The Oil Spill In Gulf Of Mexico Commerce Essay

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British Petrol as a oil drilling company has rented the oil platform to company Halliburton, which, as we thought they should take responsibility for what happens. They still reject the allegations and want to wait for the investigation.

It is clear that the cause may never disclose, because platform exploded and a initiator in the discharge of oil would be difficult to find today even by the best scientific team. With the lighter it was just a simple example of an example. However in stake is also the owner of the whole rig, the company Transocean.

British energy company BP filed prosecution for last year's disaster in the Gulf of Mexico before on U.S. company Transocean. Company is accused of negligence and now sued for at least 40 billion U.S. dollars. Transocean was the owner of an oil platform Deepwater Horizon, which exploded a year ago. Greater amount of money wants BP sue also from Halliburton. During the explosion were killed 11 people and spilled oil significantly polluted the sea.

The amount of 40 billion U.S. dollars includes expenditure incurred by BP in particular in connection with the payment of compensation. Transocean said the amount requested is unreasonable and unfair judicial action. Market value of financial records by Transoceanu Yahoo Finance site, only slightly exceeds the amount of 24 billion U.S. dollars.

"Deepwater Horizon has been first class oil rig on which he worked out the best staff". (Transocean)

BP reports on damages exactly one year after the accident. April 20 was the last day, which could be raised claims in this case. BP seeks damages from another American company, Cameron International, a supplier of technical equipment and services for mining companies.

Last year's disaster in the Gulf of Mexico was the result of several factors. This key was cracked by investigators underwater borehole Macondo, which BP held together with other partners. The project, however, had the largest share of the British company and was therefore identified as the main culprit. BP argues that the cost of settling claims would be borne by all.

Conduct research and provide an analysis of BP's strategy before the accident occurred using appropriate strategic frameworks (which you have learned throughout this module)

From the research we can observe that BP has stabilized its competitive advantage in 2007 where they restored its core business, which are trading and supply.

Before the company under the name of British Petroleum was known as main player in oil and natural gas business. Recently they have also diversified to „alternatives" as solar panels. They used to drill oil originally in Persia but due to a nationalization of oil fields in Middle East their production was downsized and that had to develop a new strategy. However new strategy involved core business as drilling and refining they have diversified in 90"s into alternative sources as hydrogen, natural gas, bio fuels and solar and wind power. This decision was made to show that they are part of elimination of pollution and promotion of environment.

Their strategy involves following goals in exploring all forms of energy and not only oil.

And this strategy caused the fact that their name as British Petroleum doesn't fit its interests so they have change the brand as BP(beyond petroleum) only which they assume will connect them with energy at all as former name described connection with oil. This was also done for international purposes as to sound better in the world.

Their new strategy involves also advertising of their plans as investors in alternative energies explorer. However their strategy focuses on new alternative energy sources their plans doesn't involve decrease in drilling of oil but it should only show the intend not to be strictly dependent on it. This is a good example of intended/planned strategy based on resources view where oil and its resources are unpredictable.

· Discuss implications of BP's strategy in terms of public perception and its possible impact on business performance

Even though that company is known as a primer element in oil industry that has shown its interests in global warming and use of energy, its credibility in green effort has dropped when they backed away from Global Climate Coalition. In order to keep their green status they have invested in „Beyond petroleum" to show their intend as company with social responsibility.

This strategy has created a couple of different notions in public perception. The research states that between customers was BP recognized as a „greenest" of oil companies. It has also favorable impact on business performance where noticeable increase in sales war recorded between 2004 and 2005. And BP also states that their brand awareness has increased from 4 to 67­%.

Another notion has arisen between critics who stated that company has only implied green language in its strategy to confuse the public. However this green campaign works well for marketing strategy and sales as stated by John Stauber, known for foundation of 'Center for Media and Democracy".

SWOT analysis of British Petroleum (BP)

British petroleum is known as a largest company or one of the largest companies that operates in oil business. Its operations also involves except oil drilling production of natural gas, manufacture of lubricants and petroleum products. They also trade gas and power as well as liquefied natural gas. Recently they have diversified or they have intention to diversify to alternative energy resources under the umbrella of green campaign where they showed interests in global warming and change the brand for Beyond petroleum.

The SWAT analysis.


As strength in competitive environment I see the fact that BP operates worldwide with its chains of retail brands.

