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MODULE PROJECT INSTRUCTIONS-WEEK 7 trategy occurs in increasingly

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MODULE PROJECT INSTRUCTIONS-WEEK 7;trategy occurs in increasingly complex environments which are continually reshaped by forces of globalisation and by technological advances. These changes not only affect the pace of change in the organisation?s environment, as well as in its resource portfolio, it also requires of strategic managers a heightened sensitivity to the public appearance of their decisions. The ubiquity of media and electronic communication in our daily lives affords the public hitherto unimaginable insights into managerial or political communications as, for instance in the case of Wikileaks, and holds the possibility of projecting newsworthy issues onto a world-wide audience. Moreover, empowered by the ability to choose between many potential suppliers from around the world to satisfy their needs, consumer choices are increasingly based on ethical considerations. The ways in which a firm?s actions are perceived are therefore of paramount importance when making strategic decisions. However, this raises the question of the suitability of strongly analytical strategy formation processes, as well as dominantly endogenous, resource-focussed approaches to sufficiently consider the importance of the symbolic capital (Holt and McNulty 2008) that establishes authority and credibility with various stakeholders.;Following your analysis of a Shell oil spill in Nigeria in the ?becoming a leader? module, you are now asked to consider the strategic implications of the recent BP Deepwater Horizon accident.;Your analysis should include thoughtful consideration of the MBA programme threads. You will find information and outcomes from the event in the following article;http://www.ft.com/cms/s/0/c1945fcc-c0f4-11df-99c4-00144feab49a.html#axzz1Azmu20Ut;In addition, you may want to incorporate ideas from the following articles in your project;Tsoukas, H. (1999) ?David and Goliath in the risk society: making sense of the conflict between Shell and Greenpeace in the North Sea?, Organization, 6 (3): 499-528.;Holt, R. & McNulty, T. (2008) ?Securing the license to act: a foundational capability?, Journal of Strategy and Management, 1 (1): 72-92.;Your final module project analysis should address the following;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);Discuss implications of BP?s strategy in terms of public perception and its possible impact on business performance;Critically discuss BP?s ability to strike a balance between its interests and wider needs and expectations in light of the strategic frameworks and models you have encountered;In the final submission, in week 7, submit approximately 4,000 words in which you address the following;Synthesise theories and models from the module readings and literature (that address the issue in the situation).;Utilise effective discussion, analysis and conclusions showing critical thinking to propose solutions and address the following questions;What are the implications of BP?s strategy in terms of public perception and how may this impact upon their performance?;Critically discuss BP?s ability to strike a balance between its interests and wider needs and expectations in light of the strategic frameworks and models you have encountered.;Provide correct referencing and citation;Be sure to cite and reference examples from the module textbook and journal articles presented in this module as well as resources you identify from your own research. Your submission should demonstrate critical analysis of the topic and a coherent application of related theories.;Attachment Preview;Week-4-Project.docx;Introduction & Historical Background;Shell British Petroleum is one of the top ranking oil companies which are well known all over the;world of todays modern times. It develops and ventured into international oil business as from 1957;with some 55, 0000 numbers of employees that same year. BP has always really set to remain ever;focused to keep on expanding in its area of core oil business in international scale as well as keep on;increasing its operations and keep on maintaining its presence in about 60 countries to date. In the;next four years or more, it embarked into aggressive mergers and acquisitions, which enabled BP to;more than double its human resources size figure up to 117,000 employees. Also, BP extended its;expansion into new emergent markets.;A former British firm in partnership with a Dutch parent company merged together to formed and rebranded it name to called themselves with the name Shell BP, and later grew in larger size and at the;same time because of its sheer huge sized, it is bond to faced with a myriad of challenges and wider;responsibilities, for example, having managed in building a unified global organization for itself;which was made