The multiple oil spills and disasters have resulted in BP in losing much of its goodwill along with the precious assets that have been disposed of time and again to meet the damages that have occurred. The revenues have been reduced by large. The company held pride in the huge size that it held and the new shrunken size would take some time to be accepted. The company had frozen its dividend and a continuous battle in the American courts is on the go. It is a realistic goal for the company and it does need to follow through with this goal as the company needs to again gain goodwill. Stakeholder needs to see results and BP needs to make a decision on how much cash spill it can do on its shareholders before it can become be acquired. BP needs to have this dual emphasis to improve the efficiency of its operations and to gain the size back that it had. It is imperative to have proper measures in place to achieve these goals.
Consequences for BP:
The company needs to learn from the mistakes that it has made in the past. The company had to pay millions of dollars to settle different civil cases. This has resulted in the company to disposal of many of its assets which has reduced the size of the big giant it was known for. The biggest loss that the company has suffered is the loss of goodwill. It is considered to be America’s biggest industrial disaster. The company management needs to act more responsibly like when the company tried to suppress the anti-corrosion report from its consultants. The report was modified to depict it in favor of the company. Senior management needs to be proactive and face the current situation. They need to be honest and loyal to the job they are hired for. The company representatives when to refuse to testify or represent the company in cases it only damages the company’s reputation. The loss of market share and company name are quite apparent in the progressive years after each disaster. The management needs to revise the company goals and work on them with efficiency.
