Challenges of the BP Oil Spill - Essay Example

Apart from the environmental repercussions, the accident also resulted in the loss of 11 lives were employees who were nearby when the rig exploded (Robertson & Krauss, 2010). As a result of the explosion, an oil gusher located on the sea bed flowed relentlessly for around three months before the wellhead was finally successfully capped after several failed attempts (Robertson & Krauss, 2010).

The oil spill had serious repercussions on Bp and its investors as well as other stakeholders in several related industries as the company had to claim responsibility for all the damage that was done as a result (Robertson & Krauss, 2010). The level at which the company was affected can be measured via the use of key indicators of performance related to the marketing industry. After investigations were conducted it was determined that Bp was to blame for the accident. However, it was determined that Deepwater Horizon operator Transocean and Halliburton which was the contractor of the oil rig were also to blame for their various roles (Robertson & Krauss, 2010). The results of the investigation led to several repercussions, especially for Bp in particular.

Using long-term Key indicators of performance one can determine that BP paid a large price for its mistake. In economic terms, BP took a large dent in its financial status as it ended up paying over 4 billion dollars in fines and other expenses in particular. Such a large financial effect can indicate the downfall of a company if not properly managed and handled in an economic manner (Parmenter, 2007). The image of BP also took a serious hit as organizations such as the EPA developed doubts over its integrity and as a result it lost its ability to vie for government contracts after the accident. This displays the fact that the company’s public image took a negative turn which can be dangerous if not overturned as soon as possible (Parmenter, 2007). The news reports also painted the company in a bad light as environmental and other organizations blamed the company for the pollution of sea-dwelling creatures and their habitats.

Several other stakeholders were affected by the oil spillage as a result of having close connections to the industry or the habitat that was affected by the accident. These included groups such as fishermen who could no longer practice their profession in that area as a result of the death of the fish and coastal communities who were involved in the oil industry as a large source of employment and were affected by the offshore drilling moratorium that was implemented after the spillage (Robertson & Krauss, 2010). These stakeholders felt the brunt of the repercussions of the oil spillage even though they had nothing to do with what had happened.
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