The document examines BP's "Beyond Petroleum" branding campaign and response to the 2010 Gulf oil spill from a marketing perspective. It finds that while the branding campaign was initially successful, the spill revealed inconsistencies between BP's brand promise of sustainability and its operations. The summary analyzes BP's crisis response, including its use of social media, finding that while the response was slow at first, BP's later aggressive social media efforts helped restore its damaged brand.
BP (BEYOND PETROLEUM) FOCUSES ON SUSTAINABILITYdeterminant342
BP (formerly British Petroleum) has experienced controversies over its business practices and environmental damage. However, it has attempted to improve its sustainability and image. It invested in renewable energy like wind and solar power. It also published an extensive code of conduct for employees and invested in raising environmental awareness. While it still relies on oil, BP's efforts aim to transition to cleaner energy and prevent future misconduct.
Global Business Strategy of British Petroleum (BP)Faysal Alam
This document provides information about globalization and BP. It discusses the key features and advantages/disadvantages of globalization. It then provides a brief history of BP, outlining its mission, vision, organizational structure, key facts and figures. It describes BP's four core values of being progressive, innovative, green, and performance-driven. Finally, it lists some of BP's major product and service brands such as BP, Aral, and others.
This presentation summarizes BP's major safety disasters and the initiatives taken to improve safety culture. It describes three major disasters - in Texas in 2005, Alaska in 2006, and the Gulf of Mexico in 2010 - that resulted from a lack of safety practices and negligence prioritizing profit over safety. BP faced billions in fines and penalties and long-term damage to its reputation. New programs like Operating Management System and Site Alignment aim to standardize operations and improve two-way communication between levels to prevent future incidents.
The document provides an overview of Shell Oil's operations in Nigeria and the environmental and social problems that have resulted. It discusses how Shell's oil extraction and gas flaring have contaminated land and water, causing issues like acid rain. It also details protests by the Ogoni people over these problems, and the Nigerian government's violent response that led to executions, including of Ken Saro-Wiwa. The document analyzes potential recommendations for improving relations between Shell and the Ogoni community.
BP's strategy brief outlines their goals to rebuild trust and shareholder value following the 2010 Gulf of Mexico oil spill. It discusses focusing on safety, strengthening performance, and investing in oil, gas, and alternative energy innovations. BP aims to meet growing global energy demand responsibly by balancing safety with strategic investments and partnerships.
Xiamen Airlines reformed its pilot compensation system in 2009 to better link pay to performance. Initial results were positive with improved productivity and satisfaction, but recruiting and retaining pilots remained challenging due to shortages and competition. The new system provided incentives like increased pay for extra hours flown and bonuses for achievements. Outcomes included pilots flying more hours, saving on hiring, experienced pilots training newcomers, and lower attrition. Profits increased nearly 500% from 2009-2010 under the new system. However, questions remained about sustainability if the industry became less profitable and what else the airline could offer to retain talent.
The focus of this project was to capture success of one of the most worldwide know company - Apple and track down its way to overcome its competitors. With the use of RBV Theory, Dynamic Capabilities Framework and Business Model Canvas.
The document discusses the 7 P's of marketing for Coca-Cola. It summarizes that Coca-Cola is the world's most recognized brand and sells over 1.6 billion servings per day in over 200 countries. It describes Coca-Cola's wide product portfolio, its direct and indirect distribution channels, its focus on quality employees through financial and non-financial incentives, its seasonal pricing strategies, and its promotion activities including displays, sponsorships, and schemes.
BP (BEYOND PETROLEUM) FOCUSES ON SUSTAINABILITYdeterminant342
BP (formerly British Petroleum) has experienced controversies over its business practices and environmental damage. However, it has attempted to improve its sustainability and image. It invested in renewable energy like wind and solar power. It also published an extensive code of conduct for employees and invested in raising environmental awareness. While it still relies on oil, BP's efforts aim to transition to cleaner energy and prevent future misconduct.
Global Business Strategy of British Petroleum (BP)Faysal Alam
This document provides information about globalization and BP. It discusses the key features and advantages/disadvantages of globalization. It then provides a brief history of BP, outlining its mission, vision, organizational structure, key facts and figures. It describes BP's four core values of being progressive, innovative, green, and performance-driven. Finally, it lists some of BP's major product and service brands such as BP, Aral, and others.
This presentation summarizes BP's major safety disasters and the initiatives taken to improve safety culture. It describes three major disasters - in Texas in 2005, Alaska in 2006, and the Gulf of Mexico in 2010 - that resulted from a lack of safety practices and negligence prioritizing profit over safety. BP faced billions in fines and penalties and long-term damage to its reputation. New programs like Operating Management System and Site Alignment aim to standardize operations and improve two-way communication between levels to prevent future incidents.
The document provides an overview of Shell Oil's operations in Nigeria and the environmental and social problems that have resulted. It discusses how Shell's oil extraction and gas flaring have contaminated land and water, causing issues like acid rain. It also details protests by the Ogoni people over these problems, and the Nigerian government's violent response that led to executions, including of Ken Saro-Wiwa. The document analyzes potential recommendations for improving relations between Shell and the Ogoni community.
BP's strategy brief outlines their goals to rebuild trust and shareholder value following the 2010 Gulf of Mexico oil spill. It discusses focusing on safety, strengthening performance, and investing in oil, gas, and alternative energy innovations. BP aims to meet growing global energy demand responsibly by balancing safety with strategic investments and partnerships.
Xiamen Airlines reformed its pilot compensation system in 2009 to better link pay to performance. Initial results were positive with improved productivity and satisfaction, but recruiting and retaining pilots remained challenging due to shortages and competition. The new system provided incentives like increased pay for extra hours flown and bonuses for achievements. Outcomes included pilots flying more hours, saving on hiring, experienced pilots training newcomers, and lower attrition. Profits increased nearly 500% from 2009-2010 under the new system. However, questions remained about sustainability if the industry became less profitable and what else the airline could offer to retain talent.
The focus of this project was to capture success of one of the most worldwide know company - Apple and track down its way to overcome its competitors. With the use of RBV Theory, Dynamic Capabilities Framework and Business Model Canvas.
The document discusses the 7 P's of marketing for Coca-Cola. It summarizes that Coca-Cola is the world's most recognized brand and sells over 1.6 billion servings per day in over 200 countries. It describes Coca-Cola's wide product portfolio, its direct and indirect distribution channels, its focus on quality employees through financial and non-financial incentives, its seasonal pricing strategies, and its promotion activities including displays, sponsorships, and schemes.
The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.
D.Light is a social enterprise that provides solar lamps to people in developing countries without access to modern electricity. It was founded in 2007 and targets the base of the pyramid population. D.Light experienced issues with brand awareness and convincing customers accustomed to kerosene to purchase unfamiliar solar technology. However, the lamps provide clear benefits like no recurring costs and allow for extended working and studying hours. As of 2014, D.Light has empowered over 37 million lives and generated over 53,000 MWh of renewable energy, saving customers over $1 billion and creating over 13 billion productive hours. Proposed solutions to further D.Light's impact include introducing cheaper LED options, running awareness campaigns, partnering with local governments, and providing
Exxon Mobil's current corporate strategy relies on developing new emerging markets using their strong market position and broad portfolio. Their organizational structure is based on strategic business units for downstream, upstream, natural gas/power, and chemicals. Financial analysis shows good liquidity, activity, profitability, and leverage ratios, though revenue has decreased recently. Stock analysis graphs show Exxon Mobil performing similarly to competitors Chevron and BP over the past year and longer term.
