Oct
8
The magnitude of “REPUTATION”
Posted by: Kevin Yu | October 8, 2012 | Leave a Comment
Can Celikyilmaz’ Blog in How BP failed on contingency planning has provided me with an insight of how important the reputation of the company really is. John R. Kimberly of CNN defines the negativity on the reputation of BP(British Petrol) as “damage that threatens its very existence.” No matter how good the quality of the oil is, reputation of the company, supported by its leadership and the ability to handle an unexpected situation, occupies a significant portion of determining the consumer’s choice and their loyalty. This statement can be further extrapolated from the information provided in the financial market; BP stock price plummeted from $641.10(Lon:BP) to $417.80 as it approached the end of June in 2010, following the very incident of the oil spill.
Its failure to efficiently coordinate employees in solving the problem and its naivete in treating the incident insignificantly has resulted in a disastrous outcome. As Can states, “BP isn’t suffering just from the leak of oil in the gulf” but also from the spread of oil into the surrounding areas which causes environmental degradation and a rise in epidemic disease. This “snowballing” effect of the oil spill has additionally contributed to the decline in BP’s reputation.
The following parody depicts the essence of BP’s failing reputation as the leader of oil production:
It is important to recognize the importance of reputation within each companies because such information can be used effectively in predicting the future of the organization.
Sources Cited
Celikyilmaz,Can. “How BP failed on contingency planning“. (2012): n.pag. Web . 08 Oct.2012.<https://blogs.ubc.ca/cancelikyilmaz/2012/10/01/how-bp-failed-on-contingency-planning/>
Kimberly, John R. “How BP Blew Crisis Management 101.” CNN. N.p., 21 June 2010. Web. 08 Oct. 2012. <http://articles.cnn.com/2010-06-21/opinion/kimberly.bp.management.crisis_1_bp-crisis-senior-management?_s=PM:OPINION>.
“BP Plc: LON:BP Quotes & News – Google Finance.” BP Plc: LON:BP Quotes & News – Google Finance. N.p., n.d. Web. 08 Oct. 2012. <http://www.google.ca/finance?q=LON:BP>.
Photo Credit
Macalister, Terry. “BP Shuts Alternative Energy HQ.” The Guardian. Guardian News and Media, 28 June 2009. Web. 08 Oct. 2012. <http://www.guardian.co.uk/business/2009/jun/28/bp-alternative-energy>
Video Credit
UCBComedy. “BP Spills Coffee.” YouTube. YouTube, 09 June 2010. Web. 08 Oct. 2012. <https://www.youtube.com/watch?v=2AAa0gd7ClM>.