customer group that provides market for BP’s products and services.

The heavy industry investors are likely to be business partners as well as potential customers. Lastly, the driving audience makes up the regular customer base therefore legible for information on strategic changes within the company (Liuzzo 76).

Audience Perception on Company Brands

British Petroleum is a company that trades brands like Castrol, Aral, ARCO, and the Wild Bean Café. Some of these brands are much popular than others concerning the nature and segment of the audience using them. For example, Castrol is popular for both large-scale farmers and daily office-to-home drivers. These audience segments claim that the Castrol engine and brake oil is much reliable than many other rival brands.

To top it all, this brand trades fairly as compared to alternatives brought to the market by competitors. The Wild Bean Café is a brand that audiences from all sectors tend to celebrate except for the heavy-duty sector that has limited access to the premises (Myers 578). The perception of this audience on the Wild Bean Café is that it delivers quality services (authenticity of the claim cannot be verified) but is limited to gas stations.

This audience feels that the marketing strategy of this BP’s brand can lure a bigger market share if diversification strategy was included in BP’s strategy. The importance of diversification, in terms of rolling more joints is to increase the market share and limit operational costs through joint venture (Kotler 98).

Dislikes and Likes

By accessing the audience segments through their perceptions on BP brands, it is clear that they do not have issues with the marketing strategies of promotions, pricing, place of marketing, and the product.

However, on the aspect of diminishing reputation brought about by the Gulf of Mexico Oil spill, a considerable percentage of the audience dislikes the way the company handled the issue and the implications the spill had on the environment.

Ethical concerns

The difference between an audience and a study participant is that the former is intended for listening and giving feedback on a researched topic while the latter provides the necessary information needed to complete the research. In this case, ethical concerns are legible for either group.

The research should observe the participants’ anonymity and privacy. Classified information should be kept from audience because exposure of vital details can comprise the company’s reputation, competitive advantage, and maximization of profits (Liuzzo 187).

Results

Being one of the biggest petroleum and oil companies and corporations, BP has been thinking of international activities in more than 75 countries with over $250 billion incomes, and hundreds of employees and workforce. BP focuses on oil in addition to gasoline discovery and processing, petrochemical products distribution, and the production and promotion of various oil products. Currently, BP owns six popular brands in the international scenes that comprise among others Castrol and ARCO (Benoit 233).

Due to the quick changes in the external marketplace, British Petroleum has considered itself as an international, contemporary, hi-technology, autonomous and learning organization which has to learn to be sensitive and flexible (Kotler 33).

The top management is aware that to be capable of maintaining the competitiveness, the management needs to depend on its technical competences, economic in addition to organizational skills because petroleum may be discovered in more demanding global zones and even will be substituted through other energy sources such as hydrogen and solar.

From the management perspective, the company has been capable of using strategic management as a way of adapting to change. In determining the opportunity that its competitors may not think, British Petroleum must develop operational skills all through the companies and business, therefore, learn better and take advantage faster compared to their competitors (Liuzzo 45).

Part of the enterprise framework of British Petroleum is its well-organized access of the international marketplace that makes the company to have full business abroad. Apart from this, the oil sector is capable of seeking progress in its marketing approach and attempts to present creative and greatly beneficial petrochemical products for the desired market segment.

The audience intended for this study was divided into segments that exist in three categories. The first category that represents the first segment was heavy-duty industry investors. Secondly, large scale farmers or farming organizations. Lastly were the normal home-to-work drivers who drive on a daily basis.

If the categories can be classified according to their characteristics, heavy-duty industries would geographically be classified to exist between rural and urban. Large-scale farmers are found within up country settings and represented the customer group that provides market for BP’s products and services.

The heavy industry investors included business partners as well as potential customers. Lastly, the driving audience makes up the regular customer base therefore legible for information on strategic changes within the company.

The sample population included 150 individuals from the areas affected by the Gulf of Mexico oil spill as well as staff of BP. The geographical area was mainly in the Louisiana Coast and included organizations and individuals in the region. To be eligible as a respondent, one had to be a resident of the area.

Data Collection and Analysis

Following the explosion and subsequent fires on an oil field located at the Gulf of Mexico, the field approximately 40 km of the coastline of Louisiana, started leaking petroleum. This market study focuses on assessing the effect of the petroleum tragedy on observations of and concern regarding BP oil products.

Data was collected utilizing an electronic survey. The research involved the development of the survey, which includes the various stages that needed to be applied in conducting the research. This includes use of questionnaires.

The descriptive data analysis included the presenting of the results after the profile of each respondent has been analyzed and the information recorded. The measurement scale analysis evaluated the measurement scale analysis that was employed in the analysis of the information.

The assessment section assesses the results after the analysis and is essential in determining the recommendations and developing a conclusion for the study. The recommendations and conclusion will be necessary to the management in determining BP’s future direction.

Survey Results

Impact of oil leakage on BP oil company products

Before the oil leakage, roughly 6% of the participants had no plans of buying BP products. Approximately 23% of those participants said they had delayed, rescheduled, or stopped buying BP oil products. Another 12% said that due to the oil leakage they no longer have plans of buying BP products. Fortunately, majority of those who responded agreed that they still have plans of buying oil products from BP Company (see figure 1).

