British Petroleum (Bp) Case Study
British Petroleum (BP) Case Study
Executive Summary
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.
Executive Summary
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.
References: BP Global-Gulf of Mexico restoration (2010). Retrieved April 8, 2011 from http://www.bp.com/sectionbodycopy.do?categoryId=41&contentId=7067505 BP Plc (2011) Braith, T. (2010). $20bn BP fund enough for spill costs, In Finicial Times. Retrieved April 6, 2011 from http://www.ft.com/cms/s/0/70d65840-f666-11df-846a-00144feab49a.html#axzz1Jcfpu0Cf Deneen, S Gross, D. (2002). Oil Slicks:BP 's new eco-friendly ad campaign makes no sense. Retrieved April 4, 2011 from http://www.slate.com/id/2072470 Gulf of Mexico Oil Spill (2010) Mortished, C. (2010). Planners put a stopper on BP 's eco-friendly gas pump. In The Times. Retrieved April 6, 2011 from http://business.timesonline.co.uk/tol/business/article1059782.ece Schoen, J Code for crude Oil. Retrieved April 4, 2011 from http://www.oil-price.net/dashboard.php?lang=en#syndicate_usd Oil prices Pest analyze. Retrieved April 4, 2011 from http://en.wikipedia.org/wiki/PEST_analysis Ivory research: An internal and external analysis of BP Solar and Shell Renewables Papers4you.com: What is the past analysis? Retrieved April 4, 2011 from http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php Rosbalt Business: BP what to come back to Mexico InoPressa: BP still discuss with Russia question about 10 billions. Retrieved April 5, 2011 from http://www.inopressa.ru/article/05Apr2011/independent/bp.html Oil & Gas journal