Rebranding the Focus of the BP Petroleum Company - Case Study Example

Case synopsis

BP Petroleum Company faces the monumental task of reestablishing the sustainability strategy that it has in repairing its tarnishing reputation. This case of BP Petroleum Company examines its history, the efforts that the company has in rebranding the focus of the company, and the ethical environment that it operates after the occurrence of the Deepwater Horizon disaster (Achenbach, 67). To move away from the accident, the company has to find ways through which they can repair the damages that occurred.

The main strength that the company had was that of changing the name from British Petroleum to BP and then tried to rebrand the name to Beyond Petroleum. The rebranding was a signal to stakeholders that it was focused on sustainability and the need to move beyond nonrenewable sources (Andrews, 89). The rebranding that was given to the petroleum company made its focus on sustainability and the need to move beyond nonrenewable energy sources. The company also presented itself as being committed to investing in renewable energy. This has gained a great deal of popularity among consumers and other members of the society concerned about the future of the planet.

Weaknesses

There are problems that the company has faced in its history such as bankrupting the founder due to a lack of well-implemented strategies that the company had. BP has also experienced controversies regarding business practices hazard to workers, damages to the environment, and greenhouses gases (Andrews, 108). These factors made the company have an image that was not good to the consumers.

Opportunities

BP Petroleum Company tried to position its products that support sustainability and other social responsibility and the concern of other social responsibility. They claim that they have made it that of maintaining a product that is authentic and trustworthy (Benoit, 35). This has been put to improve the image of the company to attract more consumers.

Threats

There have been many threats that the company has experienced such as an explosion that occurred in Texas injuring many people which made it guilty of violating the safety of citizens. The threat has also continued as there are other accidents that the company has been involved in with the main outcome being pollution of the environment (Gurney and Company, 78). The company has also been charged with violating Clean Water Act through the accidents that it has been involved in resulting in pollution.

Missing information in the analysis

There is information that is missing in the case that ought to have been addressed. The company does not give the financial details and the strategies that have been used in making the sales and expansion to other parts of the country. The company has also not revealed the strategies that it has used to keep up with competition from the other petroleum producers. The profit margin and the break-even point have not been discussed in the case. This makes it difficult in bringing out the actual picture of the company. When this key information is missing in the case of the company, the assumption that can be made is that the company is in operations that are not legal or are involved in activities that do not bring about fair competition to other producers.

Statement of the problem

Statement of the problem is the struggle of the company to repair the tarnished reputation that it has. The reputation has been tarnished through the accidents that the company has been involved in that have led to pollution of the environment. Examples of accidents that the company has been involved in that have tarnished the image are explosions and spills. In 2005, there was an explosion that occurred at a company that was experienced in Texas (Gurney and Company, 204). The company has also been charged with violating acts such as Clean Water Act.

The company tries to repair its image through branding and sustainability. The strategies that have been put into place environmental, ethical transgressions, and legal strategies show that the company is to take actions on the history that has disregarded the stakeholders. The strategies such as changes in the name of the company have been used.

Development of alternatives

One strategy that the company has developed to change the image of the company is by changing its name from British Petroleum to BP. The other strategy has involved increasing the alternative energy offering in its product mix (McIntosh and Thomas, 182). The company was the first to announce the recognition of the problem of climate change.

Evaluation of strategies

The strategy that the company first implemented was changing the name. The change was not much significant since the products and the operation of the company were still the same and this could not change the image of the company much for the consumers. The strategy of increasing the alternative energy offering in its product mix was a good strategy as it allowed consumers to have a different image of the company.