Likelihood of buying BP oil products compared to competitor products

Out of the 150 participants, 40% are likely to buy BP oil products and another 17% are likely to purchase Total Oil products. There is likelihood that 14% of the 150 participants would buy ExxonMobil Oil products.

Also 18% of the respondents were willing to buy from Chevron Company. Only 6% of these respondents were likely to purchase their oil products from Schlumberger while another 5% were likely to purchase from ConocoPhillips.

Effect of messaging on intention of buying BP oil products

Regarding effect of messaging on intention of buying BP oil products, 28% of the respondents said that they would be more likely to purchase BP products if Louisiana swamp was not closed due to the oil leakage, another 27% if Louisiana animals were uncontaminated with oil, 25% if Louisiana wildlife could be viewed as they were prior to the oil leakage, and the remaining 20% would buy BP products if the Louisiana coastline was uncontaminated with petrochemical products.

Perception regarding oil leakage and BP products

Regarding perceptions on BP products based on the oil leakage as illustrated in figure 4, most of the respondents believed that the oil leakage had a negative influence on the perception of BP oil products.

Approximately 20% of the respondents were unsure whether the oil leakage had affected BP products negatively. The remaining 15.5% did not believe whether the oil leakage could have negatively impacted BP oil products.

Familiarity with oil leakage problem

Of the respondents, approximately 1.3% was unfamiliar with the oil leakage tragedy while roughly 11.5 were familiar but had not followed the tragedy. Another 50% were familiar and had tried following the tragedy to some extent and the remaining approximately 37.3% were familiar and had tried following the tragedy closely.

Findings

Before the oil leakage, roughly 26% of the participants argue that they still had intentions of buying BP products. More than one quarter (27.1%) of the participants has either delayed or temporary stopped purchasing BP products. The reduction of purchasing willingness (approximately 27%) means that rather than 22.2% of the participants having intentions of purchasing BP products, just 16.5% have intentions.

Also among participants who claimed that they had no intentions of buying BP products, roughly 26% admitted that they would be willing to purchase BP products if the oil leakage did not contaminate the waters.

Limitations

Generally the research will be limited by time. The study would be conducted within a short period of time and this would adversely influence the results and findings of the research. Also the fact that the survey was administered electronically may affect the respondent’s responses which in turn influence outcomes of the study.

Works Cited

Amanjeev 2010. BP – Target audience Description. Web.

Benoit, William. Image Repair Discourse and Crisis Communication. New York: Public Relations Review, 1997. Print.

BP in Business. Case Study 4: Marketing 2011. Web.

Cheremisinoff, Nicholas and Anton Davletshin. Emergency response management of offshore oil spills: guidelines for emergency responders. Salem, MA Hoboken, NJ: Scrivener Wiley, 2011. Print.

Farrell, Courtney. The Gulf of Mexico oil spill. Edina, Minn: ABDO Pub, 2011. Print.

Griffin, Michael 2006. A Guide to Preparing a winning Business Plan. Web.

Hitt, Michael et al. Strategic Management: competitiveness & globalization. Mason, OH: South-Western Cengage Learning, 2012. Print.

Kotler, Philip. Principles of Marketing 2^nd ed. London: Prentice Hall, 1999. Print.

Liuzzo, Anthony. Essentials of Business Law, 7^thed. New York: The McGraw-Hill Companies, 2010. Print.

Maharg-Bravo, Fiona, Christopher Swann and Rob Cox 2011. BP Fast Becoming a Takeover Target. Web.

Myers, Stewart. The Capital Structure Puzzle. Journal of Finance, 39 (1984). Print.

Research and Markets: British Petroleum Plc – An In-Depth Business, Strategic and Financial Analysis of British Petroleum Plc 2009. Web.

Silverstein, Michael, & Neil Fiske. Luxury for the Masses. New York: Harvard Business Review, 2003. Print.

Introduction

The Gulf of Mexico crisis involved an underwater oil spill which was caused by a continuous leak of crude oil from a well in the oil flow system. The spill was a result of an explosion that occurred during a drilling mission of an exploratory well. A large amount of oil was then discovered in water hours later. The American government blamed the disaster on BP, the oil company that leased the drilling company.

This paper seeks to discuss the moves that have since been taken by BP in reaction to the oil spill. The paper will look at the steps that the oil company took in stopping the spill, controlling the spread of the spilled oil as well as the company’s reaction towards the victims of the oil spill.

BP’s Reaction to Stop the Oil Spill

BP employed a variety of measures to stop the oil spill that was widely and heavily criticized as an environmental hazard. One of the company’s initial reactions to stop the spill was the “junk shot method”. In the junk shot method, attempts were made to stop the leak by putting weight on the leaking spot.

In this process, substances like plastics and ropes were to be used to block the flow by covering the point of the spill. The thought was that the covering would counter the pressure and diminish the oil spill. The move was however unsuccessful (Hagerty 1). The next attempt was known as the “top kill”.

The top kill was intended to bring a solid cover to the point of spill by putting a layer of mad cover followed by a cemented layer. This move also failed to stop the oil flow which was spreading into the waters and endangering the inhabitants.

Another effort was then made by trying to siphon the oil from the underground spillage point directly to the earth’s surface by use of pipes from where it could be transported. This also failed the test due mechanical technicalities as the pipes could not efficiently fit into the undersea system (Flower 1).

