MGMT1010
18-18. Using Exhibit 18-2, explain what BP could have done better.
BP they should of measure their actual operations to look at their practices and analyze the report that were received from their engineers on the site to ascertain whether the tasks was being completed in the appropriate method beside the eternal regulations set by corporation for oil drilling procedure. When issues discovered, they needed to take the situation seriously by all levels starting from staffs to management at the corporation and take appropriate action to prevent the explosion, which endangered employees and residents in the area, not to forget, environment. Management needed to act immediately to prevent the problems from escalation.
18-20. What could other organizations learn from BP's mistakes?
Corporation should create a healthy environment, where employees can use the open door policy and escalate if see danger to others in the process. New producers can cost money, however, in the end it will gain profit and save corporation billions. A good business perspective is to run safety producers daily, for example run continues drill, tests the environment, report and escalate issues even if not at large. Good communication between upper level and employees it should carry on daily in that type of environment to ensure safety. Overall, government agencies must put in place rules to check corporation environment and make sure the rules followed to achieve safety.
18-17. What type(s) of control—feedforward, concurrent, or feedback—do you think would have been most useful in this situation? Explain your choice(s).
Feedforward control would have been the desirable and useful type of control in this type of situation. The Deepwater horizon accident had massive implications for the health of workers and nearby residents, the economy, and the environment. BP responsibility to take the impending a great danger of their drilling operation seriously and strategically plan for possible problems. BP should have a backup protections to prevent accidents, and should of have trained concurrent control. First BP should have taken whatever actions were mandatory to prevent those type of disaster that occurred, those type of work environment always need to set a protocols and oversights in place to prevent these kinds of mistakes.
18-19. Why do you think company employees ignored the red flags? How could such Behavior be changed in the future?
In fact, in this type of situation so many multiple reasons accrued. If the BP was, putting pressure on those involved in the project to complete it fast regardless of any consciences that may arise so that they could aim on big profit and ignore everything else in the process. Most businesses are competitive however, BP failed to promote a culture that put a value on safety first. Although ignoring the reports it is the responsibly of both BP and its contractors for this type of failures. Engineers carried these issues to management routinely, however ignored. In this type of work environment must create ethical atmosphere that will encourages employees from identifying the problems and/or report it if necessary or escalate.
Breakeven Analysis Calculations - Complete each of the examples below and upload your file. Please show your work. Eric wants to start a car detailing business but is unsure how many cars he will need to detail before making a profit. His cousin has offered to let him use a small section of his shop for only $400 per month. Eric is going to pay his friend $10/hour to help him. He has estimated his additional expenses to be the following: Insurance $150/month His share of monthly utilities $110 Wax (will yield 10 cars) $16.00 Towels, soap, and other supplies $2.75/vehicle Leasing of equipment $100/month Marketing $125/month budgeted He estimates that it will take him 4 hours to detail a vehicle if he has help from his friend. He plans to charge $90 per vehicle. How many vehicles does Eric need to detail each month to breakeven? Eric is now considering leaving his full-time job to grow his car detailing business but does not want to lose his salary. If he decides to pay himself $2000 per month, how many cars does he have to detail in a month now to breakeven?
Resolution Let X be the number of cars Formula for BEP (break-even point) PX = VX + FC + Profit Where the price per unit is the number of units is variable cost per unit and FC is total fixed cost Price: P =$ 90 / vehicle Profit: $ 2000 Variable cost: V = Friend cost +Wax + Towels, soap, and other supplies = ($10/hour * 4) + ($ 16/10) +$2.75 =$ 44.35 Fixed cost: FC= Rent + Insurance + share of monthly utilities +Leasing of equipment +Marketing = $400 + $150 + $110 +$100 + $125 =$885 Now we add these values in formula PX = VX + FC + Profit 90X= 44.35 X + 885 + 2000 90X - 44.35X = 885 + 2000 45.65X = 2885 X = 2885 / 45.65 =63.19 = 64 (Approximately 64 number of cars needs to maintain the BEP Are these numbers attainable? Please explain. List two suggestions you could give Eric that would affect his breakeven point: It is possible, however 1. All depending on the economy. Eric need to encompass that within his business. 2. Additional expenses may occur, Eric need to add additional 20% to his calculation.
