Traditional Budgeting and Budgetary Controls Weaknesses

Traditional Budgeting and Budgetary Controls Weaknesses This answer briefs the practice of budgets in two entirely different businesses; one in a very stable and static market place and the other in a very dynamic, rapidly changing, innovative environment. Budgeting and budgetary control is commonly used in a traditional manner by most business entities in the world in spite of its manifold limitations. In a fast changing business environment, traditional budgeting need not be the only budgeting approach to be exercised in a company. There are quite a few alternatives like Zero-Based Budgeting, Beyond budgeting, Activity-Based Budgeting, etc. which are much beneficial and rewarding for a business entity. Budget A budget is a plan, expressed in financial and/or more generally quantitative terms, which extends forward for a period into the future (Gowthorpe, 2003) . A traditional budget is usually prepared by reviewing past years budget and actual expenses, with addition or deduction towards extra business activities or reduced business activities planned and also by effecting changes towards changing factors, such as growth, inflation etc It is basically to tie managers to predetermined actions in order to achieve the planned budget. It is usually based on organizational hierarchy and centralized leadership . Benefits of traditional budgeting and budgetary controls are :- Income of budget period can be matched against budget period expenses to know whether operations will result in profit and how much profit. Actual performance can be compared with budget to know variances so that corrective actions can be taken. Budget based reports facilitates assessment of costs of goods and services provided and accomplishments of the business entity. Problems associated with traditional budgeting and budgetary controls are :- It is futile to predict what will happen in the next 12 months Serven (cited in Banham, 2000) argued, The customary system of trying to accurately predict what will happen in 12 months and budgeting accordingly is an exercise in futility. Most budgetary processes are costly and inefficient. It takes a long time to complete and by the time it is completed, it becomes no longer applicable as business environment has changed. According to Stewart (2004), there are ten reasons why budget cause problem, as shown below. Though traditional budgeting have many weaknesses, but most companies still rely on it because of its unchallenged position in the top division of accepted management practices (Hope Fraser, 1999). Therefore many companies now seek to find alternatives of traditional budgeting, even some attempt to abandon it. However, it is widely delieved by analysts that as many as half the companies that attempt the overhaul become so exhausted they give up and go back to traditional approach (Banham, 2000). Traditional Budgeting in Dynamic Business In a business that operates in a very dynamic, rapidly changing, and innovative environment, traditional budgeting is inappropriate to exercise. Budget is a barrier for the business because the vibrant market demands flexibility, fast response, innovation, process improvement, customer focus, and shareholder value (Daum, 2001). And it is the limitation of the traditional budgeting not to be able to fulfil these demands. The dynamic driven business should keep up with the change and adaptive to recent development to achieve success. Hence Beyond Budgeting approach introduced. Daum (2001) argued that, The Beyond Budgeting Model is designed to overcome traditional barriers and to create a flexible, adaptable organization that gives your local managers the self-confidence and freedom to think differently, make decisions rapidly, and collaborate on innovative projects with colleagues in multifunctional teams both within your company and across its borders. Exercising beyond budgeting may have become the turnaround for many companies of their budgeting problems. Beyond budgeting is about a performance management system, made up of a series of interdependent and interlocking process (Verlag, 2005). The objective is to create an adaptive system to the real world that ideally develops the business plan from the environment, i.e. growth of markets, performance of competitors, etc. Then, instead of trying to meet a negotiated number in the budget, business should try to beat this performance standard (Verlag, 2005). Thus it would not make managers feel undervalued. The process of beyond budgeting is portrayed in 12 principles of Beyond Budgeting (BBRT, 2005). The first six process principles is concerning performance management systems that allows employees to response faster to customer needs and competitive environment. The second six leadership principles provide a decentralization framework of responsibility to employees to facilitate them adapting quickly to potential events and improves their relative performance. Beyond budgeting can be exercised successfully by applying these principles and the business can be adaptive to the rapidly changing environment. 12 principles of Beyond Budgeting Beyond Budgeting Process Principles Targets Set aspirational goals based on continuous relative improvement not fixed targets Rewards Base rewards on relative performance with hindsight not on meeting fixed targets Planning Make planning an inclusive and continuous process not an annual event Resources Make resources available on demand not through annual budget allocations Coordination Coordinate cross company actions dynamically not though annual plans and budgets Controls Base controls on KPIs, trends and relative indicators not variances against plan Beyond Budgeting Leadership Principles Governance Base governance on clear values and boundaries not on detailed rules and budgets Performance Build a high performance culture based on relative success not on meeting targets Freedom to act Devolve decision making authority to frontline teams dont micro-manage them Accountability Create a network of small units accountable for results not centralized hierarchies Customer focus Focus everyone on improving customer outcomes not on meeting internal targets Information Promote open and shared information dont restrict it to those who need to know The benefits of beyond budgeting is it will examine targets, strategies, action plans, forecasts and management reports. Comparisons might also be made against competitors and past-year performance. It will concentrate on the key drivers of business performance. The