Another strength i see in its brand name that is strongly related to oil products and manufacture.

Recently developed idea and changing the brand to Beyond petroleum is another strength that has caused inclination of positive public notions to company's operations and intends under the green campaign.

Bp has also strong position in London stock exchange.


As a weakness that doesn't play in favor of the company is increase of petrol prices caused by global economic crises and change of political environment.

Another weaknesses are accidents that have occurred in BP's history with recent one in Mexican gulf where refinery has exploded.

Next it's closing the oil operations in Alaska due to a oil spill and leakage.


As an opportunity i see investment into alternative energy resources where company receives positive feedback from public and also increased sell of products were recorded.

Another opportunity would be company's expansion globally for example in North sea or Russia.

In regard to competition and gaining competitive advantage the revaluation of prices could bring more flexibility that would strengthen competitive advantage among competitors.


As a threat we can evaluate the policies that doesn't sound in favor of environment due to oil and toxic spills.

Also explosions of refinery caused occasionally contribute to bad reputation of the company.

Threat in the market is also presented from companies shell and Chevron.

Another threat is closing operations in potential areas

Sale of stations that were corporate owned.

Arising lawsuits against the company due to its activities and ecological impacts.

Research related literature on strategy, e.g. positioning, resource-based view, dynamic capabilities.

Dynamic capabilities.

BP understands these facts not only as a moral obligation, but also as a business opportunity. As one of the largest companies in the world, operating in this sector of the energy industry, BP Company focuses on the production of hydrocarbons and petrochemicals, and it's building more new energy sources.

This implies to a strengthening of natural gas production, dynamic development of the solar energy per year for 25 to 30% and in addition, the introduction of fuels with low sulfur content to 60 cities in the world, which have significantly worsened the atmosphere. As regards the social level - they have created a global strategy to enhance job opportunities, they are considered as human rights defenders, they maintain partnerships with government organizations, international companies and non-governments organizations (NGOs). In addition they are actively participating in free discussion, in which the whole society address the issues.


Resources based view.

Poorness reduction, environmental protection and human rights, ensure of the material certainty is also possible only by close cooperation between government, civil and commercial sectors. Successful social development in today's context of globalization depends on the level of economic development, which largely determines the energy industry and use of energy resources. The question is legitimate in terms of demands on environmental protection, how much is society willing to invest to it, that 55% of world population growth over the next 50 years would be accompanied by an equal basis with economic development.


More than 80% of world energy consumption is based on raw materials. According to an optimistic estimate - over the next 25-50 years, the proportion of hydrocarbon will remain the same, alternative energy sources will help to significantly reduce our dependence on these natural resources. Sectors that are directly involved in mining and processing of these resources must be able to face this fact. Bp's activities - exploration and production, natural resources processing and marketing - are closely related to the issue of global warming and air quality.

Currently, where it is still confirming the negative impact of unrestricted and rapid socio-economic development on the environment, the emphasis shifts to knowingly sovereign and natural-based and development process. They believe that they can and also be required to participate in resolving issues based on this fact. Like any company, as well as BP must first pay attention to its own profit, but still not forget the very serious social issue, and environmental protection. A balance is thus one of the fundamental conditions: keep them in business competition, while complying with the Governments, Government organizations, employees, media, investors and also meet customer expectations

Essential pillar of the strategy of environmental protection of company BP is radically reducing the burden on the environment, support and active participation in all activities towards this goal. As part of their everyday work they therefore pay great attention to highlighting of security treatment of emission of hazardous substances. In other words, strive to maximize efficiency.

We have an exceptional view of the case.

We believe that our society should be so's competitive and successful. It should also be a positive driving force. At all places where we operate, we are trying to act powerfully, responsibly and predictably.

In all, what we are trying to be original, so that we can be considered as part of a constructive and innovative solutions regarding rising energy needs, resources and services.

We want to contribute as much to the progress of mankind. We believe that our work is beneficial to offer many opportunities and also has a positive impact.

Every day millions of our customers dodávame tech products - petrol for transportation, energy for heat and light, petrochemicals for plastics, solar energy, fiber and other substances, helping them to improve the living conditions.

Thanks to our philosophy it ranks among the most successful companies in the world, as demonstrated by our market value of more than 210 billion U.S. dollars.