According to information by British government, the first attempt by BP to stop the spill involved drilling another tunnel that would intersect the original tunnel as mud and cement were being used to clog the point of spill.

The pipes that were being used however became clogged with hydrate gas leading to the abandonment of the method. The move on 31^st may of 2011 that saw a connection from the leak to the surface, a process that aided the initial top kill initiative. With the reduced pressure, the leak was then sealed by a replacement of the cap from where the spill was experienced (Great Britain 51).

Reactions to Stop the Spread of the Spilled Oil

BP in collaboration with the American authorities undertook steps to control the spread of the spilled oil. As measures to do this, “ram capping stack” was closed in an attempt shut down the well and prevent further leaks. This was a move to reduce the presence of oil in the water and to control its spread.

There were also moves to collect spilled oil from the sea surface. This was aimed at removing oil from the water surface to prevent its spread to the shores which was considered an increased environmental disaster (BP 1).

BP’s reaction towards victims of the oil spill

The oil spill had a verity of direct and indirect effects on people and companies. There were individual survivors and relatives of victims of the initial blast into the spill as well as the spill that spread to the shores. The BP’s compensation was described as a pay to “legitimate claims”. This meant the compensation were limited to some categories of entities (Clark 1).

BP accepted liability to the gulf crisis and as result agreed to make compensation to the victims of the gulf oil spill with specifications. In an initial and formal agreement that was announced by the United States government, BP had committed itself to a $ 20 billion compensation deal. This was a move to restore the damages caused to the affected parties.

Both individuals and business entities were victims of the spill in a variety of ways. The company’s reaction towards the victims could also be seen to include the cleanup process (Hargety 13).

The compensations were however not on general grounds of availability at the sites affected by the spill, but depended on proof of heavy financial losses caused by physical contact with the spill. This means that the company’s response was not sufficiently extended to all victims of the spill, but was a minimal unavoidable compensation to major losses (Eley 1).

Conclusion

The oil spill in the Gulf of Mexico was a result of an explosion that occurred during a renovation process. The company that was carrying out the renovation process was under lease to the BP Company and as a result forced the oil company to take liability of the oil spill. The reaction of BP to the crisis included moves to counteract the consequences of the spill.

The moves included: steps to stop the spill, like sealing the source of the leak; moves to stop the spread of the oil on the water surface and reactions to claims of compensation to the victims. There was however notable inefficiencies in the reactions by BP since all the three levels of reaction faced major challenges.

Works Cited

BP. Update on Gulf of Mexico Oil Spill. 2011. Web.

Clark, Andrew. BP hit by avalanche of compensation claims over US oil spill. Guardian, 2011. Web.

Eley, Tom. BP “claims czar”: No compensation for most victims of oil spill. WSWS, 2011. Web.

Flower, Merlin. Nuking the oil spill: nuclear option being considered? Oil Price, 2010. Web.

Great Britain. Uk Deep water Drilling: Implications of the Gulf of Mexico Oil Spill. London, UK: The Stationery Office, 2011. Print.

Hagerty Curry. Deep water Horizon Oil Spill: Selected Issues for Congress. New York, NY: DIANE Publishing, 2010. Print.

Introduction

Most organizations follow similar set of rudiments when approaching management; hence, BP is of no exception. The core rudiments of management principles are; leading, organizing, planning and controlling. BP management, overtime, has continuously embraced planning, as one function of management in its core business activities. To understand the management planning better, this presentation illustrates how BP utilizes the management planning functions to gain competitive advantage.

BP Oil Company

BP is one of the largest oil suppliers in the world. The company had been enjoying steady operations until 2010, when it experienced the worst loss due to the oil spill that occurred in the Gulf of Mexico. It is reported that around 174 million gallons spilled over an area of 25, 000 square miles (Amadeo, 2010). The sustained loss has adversely affected the company’s performance since over $ 6 billion was immediately allocated to clean the spill while the whole process was estimated to be around $ 40 billion (Hayward, 2010).

Planning Functions, as it Relates to Goals and Strategies at BP

BP has embraced the planning concepts of management. First, the Company has utilized its time and resources to gather information relevant to planning through the situational analysis. Situational analysis, is a system that managers embrace with resources and time, to collect, evaluate and summarize pertinent information relating to planning issue under investigation (Bateman & Snell, 2011).

Although BP faces a stiff competition from other global oil distributors such as, Chevron, Corp, Exxon Mobil Corporation, Total SA, Conoco Phillips among, and Oil Libya among others, situational analysis has enabled it to have first- hand knowledge (Gardner, 2010). The situation analysis has enabled it to gather vital information to boost its strategic planning process.

The short-term strategy is a growth oriented, and it constitutes increasing energy mix that integrates all available sources, i.e. wind, oil and solar. The strategy also seeks to enhance the company’s efficiency in order to reduce an emission and, therefore, curb environmental pollution (Hayward, 2010).

The organization has a strategy to increase its portfolio balance, which currently stands at 60 per cent oil and 40 per cent gas. Long-term strategy aims at strengthening the organization expansion both in geographical and geographical frontiers (Hayward, 2010).

