From the e-Activity, determine two (2) other costs that BP might have incurred. Give your opinion as to whether or not BP would have been better off had the company taken the necessary precautions to prevent or minimize an oil spill. Support your answers.
In my opinion, a business cannot determine the exact outcome of any business decision they make. They can only take the necessary precautions to ensure that there is a positive outcome. BP may have minimized the amount of oil spill by taken the necessary extra precautions. But, I don’t think they intended around 4.9 billion (estimated) barrels of oil that that spilled. This story was the hot topic for about four months. The efforts to clean up the oil are as follows: 18,589 people, 1511 vessels, 26 aircraft, and 21,010 feet of cumulative boom that deployed (Lee, 2012).
The spill overall resulted in a net loss of approximately $61 billion to BP, $17 billion to partners, $13 billion drilling sub-industry, and $19 billion to other oils and gas firms. This oil spill cost BP a lot of money. In my opinion, one of the major costs was the advertisement and the environment (Lee, 2012).
During the oil spill, BP received negative publicity and negative feedback from the public. They had to incorporate marketing campaigns in order address the issue that they were receiving. This campaign allows them to restore their image by letting the public know that they are doing everything in their power to clean up the spill and how they will go about preventing future spills. As of today, this is something they are still working to improve. Just think if you ask anyone what they know about BP, the oil spill is the first thing that comes to mind. Another cost will be cleaning up the environment. The environment suffered drastically, and they had to pay to reconstruct the surrounded areas.
Give your opinion on whether governments should be able to rezone and condemn residential land and displace homeowners in the process, in order to facilitate commercial development. Explain your rationale.
This question is tough for me. If the government would like to rezone and condemn residential land and displace homeowners in the process, they should buy them out. They should pay homeowners a certain amount to be replaced if they want to facilitate commercial development. Now, I do agree with my classmates, that the Government should not be able to rezone and condemn residential land and displace homeowners if it is not benefiting the owner in any way.
Lee, Y., & Garza-Gomez, X. (2012). Market-based approximation of the cost of non-conformance associated with the 2010 Gulf of Mexico oil spill. Total Quality Management & Business Excellence, 23(2), 221-236. doi:10.11080/14783363.2011.637812
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