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A BETTER TOMORROW…TODAY. Asad Zanjani Jeremy Kirchmer Chris Jennings Jean Paul A.
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PROBLEM; BP IS LOOKED DOWN UPON FROM A ETHICAL AND MORAL ASPECT Solution I: Create Better Operating Systems Solution II: Research and develop safer forms of oil energy explorations Solution III: Invest funds in creating more stable oilrigs
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SOLUTION I; OPERATING MANAGEMENT SYSTEM BP’s operating management system is the cornerstone of approach to achieving safe, reliable and responsible operations at every BP site. BP’s chief executing Tony Hayward describes the operating management system (OMS) as “the foundation for a responsible and high performance BP. It has two purposes: to further reduce HSSE risks in our operating activities and to continuously improve the quality of those operating activities”
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OMS CONTINUED.. The principles and processes are designed to simplify the organization, improve productivity, enable consistent execution and focus BP on performance. OMS helps to deliver safe, responsible and reliable BP operating activity and continuously improve performance.
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ELEMENTS OF OPERATING This will introduce further requirements for the company: Risk Mitigation Legal and Regulatory compliance Conformance with BP requirements Rigorous application of basic operating knowledge This will allow BP entities to deliver safe, responsible and reliable operating activities and capture value through efficiency.
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SOLUTION II; RESEARCH AND DEVELOP ALTERNATIVE ENERGY Invested $4 billion in low-carbon businesses since 2005 and are on track with out commitment to incest $8 billion in alternative energy by 2015. Technologies such as wind, solar, and biofuels enable countries to create more of their fuel and power within their own boarders instead of importing it.
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CARBON CAPTURE AND STORAGE This is a process that captures most of the carbon dioxide emissions from a power plant or major industrial project by capturing the CO2 and storing it underground in depleted oil or gas reservoirs or saline aquifers Active involvement from oil companies, with their knowledge of sub-surface geology and engineering, is importance if the industry is to develop, particularly with regard to transporting and storing gas.
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SOLUTION III; R.E.A.C.H. FOR THE FUTURE REACH: Registration, evaluation, authorization, and restriction of chemical substances. Aims to ensure that chemicals are produced and used in ways that lead to the minimization of significant adverse effects on human health and the environment by 2020. Objectives of this regulation are entirely consistent with BP’s Health, Safety, and Environment policy of ‘no accidents, no harm to people and damage to the environment’.
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Oil spill Ethically and Morally looked down upon Decline in Public Appeal Gulf of Mexico’s Ecosystem critically Damaged
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PROBLEM: LOSS OF FUNDS DUE TO OIL SPILL Solution I: Eliminate Overlapping or Expendable Plants Solution II: Sell off Portion of Assets Solution III: Consolidate Employees and Portions of Plants
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$20 BILLION FUND BP agreed to a $20 Billion damage claim fund for what happened in the gulf. This agreement was a legal agreement that BP had to has to spend this ridiculous amount of money to fix what they did in the Gulf. 80% higher than Exxon Valdez Spill!! This agreement was the point where BP and the government became more at ease because for 50+ days they had yet to agree.
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COMMON STOCK AND VOLUME CHART
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SOLUTION I: ELIMINATE OVERLAPPING OR EXPENDABLE PLANTS Spending about $50 million and up to $100 million daily on cleanup in Gulf. Shutting down overlapping or expendable plants would simply cut the cost of these plants. Closing these plants could focus BP’s funds on cleaning the Gulf and regaining brand trust. Focus goals on cleaning gulf and getting themselves back into the market by boosting trust levels.
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SOLUTION II: SELL OFF PORTION OF ASSETS Insignificant assets take up too may resources without a clear cut payoff in the near future. A responsible company should keeps that parts of the business that will grow and rid the parts that wont. BP needs this quick, short term help to gain capital. They could use this money to pay off clean up costs, legal damages, and fines from the government.
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SOLUTION III: CONSOLIDATE EMPLOYEES AND PORTIONS OF PLANTS Get rid of employees that aren’t needed to accomplish their main goals at this time. Reducing payroll gives them a huge percentage of money they can use. Unnecessary number of divisions, so consolidation would lead to using the necessary one for primitive functions of the company.
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PROBLEM: RAISING CAPITAL FOR FUTURE FINANCIAL STABILITY
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RAISING CAPITAL FOR FUTURE FINANCIAL STABILITY $60.48 April 20 th :Day of the Spill $27.02 $42.03 Loss of $33.46/per share $67 Billion in Market Value (1/3 Company Value)
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CONSUMERS & BUSINESSES PRODUCTS
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PUBLIC RELATIONS PROBLEM Green Technology Lost Investors Customers Avoided Using BP Products New Demographics New Products New Investors Green Policies
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News Corp. (Rupert Murdoch) Wall Street Journal FOX News Herald Sun Herald Sun Hulu* Hulu* Showtime Showtime Colorado Rockies* Colorado Rockies* Barron’s Barron’s New York Post New York Post SmartMoney Magazine SmartMoney Magazine Harper Collins Harper Collins MySpace MySpace National Geographic National Geographic 20 th Century Films 20 th Century Films Dow Jones & Company Dow Jones & Company * (Part Owner)
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Source: New York Times
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TELEVISION APPROACH Commercials Primetime Programing Clean Up Efforts Preserving Ecosystem Restore Tourism in Gulf A Green Approach A Green Approach Better & Safer Technology
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INTERNET APPROACH Internet TV Web Ads Social Media
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Worth $338 Billion Worth $273 Billion Worth $100 Billion Worth $278 Billion
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