MGT/230_ Wk3_Management Planning
April 15, 2013
As today’s leading energy company, British Petroleum, PLC (BP) has been thriving to satisfy the investors with legal, ethical, and social responsibility issues as a corporation while protecting employees and environment. The global economy has been fluctuating rapidly since the last tragic incident that happened in 2010; therefore, now is the time to evaluate the organization’s management planning function, analyze the influence that have had on management planning at BP, and analyze the factors that influence the company’s strategic, tactical, operational and contingency planning.
Planning Function ...view middle of the document...
When the company was emphasizing on low-cost operations, above factors were easy to be ignored to keep the operating cost at lowest possible to increase the profit in the process of planning. For example, the company had legal issues by not in compliance with Occupational Safety & Health Administration (OSHA) regulations. Following the BP’s Texas City explosion in 2005, there were total of 439 violations which were found and classified as “willful and egregious” that resulted in $87million fine, and 271 violations were already identified before the incident but never been addressed due to 25 percent operating budget cut (Jennings, 2010). Ethic was also ignored on making management planning in the past. As an executives of a corporation, neglect to address the OSHA regulations and creating an unsafe workplace that endangered the employees was completely unacceptable. Lastly, corporation social responsibility (CSR) did not influence enough during management planning. BP had struggled on improvement of safety program after numerous incidents involved with fatalities and violations, and approached the issues by using the own term called ‘continuous improvement’ in safety as an environmentally and socially responsible operating approach which did not work. BP’s CSR report provides a dramatic example of how biased, even unintentionally, self-perceptions can be, and why independent verification of material representations are so valuable (Mobus, 2012).
Factors Influencing Planning
The board of directors should fully understand and implement the factors that affect the planning process in business. There are many factors that affect the planning process, and BP plc will be focusing on three factors to move forward: priorities, current economic condition, and ethics. First,...