STRATEGIC PLANNING

Strategic Implications of the Recent BP Deep-Water Horizon Accident

Strategic Implications of the Recent BP Deep-Water Horizon Accident

Introduction

Increased competition is actually an octopus with many legs. One leg is changing the technology so rapidly, that often new inventions of yesterday are almost out dated the next day. Another leg of this octopus is on changing the environment so rapidly that a company not responding to it becomes obsolete itself. The companies which were focusing on prices and product features have been forced to act to the ethical concern as well. This is because of the proliferation of information through electronic and digital media. Any firm trying to neglect its responsibility in the community is highlighted very soon. It has been noted that, customers seriously consider the social conducts of the companies of which they use products. British Petroleum faced an accident in deep waters, which seems to have tax its reputation. Now the company is facing the music from the legislators and the consumers.

Discussion

Strategy as defined by Kenneth R. Andrew is, “The pattern of decisions in a company that determines and reveals its objectives, purposes, or goals; produces the principal policies and plans for achieving those goals; and defines the range of business the company is to pursue” (Andrews, 1980, P. 18).

The Deep Water Horizon oil spill is the name of the disaster that happened in the Gulf of Mexico. It was an oil spill that continued persistently. It happens to be the largest accidental marine oil spill in the history of petroleum industry. It all started with the spill in seafloor from oil gusher. It was damaged when an explosion of Deep water Horizon happened on 20th April 2010, which drilled on the BP-operated Macondo Prospect. The explosion claimed lives of 11 men, who were working at that time on the platform and injured 17. The gushing wellhead was capped later on 15th July 2010. It was caped after the spill had released 4.9 million barrels of crude oil in the ocean. The consequences of this are devastating for the marine life as well. It was not before 19th of September 2010 that the relief process was completed successfully. The federal government called the well finally “Effectively Dead”. This was just the beginning of disaster. Just like a severe injury to body, the real far reaching consequences of this disaster appeared well after the incident. In August 2011, there were reports of oil and oil sheen covering, which covered several miles of water, surfacing near Macondo well of BP. Later the scientific analysis confirmed that this oil has been the same that was spilled from Macondo well. The statement of Coast Guard was that, the spill is too large and dispersed to recover. After a long time, in March 2012, a persistent oil seep was reported near the Macondo 252 well.

This is the ultimate nightmare of any petroleum company to have such a situation. In these situations, all media not only local but global, asks ...