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Brent Spar
Loading and storage buoy for crude oil in the North Sea, 200 km northeast of the Shetland Islands (British waters)
463 feet high, and weighting about 14,500 tons Served from 1979 until 1991, ready for disposal
Founded in Vancouver in 1971, Greenpeace has grown into the worlds largest environmental group, with its biggest section in Germany where it enjoys high acceptance and popularity. Greenpeace was informed about potential deep water disposal of Brent Spar and started stunt protesting.
Shell UK abandoned the plan for deep water disposal under the pressure from the public.
Later study confirmed that the original proposal by Shell UK was the right decision in terms of environmental implication.
Timeline
Independent Aberdeen University Study 1/2/94 Abandonment Plan submitted to UK Government 1/12/94
Jan 1991
Sep
May 1992
Jan 1993
Sep
May 1994
Jan 1995
Sep
May 1996
Jan 1997
Sep
Shell announces re-use as Norwegianferry quay 29/1/98 Decommissioningstudies Greenpeaceactivists on Spar Germanpublic protests Shell analyses alternative proposals 30/4/95 - 23/5/95 14/6/95 - 20/6/95 30/6/95 - 29/1/98
Greenpeaceadmits inaccurate claims 5/9/95 UK scientists reiterate support 11/9/95 Independent audit results endorse Shell competence 18/10/95
May 1995
Jun
Jul
Aug
Sep
Oct
www.officetimeline.com
Greenpeace
Environmental protection Look for high profile, highly visible targets Media attention Public support Increase in donations
General Public
UK Universities
Research disposal methods
UK Government
Protect environment Public sentiment
German Government
Public sentiment
SWOT Analysis
Opportunities(External)
1.Explorenewoilfields 2.ExploreSustainableenergysource 3.Establishpartnershipwith stakeholders
Threats(External)
1.Industryregulations 2.Interestgroupadvocating environmentalissues 3.Increasednegativepublicopinion
Weaknesses(Internal) Strengths(Internal)
1.LeaderinGlobalOilIndustry 2.Politicalalignment 3.Integratedupstreamand downstreamprocesses 4.Brandimage 5.Strongassetbase 1.Operatinginunstableenvironment 2.Uncoordinated,decentralisedstructure
Strategic Fit
Environment
Increased consciousness for environmental issues by the diversified stakeholders Growing impression of major oil companies as monopolist, and high-profit seekers Growing demand for energy
Strategy
Sustainable long term profitability Renewable energy sources Safety & environmental consciousness Social & Community responsibility
Core Competence
Innovation Technology Experts in oil rigs and highly developed operations
Organization
Decentralised organisation structure Highly skilled employees Wide geographical locations Strong company values Well structured recruitment and development process and learning organisation
10
S W O T
Risk Criteria
Stakeholder involvement
Warwick Business School 11
Scenario Planning
Scenario Planning seeks not to predict the future but to envisage the alternate views of the future in the forms of distinct configurations of key environmental variables (Schoemaker, 1993)
The steps involved in the Scenario : Elaborate the scenarios - picking out elements, likelihood or plausibility, constructing coherent scenarios from the elements Analysing the consequences - If this comes true, what happens to us? Analysing the implications now - What should we do know to prepare for this?
Strategic Decisions
1 2 3 4
Warwick Business School
Scenario Logics
Crisis Scenarios
12
Uncertainty
Control
14
Crisis Management
Unanticipated Crisis
Cost to organization
Anticipated Crisis
Crisis
Identification Begins
Phases
Anticipation
Anticipation Threat of the activists Lack of understanding of activist perspective Decommissioning plan was decentralised and not communicated to the relevant
Uncontrolled
Controlled
Reputation Restoration
Post-Crisis Increase Stakeholder involvement Improve media & Communications strategy Amended corporate values to include the learning Spar was used to build a quay
Identification Focused on technical issues losing sight of the important issue public opinion & global brand protection Flawed communication strategy Mixed communication