possible through merging together further with additional nine separate companies;it acquired, thereby making BP to having a name in the oil exploration history.;Organizational Values;BP organization successfully created a strong re-new branded corporate symbol and culture, and set;to identify itself cohesively in both internally and externally with all of its employees, stockholders;its customers, partners, and was enabled to establish good corporate relations with most national;governments in countries where oil production is the main stay of the economy as well as around the;world, in its renew efforts to increase its core oil business. Also, with inputs from its employees, and;so also from all its international operations and alongside its other functional companies, BP further;established four strong values as part of the basic of the re-new brand logo.;These four values serves as tool for motivation and as an engine of drive, which are (1) performanceoriented, meeting financial and operational goals, (2) innovation, research & development towards;finding new ways of evaluation in trying at arriving with options and solutions towards solving;situational problems, (3) ensuring progressive paths and routes, recognizing and building on its;diversity structure and working with other related industries in developing new fuels and increasing;equipment usage, and (4) participating in green house effect as an environmental issue, and acting;responsibly on issues concerning environmental concerns.;BP emphasized and drive through often its standardize corporate internal policy of its four values as;a strict method of practice, as these were effectively tested and considered very acceptable and;workable formula for a unified and motivational tools for its entire organizational structure, and keep;on applying these similar values no matter which country it is operating in or found itself in, and;despite that it continue to pursue it interest in oil business involvement. Also, still keep on;maintaining rigorously such practices always.;BP has a better communication structure across its entire organizational internal structure at different;levels of its employees around the globe, definitely reflected with the corporate brand symbol/logo;which represents how its all values often relates BP in its everyday oil and energy activities, and this;has became as ongoing process in it entire daily core oil, gas and petroleum business. It global;enterprise drives also has strives and ensuring that its numerous customers and the general public as;well as other external entities got familiar with its corporate brand symbol and name insignia which;are all underlying and symbolizes the chosen set four values, and also these values helps her to stem;out the public's general negative perception about oil industry during it struggling to maintain it;posture when the oil spill disaster had occurred.;BP believes that its core values are universal, cutting across differences in culture within the scope;of its business environments, wherever they are in the world. Michel Van Eesbeeck, head of Group;Branding, said that if all of its entire employees come to clearly understand it central established;core values, the delivery across various cultures comes under it mode of all energy operations;naturally. Even though there were any form of specific images and messages generally disseminated;about the BP brand name negatively, there are occasions where things may vary in minor difficult;issues from country to country, either due to political or economy changes, BP will still keep-on;maintaining its corporate brand image and all of its underlying core values the same time, no matter;in what circumstances it find itself.;Shell BPs Beyond Petroleum improved outlook;The company focused itself in reorganizing its business activities under its core strategic aims at;in two forms, which it believes will help it in attaining its mission and vision statement. These are;defined by the company recent claim Our core and sustainable business is about oil wells findings;exploration, processing, refining and marketing (BP Annual Report, 2009, 2010).;The second part of the strategic is also to identified and evaluated many of other opportunities in;order to increase its sales and profits streams, BP acquired its rivals, Amoco, ARCO and Castrol oil;costing it a massive sum of $120 billion dollars, this invariably enable it to increased more of its;equity based considerably.;In 2000, BP re-invented itself, this time included a re-define brand logo, Helios Logo This logo;was replaced to match up with its entire down-stream established brand image, the green colour;inside the logo did symbolize environmentally-friendly insignia. Which BP stay focus and it brand;image indeed contributed of the binding for its closeness with her entire customers, they too felt;satisfy with total confidence on the quality of BP good