BP has continuously evaluated its plans to ensure it meets the organization’s strategy. This has been through establishing strategic planning benchmarks. Hence, over the last few years, BP has recorded improved performance both in profitability and in volume of business participation through effective planning strategy.

The strategy improvement has been credited to quality management planning and the ever-increasing demand for the petroleum products. Selecting a plan in line with organizational objectives is indispensable for prompt organization management. BP has different strategic plans about its marketing; however, to ensure the right strategy was in place, it assessed various strategies employed by its competitors.

After situational analysis, it streamlined its marketing department by designating five principles. The principles were in charge of; increasing safety performance among its products across the world, and improving on portfolio quality. The marketing team also endeavors to augment margin share growth and secure net investment are greater than depreciation level.

Corporate Social Responsibility, Legal and Ethical Issues affecting Management Planning at BP

Corporate Social Responsibility

BP has faced numerous critics from the society hence distorting its corporate social responsibility. This has affected the management of the organization. The fundamental issue has revolved around the environment and climate change. The issue of Oil spill in the Gulf of Mexico, which happened in 2010, created an environmental and economic issue such; water pollution, damage to aquatic life, breakdown of businesses among other problems.

It is reported that around 174 million gallons spilled over an area of 25, 000 square miles (Amadeo, 2010). The BP recognizes the importance of environmental and social challenges facing the present world. Hence, the management has played a decisive role in resolving challenges connected with sustainable development through its planning strategy.

The organization also sees that, while the firm can be a solution to environmental problem, it should not be a solution to the whole problem. The civil society, governments and other companies must create a collaborative working plan. Moreover, the company management has a plan policy statement, which commits it to critical and far-ranging business ethics.

The firms plan seeks to point out how it is meeting its commitment to a process that supports the growth and profitability of the organization. Thus, the predominant management plan includes; improving personal safety and continuous improvement on environmental impact through a sequence of actions (Bateman & Snell, 2011).

Ethical Issues

Ethical issues have revolved around the wildlife and the environment, because of the 2010 oil spill in the Gulf of Mexico. The magnitude of the damage has been felt in the ecosystem and the wildlife. This predicts future damage. However, the BP has outlined various plans to avert this issue. The plan includes; adhering to environmental ethics, abiding to laws of the land and having a contingency plan in place.

Legal Issues

BP has faced legal challenges with various governments. For example, in the US, BP oil spill brought a terrible brand to the environment and economic activities of the Gulf region. Weiss (2010) asserts that, the compensation evaluation in physical damages in contrast to actual claims is estimated $20-50 billion.

This is believed as one of the grant judgments ever made to the one in which more than $5 billion was awarded to plaintiff of Alaska oil spill in American history (Weiss, 2010). However, BP in recent reports has shown plans of waiving $75 million on environmental harm and to foot costs in any weight they may occur.

The management realizes the necessity of having an elaborate legal framework plan in place. The firm has lived to respect the law relating to the environment, wildlife and property. In addition, the firm is working with the government and the civil society to ensure environmental system is not altered. Additionally, a compensation fund has been set aside for emergencies.

Factors that influence BP’s; Strategic, Tactical, Operational and Contingency Planning

Economic Factors

Undoubtedly, every firm is manipulated by the political environment in which it operates (Bateman & Snell, 2011). Despite BP being a world leader in petroleum products, the firm has faced a devastating economic financial crisis.

As a business cycle, condenses economic agility, the BP has not been spared as it has received reduced sales and sustained substantial losses; this has been a result of legal issues because of BP Oil in the Gulf, dwindling oil prices, inflation and changes in the foreign exchange rates. This in turn, has affected rapid implementation of; BP strategic, tactical, operational and contingency plans.

Environmental Factors

Another factor, which has hindered appropriate implementation of the aforementioned plans at BP, is the environmental factors. Each firm’s operations are governed by the environmental factors, and the law set by the government. BP being a producing firm is exposed to excessive taxation to compensate for heavy pollutants it emits (Amadeo, 2010).

Apart from the local environmental issues, the firm has to comply with global environmental factors pertaining to environmental preservation and protection such as the Kyoto Protocol. The Corporation’s renewable fuels sub-sector has been adversely affected by the environmental issues; rendering to its reduced output. Failure of any firm to comply with the set environmental law may force the government to issue operation prohibition accompanied by substantial fines.

Legal factors

According to Bateman & Snell (2011), Inclination to profit maximization principle may lead a company to violate the workers right and the rule of law.

To preserve and govern the firms’ operation’s governments set the minimum wage limits, under-age employment policy, working time and the general laws to regulate firms (Gardner, 2010). The BP can only operate in whatever it is mandated to do. Failure to comply, the company is likely to attract government restrictions. Hence, this has restricted apt implementation of the aforementioned plans.

Conclusion

Management planning is critical for modern businesses, Apart from increasing efficiency; management planning has helped BP to leverage its strategic functions. BP, in determining planning strategy, it has embraced situational analysis in gathering pertinent information vital for planning, continual evaluation of existing and plans of competitors and control among other planning strategies to ensure the right plan meets the firms strategic needs.

Moreover, the corporate social responsibility, ethical business operations and legal have affected its business operations. The issues cited relate to the environment and wildlife because of Oil spill at the Gulf of Mexico. Further, the economic, legal and environmental factors have hindered its vision of formulating strategic, tactical, operations and contingency plans.

