Name: Trupti Nivrutti Deore

Specialization: Business Analytics

Roll No: 2k191133

Assignment – Case Study

BP and the Deep-water Horizon Disaster of 2010

Q1. BP originally made grave mistakes in implementing certain strategies,

which are they. Discuss about them.
1. BP downplayed operational risks in applications for exemption from
federal inspection - BP applied for and received a "categorical exclusion"
from the National Environmental Policy Act, which means BP did not
have to produce a detailed environmental analysis of Deepwater
Horizon. Although the Department of the Interior is also to blame for
handing out the exemption -- which is normally reserved for hiking trails
and outhouses -- BP is culpable for downplaying environmental risks in
its application. BP claimed a spill was "unlikely" and if it did occur would
cause "no significant adverse impacts" and would not exceed 4,600 bbl.
2. BP may have cut corners in well design
3. BP used slapdash methods to fix early problems in the well lining
4. BP skipped crucial tests of the well cement lining
5. BP knowingly used a faulty blow-out preventer
6. BP falsified blowout preventer tests for years
7. Rig supervisors ignored pressure warnings in hours leading up to the
explosion - BP did not evacuate Deepwater Horizon, despite multiple
huge warning signs on the day of the explosion.
8. BP did not have a good rig rescue plan
9. BP did not plan for an oil spill significantly greater than 20,000 bbl.

Q.2) How British Petroleum dealt with the crisis that left lasting serious
negative impacts on its brand and reputation.
BP pledged to compensate those individuals whose livelihoods would be
affected. On June 16, 2010, in agreement with the U.S. government, the
company established the Gulf Coast Claims Facility (GCCF), an escrow fund of
$20 billion to pay for the various costs arising from the oil spill. GCCF staff
evaluated the claims of companies and individuals who suffered demonstrable
damages from the oil spill. The fund was also intended to pay municipalities,
counties, and state organizations for lost tax revenue or additional clean-up
costs. Kenneth Feinberg, who led the September 11 Victim Compensation
Fund, was appointed to oversee the GCCF.
By February 28, 2011, the GCFF had received over 500,000 claims, and 170,000
people and businesses had been paid over $3.6 billion. Some people accused
the facility of not acting quickly enough to process claims and make payments.
In response, the GCCF increased transparency of the system and hired staff in
the Gulf to answer questions from applicants in person. The GCCF was
scheduled to remain in place until August 2013.

Q.3) Discuss as in how company management employed public relations to

restore a damaged brand.
1. Wrote letters to higher authorities regarding the damage of BP oil spill
2. Separated emotion from the necessary work

3. Assess the damage.

4. Set realistic goals and expectations.

5. Explored all the options