Custom «Where Are They Now?» Essay Paper
Bad reputation to a business can destroy a firm. As a result, companies have recovery strategies meant to put them back in business. One of the most important things to do is to properly assess risk and manage the comeback process. An example of a company that suffered a disaster but managed to return to life is BP or British Petroleum. After the oil spill in 2010, the company significantly recovered its reputation and is still considered one of the largest companies in the oil and gas industry.
Buy Where Are They Now? essay paper onlineBecome our VIP client
* Final order price might be slightly different depending on the current exchange rate of chosen payment system.
Right after the public found out about the oil spill, the company has issued an apology, which was meant to acknowledge the disaster and let people know how the company felt about the problem. It was a first short-term response, which was promptly followed by the clean up. Even though people and BP recognized the damage that was caused to the wild life, the company was too large to fail. It started the recovery very slowly, and its success was somewhat lowered; but because it is such a large company, it managed to stay afloat. Oil and gas are the things that are much needed by the larger population, so the demand will always exist for British Petroleum and its business. The stock holders would still invest since it was a global company with reputation and the much desired connections to the business world (Global Business Strategy, 2014).
The enterprise risk management process includes several points, which must be considered by a company recovering from such a disaster as oil spill. The six parts of the process are: organizational assessment and risk culture, risk infrastructure, risk identification, risk measurement and indicators, risk management, and contingency planning and disaster recovery. The first thing that BP did after the oil spill was the assessment of the current situaion and planning ahead for a recovery by analyzing the risk culture. The helpful part of the situation was the fact that people could not possibly measure the damage that was done to the ecosystem. It was one of the favorable and natural parts in the recovery process. The infrastructure of the company stayed strong even after the oil spill, and the media presence let the public know that everything was done to clean up the polluted waters. The investors were still attracted by the company and its business because the quantity of oil and gas supplied by the firm was enormous. British Petroleum has not returned to the selling rates, which were prior to the oil spill, but they are significant enough to keep the company in business (Forbes, 2014).
Limited Time offer!
Get 19% OFF
The way the company managed to return to work was to focus on three important recovery methods. One was to set clear priorities, which would allow putting most important thing first. The effective action was to make conditions safer and more reliable. The operations were bettered by creating higher efficiency in the equipment and safety of the workers. The financial decisions were also managed with more care and attention to future risk management. The second point of recovery process was to have a quality portfolio, which provided a clear focus on the strengths through wider exploration and connection between existing chains. Customer relations were also improved as it was crucial for the company to attract new and return old investors. The quality of portfolio displayed what the company is capable of and what future plans it has in mind. The third part of the strategy was to set up distinctive capabilities that were related to the best and most reliable equipment (BP, 2014). The company is only as good in the production of sales as its equipment, and the oil industry requires technology, which is energy-efficient and pproduces highest output possible.
The outcomes of the disaster could be observed in several areas: social, financial, procedural, and cultural. Right after the incident, the society recognized that the damage was catastrophic. It caused a lower rate of response to the offerings the company had to make. Lots of people were appalled by the disaster and many oil companies were being judged in a more strict and demanding way. Especially in the time of environmental awareness this issue became global and people began to reconsider the amounts of consumption and usage. The procedural changes that took place relate to the installation and maintenance process. The increased amount of safety features allowed for better damage reports and control, which in turn led to financial gain and increased revenue. The risk management planning became an example and a lesson pertaining to prediction, risk assessment, and contingency planning. A company must have several back-up plans, which would try to calculate and analyze almost any situation. As such, managers and supervisors must keep a constant indicator of the risk, which would show how the company manages problematic areas. Overall British Petroleum was successful because its strategy and planning led to proper evaluation of risk factors, and the technique was based on the evolvement of equipment, procedures, and safety control.
Let’s earn with us!
Get 10% from your friends orders!
In conclusion, BP has gone through major changes due to the disaster. The company had every chance to fail because the damage to its reputation and environment was undeniable. But, its steady consumer base and the enormous nature of the business allowed the firm to continue prospering and remain one of the most reputable companies in its field. BP and its recovery methods prove that careful planning and decision-making can help recover from great disasters.
Want to know what your projected final grades might look like?
Check out our easy to use grade calculator! It can help you solve this question.Calculate now