The Coca-Cola Company is one of the largest beverage companies in the world. It has a market share of around 26% globally and operates in over 200 countries. In 2013, it reported revenues of $46.85 billion and profits of $9.01 billion with 146,200 employees. Some of its main competitors include PepsiCo, Dr Pepper Snapple Group, and Nestle. Coca-Cola has maintained its position as the largest beverage company through strong marketing, a vast distribution network, and high customer loyalty to its brands. However, it also faces challenges from changing consumer preferences toward healthier options and increasing competition.
Southwest Airlines was founded in 1971 in Dallas, Texas. It has a strong organizational culture focused on values like family, equality, dedication, and fun. The CEO, Herb Kelleher, fostered an informal, transactional leadership style where he treated employees like family. Southwest utilizes selective recruiting and training to socialize new employees into the culture. It has been successful in capturing value through high customer satisfaction driven by happy employees and a competitive low-cost business model that has been difficult for competitors to copy.
Old Spice's body wash sales were declining due to competition. To engage new customers, the "Man Your Man Could Smell Like" campaign became popular on social media. The agency then created an interactive experience where the character responded directly to fan questions on YouTube for 72 hours. By leveraging different platforms like Twitter and Facebook, over 180 unique videos were created and viewed by millions, reinvigorating the brand through real-time engagement.
BP is a major British multinational oil and gas company with operations in upstream exploration and production as well as downstream refining, marketing, and trading. It faces challenges from increased regulation, climate change concerns, and negative public perception following the 2010 Deepwater Horizon oil spill. To address these issues, BP can expand partnerships through joint ventures, increase lobbying efforts, invest more heavily in renewable energy and carbon capture technology, and strengthen its marketing to highlight these sustainability initiatives.
Colgate-Palmolive launched their Cleopatra soap brand in Canada in 1986 with high hopes, as it had been very successful in France. However, the brand failed to gain traction in Quebec. Market research revealed that while Cleopatra had high brand awareness, most consumers were not trying the product and preferred existing brands like Dove. Those who tried Cleopatra generally liked the soap, but it was seen as only for women's beauty and not for whole family use. Additionally, the premium price, lack of retailer support, and ineffective promotions hurt sales. Colgate-Palmolive faced a dilemma on how to improve the brand in Canada.
This document provides a case study and agenda for SG Cowen's recruitment process of new candidates. SG Cowen focuses on recruiting from top business schools to find loyal, committed candidates with strong cultural fits. They also consider candidates from other top universities and former associates. The selection process involves on-campus interviews and assessments at "Super Saturday" events. While this process allows for collective decision making, it could be improved with online testing and multiple interview phases to reduce bias. The document analyzes four candidate profiles and considers their strengths and weaknesses for the role.
In our "Public Relations" course at SFSU my group and I analyzed Coca-Cola's problems with the CSE in 2003 and came up with an alternative to handle the situation.
Cultural change in British Airways- A change storyVikas Awasthi
British Airways underwent significant cultural change from the 1970s to 2010s through a series of mergers, privatizations, expansions, and restructurings. Two major programs, Putting People First and Managing People First, aimed to shift BA's culture from a hierarchical and militaristic style to one that was more positive, collaborative, and people-focused. These programs involved extensive training for employees to change behaviors and mindsets. While initially successful, BA faced challenges in the 1990s from increased competition and high oil prices that led to further restructuring and job cuts. By 2010, BA merged with Iberia Airlines to form the International Airlines Group in an effort to gain efficiencies through consolidation.
The document provides an overview of a project on the Coca-Cola Company, including an introduction, vision, mission, core values, and product line. It also includes analyses using the BCG matrix, Ansoff matrix, PESTLE analysis, segmentation, targeting, positioning, and the 4Ps of marketing. The project was submitted by a student to their professor and provides a comprehensive analysis of Coca-Cola's business and marketing strategies.
This document provides an overview of PepsiCo, including its history starting in 1890, vision, mission, brand positioning, target market, and competitive advantage. PepsiCo's vision focuses on continually improving the world through environmental, social, and economic programs. Its mission is to produce convenient foods and beverages while rewarding investors and supporting employees and communities. Pepsi's brand positioning targets males and females aged 16-45 as hip, youthful, and forward-thinking. Its competitive advantages include a broad product mix, global production and distribution networks, and revitalized advertising campaigns featuring celebrities.
Detailed study about the case study. SWOT analysis of the Industry, Explained about Porter's Five forces related to the Industry. Also, includes managerial parts and overall Learning about the case. It includes Management Recruitment process.
Siemens adopted an open innovation initiative to address problems stemming from its decentralized structure, including siloed information and a lack of cross-company communication. The initiative was intended to break down internal barriers and identify experts within the company, but later expanded to include collaborations with universities and other organizations. While open innovation provided benefits like new ideas, it also introduced risks around intellectual property exposure and disruption to company culture.
James E. Burke, the CEO of Johnson & Johnson, oversaw the company's response to the 1982 Tylenol poisoning crisis in which 7 people died after taking cyanide-laced Tylenol capsules. In response, J&J recalled over 30 million bottles of Tylenol at a cost of $100 million and introduced new tamper-resistant packaging. Through decisive and customer-focused actions, J&J regained consumer trust and over 30% of the pain reliever market within a year, demonstrating how respecting customers and maintaining trust can help companies overcome crises.
Goldman sachs ipo dilemma - case studyArun Palatty
Goldman Sachs considered going public through an IPO but ultimately decided against it due to concerns about how it would impact the firm's culture and business model. While an IPO would provide access to greater capital that was needed to keep up with competitors, the partners were worried it could dilute Goldman Sachs' culture of prioritizing long-term relationships over short-term profits. Going public also risked increased agency problems as employees and managers may prioritize boosting stock prices over serving clients. After much deliberation, Goldman Sachs chose to remain a private partnership to retain control over its destiny and unique way of doing business.
Tylenol Rebound: The Rise, Fall and Rise of TylenolSomak Ghosh
Tylenol Rebound, was presented on 11th march, 2015 in XIMB.
This presentation takes us through the Tylenol crisis that started with the deaths caused due to cyanide laced Tylenol capsules. It talks about the brilliance of Johnson and Johnson in handling the crisis through an approach that was candid, honest to God and heartfelt. They owned up, accepted total responsibility and carefully designed their repositioning - resulting in the ultimate gain of market share lost during the crisis.
This is the perfect example of how a company is to handle crises and use media to its advantage.
The PR team at Johnson and Johnson handled the crisis in a way that no company had ever imagined - a wonderful and empathetic promotional campaign, revolving around the inestimable value of human lives was ultimately successful in driving home the point that no matter what the circumstances are - honesty is always rewarded.
Strategic Communications is an anticipatory practice which attempts to foresee events, trends and issues which may develop to disrupt important relationships. There is a need for an alert scrutiny of social changes and outside forces - from current scenario analysis to wish-list planning - in order to find an appropriate way to monitor external environment and proffer better solutions to identified issues that might snowball into a Crisis and hurt or destroy the reputation of an organisation.