References List

Amadeo, K. (2010). Gulf Oil Spill.US Economy.Retrieved from https://www.thebalance.com/bp-gulf-oil-spill-facts-economic-impact-3306212

Bateman, T.S., and Snell, S.A., (2011), Management: Leading and Collaborating in a competitive World. New York: MacGraw-Hill Irwin.

Gardner, D. (2010). Bp Market Plunge Wipes Billions Off UK Pension Funds as Shares In Oil Giant Suffer Fresh Falls. Retrieved from https://www.dailymail.co.uk/news/article-1282870/BP-shares-plunge-15-oil-giant-admits-oil-spill-August.html#ixzz1IqpQPk00

Hayward, T. (2010). BP 2010;Strategy Presentation. New York, NY: BP Corp.

Aspects of BP’s ethical culture that contributed to the Gulf Coast oil spill disaster

There are some ethical and cultural aspects with BP which could contribute to the Gulf Coast oil spill. BP used to pay fines as a result of operating against rules and regulations of handling petroleum products in several countries. The company used drilling designs that were cheaper and easier to implement. The top management of the multinational company did not adopt internationally accepted measures for detecting and preventing oil spills. These aspects could have greatly contributed to the Gulf Coast oil spill. Business ethics requires that businesses adopt recommended measures to prevent disasters that could destroy human and animal lives. If a business has a culture of observing the ethics of conducting its business operations, then it has minimal chances of causing disasters due to faulty operations (Ferrell et al., 2013).

Purposeful avoidance of risk management

BP did not engage in purposeful avoidance of risks associated with oil spills. Although BP had encountered many oil spills, it did not implement measures that could prevent the occurrence of the Gulf Coast oil spill. It was reported that BP did not use a control shut-off switch which could have prevented the oil spill. BP was also accused of negligence because leakage was noticed a few weeks before the Gulf Coast oil spill, but no action was taken. It was asserted that BP was using inadequate disaster management systems (Ferrell et al., 2013).

Future actions to rebuild the reputation and manage the risks associated with offshore drilling activities

For BP to avoid risks associated with drilling in the future, it should adopt risk detecting systems within its drilling locations. The systems should be well maintained and monitored. BP should change its culture of negligence, and this will ensure that it would act to minimize the events that could result in loss of lives and property in advance. In conclusion, BP should follow the law to ensure that it conducts legal operations across the world. This would go a long way in ensuring that it does not pay fines as a result of illegal practices.

Reference

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases. (9^th ed.). Stamford, CT: Cengage Learning.

The Key Strategy and Operational Issues

BP’s key strategy during the oil spill was to repair the company’s image through a compensation fund and ecological damage mitigation. In the aftermath of the accident, investigations revealed wide-ranging operational issues that precipitated the disaster. BP mainly focused on timelines and cost considerations in making decisions at the expense of safety. The staff opted for the “long string casing” for the well, a choice that was not foolproof (Harlow, Brantley & Harlow 2011, p. 81).

The other operational issues apparent in this case included the use of fewer centralisers in the shaft, cancellation of the “cement bond log” to cut costs and time lags, lack of synergy among stakeholders, and wilful disabling of warning devices (Harlow, Brantley & Harlow 2011, p. 81). The flawed operational decisions compromised the safety of the rig and affected BP’s image of commitment to environmental protection.

BP’s Strategy before the Accident Occurred

Prior to the accident, BP pursued a differentiation strategy built on an image of an environmentally committed firm. As Dudley explains, BP adopted the ‘beyond petroleum’ slogan and invested $8 million in solar projects to build a unique image in the oil industry (Barrett 2013). As a big firm, BP had the requisite resources to handle potential industrial accidents. Porter’s five forces analysis reveals that suppliers, competitors, and buyers shaped its strategy. BP’s suppliers included the government, Hyundai (equipment provider), and Transocean (drilling rig) (Harlow, Brantley & Harlow 2011). These suppliers offer inimitable products to BP, which raises the switching costs.

BP receives intense rivalry from other firms, e.g., Shell. Therefore, price competition is high because the products sold are comparable. Buyer power is significant in the oil industry because buyers are not many. Moreover, they can switch between oil firms. Therefore, BP’s environmental strategy prior to the accident was intended to differentiate the company from rivals selling nearly identical products.

Implications of BP’s Post-accident Strategy in terms of Public Perception

BP’s post-crisis management strategy sought to repair its perception in the eyes of the media, investors, citizens, and environmentalists. Public pressure forced BP to set up a “$20bn repair fund” to compensate those affected. Furthermore, Dudley reveals that BP had to divest up to $40bn of its assets in other locations after the accident. Thus, the public perception had a significant impact on BP’s performance.

The firm employed diverse approaches to repair its reputation. The strategies included media campaigns featuring apologetic ads by its CEO, print adverts in leading local newspapers, and social media campaigns to inform the public about the cleanup progress. The CEO also held talks with investors in the Middle East to restore their confidence in BP and avoid the possibility of a takeover (Harlow, Brantley & Harlow 2011). Other additional strategies employed to repair BP’s reputation included launching a $20bn claims kitty and a $52m grant to support outreach health interventions.

