BP and the Gulf of Mexico oil spill (case analysis)BP is a multinational oil and gas company.
This company is headquartered in London, UK. Not so long ago, this company has faced one of the world’s worst environmental tragedies. After its explosion in April 20th, 2010, the company’s situation had kept on getting worse and worse.The communication problem is that the crisis team that Tony Hayward (the CEO of BP) prepared to find solutions to the issue isn’t making much progress. Each month it took to resolve the problem would make the disaster worse.
As this oil spill situation was heading to the wrong direction, the business was loosing billions of dollars from lawsuits and paying for damages up to an estimation of $16 billion. Also in addition to BP’s financial matters, the corporation has lost over 50 percent of its share value, and $80 billion (US) loss in its stock market. Its main asset oil has been flowing into coasts up to an average of 35,000 to 60,000 barrels a day.
Economical issues that BP has caused from this catastrophe are threatening 400 different species of birds and animals, and affecting the fishery and tourism industry to have a significant loss. This has obviously left the company with a bad impression to its shareholders, consumers, employees, etc.The causes of the communication problem are firstly, the BP’s crisis team not working together suitably to accomplish a fully functioning plan.
The team has wasted a big chunk of its time, which caused the situation to get worse by the minute. As mentioned in the article, as of June the oil landed in the Louisiana coast, and washed up on the Mississippi and Alabama barrier islands. Secondly, the president was not very impressed by how the safety precautions are being held. The death of the employees obviously occurred for the communication between the employees and the higher stages of managers. A better safety plan for the employees and the equipment used for drilling will be a good way to begin a second time.The symptoms of the communication problem are the poor communication skills of the managers and CEO of the BP Company. The crisis team hasn’t had its plans operating successfully, which made their situation worse as timepassed. The safety rules the managers’ set for the employees were even a failure, because of the workers having to face death and many being injured.
The stakeholders in this situation who is affected are mainly the stockholders, the employees, and the consumers. The stock prices as they mentioned have dramatically fallen, and the value of the stocks have gone below 50 percent. There were also employees who were killed and injured, and that concerns the other employees for that reason. Lastly, the consumers have been affected for the reason that the company isn’t doing much things to help the economy form the destruction they’ve created.BP can use the communication model to help the stakeholders. The employees who were affected in this crisis can be explained from the communication model. The sender is the management of the company and then the message should be explaining what the company could do for more safety precautions.
The receiver is the president and the congress that shall spread the world of their new safety plan. The feedback from this is that the employees will feel more comfortable about working there.In conclusion, from the communication problems those have occurred in this explosion by BP, it has impacted on its stock prices and the impressions of the company to the public. Many things can be done to resolve this issue, and communicating plays an immense measure.