product. However, BP is not just about;gasoline and/or oil energy but it goes beyond petroleum Product.;There were additional other four main core values on which BP relay upon as it driven force and it;focus trend on, they were;Progressive: Here the company focuses on adopting new ways of runing its business which will;help in attracting more and more consumers.;Innovative: Innovation is one of the most essential aspect by which the company runs through;innovation in it differential products brand to all of it consumers. The company strongly also focus;on adopting new technology in a way in which prefer to see itself at the cutting edge technology in;order to fulfill the yarning needs of consumers demands.;Green: Been as the symbol of the company environmental friendly suggests that the company;strongly want to attain a high level of environmental leadership, and the reduction of carbon;emission participation drive.;Performance-driven: The Company always aiming to achieving a strong focus on its global;standard of performance, which will ensure that all its customers were look after towards fulfilling;satisfaction.;Deep water oil leaks spill, Gulf of Mexico, USA.;The company was highly affected by the tragic event of 2010, this event severely affected the trust;and the competitive position of the company by all of it stakeholders.;The deepwater oil spill happened on 20th April 2010 and it lasted up to the 15th July 2010, this was;one of the biggest tragically event of modern times that impact negatively in all;the brand, its competitive position and the entire financial costs of the company.;Competitive Position of BP before the Oil Spill;Before the deepwater oil spill, BP had the strongest position in the industry. In 2009, the company;was able to improve upon its competitive position by enhancing its operating performance and;reducing the effects of complex oil activities and variable costs.;The main competitors of BP are Exxon Mobil (XOM), and Chevron. The oil leaks spill still induced;its share prices slightly higher which made BP maintain a comparatively higher value than its;competitors and still holding a strong position in the energy and oil industry.;In 2009, before the event of its oil spill, the company was able to generate averagely some sizeable;profits of $16578 million as compared to $45220 million earned by (Exxon Mobil), $10563 million;(Chevron). BP surprisingly kept it second position in terms of profitability in 2009, whereas the;stock prices of the company were at $61.98, and that of its rival stock prices of competitors were at;69.11, 60.91 and 79.23 for Exxon Mobil, and Chevron respectively.;The second part of BPs strategy was a promotional campaign to transform BPs retails brand image;at every of its locations in the U.S (Annual report, 2010). So, armed with the sort of consumer;insight knowledge, the company still pursuing it promotional activities costing some estimated $45;million dollars and some of this amount went into emphasizing its marking and promotional;campaign using these following tactics with its entire re-new branding of Halios Logo which are;A little better taglin: All BP consumers should always expect a little better in all of her;service stations across its entire oil down-stream business, including other retail outlets in;comparison with those of her competitors.;Animated TV ads: These feature a family outlook (the Lighthouse family, the Babies, and the;Beeps) and a tune, which attracted the consumers and tried to establish an emotional bond with;them. The TV ads aired during some of the top U.S. TV shows (American Idol, Ugly Betty) and;also had exposure on YouTube. The purposes of the ads were to generate awareness of and an;emotional connection to the BP brand and its offerings.;In-store give-away: At the launch in April 2007, environmentally-friendly paper bags, Tshirts with a fun new look as a result of the campaign, there were even kids activity books and;trading cards featuring the campaign family characters, and sunflower seed packets;Street teams: Videos featuring groups of college-aged students were showcasing the BP;brand in Florida and the ARCO brand in California.;Competitive Position of BP after the Oil Spill;The deepwater horizon accident highly affected it competitive advantage position, which extensively;has a significant impact on marine lives as well as livelihood of the entire communities living;alongside the Gulf coast, also affected environmental wildlife, in fact the economic well being of the;coastal areas, including social life. Also, the spill highly affected the brand image of the company;and its shares prices across the globe, which has a recorded bad fall from its original share price to;$31.18 per share, this is more than 39% fall than the previous years. Besides, there were an;estimated death toll of some eleven people and score of others were badly injured from the oil spill;disaster.;Earlier before 