Case Study 9Running head BP & THE GULF OF MEXICO OIL SPILLC.docxmoggdede
Case Study 9
Running head: BP & THE GULF OF MEXICO OIL SPILL
Case Study: BP & The Gulf of Mexico Oil Spill
Central Michigan University
Organizational Dynamics & Human Behavior – MSA 601
Abstract
This paper will focus on the monumental disaster and ensuing public relations nightmare of British Petroleum (BP). This disaster of course was brought about by the oil rig explosion and fire in the Gulf of Mexico. BP is a multinational conglomerate of gargantuan proportions. They have molded and perfected their public image over decades. This paper will take a look at the lapses in BP’s management and public relations efforts and what measures the company should have taken.
BP & the Gulf of Mexico Oil Spill
The reason that the authors selected to evaluate British Petroleum (BP) for a case study was due in no small part to the endless media attention given to the oil spill in the Gulf. BP is an extremely popular brand that everyone in this country undoubtedly is effected by in one way or another. One of the initial reasons for choosing BP was the unmitigated disaster put forth on the public relations front in explaining the company’s efforts at dealing with the Gulf of Mexico oil crisis. The authors were further intrigued at this assignment for the poor leadership and decision making acumen of the former CEO Tony Hayward (CMU, 2009, p. 227). With this multi-focal approach, the study will highlight the conflicting messaging presented to the public and the lackluster and ultimately ineffective leadership within the organization.
BP is a huge multinational conglomerate whose primary focus is the petroleum industry. The company does business in over 30 countries around the globe. Its annual operating income is $239 billion dollars with over $14 billion dollars in profit in the year 2009. The company employs over 80,300 individuals and owns 16 refineries worldwide. BP operates several subsidiaries under the names AM/PM markets, BP and ARCO gas stations, Aral gas stations in Germany, Wild Bean Café, and Castrol Motor Oil (BP at a glance, 2010).
The competition within the petroleum industry is not as plentiful as one might think. There are actually very few players in the game. Due to the limited number of refiners of crude in this country the oil from various sources are blended prior to coming to the consumer. BP doesn’t have much use for the service station business anymore. In 2007, it announced plans to sell the last 700 stations that it hadn’t already sold to franchisees. The company chose to focus on finding and collecting oil. Once companies make a discovery, it comes out of the ground and ends up at a refinery. There, it can be mixed with oil that a variety of companies have poured into the tanks. This is further evidenced by BP’s plans to divest itself of its remaining 700 gas service stations. The highest percentage of income is made from oil exploration and extraction and not in the selling of gasoline at its stations (Lieber, 2010).
BP.
The document outlines the sales and distribution management process of Coca-Cola India. It discusses Coca-Cola's company overview, product specifications, business model, market segmentation, sales organization structure, sales force motivation, forecasting, distribution model, performance comparisons to Pepsi, logistics, performance management, promotional schemes, margins, financials, and recommendations. Key aspects covered include Coca-Cola's franchised bottling system, sales force training programs, incentive structures, forecasting approach, direct and indirect distribution networks, RED performance management tool, and distributor margins.
D.Light is a social enterprise that provides solar lamps to people in developing countries without access to modern electricity. It was founded in 2007 and targets the base of the pyramid population. D.Light experienced issues with brand awareness and convincing customers accustomed to kerosene to purchase unfamiliar solar technology. However, the lamps provide clear benefits like no recurring costs and allow for extended working and studying hours. As of 2014, D.Light has empowered over 37 million lives and generated over 53,000 MWh of renewable energy, saving customers over $1 billion and creating over 13 billion productive hours. Proposed solutions to further D.Light's impact include introducing cheaper LED options, running awareness campaigns, partnering with local governments, and providing
Exxon Mobil's current corporate strategy relies on developing new emerging markets using their strong market position and broad portfolio. Their organizational structure is based on strategic business units for downstream, upstream, natural gas/power, and chemicals. Financial analysis shows good liquidity, activity, profitability, and leverage ratios, though revenue has decreased recently. Stock analysis graphs show Exxon Mobil performing similarly to competitors Chevron and BP over the past year and longer term.
The Coca-Cola Company is one of the largest beverage companies in the world. It has a market share of around 26% globally and operates in over 200 countries. In 2013, it reported revenues of $46.85 billion and profits of $9.01 billion with 146,200 employees. Some of its main competitors include PepsiCo, Dr Pepper Snapple Group, and Nestle. Coca-Cola has maintained its position as the largest beverage company through strong marketing, a vast distribution network, and high customer loyalty to its brands. However, it also faces challenges from changing consumer preferences toward healthier options and increasing competition.
Southwest Airlines was founded in 1971 in Dallas, Texas. It has a strong organizational culture focused on values like family, equality, dedication, and fun. The CEO, Herb Kelleher, fostered an informal, transactional leadership style where he treated employees like family. Southwest utilizes selective recruiting and training to socialize new employees into the culture. It has been successful in capturing value through high customer satisfaction driven by happy employees and a competitive low-cost business model that has been difficult for competitors to copy.
Old Spice's body wash sales were declining due to competition. To engage new customers, the "Man Your Man Could Smell Like" campaign became popular on social media. The agency then created an interactive experience where the character responded directly to fan questions on YouTube for 72 hours. By leveraging different platforms like Twitter and Facebook, over 180 unique videos were created and viewed by millions, reinvigorating the brand through real-time engagement.
BP is a major British multinational oil and gas company with operations in upstream exploration and production as well as downstream refining, marketing, and trading. It faces challenges from increased regulation, climate change concerns, and negative public perception following the 2010 Deepwater Horizon oil spill. To address these issues, BP can expand partnerships through joint ventures, increase lobbying efforts, invest more heavily in renewable energy and carbon capture technology, and strengthen its marketing to highlight these sustainability initiatives.
Colgate-Palmolive launched their Cleopatra soap brand in Canada in 1986 with high hopes, as it had been very successful in France. However, the brand failed to gain traction in Quebec. Market research revealed that while Cleopatra had high brand awareness, most consumers were not trying the product and preferred existing brands like Dove. Those who tried Cleopatra generally liked the soap, but it was seen as only for women's beauty and not for whole family use. Additionally, the premium price, lack of retailer support, and ineffective promotions hurt sales. Colgate-Palmolive faced a dilemma on how to improve the brand in Canada.
This document provides a case study and agenda for SG Cowen's recruitment process of new candidates. SG Cowen focuses on recruiting from top business schools to find loyal, committed candidates with strong cultural fits. They also consider candidates from other top universities and former associates. The selection process involves on-campus interviews and assessments at "Super Saturday" events. While this process allows for collective decision making, it could be improved with online testing and multiple interview phases to reduce bias. The document analyzes four candidate profiles and considers their strengths and weaknesses for the role.
In our "Public Relations" course at SFSU my group and I analyzed Coca-Cola's problems with the CSE in 2003 and came up with an alternative to handle the situation.
Cultural change in British Airways- A change storyVikas Awasthi
British Airways underwent significant cultural change from the 1970s to 2010s through a series of mergers, privatizations, expansions, and restructurings. Two major programs, Putting People First and Managing People First, aimed to shift BA's culture from a hierarchical and militaristic style to one that was more positive, collaborative, and people-focused. These programs involved extensive training for employees to change behaviors and mindsets. While initially successful, BA faced challenges in the 1990s from increased competition and high oil prices that led to further restructuring and job cuts. By 2010, BA merged with Iberia Airlines to form the International Airlines Group in an effort to gain efficiencies through consolidation.