BP’s Ability to Balance between its Interests and Wider Needs and Expectations

BP adopted restoration strategies in the wake of mounting public criticism to protect its interests and meet wider needs. Specifically, the firm focused on two strategies, rectifying the problem and paying compensation to the affected people (Harlow, Brantley & Harlow 2011). In this way, BP could redeem its reputation and satisfy public needs and expectations without shifting the responsibility to its partner, Transocean.

In this regard, BP’s CSR record served as an insurance policy during this accident (Harlow, Brantley & Harlow 2011). Furthermore, its established image as an environmentally committed firm compounded the stakeholder’s expectations after the accident.

Besides brand equity and assets (internal resources), BP relied on its external strategic alliances with multiple stakeholders to satisfy competing interests. The environmentalists, government, victims, media, and investors had an interest in this matter. BP set up a settlement scheme supervised by Ken Feinberg, a health care grant, a public relations campaign, and crisis talks with the Middle East investors. BP could incorporate the lessons learned from this disaster into its future decisions through the establishment of a contingency plan to ensure staff safety and stakeholder collaboration to restore trust.

References

Barrett, P 2013, BP’s Robert Dudley on the Gulf Oil Spill’s Legal Aftermath. Web.

Harlow, W, Brantley, B & Harlow, R 2011, ‘BP Initial Image Repair Strategies after the Deepwater Horizon Spill’, Public Relations Review, vol. 37, no. 1, pp. 80-83.

The world of exploration work on earth is still the base for demonstrating superiority with regard to other countries or companies. British Petroleum is one of such global companies aiming to explore and refine crude oil and gas. There are several questions as to the strategy of this giant providing its services all around the world and building self-motivated staff to produce rival products.

In accordance with the Annual report of BP, the company succeeded mainly in the sphere of cost leadership and following management principles within the employees providing them with a safe and competitive work. “The BP operating management system (OMS) turns the principle of safe and reliable operations into reality by governing how every BP project, site, operation and facility is managed.” (Annual Review 2008 8)

The other done priority was the good demand of the exploration and refining projects as Thunder Horse in the Gulf of Mexico and Deepwater Gunashli in Azerbaijan. As there was a vast output of company’s main competitors, BP still pretends to be a leader in managing late fields of oil and gas as well as in startup of new ones. The year was also rich in exploration works in Algeria, Angola, Egypt and the Gulf of Mexico. The company improved its capability in refining process accordingly to the annual hypothesis from 86 to 89 percent. The main reasons for such success are safety, reliability and capability of the operations which BP implements. It keeps resolving several agreements with international oil companies providing the policy of obtaining new experience and high-level quality of its managerial background.

With oil prices going up and down, the company looks to be flexible in ensuring its competitive status and role in world economy. There are too many reasons for these and today’s crisis still pretends to be of a great significance. World markets are crashing, foreign debts of different countries are growing up faster than this or that country can payback. The consumption of energy resources is still high and until the year 2030 will exceed expectations. Such impulses provoke BP to enlarge and widely spread the area of its interests and the volumes of the oil production too. For this issue is strategic and global in terms of the limitation of extractable resources, BP is sure to provide around 40 years of oil, 60 years of natural gas and 130 years of coal. Great perspectives for further years, using previous experience of exploring and refining concepts of this industry. For this purpose the company planned to invest more than $26 trillion to meet the requirements of the consuming countries.

The price volatility from $144.22 to $36.55 and its slow correction on the level of $55 disintegrated company’s policy of gaining more profit into exploration works around the world. Still, it caused greater emission of the crude product widely among the oil exporters organizations. Because of the oil and gas share between the major producers, the company is flustered by the political instability in key producing regions. It tends to cope with new agreements in this sphere.

As it was mentioned before, capability of suchlike companies is the accelerator of their readiness to meet the challenge of new demands and circumstances within competitors. That is why, during 100 years history of the company and especially last 5 years it makes great efforts to invest more in the field of research and educational background, training and attracting many of the energy experts and professionals in this sphere.

As the international company with wide range of structures, BP’s main steps and factors to be the first are three, namely: safety, people and performance. These objectives are strictly carried out to achieve better results of work annually:

Our present and future are dependent on our people and technology. We intend to invest to build capability in our business, ensuring we have the talent and experience required to meet all our objectives. We also intend to invest in technology to support the delivery of competitive business performance and new business development. (Annual Review 2008 10)

In objective reality BP inspects, provides and invests billions of dollars to perform the highest standards of refining and exploring oil and gas materials giving special emphasis on the work conditions of those who help to produce them, I mean the employees. It is the result of interaction of company’s investors, shareholders, governmental representatives and workers, the symbiosis of whom makes it strong and vital for the economies of various countries of the world.

BP progressed among others companies in number of countries and employees involved in the work process of exploration and refining of gas and oil. At the moment, the company still finds new areas rich in hydrocarbons. Direct commands and cohesion of all its branches help to maintain the whole process of producing oil and gas materials from the finding out of new basins to providing customers with a released product.

The company is focused on reaching its objectives due to the strategy which, as it was said, simply outflow into major principles, among which are: safety culture and financial performance. The growing challenge of responsibility and reliability under the conditions of huge risks in the markets is undoubtedly considered by the board of directors.

Works Cited

Annual Review, BP, 2008.

