This case study report examined a public relation management problem that British Petroleum (BP) faced since the oil spill accident happened in April, 2010. In addition, this thesis recommended possible solutions and implementation plans for BP to deal with the public crisis. On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a result, a huge loss of money and life was caused and affected serious environmental damage to wild animals and water pollution. BP was accused of their irresponsibility that it took 87 days before the well was closed and sealed. BP’s shares plummeted to the lowest point since 1996. The communities around the Gulf of Mexico blamed BP for their carelessness and appealed for more actions to recover their low income life. BP has already established $20 billion fund to respond the situation in the Gulf of Mexico. However, according to recent research, the amount of the money is not enough to straighten out the crisis. In order to examine the case, we performed PEST and SWOT analysis methods. We focused on evaluating economic and socio-cultural factors that were the major elements had affects on BP’s public image. At the same time, we analyzed and key strengths and opportunities that essential for BP to revitalize its brand image. Our analysis revealed two crucial factors. First, BP’s own fund is not enough. Second, there can be more effective solutions to sew up the company’s mishap. Based on those finding, we determined that BP should play more active role in the crisis and our solution is to create a worldwide oil trust fund that will gather the power of all oil companies. The purpose of this fund will be collecting money for extra help in such situations, due to the case with BP is not the only one and other companies also experience such situations previously.
Table of content
1.2. Problem of statement4
1.3. Statement of Objectives5
Finding 1: BP’s $20 billion fund is not enough for oil spill clean-up7
Finding 2: BP has strong social responsibilities8
Finding 3: oil industry considerably profitable business and take one of the main positions in the World economy and The British Petroleum if we exclude the accident in Mexican Sea has a huge respect and reputation as a stable, developing and profitable corporation.9
3. Recommendations and implementations11
3.1. Recommendation A: Establish a trust fund with other oil super-majors11
3.1.1Implementation plan for recommendation A11
3.2. Recommendation B: promotion and PR its past achievements and awards and also continuing building positive reputation12
3.2.1. Implementation plan for recommendation B12
In the evening of April 20, 2010, the gas release and subsequent explosion occurred on the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the Gulf of Mexico. The fire burned for 36 hours before the rig sank, and hydrocarbons leaked into the Gulf of Mexico for 87 days before the well was closed and sealed. The explosion led to the largest accidental release of oil into marine waters in history. Eleven workers on the rig died, 17 were injured. The oil spill also caused serious social and environmental problem. About 1,070 kilometres of Gulf of Mexico coastline were contaminated by the oil. The area closed to fishing reached a peak 225,290 square kilometres on June 21. The area's tourism industry was devastated by the spill which employs 524,000 employees. The latest report from the oil spill's Unified Area Command shows that 2,080 oiled birds were collected alive. Also,...