Introduction In the previous Milestone One paper, the description of the proposed expansion project of Nordstrom, Inc. to China was discussed in detail. From the expansion itself, the shape of the project envisaged, the differentiation of the Nordstrom move from the many Western as well as Japanese and Korean retail giants who have preceded Nordstrom ( as people will definitely expect something different from Nordstrom), the competitive advantage which Nordstrom may gain from the project to the reasons behind the project as well as its appropriateness at that time, were discussed. The fit of the project in the organizational culture of Nordstrom as well its core competencies were also discussed thoroughly. Continuing in the same vein, this Milestone Two will concentrate on the risks and uncertainties of this expansion project, like any project, and will attempt to analyze all the risks that the proposed expansion project may face and what will the different scenarios be. Once an idea of the risks is obtained, then factors can be built in the expansion plans to counter high risks, or hedging can also be done if the risks are found to be high enough to justify the same.
IV. Risk: Analysis and discussions on the expansion project risk.
A) Risks: Internal
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Fast forward three years and BP’s offshore rig explosion in the Gulf of Mexico became one on the worst man caused environmental disasters and worse, an US investigative report said that the incident occurred due to management negligence and the inability to identify the risks they faced and to manage them. ( Kaplan & Mikes, 2012 June HBR). The objective of citing this incident about Hayward is not to
You brought up a great point. Companies cannot blame their suppliers or contractors for damages their products or services in costumers’ health, employees, environment or the society. I believe companies’ need to ownership of their mistakes for not ensuring its whole supply chain meets their expectations and companies’ regulations. For example, according to Thompson, Arthur, Peteraf, Gamble, M. J. and A.J. III. (2012), “IKEA’s initial plan to combat the use of child labor by its suppliers involved (1) contracts that threatened immediate cancellation and (2) random audits by a third-party partner” (p. 259). I also believe that companies must be open and inform communities when events like oil spill happen, although it impacts their reputation, because keeping unethical business secrets will generate controversies and a higher damage when they are discovered.
Nature is unpredictable and one cannot prepare for every outcome. While nature is a big factor in well breaches, one main factor is the oil companies’ lack of restrictions. This is demonstrated in "National Environmental Health Association Position on Offshore Oil Drilling", where the author states: "An ABC News review of federal records shows that in spite of chronic safety violations, MMS… In a majority of cases in which workers were killed, there was no record of fines paid. When fines were imposed, the maximum penalty was only $25,000" (5). This quote shows how much the oil companies are allowed to get away with. If this were to happen in any other industry, they would have been arrested and forced to pay millions of dollars in fines, but not when it comes to oil because of how much revenue it brings in. The amalgam of these three facts shows the dangers of oil drilling in the extreme environments that oil is found in.
The key takeaways from this case are the importance of having a decision making process in place, as well as not relying on bias to fix a situation. There should have been policies and procedures in place so that when disaster strikes there are guidelines to follow. The model for rational decision making could have been followed. The problem should have been identified, general alternative solutions should have been discussed, evaluate alternatives and select a solutions, and then finally implement and evaluate the solution that was chosen. Had BP and Transocean had effective communication the oil rig may not have caused such a disaster (Kreitner & Kinicki, 2013).
Nordstrom Company is determined to expand its operations through having wide market coverage. As a result, expanding to Japan would be the main investment to focus on where a number of branches will be opened and start operating in the country. The investment activity will be aimed at increasing the sales amount of the company (Wood, 2008). The investment will also be aimed at expanding the company so that its operations will be global. When an organization operates internationally, there is the possibility of creating networks that will enhance business activities. For Nordstrom, the investment activity will involve taking products and services closer to the consumers so that they will not have to travel to access them. The investment will also ensure that the company maximizes its profits through utilization of all the available resources. The investment opportunity will also ensure that there is the creation of job opportunities for people in
The Deepwater Horizon Oil Spill occurred on April 20, 2010 in the Gulf of Mexico. This oil spill was the largest spill in history in front of the Exxon Valdez oil spill of 1989. This oil spill released about 4.9 million barrels of oil into the ocean. This spill not only wreck havoc on the marine life but also the economic players that depended on ocean such as fisherman, tourism, and offshore drilling located along the gulf coast. Along will the spill the oil rig which was named Deepwater Horizon also went up in flames. This proved that the issue went far beyond just an oil rig that blew a line. Since this oil spill had drastic impacts all along the coast, BP which was the most liable for this incident faced criminal charges based on what happened. BP which knew the risks of deep ocean drilling failed to take the necessary safety procedures to reduce the risks of such incident occurring, thus was the reasoning behind placing most of the fault on them and not the other companies. The lack of regulatory oversight led to the issues and cost-cutting procedures opened the rig up to possible malfunctions like the one that occurred. During the spill into the gulf, BP sealed the well with cement which seemed to stop a majority of the oil from escaping the well. BP also recognized that the well was “dead” which was proven wrong when scientists still could conclude was leaking minor amounts of oil into the ocean. This spill not only proved to be harmful to the environment but also
