BP Company Case Study

BP Company Case Study

1. BP COMPANY CASE AYDIN SANCAK - MEHMET METİN - OSMAN KAYTAN - SEZEN GÜRDAĞ MARKETING MANAGEMENT APRIL 1, 2016

2. COMPANY OVERVIEW BP plc . is one of the largest vertically integrated oil and gas companies in the world . The company's operations primarily include the exploration and production of gas and crude oil , as well as the marketing and trading of natural gas, power, and natural gas liquids. BP operates in Europe, Asia Pacific, Afric a, and the Americas . It is headquartered in London , the UK, and employed 8 4 , 5 00 people as on 201 5 .

3. William Knox D'Arcy, the founder of BP, entered the oil industry in 1901 by obtaining an oil concession in Persia (Iran) . In 1909, D’Arcy formed the Anglo-Persian Oil Company (APOC ). British navy switched from coal to oil. In order to protect its supplies of this now-crucial military resource, the British Government acquired a controlling share (50.0025%) of APOC in 1913 . It was renamed the Anglo-Iranian Oil Company (AIOC ) , in 1935 . and changed its name to the British Petroleum Company Limited in 1954. In 1959, the company expanded beyond the Middle East to Alaska A BRIEF HISTORY OF BP 1901 1909 1913 1935 1954 1959

4. I n 1965, it was the first company to strike oil in the North Sea . The name British Petroleum Company PLC was adopted in 1982 . T he British government privatised the company in stages between 1979 and 1987 . British Petroleum merged with Amoco in 1998, becoming BP Amoco plc , acquired ARCO and Burmah Castrol in 2000, becoming BP plc in 2001. A BRIEF HISTORY OF BP 1982 1965 1987 1998 2001

5. SWOT ANALYSIS Strengths One of the biggest company in the energy sector Wide geographic presence High quality operations Strong Brand Name Robust research and development initiatives Vertically integrated operations Opportunities Increasing fuel/oil prices Increasing natural gas market More oil well discoveries Expand export market Investment s in alternat ive energy business Threats Government regulations Risks concerning environmental regulations Highly competitive industry Increasing Cost of Operations Weaknesses Cost of environmental hazards Oil spill in the Gulf of Mexico Negative Public Perception Decline in production S W T O

6. PR MISFIRES OF BP In responding to a question about BP’s safety record in an interview with ABC’s George Stephanopoulos, BP CEO Tony Hayward said : “ I think we’ve made enormous strides as a company in the last three or four years with a remorseless focus on safe, reliable operations.  Ah, this wasn’t our accident. This was a drilling rig operated by another company. It was their people, their systems, their processes. We are responsible not for the accident but we are responsible for the oil, dealing with it and cleaning the situation up.”  

7. PR MISFIRES OF BP 12 epic mistakes that BP made from public relations perspective : No 1: The company should have had the billions of dollars worth of equipment , plans and personnel working to prevent and if necessary to clean up the potential ecological disasters .

8. PR MISFIRES OF BP No 2: CEO need to be hired for their leadership abilities so they have to be competent communicators . If they work for a billion dollar coprporations they need to be outstanding leaders and dazzling communicators . Needed a CEO not the best engineer !

9. PR MISFIRES OF BP No 3: Apr . 20: the day of explosion ; The company did not have any adequately prepared and practiced crisis communication plan. Even Andrew Gowers , BP head of group media , told the NY Times, « It is not always easy to get your message across , the media focus has been so intense it has been a challenge to respond as fully as we would like on every issue . Strong need for a crisis plan that includes a communication component !

10. PR MISFIRES OF BP No 4: April 29: Tony Hayward , CEO, should not have said the things if you do want something out of the news ! « What the hell did we do to deserve this .» You should not speak of what should not be said in the first place !

11. PR MISFIRES OF BP No 5: May 3: Hayward said BP would clean up the oil but that they were not responsible for the drilling rig and crew leased by BP. So , two character issues : First; arguments have to make sense ! Second; accountability . You have to take responsibility for your actions !

12. PR MISFIRES OF BP No 6: May 14: Hayward said the Gulf of Mexico is a big ocean and characterized the amount of oil pouring into it as tiny and insignificant … Do not bait your enemies ! They will come back on you with more force and intensity !

13. PR MISFIRES OF BP

14. PR MISFIRES OF BP No 7: May 17: BP began siphoning oil from the ruined riser pipe collecting 1000 barrels a day . Hayward said they had turned the corner in dealing with the problem. Siphoning solution was later abandoned . Do not give false hope ! Think quickly and act slowly !

15. PR MISFIRES OF BP No 8: May 30: Hayward told the people of Louisiana that BP is sorry but then said that no one wants this over more than he does and that he would like his life back . Arrogance ! Public relations staffs need to keep people like this under wraps !

16. PR MISFIRES OF BP No 9: June 3: BP started a 50 million TV campaign saying that they were sorry and that they would make this right . Clean up every drop of oil and restore the shoreline to its original state . The bigger issue is the ecological and economic disaster not the public relations problem. Should not have spend this much on a communication campaign while the commitment to funding economic and cleanup is still in doubt signals for BP appearances are nore important than reality . Actions speaks louder than words !

17. PR MISFIRES OF BP No 10: June 8: BP chief Operating officer took the word saying that in a few days the spill would be down to a trickle of only 10 to 35 barrels of oil a day . İnstead of him , a higher ranking officer should have spoken … If things go bad CEO can steo in and repair the damage . When the CEO causes the problem, the only solution is having the next highest ranking officer to announce that the CEO has been dismissed and restart the dialogue on more ethical grounds .

18. PR MISFIRES OF BP No 11: June 19: Hayward took part in an exclusive yachting race with his son off the cost of the Isle of Wight . A BP spokesperson said he had not had a break since the spill began and he was just spending a few hours with his family … W hat he did symbolically alienated himself from the public . Instead he would have gone fishing or boating … Marie Antonitte rule !

19. PR MISFIRES OF BP No 12: BP board Chairman Carl- Henric Svanberg publicly expressed his compassion for the « small » people . Offensive because of the elitist context created by the yacht race . BP staff explained that small people has a more positive connotation in Svanberg’s native laguage . The response was too little too late … BP’s public relation efforts were reactive when they should have been proactive …

20. PR MISFIRES OF BP In summary ; Every mining organization no matter how small should have one top executive responsible for public relations . Should have a yearly responbility of assessing possible crisis scenarios and preparing to deal with them . This can be managed by attending public relations workshops , reading the public relations columns and stories in industry publications , by monitoring public opinion and if necessary retaining public relations counsel .

21. BP COMMITMENTS FOR GULF COAST BP Gulf Coast Update Our Ongoing Commitment

22. BP COMMITMENTS FOR GULF COAST

23. KEY SOURCES OF ENERGY GROWTH

24. HOW THE ENERGY PRODUCES ECO-FRIENDLY (ALASKA SAMPLE) VİDEO-2

25. The BP E DUCATIONAL SERVICE (BPES)