The document provides an overview of a project on the Coca-Cola Company, including an introduction, vision, mission, core values, and product line. It also includes analyses using the BCG matrix, Ansoff matrix, PESTLE analysis, segmentation, targeting, positioning, and the 4Ps of marketing. The project was submitted by a student to their professor and provides a comprehensive analysis of Coca-Cola's business and marketing strategies.
This document provides an overview of PepsiCo, including its history starting in 1890, vision, mission, brand positioning, target market, and competitive advantage. PepsiCo's vision focuses on continually improving the world through environmental, social, and economic programs. Its mission is to produce convenient foods and beverages while rewarding investors and supporting employees and communities. Pepsi's brand positioning targets males and females aged 16-45 as hip, youthful, and forward-thinking. Its competitive advantages include a broad product mix, global production and distribution networks, and revitalized advertising campaigns featuring celebrities.
Detailed study about the case study. SWOT analysis of the Industry, Explained about Porter's Five forces related to the Industry. Also, includes managerial parts and overall Learning about the case. It includes Management Recruitment process.
Siemens adopted an open innovation initiative to address problems stemming from its decentralized structure, including siloed information and a lack of cross-company communication. The initiative was intended to break down internal barriers and identify experts within the company, but later expanded to include collaborations with universities and other organizations. While open innovation provided benefits like new ideas, it also introduced risks around intellectual property exposure and disruption to company culture.
James E. Burke, the CEO of Johnson & Johnson, oversaw the company's response to the 1982 Tylenol poisoning crisis in which 7 people died after taking cyanide-laced Tylenol capsules. In response, J&J recalled over 30 million bottles of Tylenol at a cost of $100 million and introduced new tamper-resistant packaging. Through decisive and customer-focused actions, J&J regained consumer trust and over 30% of the pain reliever market within a year, demonstrating how respecting customers and maintaining trust can help companies overcome crises.
Goldman sachs ipo dilemma - case studyArun Palatty
Goldman Sachs considered going public through an IPO but ultimately decided against it due to concerns about how it would impact the firm's culture and business model. While an IPO would provide access to greater capital that was needed to keep up with competitors, the partners were worried it could dilute Goldman Sachs' culture of prioritizing long-term relationships over short-term profits. Going public also risked increased agency problems as employees and managers may prioritize boosting stock prices over serving clients. After much deliberation, Goldman Sachs chose to remain a private partnership to retain control over its destiny and unique way of doing business.
Tylenol Rebound: The Rise, Fall and Rise of TylenolSomak Ghosh
Tylenol Rebound, was presented on 11th march, 2015 in XIMB.
This presentation takes us through the Tylenol crisis that started with the deaths caused due to cyanide laced Tylenol capsules. It talks about the brilliance of Johnson and Johnson in handling the crisis through an approach that was candid, honest to God and heartfelt. They owned up, accepted total responsibility and carefully designed their repositioning - resulting in the ultimate gain of market share lost during the crisis.
This is the perfect example of how a company is to handle crises and use media to its advantage.
The PR team at Johnson and Johnson handled the crisis in a way that no company had ever imagined - a wonderful and empathetic promotional campaign, revolving around the inestimable value of human lives was ultimately successful in driving home the point that no matter what the circumstances are - honesty is always rewarded.
Strategic Communications is an anticipatory practice which attempts to foresee events, trends and issues which may develop to disrupt important relationships. There is a need for an alert scrutiny of social changes and outside forces - from current scenario analysis to wish-list planning - in order to find an appropriate way to monitor external environment and proffer better solutions to identified issues that might snowball into a Crisis and hurt or destroy the reputation of an organisation.
Case Study 9Running head BP & THE GULF OF MEXICO OIL SPILLC.docxmoggdede
Case Study 9
Running head: BP & THE GULF OF MEXICO OIL SPILL
Case Study: BP & The Gulf of Mexico Oil Spill
Central Michigan University
Organizational Dynamics & Human Behavior – MSA 601
Abstract
This paper will focus on the monumental disaster and ensuing public relations nightmare of British Petroleum (BP). This disaster of course was brought about by the oil rig explosion and fire in the Gulf of Mexico. BP is a multinational conglomerate of gargantuan proportions. They have molded and perfected their public image over decades. This paper will take a look at the lapses in BP’s management and public relations efforts and what measures the company should have taken.
BP & the Gulf of Mexico Oil Spill
The reason that the authors selected to evaluate British Petroleum (BP) for a case study was due in no small part to the endless media attention given to the oil spill in the Gulf. BP is an extremely popular brand that everyone in this country undoubtedly is effected by in one way or another. One of the initial reasons for choosing BP was the unmitigated disaster put forth on the public relations front in explaining the company’s efforts at dealing with the Gulf of Mexico oil crisis. The authors were further intrigued at this assignment for the poor leadership and decision making acumen of the former CEO Tony Hayward (CMU, 2009, p. 227). With this multi-focal approach, the study will highlight the conflicting messaging presented to the public and the lackluster and ultimately ineffective leadership within the organization.
BP is a huge multinational conglomerate whose primary focus is the petroleum industry. The company does business in over 30 countries around the globe. Its annual operating income is $239 billion dollars with over $14 billion dollars in profit in the year 2009. The company employs over 80,300 individuals and owns 16 refineries worldwide. BP operates several subsidiaries under the names AM/PM markets, BP and ARCO gas stations, Aral gas stations in Germany, Wild Bean Café, and Castrol Motor Oil (BP at a glance, 2010).
The competition within the petroleum industry is not as plentiful as one might think. There are actually very few players in the game. Due to the limited number of refiners of crude in this country the oil from various sources are blended prior to coming to the consumer. BP doesn’t have much use for the service station business anymore. In 2007, it announced plans to sell the last 700 stations that it hadn’t already sold to franchisees. The company chose to focus on finding and collecting oil. Once companies make a discovery, it comes out of the ground and ends up at a refinery. There, it can be mixed with oil that a variety of companies have poured into the tanks. This is further evidenced by BP’s plans to divest itself of its remaining 700 gas service stations. The highest percentage of income is made from oil exploration and extraction and not in the selling of gasoline at its stations (Lieber, 2010).
BP.
BP is one of the largest oil and gas companies in the world. However, it has a history of accidents due to failures to prioritize safety over profits. This includes an explosion at a Texas refinery that killed 15 workers and the Deepwater Horizon spill that released millions of barrels of oil into the Gulf of Mexico. According to utilitarian ethics, BP's decisions that emphasized costs cuts over safety were unethical as they resulted in significant harm. For BP to avoid future disasters, it needs to incorporate environmental and social sustainability into its practices rather than just focusing on economic profits.
Please Do Not Copy and Paste anything from this report, this is ju.docxrandymartin91030
Please Do Not Copy and Paste anything from this report, this is just history of the case
BP: Example of an Unethical Trifecta
Posted on September 17, 2013 by mensah_henry
From the dawn of time, human beings have relied on the environment to provide with the all the things we need to survive and be successful. It has also helped us develop civilizations and founded industries where there was none. Our exploitation of our environment is part of what makes us successful. The more we have been able to conquer and manipulate our environment, the more we have developed culturally, socially, and economically (Kareiva and Marvier, 2012). The three tenets of culture, society, and economy has been our biggest source of influence in dealing with the environment. Ever since the discovery of oil by the ancient civilizations of Babylonia and Greece, great importance has been placed on our ability to utilize it and the products we get from it (Totten, 2007). Today, the oil industry has grown from nothing to become one of the world’s biggest and most important. British Petroleum (BP) is one of the largest oil companies in the world and a major stakeholder in the United States oil industry.
