BRITISH PETROLEUM (A): DEFINING A STRATEGIC VISION

The A-case begins with Tony Hayward's appointment as CEO of BP. Hayward was immediately faced with the challenge of convincing the board that he could streamline BP's cost structure, while at the same time addressing the other main issue facing the company, its safety record. One of the board's subcommittees, the safety, ethics and environment assurance committee (SEEAC), had the mandate to identify and mitigate significant non-financial risks and ensure the company achieved its goal of "no accidents, no harm to people, and no damage to the environment." Learning objectives: Strategic positioning in terms of risk and costs; setting strategic priorities; comparison competitors; managing the expectations of the board.