Ellig, Jerry, and Joseph P. Kalt, eds. New Horizons in Natural Gas Deregulation. Westport, CT: Praeger, 1996.

Ford, Neil. “Asian Companies Target Africa’s Oil and Gas: The Most Noticeable Trend in the African Oil and Gas Sector over the Past Year Has Been the Increase in Investment by Asian Companies. Neil Ford Reports on the Asian Oil Rush in Africa.” New African. 2006.

Friedman, Brian L. “Productivity in Crude Oil and Natural Gas Production.” Monthly Labor Review 115.3 (1992).

Herbert, John H. Clean Cheap Heat: The Development of Residential Markets for Natural Gas in the United States. New York: Praeger Publishers, 1992.

Kramer, Bruce M., and Owen L. Anderson. “The Rule of Capture – an Oil and Gas Perspective.” Environmental Law 35.4 (2005).

Lee, Stephen. “Independent Record Companies and Conflicting Models of Industrial Practice.” Journal of Media Economics 8.4 (1995): 47-61. Questia. 2009.

Netschert, Bruce C. The Future Supply of Oil and Gas: A Study of the Availability of Crude Oil, Natural Gas, and Natural Gas Liquids in the United States in the Period through 1975. Baltimore, MD: Johns Hopkins Press, 1958.

Pariser, David G., and Pierre L. Titard. “Impairment of Oil and Gas Properties; Is a Ceiling Test Needed for Successful Efforts Companies?.” Journal of Accountancy 172.6 (1991).

Waring, Geoff. “The Essence of Corporate Strategy.” Australian Journal of Management 23.2 (1998): 237.

Human dignity is one of the Catholic’s social teaching principles. BP applies this social teaching principle in the course of its operations. According to the stance assumed by the Catholic faith, human life has been put under risk and consequently jeopardized by the rapid decline in respect and value attached to materialism (‘Catholic Bishops’ par. 3). In other words, the world seems to value materialism more than the dignity and essence of human life. The Catholic Church strongly believes that the moral vision of society is strongly embedded in the dignity of individuals bearing in mind that human life is sacred (Kaczor par. 4). Hence, human dignity should always be given the first priority before pursuing other life purposes. In addition, a human being has some great degree of inherent dignity that should not be overridden by the deteriorating morals or value for materialism. The Catholic faith also asserts that the foundation of all its social teachings is strongly rooted in human dignity.

BP is a global company that deals with both oil and gas. It is among the pace setters and market leaders in the oil industry. As already mentioned, the company practices the catholic social teaching principle of human dignity in its daily operations. As it stands now, the number of employees working for the company stands at about 90,000 across the globe.

Human rights policy is clearly embedded as one of the operating principles of his oil marketing company. The company aims to elevate the importance of dignity, respect, and fairness to all of its stakeholders including employees. A statement at the company’s website emphasizes that there is a code for human rights policy that directs its conduct on how to handle people working at the facility. Everybody who relate with BP in one way or another should also be treated with utmost fairness and respect at all times (‘Human Rights Policy’ par. 5).

It is also crucial to mention that every officer and employee working at BP is fully covered by the policy. Besides, joint ventures and entities that are fully owned by BP are taken care of by the code of conduct related to human dignity. This implies that the level of participation of the company should be in tandem with the code of conduct for human dignity. From the human rights policy adopted by BP, a number of key commitments can be pointed out.

To begin with, the company abides by all the legal requirements in the course of its operations in order to safeguard the rights and dignity of its employees and other people attached the company. Second, human rights codes that have been recognized internationally are respected by the company. Hence, the laws put forward by the International Labor Organization and the International Bill of Human Rights are fully adhered to by the BP oil company. The company also agrees that it has the core responsibility to dignify human rights according to the provisions of the UN Guiding Principles on Business and Human Rights. Fairness and indiscriminate treatment of all individuals who work for the company is a regular practice valued by BP Oil Company. The company is also keen to make contractual commitments with all of its stakeholders so that it does not lose track in its dedication to respect human dignity at workplace.

Works Cited

Catholic Bishops. 2014. Web.

Human Rights Policy. 2014. Web.

Kaczor, Christopher. Seven Principles of Catholic Social Teaching. 2014. Web.

Abstract

BP is a multinational company with an interest in sustainable energy production. Its main components include gas, petroleum, and lately wind. The company explores, refines, and retails all its products. It has various branches all over the world and is a major employment provider. BP has the purpose of improving efficiency in the energy sector and meeting the world’s energy needs. In April 2010, one of their contractors, Transocean, the rig had two explosions in the Gulf of Mexico. Transocean is the world’s greatest offshore drilling contractor (Beckcom, 2010). This resulted in a spillage in the ocean causing death to marine life and affecting Far East beaches. Thereafter there emerged a blame game between BP and Transocean on whose fault the incident was with both parties refusing to take full responsibility.

BP Oil Spill

In the BP case, a proper environmental assessment would have controlled if not averted the whole fiasco. Judging by the impact the blast had and the consequences that followed, it is clear that BP had a very weak environmental impact assessment. The amount of damage that resulted from the incident was so overwhelming but with proper environmental impact assessment, the excess damage would have been contained. People in the Gulf depend on the ecosystems for services, as food, fuel, tourism, and recreation (National Academy of Sciences, 2013). BP needed to have assessed that beforehand to avoid any inconvenience.

