This website uses cookies to ensure you have the best experience. Learn more

Situation Analysis And Strategic Recommendations Of Bp After Oil Spill Disaster In Usa

3997 words - 16 pages

Situation analysis and strategic recommendations of BP
After oil spill disaster in USA

Table of content:

Introduction 3
Executive Summary 3
Approaches 3
Background of BP 3
BP in USA 3
PESTEL analysis of BP in USA 4
Political Environment 4
Economic Environment 5
Socio-cultural Environment 6
Technological Environment 7
Legal Environment 7
Environmental Analysis 8
Summary 8
SWOT Analysis of BP 8
Strengths 9
Weaknesses 9
Opportunities 10
Threats 11
Summary 11
Strategic Recommendations 11
...view middle of the document...

There will be a brief discussion of relevant theory and model then some practical example of those theories will be applied to BP's situation and finally a critical analysis of the issue or problem will be discussed in the light of relevant theory or model.
Background of BP:
British Petroleum (BP) is one of the world leading multi-national oil and gas companies located in UK, engaged in exploration and production of oil, refining, retail services and petrochemicals product for its customer worldwide. It sales and other operating revenues is $3,75,517 million, BP employed 8,34,000 people world- wide, it have 21,800 retail sites, upstream and midstream operation in 30 countries, wholly or partly owned 16 refineries around the world and it largest division is BP America. (BP, 2012)
BP in USA:
BP started its operation in USA as a Petroleum storage company in 1866 in the Pennensylvania oil field. Now BP’s business portfolio in USA includes exploration, production, refineries, retail services, pipelines, alternative energy, petrochemicals etc. In USA BP invested approximately $52bn in development of energy and employed 23,000 from local US. BP’s daily production of oil in USA is over 770000 barrels. (BP, 2012)
PESTEL analysis of BP in USA:
PESTEL is a tool used to analyse an organisation's external factors and how those factors can create an opportunity or threat for them and finally make future strategy based on the analysis.
According to Johnson, Scholes, Willington (2008), the PESTEL framework categorises environmental influences into six main types; Political, Economic, Social, Technological, Environmental and Legal. Thus PESTEL provides on the possible success or failure of particular strategy.
Political environment:
Political factors refer to government policy such as the degree of intervention in the economy, what goods and services want to provide, to what extant does it believe in subsidising firm? What are its priorities in term of business support? (Oxford university press, 2007)
Practical example in BP case:
* President Barak Obama visited the Gulf coast immediately after the BP oil spill in the gulf of Mexico and he ensured the affected people in his speech ‘’I take the responsibility. It is my job to make sure that is done to shut this thing down ‘’ Barak Obama, may 27, 2010 (the economist, 2010)
* In August 2010 Obama announced the formation of Gulf Coast Claim Facility (GCCF) where individuals and business that have incurred damage as a result of oil spill can submit a claim. Due to political pressure BP funded $20 billion for GCCF without any legal proceeding. (White house, 2010)
* Due to oil spill Obama administration established the National Commission on the BP deep water oil spill and offshore drilling on May 2010. (National commission, 2010)
* The US government and EU has imposed new sanctions against Iran which included lower monetary thresholds for certain investment in Iran for the development of...

Other Papers Like Situation Analysis and Strategic Recommendations of Bp After Oil Spill Disaster in Usa

Bp Oil Spill Essay

3345 words - 14 pages BP and The Gulf of Mexico Oil Spill Jose Roberto Dominguez Dr. Ken Rossi MGMT 6000 A (CRN: 1535) September 20, 2015 Table of Contents Case Introduction and Background 3 BP or Industry Failure 4 Most Significant Flawed Decisions 5 Did BP lack the appropriate safety culture? 8 References 12 BP and The Gulf of Mexico Oil Spill Case Introduction and Background This particular case study created an abundance of unanswered

Bp Oil Spill Essay

1001 words - 5 pages In reviewing the analysis presented from Food Chain, the data shows that the number of white employees was significantly higher than black employees. When looking at promotions it appears that the promotion rates are about equal between whites and blacks but the total number of white employees versus black employees distorts these numbers. Looking at the analysis less than 10% of the Food Chain employees are black with a less than 10% promotion

Gulf of Mexico Oil Spill and Bp Environmental Cleanup

5264 words - 22 pages have committed to holding the company accountable for all cleanup costs and other damage. President Obama ordered BP to pay the cost of all employees’ loss of wages and the cost of all clean up along the Gulf of Mexico and its coastal shorelines. After its own internal probe, BP admitted that it made mistakes which led to the Gulf of Mexico oil spill. BP is the cause of the biggest oil spill in the world and because of carelessness, cost

Bp and the Gulf of Mexico Oil Spill

791 words - 4 pages I’m going to discuss the problem at hand which is BP and the Gulf of Mexico Oil Spill which caused so much damage to the environment and also huge economic losses within a short period of time among other damages. Meanwhile, the CEO, Tony Hayward’s response especially about a comment he made on air causes a stir and the fact that BP has got quite a poor safety record, heightened the reaction of the political and public to BP’s involvement in the

