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Business project Paper

Words: 1988, Paragraphs: 80, Pages: 7

Paper type: Project , Subject: Accounting

centertopdeepwater horizon, 2016 peter berg– movie review

Megan Spykerman 12A

76500deepwater horizon, 2016 peter berg– movie review

Megan Spykerman 12A

2200016630653000032073857060056600centerbottomCurro HillcrestBusiness Studies- Mrs. Hooper.

765000Curro HillcrestBusiness Studies- Mrs. Hooper.

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172401389110Lead Actors-

Mark Wahlberg, Kurt Russell, John Malkovich, Gina Rodriguez, Dylan O’Brien and Kate Hudson.

4000020000Lead Actors-

Mark Wahlberg, Kurt Russell, John Malkovich, Gina Rodriguez, Dylan O’Brien and Kate Hudson.

Table of Contents:

Pg. 1 – Table of contents

Pg. 2 – Introduction

Pg. 3 – Summary of movie

Pg. 4 – Micro Environment

Pg. 5 – Market Environment

Pg. 6 – Macro Environment

Pg. 7 – Management

Pg. 8 – Leadership

Pg. 9 – Conflict

Pg. 10 – SWOT

Pg. 11 – CSR

Pg. 12 – Conclusion

Pg. 13 – Reference List


In this movie review I will be exploring the disaster that happened at The Deepwater Horizon Oil Rig.

I will be providing you with:

A summary of the movie

Analysis of the 3-business environment’s

Analysis of Management

Analysis of Leadership

What caused the conflict

SWOT Analysis


Summary of Deep Water Horizon by Peter Berg:

The film begins with a view of cracks forming on the bottom of the oil rig where the cement work is starting to fail. Which in the end is the beginning of a major accident that will change the course of history.

Chaos descended upon BP, the oil company on the 20th of April 2010.

Mike Williams, Chief Electronics Technician as well as James “Mr Jimmy” Harrell are concerned and surprised when BP bosses sent home the workers early who were supposed to test the integrity of the cement work at the bottom of the rig. With continuous efforts to convince the BP bosses Donald Vitrine and Robert Kaluza they still decided that the process of checking the cement and doing a cement bond log(CBL) would take too long.

All operations go smoothly until the cement gives in and triggers a massive blowout which killed the drill team members

Andrea Flevtas (Gina Rodriguez) the Navigations officer, was busy calling in the coast guard when the captain of the rig Curt Kuchta stops her and told her that the situation isn’t detrimental.

Mike went through all ends of the earth to save the rig but realised nothing will work and then rushes to save all surviving crew members alongside Caleb. The Coastguard finally is aware of the explosion and rushes to save the remaining survivors.

Business Environments:

Micro Environment:

When working within the Micro Environment, you are analysing the internal environment which can be controlled. Management of the businesses strength and weaknesses are essential for success.

An environmental scan before operations commenced of the oil rig would’ve been very beneficial for BP as it would’ve ironed out any issues. The benefits of an environmental scan are that it:

Identifies threats before they are imminent

Keeps track of all competitors

And allows for short and long-term strategic planning.


Good leadership communication on the rig.

Big business

A lot of resources.


Bad leadership from higher powers affect everyone else

Lack of expertise from higher powers leads to the downfall of entire project.

Lack of up to date modern technology.

Impact of disaster of the Micro Environment:

All the weaknesses will outweigh the strengths making the business volatile. All short term and long term strategic planning falls away as new plans and ideas need to be formed. A new environmental scan will need to be done as well as an in-depth SWOT analysis. The business has lost a lot of money after this disaster, so profit and turnover will be bad. BP will also need to assess and rearrange managerial positions within the business to avoid this happening in the future.

Market Environment:

Management can influence this environment but cannot control it. BP has already found a way to have a competitive advantage over all competitors by having this oil rig. The tool used to analyse this environment is Porters 6 force model as well as the Opportunities and Threats. Not all 6 forces are applicable to BP, but the following are:

Level of Rivalry:

BP needs to always know what their competitors are doing to assess any opportunities. BP need to always make sure they are up to date with information their competitors such as:

Their products.

Consumer brand loyalty

Market share

Distribution channels

Threats of New Entrants:

BP need to constantly be on their toes and keep their eyes on the market because new entrants could disrupt their progress. BP need to be aware of these entrants as the following could be affected:



Brand loyalty

Government policies and restrictions

High capital layout of competitors

Smaller distribution channels

The impact of the disaster on the Market Environment?

The Oil Rig explosion was an advantage for the competitors as it gave them an upper hand in the market and gives them an opportunity to gain customer brand loyalty and have a competitive advantage on the market share. BP would’ve lost the trust of customers completely which gave competitors creative warranty to control the market.

Macro Environment:

The Macro Environment alongside the Market Environment forms part of the external environment. The main purpose of analysing the Macro Environment is too determine what the business should when threats arise, and it is too determine what they can do when a new oppourtunity arises. PESTLE Analysis is used to analyse this environment

Political and Legal:

The political situation in the country could influence how the business operates. Laws, government interference which would’ve been prominent after the explosion. Unrest, corruption, international relations and sanctions could all affect the way the country runs the business.


Global recession, exchange rates, interest rates, interest rates, taxation, inflation rates, Labour costs and the overall profitability of the business affects the way in which its run. BP lost around 6.5 billion dollars after the oil spill which would’ve set them back immensely.


Consumer preferences, change in lifestyle, level of education, crime, poverty and especially major events such as this oil spill will affect how a community views and supports a business. Many consumers would’ve avoided BP after the oil spill which would’ve decreased their overall popularity and profits.


New vs outdated technological developments will affect the efficiency and the overall capacity the business can operate in. outdated technology was BP’s downfall.