BP was not genuine in blaming Transocean for the incident. Although, on the other hand, BP would not take full blame it had to agree that the project was aimed at benefitting their organization and Transocean was just a contractor. It was the duty of BP to ensure they have well-laid action to avoid the spillage. Alternatively, control it in the case it occurred. In their report on the spill, Transocean attributed some of the errors to themselves but they maintained that the incident was due to a succession of interrelated good designs, construction, and sequential abandonment choices that compromised the reliability of the well and increased the risk of failure (Deep Water Horizon – Oil Spill Solutions, 2011).

These decisions were made by BP a few weeks before the blast and led to the instability of the well. According to the report, BP had realized that their geological window for drilling oil safely was decreasing, and they introduced new equipment, some even without inspection, to hasten the process. Other reports including that of BP still blame Transocean for the incident. The report cites Transocean’s poor maintenance and poorly trained staff and Transocean had an inadequate safety plan (Schwartz, 2011).

The balanced scorecard is used in strategic management and planning. It is used in many organizations to line up the organization’s operations to its vision and goals (Tutorials Point, n.d.). Using this concept, there are four main areas that are covered. The first is the financial perspective, which includes the costs an organization incurs for maximum production. From this perspective, BP had invested heavily in the offshore drill. In addition, in BP’s operations throughout the world, the return on capital appeared to be on a rising scale.

Secondly, there is the customer perspective. Here, customer satisfaction, retention, and market share are evaluated. BP has a broad market share globally with it operating in all six continents and its services available in over 100 countries. The third area is the business policy, which focuses on measures such as the costs one incurs and if they relate to the quality of the business process. BP has invested in research, and its products are of high quality.

The fact that they have a wider market is proof enough that their products are affordable and satisfactory. The last is the growth and learning perspective, which measures the satisfaction of employees and their retention. BP employs a workforce of over 80000 worldwide thereby providing employment opportunities to society. On the Balance Scorecard, BP can be rated as an organization with an aim to fully achieve its goals and objectives.

References

Beckcom, B. (2010). Transocean Oil Rig Explosion: All about the Deepwater Horizon Semisubmersible Rig. Web.

National Academy of Sciences. (2013). Assessing impacts of the Deepwater Horizon oil spill in the Gulf of Mexico. Science Daily. Web.

Deep Water Horizon – Oil Spill Solutions. (2011). Web.

Schwartz, J. (2011). Transocean Report Blames BP for Gulf Spill. The New York Times. Web.

Tutorials Point. (n.d.). The Balanced Scorecard. Web.

The oil industry plays a major role in the global economy, as it is a central pillar in the world energy system. Its primary business practice nowadays composes of moving towards sustainable development in order to gain the trust of the public. The corporations of the oil industry started including “environmentally friendly” statements in their reports, media statements, and marketing strategies. While the companies demonstrate slight transitions to sustainability, it is hard to innovate and present ethically sourced and healthy product due to the negative image of its origin.

BP is one of the largest producers of oil in the world, hence with great leadership comes great responsibility. In the last company report, they announced the strategy to become a net zero company by 2050 (BP p.l.c., 2020). While it could seem a promising step, it might be late to try to recover from the ongoing climate crisis.

They claim to reduce direct carbon emissions related to production and transport. However, BP does not mention moving away from oil and gas production. The report, as well as the website, reassures stakeholders that sustainability is the company’s main priority while producing oil and gas remains their primary source of income.

The industries with a negative image, including tobacco, chemistry, and oil, are engaging in saving the environment movement by creating marketing strategies promoting them as more than just cigarettes or oil manufacturers. This global image enhancement operates as a shield against environment protectors, creating a false impression of making a change while keeping manufacturing the product, which practically caused the problem. Oil companies have set the expectations of being able to operate with a minimum negative influence on the environment. However, they are failing to shift from these expectations to the actual performance.

The primary way to regain public trust is building the connection between what the companies are saying about the issues of sustainability and what they are actually doing to achieve zero impact. Companies should research and develop new strategies as well as invest in renewable energy products to become serious players in the sustainability arena. They can gain public trust only if they show real actions towards zero waste and bring results to the stakeholders.

Since trust is critical to the business, without it, investors and customers will turn to the competitors or alternative ways of fulfilling the demand. The main strategy to regain this trust is to relocate the significant proportion from the money earned from oil production to the energy transition. Perhaps creating an affiliated company focusing solely on alternative energies, electrification, and sustainable products and investing in their development will show the public that the oil producers have serious intentions towards becoming net zero.

The energy business is their chance to remake the reputation and guarantee winning customers’ trust. While the public sees traditional oil business as a threat to the environment, creating a sustainable energy company can prove this wrong, showing that they can validate their intent by implementing real action.

Before the situation with climate change, gaining the trust of the public for the oil industry consisted of low cost and security. Today, the model broke down and started the transition to a sustainable future, and oil companies have to keep up. However, the practice shows that despite implementing numerous actions towards sustainability, oil companies’, including BP’s, transition to net zero remains a challenge. It will take time and multiple steps to become an ethical and environmentally friendly business in the eyes of the public.

Reference

BP p.l.c. (2020). Energy with purpose. Web.