Bp Oil Spill — Corporate Responsibility

874 words - 4 pages   On April 20th, 2010, the BP oil rig in the Gulf of Mexico exploded. This lead to 11 crew members died and caused large-scale oil pollution. The economic loss of ecological environment in Gulf of Mexico would up to several hundred billion dollars.   As the main person in charge, BP’s CEO, Tony Hayward, did not timely response to this oil spill event. And his inappropriate remarks and performance was even aroused great dissatisfaction among the

Did Bp's Ethical Culture Contribute to Gulf Coast Oil Spill Disaster?

581 words - 3 pages and others who depended on the Gulf for income. The aspects of BP’s ethical culture that contributed to the Gulf Coast oil spill are: BP did not have in place adequate safety measures. The rig did not have a remote control cut off switch. A BP official falsely informed Fox News after the incident that BP had successfully activated part of a failed blowout preventer, which was slowing the oil flow. This announcement turned out to be false as

Gulf Oil Spill and the Hospitality Industry

666 words - 3 pages Mom and Pop restaurants who service the all-you-can eat buffet seafood patrons will either have to increase prices or go out of business due to the oil spill. Although in some reports the hospitality industry has yet to see a decrease in hotel sales and restaurant goers, hotels and other tourism opportunists do not see the full ramifications of the oil spill and what it will do to business until it is already too late. An article in the Times â

Effect of Oil Spill in Lower Pennsylvania During the 1940's

669 words - 3 pages My first reaction to reading this article was just that it defined me completely as a person of faith and as someone who believes in having a strong relationship with God. My second reaction to reading this article was that the author, who although made a concerted effort to see things through, equated going to church with having a relationship with God or something along those lines. I think as a member of the new generation that he refers to

Situation Analysis of Mcbride

3391 words - 14 pages . Situation Analysis Issue and Opportunity Identification Hugh McBride has created a concept in the form of McBride Financials Services that offers a unique service to customers. As the concept is unique he has gained the support of a major investor, Beltway Investments. Hugh is aware that his idea is good and is confident that his business will be successful. However, Hugh does not believe that he should adhere to the rules that govern corporations

China and Usa in New Cold War over Africa’s Oil Riches

3171 words - 13 pages China and USA in New Cold War over Africa’s Oil Riches Darfur? It’s the Oil, Stupid... By F. William Engdahl | Global Research, May 20, 2007 | To paraphrase the famous quip during the 1992 US Presidential debates, when an unknown William Jefferson Clinton told then-President George Herbert Walker Bush, “It’s the economy, stupid,” the present concern of the current Washington Administration over Darfur in southern Sudan is not, if we were to

The Role Of Situation Analysis In Marketing Plan

1603 words - 7 pages The Role of Situation Analysis in Marketing Plan Facing to more complex business environment, systematically marketing plans are important to organizations in terms of maintaining a high level of operating efficiency and achieving goals fully. According to Sally and John (1996:3), marketing plans are “the written document or blueprint for implementing and controlling an organization’s marketing activities related to a particular marketing

Related Essays

Bp Oil Spill Paper

1019 words - 5 pages public concerns, Obama "described the growing spill as an assault on the shores and citizens of the Gulf region, [and] a national commission has been established to probe the cause of the disaster and recommend additional safety and environmental standards." In addition to the company already agreeing to a $20 billion fund to compensate people affected by the oil spill, BP CEO Tony Hayward has appeared to answer questions before a U.S

Bp Oil Spill Essay

2293 words - 10 pages that led to the worst environmental disaster in the United States of America which resulted in the death of eleven workers, it as refuse to accept any responsibility. Anadarko Petroleum told BP that the clean up operation could take up to four years and that BP should foot the entire bill. The president of the US, President Obama at the time of the oil spill accident asked Secretary Chu to lead a team of administration officials and government

Bp Oil Spill Issue Essay

2712 words - 11 pages Madeley, 1999 ) ③Many shareholders lost a lot due to this. The oil spill harm the interest of many distributors in America which dealing in the brand oil of BP and it in turn affected BP’s business in the united states. The biggest victim in this incident without any doubt is the Gulf of Mexico; the oil spill has destroyed the ecological environment and people’s daily life and health situation around that area. “The oil spill in the Gulf of Mexico

Bp Oil Spill Essay 1101 Words

1101 words - 5 pages On April 20, 2010 the BP licensed Transocean deep water drilling rig exploded, killing 11 people and injuring another 17.Roughly, 4.9 million barrels of oil poured into the Gulf of Mexico for 87 subsequent days. Days after the accident British Petroleum’s stock dropped by 2% due to stockholders worries of cleanup costs and upcoming legal claims. In order to mitigate the damage done to their image BP created a new portion of their website