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BP COMPANY CASEAYDIN SANCAK - MEHMET METN - OSMAN KAYTAN - SEZEN GRDA

MARKETING MANAGEMENT

APRIL 1, 2016

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COMPANY OVERVIEW

BP plc. is one of the largest vertically integrated oil and gas companies in the world. The company's operations primarily include the exploration and production of gas and crude oil, as well as the marketing and trading of natural gas, power, and natural gas liquids. BP operates in Europe, Asia Pacific, Africa, and the Americas. It is headquartered in London, the UK, and employed 84,500 people as on 2015.

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William Knox D'Arcy, the founder of BP, entered the oil industry in 1901 by obtaining an oil concession in Persia (Iran).

In 1909, DArcy formed the Anglo-Persian Oil Company (APOC).

British navy switched from coal to oil. In order to protect its supplies of this now-crucial military resource, the British Government acquired a controlling share (50.0025%) of APOC in 1913.

It was renamed the Anglo-Iranian Oil Company (AIOC), in 1935.

and changed its name to the British Petroleum Company Limited in 1954.

In 1959, the company expanded beyond the Middle East to Alaska

A BRIEF HISTORY OF BP1901

19091913193519541959

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In 1965, it was the first company to strike oil in the North Sea.

The name British Petroleum Company PLC was adopted in 1982.

The British government privatised the company in stages between 1979 and 1987.

British Petroleum merged with Amoco in 1998, becoming BP Amoco plc,

acquired ARCO and Burmah Castrol in 2000, becoming BP plc in 2001.

A BRIEF HISTORY OF BP1982

1965198719982001

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SWOT ANALYSIS

Strengths

One of the biggest company in the energy sector Wide geographic presence High quality operations Strong Brand Name Robust research and development initiatives Vertically integrated operationsOpportunities Increasing fuel/oil prices Increasing natural gas market More oil well discoveries Expand export market Investments in alternative energy business

Threats

Government regulations Risks concerning environmental regulations Highly competitive industry Increasing Cost of Operations Weaknesses

Cost of environmental hazards Oil spill in the Gulf of Mexico Negative Public Perception Decline in production

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PR MISFIRES OF BP

In responding to a question about BPs safety record in an interview with ABCs George Stephanopoulos, BP CEO Tony Hayward said:

I think weve made enormous strides as a company in the last three or four years with a remorseless focus on safe, reliable operations. Ah, this wasnt our accident. This was a drilling rig operated by another company. It was their people, their systems, their processes. We are responsible not for the accident but we are responsible for the oil, dealing with it and cleaning the situation up.

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PR MISFIRES OF BP12 epic mistakes that BP made from public relations perspective:

No 1:The company should have had the billions of dollars worth of equipment, plans and personnel working to prevent and if necessary to clean up the potential ecological disasters.

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PR MISFIRES OF BPNo 2:CEO need to be hired for their leadership abilities so they have to be competent communicators. If they work for a billion dollar coprporations they need to be outstanding leaders and dazzling communicators.

Needed a CEO not the best engineer!

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PR MISFIRES OF BPNo 3:Apr. 20: the day of explosion; The company did not have any adequately prepared and practiced crisis communication plan. Even Andrew Gowers, BP head of group media, told the NY Times, It is not always easy to get your message across, the media focus has been so intense it has been a challenge to respond as fully as we would like on every issue.

Strong need for a crisis plan that includes a communication component!

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PR MISFIRES OF BPNo 4:April 29: Tony Hayward, CEO, should not have said the things if you do want something out of the news! What the hell did we do to deserve this.

You should not speak of what should not be said in the first place!

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PR MISFIRES OF BPNo 5: May 3: Hayward said BP would clean up the oil but that they were not responsible for the drilling rig and crew leased by BP. So, two character issues: First; arguments have to make sense!Second; accountability. You have to take responsibility for your actions!

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PR MISFIRES OF BPNo 6:May 14: Hayward said the Gulf of Mexico is a big ocean and characterized the amount of oil pouring into it as tiny and insignificant

Do not bait your enemies! They will come back on you with more force and intensity!

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PR MISFIRES OF BP

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PR MISFIRES OF BPNo 7:May 17: BP began siphoning oil from the ruined riser pipe collecting 1000 barrels a day. Hayward said they had turned the corner in dealing with the problem. Siphoning solution was later abandoned.

Do not give false hope!Think quickly and act slowly!

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PR MISFIRES OF BPNo 8:May 30: Hayward told the people of Louisiana that BP is sorry but then said that no one wants this over more than he does and that he would like his life back.

Arrogance!Public relations staffs need to keep people like this under wraps!

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PR MISFIRES OF BPNo 9:June 3: BP started a 50 million TV campaign saying that they were sorry and that they would make this right. Clean up every drop of oil and restore the shoreline to its original state. The bigger issue is the ecological and economic disaster not the public relations problem. Should not have spend this much on a communication campaign while the commitment to funding economic and cleanup is still in doubt signals for BP appearances are nore important than reality. Actions speaks louder than words!

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PR MISFIRES OF BPNo 10:June 8: BP chief Operating officer took the word saying that in a few days the spill would be down to a trickle of only 10 to 35 barrels of oil a day. nstead of him, a higher ranking officer should have spoken If things go bad CEO can steo in and repair the damage. When the CEO causes the problem, the only solution is having the next highest ranking officer to announce that the CEO has been dismissed and restart the dialogue on more ethical grounds.

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PR MISFIRES OF BPNo 11:June 19: Hayward took part in an exclusive yachting race with his son off the cost of the Isle of Wight. A BP spokesperson said he had not had a break since the spill began and he was just spending a few hours with his familyWhat he did symbolically alienated himself from the public. Instead he would have gone fishing or boatingMarie Antonitte rule!

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PR MISFIRES OF BPNo 12:BP board Chairman Carl-Henric Svanberg publicly expressed his compassion for the small people. Offensive because of the elitist context created by the yacht race. BP staff explained that small people has a more positive connotation in Svanbergs native laguage. The response was too little too late

BPs public relation efforts were reactive when they should have been proactive

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PR MISFIRES OF BPIn summary;

Every mining organization no matter how small should have one top executive responsible for public relations. Should have a yearly responbility of assessing possible crisis scenarios and preparing to deal with them. This can be managed by attending public relations workshops, reading the public relations columns and stories in industry publications, by monitoring public opinion and if necessary retaining public relations counsel.

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BP COMMITMENTS FOR GULF COAST

BP Gulf Coast Update Our Ongoing Commitment

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BP COMMITMENTS FOR GULF COAST

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KEY SOURCES OF ENERGY GROWTH

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HOW THE ENERGY PRODUCES ECO-FRIENDLY (ALASKA SAMPLE)

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Janet Weiss, President of BP Alaska, shares how the energy BP produces in Alaska creates something else as well...jobs all over America. BP supports more than 260,000 jobs across the United States.24

The BP EDUCATIONAL SERVICE (BPES)

The BP Educational Service (BPES) is committed to increasing young peoples understanding and enjoyment of Science, Technology, Engineering and Maths. The free educational resources for 4-19 year olds bring classroom topics to life with the use of real-world examples. Developed with teachers and education specialists, the resources aim to inspire the scientists and engineers of the future.25