Case study Example | Topics and Well Written Essays - 1000 words - 41

Case Study Example 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. 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