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.