British Petroleum And Delay Of Maintenance Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

BRITISH PETROLEUM AND DELAY OF MAINTENANCE

Q.1: What are the groups benefited from the oil production in Gulf?

British Petroleum is the world’s largest retailer of gasoline in the United States. It is considered at the top of three global oil and gas industry. The company is devoted to aviation fuels and shipping aspects. Moreover, the company has operated in other countries such as Asia and South America. The basic purpose of the company is to expand its market and explorations. Due to the expansion in India and China, the company increased its revenue and expanded rapidly.

The industrial development in these countries created new demand for petroleum products and raise price level for crude oil. The possible benefit for the British petroleum is that it gives the opportunity to rebuild the refinery, a safer technology that abides the standard operating procedure. The managers and employees of the company have no benefit from the explosion.

Q.2: What are the groups harmed by the BP explosion in Texas City?

In March 2005, a massive explosion and fire occurred at British Petroleum in Texas. The explosion killed 15 people and more than 150 people injured. It was the worst U.S. Industrial accident in more than ten years. The explosion occurred isomerization in high vessel pressure using high-temperature processes. The primary stakeholders were affected by the explosion at Texas, is the managers and employees of the company. The employees at the facility lost their lives and suffered life-threatening injuries.

The first group that was harmed by the explosion is the company itself. The company’s reputation and profits evaporated with all the proceeding lawsuits and investigations. Many facilities of the company are damaged and unable to generate enough profits. Moreover, the company harmed bad publicity, countless lawsuits and investigations and loss of profits. Another other primary stakeholders that are affected by the explosions is the employees and managers of the facility.

Moreover, due to the explosion, the workers were unable to earn money for their families. The employees have limited decision-making power to maintain properly their facilities. Furthermore, the managers and employees have high legitimacy, low power, and high urgency. Due to the dangerous working conditions and BP’s high expenditure on the explosions, this led the company to face potential job loss.

The third group that was affected by the explosion is the U.S. government and the federal agency of Occupational Safety and Health Administration (OSHA). The government has the authority to ensure BP’s business practices align with its standard operating process. Therefore, the OSHA issued lawsuits, fines, and investigation to safeguard the life of the people at the workplace.

Q.3: Express the moral problem that BP faced clearly?

The moral issue is the violation of both justice and rights. According to OSHA, BP is in violation fourteen standard procedures and hundreds of other safety violations. Moreover, a lawsuit claimed that the company failed to maintain storage tanks and improperly falsify the maintenance record (Hosmer, 1994).

Apart from that, the company breaks the rule to follow the federal law in order to increase the profits. Therefore, it is unfair for the employees and managers because they have no rights to maintain the facility; even they know that it is dangerous with its interrelated valves, tanks, flares, and alarms.

British Petroleum And Delay Of Maintenance Case Solution

The company violated several legal rights and law, such as operational and supervisory mistakes, improper training to the employees, and no safe working environment. The reason for the massive explosion is the BP’s ignorance of necessary repairs. Moreover, the British petroleum is also responsible for violating the employees’ rights and their families as well. Therefore, the company should develop a strategy to provide rights and justice to the employees and managers, regarding jobs and families.

Q.4: What are the economic consequences in terms of societal well-being?

According to the case, the external and internal costs are associated with the explosion. The company failed to realize the costs necessary to maintain the facility effectively. Moreover, it failed to compensate the employees’ wages caused by the destruction of refinery and medical allowances to the employees. However, the company recognized the costs to mitigate their working environment impact and compensate the victims.

The positive relationship between the economic growth and societal well-being, lead the company to achieve long-term sustainable growth. The company should analyze the departments and operations that are underperforming, gaining economies of scale and investment. Due to the explosions, the company faced many financial and operational challenges and losses...............

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