Although BP has been operating in the United States for a long time, its history and operations have not always been worthy of praise. The company has been in the middle of several issues and held accountable for several incidents that have resulted in the loss of life, property, and massive environmental damage. The United States government has always placed a premium on the environment and its safety and Americans in general are conscious about the environment and what needs to be done to protect it.
The purpose of this paper is to discuss the BP Pipeline case (Case 6.25 on pp. 411-422) and to address the following topics:
• Discuss in detail the ethical, negligence, and environmental issues you see in this case.
• BP had rented the rig from Transocean for $500,000 per day. Transocean had been recognized by the U.S. government for its safety record. Can companies distance themselves from liability and responsibility through the use of contractors?
• Discuss how BP got into the position in which it found itself in late 2006 and what might have prevented the spill, the financial fallout, and the loss of reputation. Be sure to factor in the financial implications of any decision made during the period from 2001 to 2006.
• What was the impact of the emphasis in cost cutting on BP’s culture? What was the influence on the company’s performance?
• Evaluate the social responsibility positions of BP in light of the refinery explosion and the pipeline issue. What can companies learn from the BP experience?
British Petroleum has a large operation in the United States and it has made investments to ensure that it develops these operations to maximize its production and increase profits. One such investment was the acquisition of the vast oil field at Prudhoe Bay, .
Restoring legitimacy in order to remain sustainablepmb25
BP faced both institutional and actionable legitimacy crises following the 2010 Deepwater Horizon oil spill. To repair its legitimacy, BP used non-financial disclosures and image repair discourse strategies in annual reports and sustainability reports. While BP acknowledged responsibility for the spill, it did not fully admit mistakes. BP resigned Tony Hayward but defended his contribution. BP also blamed photographers for altered spill photos rather than taking responsibility. The key factor was whether BP used strategies to restore institutional legitimacy through responsible actions or just actionable legitimacy regarding specific responses.
Running head: BP OIL 1
PAGE
18
BP OIL BP Oil: Marketing to Repair the DamageAuthors NameAmerican Public UniversityDate
Abstract
This marketing plan focuses on the repair of BP’s brand image that was negatively impacted by the Deepwater Horizon oil spill in the Gulf of Mexico. The main focus is to market via: television, billboards, magazine, and social media to consumers. The company’s message is to go over its increased safety and risk management efforts and also the research to ensure that spills do not happen in the future. Additionally, the company will place Electric Vehicle Charging Ports at all of their gasoline stations and will also have a new low carbon fuel that will be available at their stations in 2014. This will draw new and old consumers as they switch to lower emission and more fuel efficient vehicles. BP is at the top of their market in alternative fuel and energy technology and consumers will appreciate that BP is changing with them and continuing to provide quality products that meet their needs.BP Oil: Marketing to Repair the Damage
British Petroleum’s (commonly known as BP) discovery of oil in the Gulf of Mexico in 2009 brought them to the top three of oil producers in the United States, reaching a goal of 300,000 barrels of oil per day (Reed, 2009). This discovery, although very profitable to BP, also lead to the Deepwater Horizon Catastrophe on April 20, 2010 where a drilling rig exploded off of the coast of Louisiana. It took BP three months to be able to seal the pipeline while excessive amounts of oil were gushing into the Gulf’s water. Luc Bardin, BP’s Chief Marketing Officer conceded that the company would have a difficult road ahead to repair the damage done by the spill in the Golf; for the first time the company is not at the top of its market (Durrani, 2010).
BP is a company that has marketed green initiative and positive environmental impact; the company had “flooded the media with advertisements showing solar panels, windmills and waving fields of grass without a drop of oil in sight” for nearly ten year prior to the spill (Daley, 2010). Green marketing for BP pulled blinders onto consumer’s eyes, shielding them from the image of it being one of the largest oil producers in the United States. The green marketing initiative for BP Oil was very successful – I am not sure many other oil companies could have the population believing that they were a green company. BP’s white gloves were oil soaked as soon as some of the consequences of the oil spill began to emerge in the media and this significantly damaged their brand image with consumers.
This environmental disaster brought a lot of negative publicity to BP and the company faced heavy criticism from both consumers and th.
The document discusses the 2010 BP oil spill in the Gulf of Mexico, which began after an explosion on the Deepwater Horizon drilling rig killed 11 workers. It caused over 200 million gallons of oil to spill into the Gulf over 87 days, resulting in massive environmental and economic costs. The summary analyzes BP's risk management and response to the spill, finding they were slow to respond and downplayed the scale of the disaster, damaging their reputation. Lessons include the need for companies to properly manage environmental risks and prioritize safety over profits.
Productions and Operations Management PresentationVeoma Ali
The document discusses BP's public relations and crisis management approach during the 2010 Deepwater Horizon oil spill. It notes that BP's initial response was slow and failed to acknowledge the full scale of the spill or empathize with those affected. BP also deflected blame onto other parties. The document provides recommendations on how BP could have handled the crisis better through transparency, taking ownership, frequent progress reports, and displaying empathy to rebuild confidence. It also discusses lessons learned about the need for collaboration, reliable information sharing, and driving innovation to contain spills.
THE FINANCIAL IMPACTS OF BP’S RESPONSE TO THE DEEPWATER HORI.docxcherry686017
The document discusses the financial impacts of BP's response to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. It summarizes that BP took a $40.9 billion pre-tax charge related to the spill costs. However, the total costs are uncertain due to many factors including fines, penalties, and long-term environmental damage. The document also examines challenges in assessing ecological and economic damages from the spill and outlines needs for more reliable environmental accounting and reporting from companies.
The CASE JournalStakeholders and corporate environmental dec.docxmamanda2
The CASE Journal
Stakeholders and corporate environmental decision making: The BP Whiting Refinery controversy
Bryan T. Stinchfield
Article information:
To cite this document:
Bryan T. Stinchfield , (2009),"Stakeholders and corporate environmental decision making: The BP Whiting Refinery controversy",
The CASE Journal, Vol. 6 Iss 1 pp. 5 - 18
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http://dx.doi.org/10.1108/TCJ-06-2009-B002
Bryan T. Stinchfield
Franklin & Marshall College_______________________________________
INTRODUCTION
During the late summer of 2007, Bob Malone, British Petroleum (BP) America Chairman
and President, was faced with one of the most important decisions of his career – to
expand the Whiting Refinery in northwest Indiana on the banks of Lake Michigan, or to
yield to pressure from the public and not expand operations. Regional and global
consumer demand for gasoline was rising, which helped push prices toward record highs,
and the refinery had an opportunity to expand capacity to help meet that demand.
However, thousands of citizens, a host of environmental groups, and eve.
10-110 Rev. April 3, 2012 This case was prepared.docxadkinspaige22
This document provides background information on BP and the events leading up to the 2010 Deepwater Horizon oil rig disaster in the Gulf of Mexico. It describes BP's history and transformation from a state-owned oil company to a large multinational corporation through acquisitions and cost cutting. It also discusses BP's emphasis on an asset-based organizational structure that decentralized decision-making but reduced oversight of risk management. The document outlines prior safety issues at BP facilities, including an explosion at a Texas refinery in 2005 that was blamed on neglected maintenance and safety measures.