20th April, 2010, the share market value of BP was US$212.6 billion, unfortunately it;later that slashed down by 40% in June, and also US$77 billion were completely wiped off from its;market value. The average equity of the company had still impacted strongly despite the disaster as;well as incurring some compensation payout of initial cost within the region of $500, million dollars.;This invariably greatly affected its financial strength and impacted negatively on its acquired strong;strength in previous years equally lessen its competitive advantage position.;Comparative chart of share Prices of BP and with that of its competitors;Comparative Financial Performance of BP and its competitors for 2009 and 2010;BP;Exxon;Shell;Chevron;2010;2009;2010;2009;2010;2009;2010;Sales;308928 246138 383221 310586 378152 278188 198198;Net Income;(3324);16759;30460;19280;20474;12718;19024;Profit Margin -1.079;6.80%;7.94%;6.20%;5.41%;5.82%;9.59%;2009;167407;10483;6.26%;Exhibit;Comparison;References;Michael Keller, (2010), BP's Competitors Face Risk of CatastrophicAccident, Too, FinancialAnalysts Say, retrieved from;http://solveclimate.com/news/20100916/bps-competitors-face-risk-catastrophic-accident-too-financial-analysts-say;Shirley Brad, (2010), BP Competitors pitch in, retrieved from: http://www.brandchannel.com/home/post/2010/07/22/BP-Watch-072210.aspx;BP Oil spill timeline retrieved from: http://www.guardian.co.uk/environment/2010/jun/29/bp-oil-spill-timeline-deepwater-horizon;Sustainability Report of BP (2010), retrieved from: http://www.bp.com/sectionbodycopy.do?categoryId=3311&contentId=7066754;Annual Report of BP, retrieved from, http://www.bp.com/extendedsectiongenericarticle.do?categoryId=9036021&contentId=7066689;Gulf of Mexico Oil Spill, retrieved from: http://www.bp.com/sectiongenericarticle800.do?categoryId=3313&contentId=7067651;Alexendria Sage, (2010), US oil spill weighs mounting economic impact, retrieved from: http://www.reuters.com/article/2010/07/12/us-tre-oil-spilleconomy-idUSTRE66B5WC20100712;Suzzane, (2010), BP Spill, retrieved from: http://www.guardian.co.uk/environment/2010/sep/23/bp-oil-spill-bp;http://www.nasdaq.com/aspx/stock-comparison.aspx?symbol=BP&selected=BP#ixzz1Iuv2UV8K;Company overview, retrieved from: http://www.better-trades.com/stock-reviews/energy/bp/1-about.asp;Comparative chart, retrieved from: http://www.dailyfinance.com/charts/bp-p-l-c/bp/nys;Impact of deepwater spill, retrieved from: http://jseaford.wordpress.com/2010/09/30/the-impact-of-the-deepwater-horizon-oil-spill/;Annual Report of Chevron, retrieved from: http://www.chevron.com/search/?k=2010&text=2010&Header=FromHeader&ct=All Types;Annual Report of Shell from: http://www.shell.com/home/content/investor/financial_information/annual_reports_and_publications/archive/2009/;Annual Report of Exxon Mobile from: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-irhomeMichael Keller, (2010), BP's Competitors Face;Risk of CatastrophicAccident, Too, FinancialAnalysts Say, retrieved from 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http://www.guardian.co.uk/environment/2010/sep/23/bp-oil-spill-bp;http://www.nasdaq.com/aspx/stock-comparison.aspx?symbol=BP&selected=BP#ixzz1Iuv2UV8K;Company overview, retrieved from: http://www.better-trades.com/stock-reviews/energy/bp/1-about.asp;Comparative chart, retrieved from: http://www.dailyfinance.com/charts/bp-p-l-c/bp/nys;Impact of deepwater spill, retrieved from: http://jseaford.wordpress.com/2010/09/30/the-impact-of-the-deepwater-horizon-oil-spill/;Annual Report of Chevron, retrieved from: http://www.chevron.com/search/?k=2010&text=2010&Header=FromHeader&ct=All Types;Annual Report of Shell from: http://www.shell.com/home/content/investor/financial_information/annual_reports_and_publications/archive/2009/;Annual Report of Exxon Mobile from: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-irhomeMichael Keller, (2010), BP's Competitors Face;Risk of CatastrophicAccident, Too, FinancialAnalysts Say, retrieved from 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http://www.guardian.co.uk/environment/2010/sep/23/bp-oil-spill-bp;http://www.nasdaq.com/aspx/stock-comparison.aspx?symbol=BP&selected=BP#ixzz1Iuv2UV8K;Company overview, retrieved from: http://www.better-trades.com/stock-reviews/energy/bp/1-about.asp;Comparative chart, retrieved from: http://www.dailyfinance.com/charts/bp-p-l-c/bp/nys;Impact of deepwater spill, retrieved from: http://jseaford.wordpress.com/2010/09/30/the-impact-of-the-deepwater-horizon-oil-spill/;Annual Report of Chevron, retrieved from: http://www.chevron.com/search/?k=2010&text=2010&Header=FromHeader&ct=All Types;Annual Report of Shell from: http://www.shell.com/home/content/investor/financial_information/annual_reports_and_publications/archive/2009/;Annual Report of Exxon Mobile from: http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-irhome

 

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