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Case Study

The Macondo blowout: Decision making in difficult times (Abridged)

By Didier Cossin and Dinos Constantinou

5 pages

December 2011

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Reference: IMD-3-2188

In May 2007 Tony Hayward became chief executive officer (CEO) of BP, the London-based oil and gas “supermajor,” promising to refocus company culture on safety issues. BP had experienced more than its fair share of accidents during its rapid expansion under Lord Browne, Hayward’s predecessor. Hayward had positioned himself as the candidate to fix BP’s safety record in the months leading up to his eventual appointment as CEO, winning out against strong rivals such as fellow board member Robert Dudley (former CEO of TNK-BP, the company’s Russian joint venture) and John Manzoni, head of refining and marketing. Yet a little over three years later, Hayward was forced to resign amid an environmental disaster triggered by the largest offshore oil spill in US history. What went wrong?

Learning Objective

Discuss management of a major crisis. Discuss the environmental disaster caused by the Macondo blowout and its economic and political aftermath.

Keywords

Crisis Management, Corporate Responsibility, Board Responsibility, Leadership, Oil Pollution, Environmental Disaster, Safety Regulations, Offshore Drilling, General Management, Strategy

Settings

United States of America
British Petroleum (Old name), BP
2010

Type

Published Sources

Available Languages

English

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