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1.0 Introduction

1.1 Report Introduction

Leadership Issues in British Petroleum:The report under discussion has been created after the detailed assessment of a given case (BP and the Deepwater Horizon Disaster; 2010). The thorough review of this case has helped in analysing the internal and external environment of the company along with the leadership issues faced by the people working in this specific company. Other than that, the organisational change-related issues have also been discussed in this report that has helped in highlighting the factors towards the subject of an issue. Apart from this, the situation of BP has been assessed and also backed by the information available in the book (Leadership theory and practice) written by Peter G. North house. At last, other relevant peer-reviewed articles have also been utilised to discuss situation described in a given case.

1.2 Company Introduction

British Petroleum is one of the most profitable multinational oil and Gas Company. It has secured its position among seventh-largest oil and Gas Company in the world. It has been headquartered in London and successfully handles the world’s fifth-largest revenue. This company effectively work in all areas of oil and gas industry which is comprised of petrochemicals, renewable energy, and exploration, refining, trading and power generation (Ingersoll, Locke, and Reavis, 2012).

2.0 External Context Analysis

As per the given case, the company has faced a high level of economic damages after encountering the incident and faced a loss of around $560 million. Other economic losses were also faced by the company when thousands of coastal small business owners started to divert their interest. Other than that, the tourism industry was also got badly affected in Alabama, Louisiana and Florida (Ingersoll, Locke, and Reavis, 2012).

Apart from this, the economic shocks that occurred after the oil spill has created a negative impact on the company and strategic leaders started to pledge for compensating the people who got affected by the recent incident (As shown in appendix A). The case under discussion represents that the improved drilling technology influenced the economic growth of the company because it helped in running the project operations in an effective manner. Other than that, there were three oversight computers which were playing an important role to control the drilling technology.  It has been assessed that these computers were based on the Windows NT operating system that has severed chances for freezing the entire computer system.

As per the research conducted by Genova (2010), the people are highly concerned for the sustainable future that can only be achieved through the greenhouse effect. Therefore, most of the people are supporting the companies which are showing interest towards a sustainable future in terms of climate and environment. In addition to the previous view, Wickman (2014) explained that British Petroleum is rapidly changing its social standards in order to increase the demand of customers towards the petroleum products offered by the company. It represents that the business operations of the company were also affected by the social concerns of the people.

As per the given case, the British Petroleum has secured its firm position within the energy sector and considered as the top market position with huge geographical reach. The operations of the company are associated with the high-quality support of labours and strategic leaders that have helped in creating a strong brand name in a market (Ingersoll, Locke, and Reavis, 2012). Other than that, the cost of environmental hazards is very high in British Petroleum and they need to follow all types of safety and measures in order to avoid the environmental hazards and to secure the company from disasters (As mentioned in Appendix A). Other than that, there were various opportunities for the company before encountering the incident which includes; the enhancement of natural gas market, the enhancement in the export market and the boost in fuel and oil prices (Refer to Appendix B). At last, the environmental regulations and increased cost of operations were the main threats observed by the company and they need to utilise their strengths for decreases the threats and to attain competitive advantages……………………………..