BP And The Gulf Of Mexico Oil Spill Harvard Case Solution & Analysis

BP And The Gulf Of Mexico Oil Spill Case Solution

Analysis of Leadership:

The leadership of BP:

The leadership of BP has not learned from the mistakes of its past; the same incident happened in 2005 which also resulted in many casualties and injuries. The Texas incident also resulted in an adverse relationship with  society and impaired the reputation of BP.

Also, the lack of communication and unclear roles of the employees and subcontractors has also resulted in this disaster. All the parties who  work on the oil field immediately start to play the blame game and point out the inefficiencies of the other parties rather than working together to mitigate the financial and non-financial consequences of the tragedy. All the three parties refused to take the responsibilities of the oil spill and that refusal to admit the mistakes  again makes it difficult for the regulators to identify the cause of the incident.

The strategy of the CEO and top leadership after the incident was also heavily criticized by the general public as well as government officials and media. After the disaster, the CEO who was the leader of the organization, instead of bringing reforms to the policies of the company, Mr. Hayward took some time off  to spend with his family in the United Kingdom which also lead to adverse impression to the general public.

The disaster resulted in the loss of precious lives, it also damaged the environment and sea life drastically, the leadership of BP didn’t take that sensitive issue seriously and the Coca Cola Company’s leadership strategies that make it outstanding in global markets  made statements which bring the issue into more limelight. Despite having the vast history of crises and incidents the leadership of BP lacks the ability to tackle these kinds of situations.Furthermore, the leadership of BP is increasingly focused on short-term performance rather than focusing on long-term objectives. The cost-cutting measures results in the poor health and safety management. This cost cutting policy also allows BP to enjoy heavy growth in profits but,only by compromising on the health and safety of the workers and marine life.

The leadership of BP fails to manage the McDowell properly some of the workers describe it as the ‘well from hell’ which also provides the evidence of problems they are facing in drilling the oil field.  According to the leadership of BP, the oil spill is primarily caused due to the failure of various systems, however, merely blaming the system is not justified because it is the leadership who is responsible for designing the systems which are effective and sound enough to prevent the disaster and if happens to mitigate the loss of disaster.

Analysis of Culture of BP:

To prevent the incident from occurrence, the leadership and management are responsible for designing and implementing the culture of honesty and enforce people to monitor the potential occurrence of a catastrophe.

BP And The Gulf Of Mexico Oil Spill Harvard Case Solution & Analysis

 

It can be seen that there is a dysfunctional organizational culture throughout the BP, the authority should be given to the people who possess the necessary skills to make the effective decisions, and this seems to be missing at BP. After the explosion, there was ambiguity regarding the responsibility of the incident.............

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