British Petroleum (Bp) Case Study
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 …show more content…
We evaluate oil business environment from four perspectives, political factors, economic factors, socio cultural factors, and technological factors. PEST analysis gives company opportunity to see a longer horizon of time, and be able to clarify strategic chances and threats that the organization faces. This evaluation lets us prepare better solution of problem and strategic plan that will successful in the future.
1.5. Assumptions: * This case was conducted at the beginning of 2011 * There was not another major problem affecting to BP except the oil spill in Mexican Sea.
Performing PEST analysis, we found following key factors:
From political perspective, we would like to mark, the most important recently happen event that after long discussion with some oil companies, such as Shell, Exxon Mobil, Chevron and BHP Billiton received permission to continue their drilling work in The Mexican Sea. Moreover, BP also received that permit; however, after other companies and with different limitations and strict rules. Nevertheless, companies can continue their work, but they are not let to drill new ones. Even though the works in Mexican Sea was started again, the damage after disaster still exists and there are not any proved forecasts when environment will be completely clean and re-establish.
Furthermore, some events that are going on now in the World nowadays have huge influence on oil industry. There are problems in