Marketing Strategy and Analysis of BP - Case Study Example

of the Unit Marketing Strategy and Analysis of BP BP as a company has come a long way. From nearly being bankrupt to working so hard to emerge from the best oil firms in the world. The recent oil spill, however, tarnished its name, and now it is positioning itself to a new image. It is trying to rebrand itself and rebuild itself once more. No wonder it has changed its name from British Petroleum to Beyond Petroleum. All this is efforts to try and rise above its current circumstances. BP violated ethics of business when they failed to observe the Clean Air Act. Thus, their misconduct led to a leak in hydrocarbon, and this resulted in the death of 15 employees and 170 citizens. They were also caught with the ethics issue when oil leaked into the ocean twice. They knew that the pipes needed to be repaired yet took no action. BP however, never learned from their mistakes. Other similar instances of an oil spill were repeated. The company also engaged in buying excessive propane and then re-selling it at a higher price a case that portrayed BP as an unethical business. BP also showed recklessness to the environment when cases of oil leak repeated over and over again killing plants and animals. BP did not also care about the welfare of their stakeholders when they engaged in some of these instances. A penalty was demanded from them every time they were caught in the wrong. Part of the money they were using to pay the penalties belonged to the shareholders. Thus, they were not mindful of the shareholders welfare. Product differentiation is crucial in an industry such as the oil industry. BP failed because they were unable to produce a high-quality product. Their product would emit a smell when used as paraffin. The effect of this was that the product was not able to tap into the market competitively as should have. The British parliament chipped in and supported the product and recommended it for their local market, a move that reinforced the product market, not because of quality but because it had been given preference. SWOT ANALYSIS The strengths that the company had was that they were able to get support from the British government led by Churchill. Churchill desire to promote their group saw him chip into the company thus boosting its finances. Other people were also able to chip in and, therefore, funds ceased to be a hindrance. The company also had an advantage in that Churchill encouraged the use of the product locally, even though it was not the best quality. Thus, creating a market for its product. The company was also lucky to have areas it could still drill more oil irrespective of the oil reservoirs drying up. Some of the weaknesses of the company was in its management. The management did not care about observing the Clean Act and so did not follow up to ensure that everything met the clean Act standard. The management was also gullible and went on to take up a product -propane in the aim of selling it at a higher price and thus manipulating its consumers. They were going to pocket the extra money made from the sale of propane. The management was also not keen on emphasizing ethical principles. That is why they did not care to repair oil pipes despite them knowing that they are corroded. They also did not take action when oil spilled for the first time to avoid other such spills. Thus, the spills continued, and they also continued killing plants and animals. The opportunities that BP had was their local market which had been promoted by Churchill in parliament. Churchill had emphasized the need to support and promote their company. They would have utilized the help to produce a quality product for that market. Some of the threats that BP would face was mostly from competitors. BP was not able to produce a quality product and, therefore, it was very easy for opponents to take over the market. They were also not keen about their consumers since they kept on tarnishing their image to the same consumers in various ways. Thus, this too was a threat. The company continues to pay penalties and fines, and we are not told whether they are getting the finances from the business assets or the business turnover. Information about profit and loss and shareholders worth is also missing. It would have been significant to know whether the business pays these penalties from shareholders money or the companys profits. Problem The sales turnover has gone done as a result of the oil exploration and the ethical issues surrounding the company. The management is the one that has failed on this as they are the ones tasked with the role of analyzing a situation before they can reach a decision. The management, in this case, seems to have failed to do proper research before they could engage the other companies to drill the oil. They also lied about having a disaster management plan and a remote control strategy that would control oil flow in case of an accident. It was proved to be a lie because 100 days after the deep waters tragedy, BP had not yet gained control of the oil situation. The management also failed to acknowledge their recklessness and thus failed to apologize to the public. The move worked to tarnish their reputation more thus leading to a lower turnover. Some of the marketing strategies that BP should use include working in partnership with the government and other stakeholders. BP has been making decisions on its own without consulting with the government or the shareholders. It should now put an end to this and bring other stakeholders on board. Such a decision will restore the feeling of ownership to the shareholders and the government. They will feel valued and appreciated and in turn will support the company (Milichovsky and Simberova, 9). The second strategy concerns the management and the company principles. The company should choose keenly the management team. They should also devise principles that should govern the business. The advantage of this is because the management is the face of the organization. Important decisions are made by the directorate and, therefore, the need for a sober and wise management. The limitation is that they should not be made to feel as though they are the cause of the problem. BP should also decide on which product they want to pursue. They should not get into the production of other products such as solar without proper research. Product concentration will also enable them focus on being the best in that line before they can diversify. They are getting into other lines of production as a mechanism to rebuild their image that should not be the case. Concentration on one line allows one to learn the trade and to perfect the product. The disadvantage is that building a customer base and break even takes long. The fourth strategy should involve the environment. BP being in the oil industry and having caused a major bladder on the environment, they should now focus on improving the environment. Evidence of this should be seen on the ground as they opt for environmental friendly options. The objective of is that it will help improve the environment and promote the existence of plants, animals, and people. The disadvantage is that since they have already been involved in a lot of environmental degradation scenarios, it may take long for them to build their reputation. Recommendations The company should partners with the governments and the other shareholders and work together. The company should also deploy a management team that has the companys interest at heart and thus will work towards accomplishing them. Implementation, Evaluation, and Control The effect of choosing to partner with the government and other stakeholders is because it creates transparency and trust. The two are essentials to rebuilding company image and enhancing product consumption. In conclusion, the direction of the company is influenced by the management of a corporation. Thus, a good management leads to a successful enterprise while a bad management leads to the collapse of an enterprise. Therefore, every company must be careful about its management team and the principles that govern the companys operation. Work Cited Milichovsky, Frantisek and Iveta Simberova. "Marketing Effectiveness: Metrics for Effective Strategic Marketing." Engineering Economics (2015): 9. Read More