I have picked Nordstrom, Inc. the American chain of extravagance retail establishments headquartered in Seattle, Washington. The organization has 349 stores working in 40 states, Puerto Rico and Canada. Nordstrom additionally serves clients through nordstrom.com, nordstromrack.com, and its online private deal website, Haute Look. To develop the business there are new domains Nordstrom needs extend their business as a feature of their general money related methodology. On account of the general microeconomic condition for the nations to be considered for an extension, they need to give extraordinary chances to Nordstrom to enhance their universal nearness. China is the clearest open door. Growing in can be affected by the expense structure and
The BP oil spill, at the oil rig named Deepwater horizon was a multibillion dollar error that caused not only casualties in the explosions but vast environmental effects across the US and Mexico. Whilst on Deepwater horizon there were two main management perspectives. The first perspective is Scientific management. Its focus is on improving efficient and labour productivity. Each task is scientifically studied to determine the best way to do the work. Everyone on the rig had been trained for a job specifically to be efficient. Deepwater horizon was also fitted out brand new technology for its time, this creates an efficient and standardised process which speeds up the already rushed process. There was no need for workers on the rig to have
There were a number of causes for the Deepwater Horizon oil spill, most of which had more to do with the human element that with any technology itself. The four biggest ways that humans contributed to the disaster, as explained by journalist David Coburn, was the fact that British Petroleum’s (BP) past success built a sense of complacency, the shifting the burden of proof, the normalization of deviance and the fact that promoters for an industry also serve as that industry’s regulatory enforcers.
In her case study, the author Emily Ahonen (n.d) makes us revisit the gulf oil spill that took place on April 20, 2010. She begins the paper by giving us a brief background about the Gulf oil spill and how it went on to become the largest spill in the history of U.S. The drilling rig, Deepwater Horizon, is believed to have exploded due to “a series of safety, regulatory, and oversight problems” (Ahonen, n.d.). As stated by the National Oil and Hazardous Substance Pollution Contingency Plan (NCP) of 1994, the Gulf spill was declared a spill of national significance after nine days of disaster. The NCP held the responsible party, British Petroleum, accountable for the costs related to response efforts.
This paper will explain some of the effects of three legal issues and three ethical issues surrounding the London-based British Petroleum Company’s involvement in the explosion of the offshore oil rig Deepwater Horizon and the subsequent oil spill into the Gulf of Mexico. There are many legal issues surrounding this disaster, but the three this paper will focus on are the Oil Pollution Act of 1990, maritime laws, and criminal charges
All these three root causes can be attributed to the unscrupulous cost reduction where safety of the employees had been severely compromised. This is clearly an ethical issue. In a press release by US Chemical Safety Board (CSB), it is stated that CSB concluded “organizational and safety deficiencies at all levels of the BP Corporation" had caused the Texas City explosion . Despite repeatedly warning about the risk, BP chose to ignore it and put profit in higher priority than safety . The Texas City explosion could have been avoided with proper maintenance program and sufficient manpower.
Secondly, BP’s business relationships are complex, and the legitimate priorities often conflict (Crews). BP’s failure to prevent the explosion was due in part to complex partnership. BP held the rights to drill using the rig and operation services leased from Transocean. As a result, “of the 126 people aboard the Deepwater Horizon, 79 were from Transocean, seven were from BP, and the rest were from other firms” (Ingersoll et. al, 1). People serving on Deepwater Horizon came from different organizations. A decision making process involved many authorities, which decreased the efficiency and effectiveness of decision-making. Even though BP maintained main operational authority, only six percent of people aboard the Deepwater Horizon rig were from BP. As an important business partner of BP, Transocean provided the equipment and performed the majority of the work, and thereafter it had some authority over operations and maintenance.
On April 20, the explosion on the Deepwater Horizon drilling rig in the Gulf of Mexico led to the largest accidental release of oil into marine waters in history. As a result, a huge loss of money and life was caused and affected serious environmental damage to wild animals and water pollution. BP was accused of their irresponsibility that it took 87 days before the well was closed and sealed. BP’s shares
Although the accident was caused by a mechanical failure, it spiralled out of control because of an insufficient safety system. BP acted inefficiently and their carelessness cost the lives of people and damaged the environment, nevertheless this does not mean they acted in an unethical way as
In the month of April 2010, Deepwater Horizon exploded, killing 11 workers and releasing oil from the well into an ocean. This paper will discuss BP management, ethical and social behavior. BP along with a few of its partners Transocean and Halliburton was involved in the gulf oil spill. The explosion of the drilling rig Deepwater Horizon was the root cause of the oil spill. This paper will focus on BP organization behavioral issues that caused the economic, environmental, and human losses. The research further focuses on what BP leadership could have done as a precautionary measure using highest ethics and management behavior.