Deepwater Horizon Oil Spill: A Study of Behavioural Decision MakingJerome Dauvergne
This report analyses the genesis of the Deepwater Horizon disaster from a behavioural decision making perspective. In order to write this original paper I borrowed from the investigative work of the environmental journalist Abrahm Lustgarten, and from concepts developed by behavioural finance and emotional finance academics such as the Canadian Hersh Shefrin, the American John Nofsinger, and the Britons Richard Taffler and David Tuckett.
I hope you'll enjoy the read!
BP is one of the largest oil and gas companies in the world. It was founded in 1901 and has undergone several name changes throughout its history. The document discusses BP's operations, history, strengths, weaknesses, opportunities, threats, and PR misfires during the 2010 Gulf of Mexico oil spill. It analyzes 12 mistakes BP made from a public relations perspective, including lack of crisis planning, unsympathetic CEO comments, and focusing too much on image over action.
The BP and Toyota cases concern companies that acted in ways that wo.docxanhcrowley
The BP and Toyota cases concern companies that acted in ways that would clearly cause harm to the public and/or the planet. To do so, individuals at many levels played a part. If you worked in the marketing department of BP or Toyota, explain your department’s responsibility related to these issues. You must use the text and at least one additional scholarly source.
Guided Response:
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week 5 discussion 1
Trudie Harris
12/3/2015 7:55:22 PM
For this discussion, I will take the role of an individual in Toyota’s marketing department. In all my years of lean manufacturing, Toyota has been the gold standard. When I heard about the gas pedal defect, I was in awe. Some have argued that the issue was caused by Toyota’s aggressive growth. They argue that their rapid growth has caused a drastic decline in quality. In 2005, Toyota recalled more vehicles than they produced (Connor, 2010). Perhaps, they got too big too fast.
Ultimately, there was a breakdown in the quality system and the supply chain. As part of the Toyota marketing team, my responsibility, in lieu of the recall, would be to instill confidence back in to the consumer. First, and foremost, I would need to ensure that an explanation is given to the public and to inform the public as to all steps necessary to prevent any reoccurrences. Unfortunately, in today’s world, many parts in the automotive industry are subcontracted to the lowest bidder. As a marketer, I would look at possible vertical integration of components or a more robust supply chain and quality system. It took Toyota decades to build their pristine reputation, but only a short time for them to lose it. It was not the gas pedal that was the problem, it was much more systemic.
The statistics following statistics are disappointing. One study shows that 57% of business college students and adults felt the way the Toyota leadership team handled the recall was disappointing or very poor. Only 18%, had confidence in Toyota at the time of the recall. However, only 13% felt that Toyota would not regain its prominence (Piotrowski, 2010). With these statistics, I would look at developing protocols on how to handle crisis situations.
Mistakes will happen. It is important that the leadership is prepared to handle these mistak.
BP's mishandled response to the 2010 Deepwater Horizon oil spill had severe financial and reputational consequences. The spill released 200 million gallons of oil into the Gulf of Mexico over three months as various containment attempts failed. BP's CEO downplayed environmental impacts and shifted blame, damaging trust. While BP quickly created a website about the spill and compensated fisheries, misallocated funds undermined credibility. The spill cost BP over $65 billion and saw its stock price drop over 50% as the company struggled to address stakeholders and restore trust through its crisis response.
The document summarizes BP's handling of the 2010 Deepwater Horizon oil spill crisis in the Gulf of Mexico. It provides a timeline of events and classifies the crisis as an "accident" under Coombs' crisis typology. It notes that BP did not have an adequate crisis plan and that the CEO's poor communication made the situation worse. It describes BP's use of social media like Facebook to engage with stakeholders. It discusses the negative impact on BP's reputation and lessons learned about crisis communication and managing public perception during such events.
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Unlocking WhatsApp Marketing with HubSpot: Integrating Messaging into Your Ma...Niswey
50 million companies worldwide leverage WhatsApp as a key marketing channel. You may have considered adding it to your marketing mix, or probably already driving impressive conversions with WhatsApp.
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AI Transformation Playbook: Thinking AI-First for Your BusinessArijit Dutta
I dive into how businesses can stay competitive by integrating AI into their core processes. From identifying the right approach to building collaborative teams and recognizing common pitfalls, this guide has got you covered. AI transformation is a journey, and this playbook is here to help you navigate it successfully.
Enhancing Adoption of AI in Agri-food: IntroductionCor Verdouw
Introduction to the Panel on: Pathways and Challenges: AI-Driven Technology in Agri-Food, AI4Food, University of Guelph
“Enhancing Adoption of AI in Agri-food: a Path Forward”, 18 June 2024
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L'indice de performance des ports à conteneurs de l'année 2023SPATPortToamasina
Une évaluation comparable de la performance basée sur le temps d'escale des navires
L'objectif de l'ICPP est d'identifier les domaines d'amélioration qui peuvent en fin de compte bénéficier à toutes les parties concernées, des compagnies maritimes aux gouvernements nationaux en passant par les consommateurs. Il est conçu pour servir de point de référence aux principaux acteurs de l'économie mondiale, notamment les autorités et les opérateurs portuaires, les gouvernements nationaux, les organisations supranationales, les agences de développement, les divers intérêts maritimes et d'autres acteurs publics et privés du commerce, de la logistique et des services de la chaîne d'approvisionnement.
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BP: A Marketing Case Study
1.
2. Summary:
BP’s branding as a sustainable company and adoption of the tagline “beyond petroleum” is examined
from a marketing perspective. The story of the BP Gulf Oil Spill and BP’s response is presented as a
catalyst for public knowledge of inconsistencies with brand promise and behavior. The response and
public reactions are examined before conclusions of the viability of BP delivering on its brand promise
are analyzed.
Company Information:
Name: BP
Type: Public limited company (LSE: BP, NYSE: BP)
Industry: Oil and natural gas, alternative fuels
Founded :1909 (as the Anglo-Persian Oil Company), 1954 (as the British Petroleum Company),
1998 (merger of British Petroleum and Amoco)
Headquarters: London, United Kingdom
Area served: Worldwide
Key people: Carl-Henric Svanberg (Chairman), Bob Dudley (CEO), Byron Grote (CFO)
Products: BP petroleum and derived products, BP service stations, Air BP Aviation Fuels, Castrol motor
oil, ARCO gas stations, am/pm convenience stores, Aral service stations solar panels
Revenue: US $246.1 billion (2009)
Operating income: US $26.43 billion (2009)
Net income: US $16.58 billion (2009)
Total assets: US $236.0 billion (2009)
Total equity: US $101.6 billion (2009)
Employees: 80,300 (Dec 2009)
Website: BP.com
Tags:
Oil spill, branding, BP, beyond petroleum, brand internalization, environmental disaster, crisis response,
occupational safety, greenwashing, social media, public relations, energy, renewables, fossil fuels,
marketing, brand image management, Deepwater Horizon, Gulf of Mexico, economic recovery,
deepwater drilling, offshore drilling, oil rig, honesty in advertising.