This is the most important aspect of a business such as BP. Pollution, global warming, environmental laws and regulations, sustainability of recourses etc. The biggest problem with the oil spill was the environmental impact. It destroyed sea life and cleaning up took ages.


Management involves the activities of planning, organising leading and controlling. You get different management tasks as well as managerial competencies.

Management Tasks:

Planning – gathering all relevant information, devising new and alternative plans and choosing the best possible plan of action is the most integral part of managing a business. The business plans should be realistic, adaptable and clearly communicated. BP’s plan of action with the BP oil rig were clear and realistic but the way in which it was conducted, and the way BP bosses skipped an integral part of checking if the operation could continue was the biggest problem.

Organising- organising means that the business needs to insure all necessary resources are available to ensure the business can take out the plans devised. Accountability is still on the manager. BP bosses Donald Vidrine and Robert Kaluza failed at this as they didn’t use their recourses to make sure their plans were executed effectively. Rushing the operation led to the oil rig exploding which was a waste of resources.

Controlling- Managers must ensure all recourses are accurately used and that all goals are reached. BP bosses failed at this task by rushing and wasting recourses.

Decision Making- Managers are tasked with making decisions for the tasks to go forward. BP bosses didn’t fail in making decisions, they failed in making a right one.

Managerial Competencies:

Strategic- Action Competency – understanding the mission and vision of the business and ensuring all goals and objectives are met creates a competitive advantage. BP had everything aligned and all objectives were met to have a competitive advantage, but bad decisions risked it all.

Teamwork Competency – teamwork has become very prominent in the business world. Managers should manage team dynamics efficiently. Mr Jimmy and Mike Williams are perfect examples of good leaders. They made sure everything was done by the book but their decisions which were at the interest of the overall success of the business were overruled by the higher powers.

Judgement as a Competency – when a manager makes a decision he/she must be able to face any judgement regarding it. The manager must be accountable. BP bosses faced countless judgements after this incident and had to be accountable for their mistakes.


In order for the business to implement and reached goals the business needs to succeed.

3 main leaders in the movie are:

Mike Williams:

Chief Electronics Technician.

Knew that CBL check was essential.

Always maintained good communication.

Had good relations with co-workers.

Did everything in his power to save remaining survivors.

Risked his own life.

Mr Jimmy:

Offshore Installations Manager.

Alongside Mr Williams he knew that the CBL check was necessary.

Told Vidrine the dangers of avoiding the check

Mr Jimmy tried to reignite the BOP (Blow out preventer)

Took control and risked his life for others

Great communicator

BP boss – Donald VidrineSelf- centred

Money orientated

Made wrong decision after countless warnings.

Bad communication

Carried out plan after warnings by technicians

Main contributor to the explosion


Reasons for the BP oil rig explosion:

Doggy Cement:

The cement at the bottom of the borehole did not create a seal, and oil and gas began to leak through it into the pipe leading to the surface

Valve failure:

The bottom of the pipe to the surface was sealed in two ways. It too was filled with cement, and it also contained two mechanical valves designed to stop the flow of oil and gas.

Pressure Test Misinterpreted:

The crew carried out various pressure tests to determine whether the well was sealed or not. The results of these tests were misinterpreted, so they thought the well was under control.

Leak not spotted early:

the crew at the surface should be able to detect a flow of oil and gas towards the surface by looking for unexpected increases in pressure in the well. Exactly this kind of increase occurred about 50 minutes before the rig exploded, but it was not interpreted as a leak

No battery for BOP:

The explosion destroyed the control lines the crew were using to attempt to close safety valves in the blowout preventer. The efforts to turn the BOP back on failed because of the failed safety valves and no extra batteries.


Clear and carefully devised plans of actions

Safety protocol

New leadership team

Open communication

Extra safety measures

Better technology

SWOT Analysis:

This tool is used to analysis the micro environment mostly but also used to analysis and interpret the external environments like Market and Macro.

Strengths Weaknesses Opportunities Threats

Good communication within workers on the rig and good leadership from Mr Jimmy Bad leadership and communication from higher powers affect everyone else

Chance to build new customer brand loyalty Trust is given to other companies

Big business with loyal customers Lack of expertise from higher powers leads to the downfall of entire project.

Gain competitive advantage with new technology. Competitive pricing

Wide range of recourses and wide range of skills from workers Lack of modernised technology and failed technology. New leadership means new dynamic which could make the business grow. New and strong entrants.

Corporate Social Responsibility:

CSR can be described as the businesses obligation to protect and promote the welfare of all stakeholders and the commitment to act in an ethical manner through contributing to the economic and social development of employees and the community.

Before the Oil Spill BP’s CSR rating was considered to be A+ but due to many failures it turned to an F

Reasons for BP failing in their Corporate Social Responsibility:

Donald Vidrine sending testing crew home.

BP neglecting health and safety protocol

Spilled oil severely harmed the environment

Lives were lost

Things BP did to rectify their mistakes:

Major cleaning programs.

Hired many workers with the clean-up which generated more jobs for unemployed.

They used absorbent pads and vacuum facilities to clean up oil

BP paid affected families near to $6 billion.


In conclusion I can say that BP definitely neglected their roles and responsibilities in the actions conducted before and during the explosion. Lives and jobs were lost, and ocean life was damaged.

This business report was very insightful and putting practical use of syllabus sections of Business Environments, CSR and management and leadership gave me a better understanding of what I have learned throughout the year.

About the author

This paper is written by Sebastian He is a student at the University of Pennsylvania, Philadelphia, PA; his major is Business. All the content of this paper is his perspective on Business project and should be used only as a possible source of ideas.

Sebastian other papers:

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