Justin Bean, Presidio Graduate School SUS6060-S1
3. Introduction
In July of 2003, BP (formerly British Petroleum) adopted the tagline “Beyond Petroleum”, in an effort to
rebrand itself as a socially responsible, environmentally friendly company. This “fresh reassuring, and
hopeful” strategic brand positioning was effective in making BP a consistently highly-ranked brand in the
minds of consumers throughout the first decade of this century (Heaton, 2010). However, in light of the
2010 Gulf of Mexico oil spill BP’s environmental and corporate social responsibility record has been held
under intense scrutiny, revealing a company that does not seem to hold its identity and actions in close
alignment with its marketing campaign. This paper seeks to analyze the authenticity of BP’s “beyond
petroleum” campaign and especially its branding response to the Gulf of Mexico oil spill, including its
use of social media as a new tool for reaching disillusioned customers and stakeholders.
A Fresh Start for the New BP
BP’s “beyond petroleum” campaign began in July of 2000 as a strategy to position the BP brand as a
leader in cleaner petroleum and renewable energy. Its acquisition of Solarex (as part of its Amoco
purchase) in 1999 gave BP Solar the distinguished honor of being the largest producer of solar panels at
the time, producing 30 megawatts of solar products per year (BP, 1999). Kotler (2009) reports that after
this rebranding, employees of BP felt the company was going in the right direction and had a positive
image of the new brand. The campaign was quite successful, according to the Center for Brand Analysis,
bringing it’s ranking among other global “Superbrands” to number nine in 2009 and twenty-three in the
beginning of 2010. Figure 1 also shows BP gaining brand power after the adoption of the tagline,
peaking in 2008, then dropping slightly in 2009 in accordance with decreasing advertising expenditures
(from $75 million in 2007, $53.5 million in 2008, to $32.8 million in 2009), as well as declining industry
average brand equity trends ($13 billion in 2008 to $7.4 billion in 2009, or a 43% drop), (Branding
Strategy Insider, 2010). However, according to the same research, BP’s brand equity decreased less
dramatically (from $19.9 billion in 2008 to $14.3 billion in 2009, or a 28% drop), suggesting that its brand
value may have acted as a buffer during this period.
Figure 1. Source: Branding Strategy Insider (2010)
Justin Bean, Presidio Graduate School SUS6060-S1
4. From an external and internal branding point of
view, this campaign would seem to be a
remarkable success; however, it doesn’t seem to
correspond with BP’s record. BP has been
criticized repeatedly for environmental violations,
oil and propane gas price manipulation, safety
violations, falsifying inspection reports,
hazardous substance dumping, and its
involvement in environmentally-damaging
practices such as extracting oil from Canadian oil
sands (Wikipedia, 2010). Ninety-seven percent of
flagrant willful safety violations, (which the
Occupational Safety and Health Administration
defines as: “committed with plain indifference to
or intentional disregard for employee safety and
health.”) in the refinery industry were attributed
to two of BP’s refineries (Texas City and Toledo, Figure 2. Source: Center for Public Integrity, (2010).
Ohio), many of which had been cited before in various areas of the plant and went uncorrected, leading
OSHA to the conclusion that “BP has a serious, systemic safety problem in their company.” This
disregard led to an explosion at the Texas City plant in 2005 which killed 15 people and injured 170
others, as well as a chemical leak in 2010 (two weeks before the BP Gulf of Mexico oil spill) that released
530,000 pounds of carcinogenic, poisonous, or dangerous chemicals into the air of Texas City (CPI, 2010).
Despite its successful brand positioning and strategy, BP was not delivering on the promise of its brand
internally. Even in the renewable energy sector it only dedicated 4% of its exploratory budget to some
form of renewable energy, a substantial amount and a move in the right direction, but not enough to
qualify the entire company as being beyond petroleum (Goodman 2010). In its Second Quarter Results
for 2010, BP reports that recordable injury frequency, integrity management major accidents, as well as
loss of primary containment incidents have all decreased since 2000, 2004, and 2008, respectively, and
according to the same report, injury frequency has been decreasing over the stated period for the
industry as a whole as well (BP, 2010). In spite of these efforts, BP’s overall operations still focused on
producing oil, a major contributor to climate change and human health dangers globally, and did so in a
way that put stakeholders (including shareholders) at considerable risk of harm or loss.
Trouble on the Horizon
On the night of April 20th, 2010, abnormal pressure inside a marine riser on the Deepwater Horizon
drilling rig (owned by Transocean Ltd., operating on a BP-owned well) caused an explosion on the
platform, killing 11 workers and injuring 17 others. The ensuing oil spill into the Gulf of Mexico , one of
the US’s most economically productive and biologically diverse bodies of water, released as much as 185
million gallons of crude oil (for comparison the 1989 Exxon Valdez oil spill released 11 million gallons),
the largest accidental marine oil spill in the history of the oil industry (NYT, 2010). BP’s safety record
and procedures came under intense scrutiny, and public outrage built as more was revealed about its
Justin Bean, Presidio Graduate School SUS6060-S1
5. disregard for worker and environmental safety. Boycotts of BP gas stations, protests in front of the
London BP headquarters, and 24-hour news coverage of the spill (brandishing the name “BP Oil Spill”)
helped to degrade trust and belief in the brand image, as well as leading to a 52% drop in stock value
(the lowest since 1996), net quarterly loss of $16.97 billion, $2.9 billion in clean-up costs up to June 30th,
2010, and total costs of the spill for BP anticipated at $32.2 billion, roughly the same amount as the
entire nominal GDP of Kenya (BP, 2010; IMF, 2009).
The Crisis Response
BP’s initial reaction to the spill was to downplay the damage, estimating that only 1,000 barrels per day
of oil were spilling into the Gulf, and later saying “somewhere between 1,000 and 5,000” after a
separate 5,000-barrel-per-day leak was discovered (Slate, 2010). This had the effect of damaging their
credibility and trust early on, leaving the public skeptical of future statements. Then CEO Tony Hayward
also made a series of unfortunate contradictions and gaffes (presented in table 1), making the
company’s motives appear to be dubious, insincere, and out of touch. Hayward also initially shifted
blame to Transocean Ltd., but said they would give full support to the clean-up effort. This was
perceived as an avoidance of responsibility on BP’s part, further degrading the public trust in its
communications (Slate, 2010). Hayward later resigned and was replaced by the executive in charge of
the Gulf Coast Restoration Organization, Bob Dudley, in October of 2010. Efforts to downplay the
severity of the spill, cover only the positive developments in the clean-up, or over-sympathize with the
victims were seen as patronizing, met with public outrage, charges of greenwashing, and reiteration of
past shortcomings (Greenpeace, 2010).
Tony Hayward and BP Notable Gaffs
“We're sorry for the massive disruption it's caused to their lives. ...There's no one who wants
this thing over more than I do. I'd like my life back."
- May 31st, to reporters during the aftermath of the deadly explosion.
"What the hell did we do to deserve this?"
- After 760 safety violations in 3 years and lobbying for less restrictive safety regulations.
“…whether it was food poisoning or some other reason for them being ill, you know, there's a
-- food poisoning is surely a big issue when you've got a concentration of this number of
people in temporary camps, temporary accommodations. ...You know, armies march on their
stomachs."
- Speaking about the hospitalization of seven clean-up workers who experienced nausea, headaches,
nose bleeds, dizziness and chest pains, doctors surmised that they might have had negative
reactions to the toxic dispersant BP used to break up the oil spill.
" The Gulf of Mexico is a very big ocean. The amount of volume of oil and dispersant we are
putting into it is tiny in relation to the total water volume… I think the environmental impact of
this disaster is likely to have been very, very modest "
- May 28th, after scientists determined the devastation to be “catastrophic”.
"I hear comments sometimes that large oil companies are greedy companies or don't care, but
that is not the case with BP. We care about the small people."
- June 16th, Chairman Carl-Henric Svanberg, expressing his concern for the Gulf residents.
Table 1. Source: Daily Finance (2010).
Justin Bean, Presidio Graduate School SUS6060-S1
6. Later BP pledged $500 million over a 10-year period to the Gulf Research Institute to research and
assess the environmental impact the spill had on the Gulf, provided grants totaling $170 million to the
states of Florida, Mississippi, Louisiana, and Alabama in an attempt to alleviate the impact of the spill on
the states’ economies, established a charitable fund of $100 million for unemployed oil rig workers,
donated $15 million for behavioral health outreach and support programs in Louisiana, set up a new
Safety and Operational Risk Unit which would have the authority to intervene on any technical activity,
and vowed to pay all “legitimate” claims for damages resulting from the oil spill (BP, 2010). These
actions were a step in the right direction to restore its already decimated brand value, but BP needed a
way to reconcile the need to spread word of their efforts with the need to avoid the appearance of
greenwashing.
During the Exxon Valdez oil spill which, until 2010, was the largest spill in American waters, Exxon
similarly tried to downplay the damage, pledged to pay for all of the clean-up costs, and compensate
stakeholders for the damage. However, over time it failed to deliver on this promise, was embroiled in
litigation for some time after the spill, and appealed several decisions in order to pay lower damages
and distance itself legally from the negligent conduct of the Valdez’s allegedly intoxicated captain (who
was acquitted of the charge at trial). BP and Exxon both shifted blame to other parties, vowed to pay
more than they privately admitted to intending to pay, failed to acknowledge the uncertainty in the
situation, and focused on technological solutions early on, as opposed to addressing the human crises
(Washington Post, 2008; NYT, 2010). Despite the passing of over two decades, the name Exxon is still
synonymous with the Valdez oil spill, a fate which BP’s
brand would do best to avoid. But BP is in a different world
of media than Exxon found itself in, with all the
opportunities and difficulties that go along with it.
Social Media Campaign
It took seven days after the oil spill for BP to send out a
tweet about its position or efforts to control the spill,
seemingly another mistake on their part in the early days of
the crisis. The common perception was that BP didn’t
value its stakeholders enough to communicate with them.
It also didn’t help BP appear to be technologically advanced
or in touch with modern social media communication styles.
However, after its first tweet on April 27th, BP became very
proactive with its social media presence, tweeting a dozen
or more times per day, tweeting crisis hotline numbers for
wildlife and volunteers, as well as articles and updates on
the state of the Gulf. This effort, along with its long delay
before using Twitter, drew fire from a BP twitter parody
(BPGlobalPR) that tweeted humorous and sarcastic updates,
which had over 188,000 followers, compared to BP’s
18,000. BP demanded that Twitter enforce its parody rules Figure 3. Source: Twitter.com
Justin Bean, Presidio Graduate School SUS6060-S1
7. and have the tweeter state that it was, in fact, joking (NYT, 2010). It also updates its Facebook profile
daily with details of oil recovered for that day and total oil recovered thus far. The Facebook page
allows fans to comment about anything they want, not censoring criticism or insults, making it appear
more transparent and effectively facilitating a public venting session. In addition BP’s YouTube channel
has messages about the clean-up efforts, executives and workers speaking about the spill, while their
Flickr photostream shows photos of the cleanup, community outreach, oil-soaked wildlife, and
controversial altered images alongside the originals, next to a statement to demonstrate the extent to
which the photos were altered. BP also paid for search results on Google to bring up BP’s spill response
site link on top, above environmental group listings, assuring it maintain visibility during the crisis.
While the initial social media response was generally deemed slow and wanting for detail, BP’s later
aggressive focus on social media, while receiving a mixed bag of responses, has been perceived as a
good effort to restore its brand, giving BP a more human face than when using traditional PR tactics or
downplaying the crisis (Slate, 2010). While a steady barrage of reports and positive news from the
company itself could be perceived as propaganda, in times of crisis there is no such thing as
communicating too much. BP overall has done a relatively good job via social media of appearing to be
transparent, providing detailed information about the clean-up efforts and updating the public on its
efforts, passing along reports of the Gulf’s recovery, and making available contact information for
members of the social media network to help in the efforts to save wildlife and recruit volunteers.
Much of the criticism of the social media methods being implemented by BP revolves around not using
two-way communication, not involving itself and its stakeholders in a conversation, but rather simply
broadcasting messages and providing updates (Mitch, 2010). Because BP is new at such intensive use of
social media, it may not have yet figured out how to actually engage the public without creating liability
issues or creating more of the dreaded gaffs that helped to accelerate the downfall of the BP brand at
the outset of the crisis.
Beyond the Horizon
BP’s branding was initially a success story, becoming one of the most powerful global brands; gaining a
positive reputation, and the respect of its customers based on a sustainable social and environmental
message. However, it became apparent after the BP Gulf Oil Spill that the company’s operations and
management culture did not align its identity with this sustainable strategy. The fundamental question
BP should have asked itself before aggressively branding the company as moving “beyond petroleum”,
as well as during the following decade is “can we and are we delivering on this promise?” Great, lasting
brands are earned; built by consistently delivering on brand promises and internalizing the brand
philosophy (Kotler, p. 262, 2009). BP had a chance to leverage the goodwill within its company when
employees praised it for going in the direction of “beyond petroleum”, however, given its safety and
environmental record, and relatively small renewable energy profile, it failed to set an agenda to reverse
these trends, or internalize the spirit of the tagline into its operations and management.
Justin Bean, Presidio Graduate School SUS6060-S1
8. An essential criticism of the beyond
petroleum campaign is that BP is, at
heart, an oil company. Oil
consumption, while demanded in
enormous quantities by consumers, is a
leading cause of many environmental
and human health issues globally. Even
if BP had adhered to or exceeded
safety and environmental regulations,
would it ever have been able to deliver
on promises of moving “beyond
petroleum”? The truth is that
petroleum made up 93% of BP’s
investments in 2008, and although
investing in the other 7% in renewables Figure 4. Source: Greenpeace (2010).
(2.79% wind, 1.39% solar, and 2.79% biofuels) is a good effort for an oil company, it far from delivers on
the claim of being beyond or moving beyond petroleum as a primary source of income or focus of
investments (Greenpeace, 2010). This very fundamental contradiction may have been forgiven and a
resevoir of of goodwill created if BP had a flawless safety record, personable executives who didn’t
unintentionally insult stakeholders, and more progressive environmental standards. But the nature of
doing business in immense volumes with a polluting, poisonus substance that the public has seen cause
numerous environmental disasters is one of immense risk to external and internal stakeholders. This
risk cannot be mitigated by a better logo design, bright, catchy commercials, or a dynamic social media
campaign. The brand may be able to recover in time and may even regain the trust of customers, but
this trust will be misplaced and fragile until BP can actually align its operations, management, and
internal philosophy with the brand promise and goals. In short, a company that implements the brand
promise of “beyond petroleum” must be able to do and show that it’s doing just that: moving beyond
petroleum.
Justin Bean, Presidio Graduate School SUS6060-S1
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Justin Bean, Presidio Graduate School SUS6060-S1