purpose is to be alert and take advantage of new opportunities and respond to potential threats by using an advanced information system to make decisions early. Speed of action and good decisions are the result of beyond budgeting. (Hope Fraser, 1999) The major change required by beyond budgeting will raise some resistance to change (Verlag, 2005). Organisations will differ in scale, culture and business context. It would be challenging to demonstrate to key stakeholders that control can still be achieved without a budget (Max, 2005). Beyond budgeting may raise issues such as doubt of loosening control, giving front-line people decision-making authority, and trusting people to act in the best interest of the business that is not easy change to contemplate (Hope Fraser, 1999). However if these issues can be handled, the business may gain success in long term. For example, the companies that have successfully practised beyond budgeting and abandoned the traditional budgeting system are Volvo (one of Europes most profitable car manufacturers), IKEA (the worlds largest furniture manufacturer and retailer), etc. (Hope Fraser, 1999). Many organizations that have gone beyond budgeting found that their performance has improved once the budgeting process was abandoned in favour of more relative and adaptive means of planning, evaluating performance and control (Stewart, 2004). Activity-Based Budgeting (ABB). Although beyond budgeting is the most updated method, but not all companies can adapt to it. Thus the other alternative for the dynamic driven business is Activity-Based Budgeting (ABB). It aims to generate a budget from activities and resources of the company . A financial budget is prepared after preparation of an operationally feasible budget. Advantages of ABB approach. It facilitates better product, process, or activity costing and decision making, and better resource allocation to support organizational priorities. It identifies capacity issues and makes adjustment earlier in the budgeting process than under traditional budgeting which does not track resource consumption patterns. It enriches managers ability to respond to contingencies and also improves performance measurement, evaluation, and decision making (Hansen, Otley, et all., 2003). Thus, ABB can be a proper alternative for the dynamic company since it will provide more accurate analysis to quickly forecast the next budget compared to the traditional budgeting. However, ABB is not without problems. According to Barret (2003), ABB can be difficult to understand about the rules relating outputs to resources and costs. Consequently business managers tend to be doubtful of the approach. Although ABB directly relates increase in the volume of an output with increases in certain activities, it does not help in linking activities with resources. Thus any application of one of these alternatives, whether it is beyond budgeting or ABB, must be considered thoroughly subject to the business current condition. Traditional Budgeting in Static Business In a business that operates in a very stable and static market place, where there is slight change in either products or demand every year, traditional budgeting still can be appropriate (Daum, 2001). Static business would not need to take a risk to change their invariable budgetary plan as it would cost higher and consume more time than usual. However if this condition continuously persisted, the business will never develop more than its current position. It could lead to boredom for the employees who seek for challenge. As it is argued by Hope Fraser (1999), Budgets are well known for reinforcing the command and control culture, constraining freedom and autonomy, and stifling the very challenges that excite prospective managers. As an alternative to the static business, Zero-Based Budgeting (ZBB) is introduced. ZBB refers to proposals by Pyhrr (1973); Cheek (1977) et al. to modify the traditional budgeting process in organizations in which budgeting is an incremental process in relation to the prior years actual expenditures. The proposed ZBB process requires each manager to justify the budget request approximating the organizational functions were starting from ground zero. It entails clarifying the goals of an organizational unit as well as identifying the functions and projects it proposes to perform in order to achieve its goals. These activities are then ranked in order of importance (Flamholtz, 1983). Basically it is a systematic logical approach to allocate limited resources where they will be best used. Benefits of ZBB are cost saving, improving services, increase self-discipline in developing budget, reduce the entitlement mentality with respect to cost increases and make budget discussions more meaningful during review sessions (LaFaive, 2003). On the contrary ZBB also can cause problems for example, may increase the time and expense of preparing budget, may be too radical a solution for the task at hand, and can make matters worse if not conducted accordingly. Moreover a substantial commitment must be made by all sectors involved to ensure that the change is followed through (LaFaive, 2003). ZBB is recommended for the static businesses in order to improve performance. It can be useful for shaking up a process that may have grown stale and counterproductive over time (LaFaive, 2003). Variance analysis is still the most common tools to calculate the mismatch between the planned budget and the actual performance. Based on the survey by Sulaiman, Ahmad Alwi (2005), the common practice among local Japanese (about 71%) and local Malaysian companies (about 64%) is to investigate variances only when the variance exceeds a certain percentage. This is a typical characteristic of traditional budgeting. However it is inadequate to be used in today modern business. Thus Ramsey (1999) introduced diagnostic variance analysis, where budget variances are analysed in terms of the activity-based components that make up the variance, and evaluated in light of overall business performance. As a result of this analysis, the underlying cause of the variance is revealed, providing the necessary business insight to support strategic decisions. In conclusion, traditional approach cannot be abandoned completely. Budgeting is still very important in the company and need serious attention in the organization in spite of its complication (France, 2006). Zero-Based Budgeting and Activity-Based Budgeting are only improvement of traditional approach. In a dynamic driven business that evolve in rapidly changing environment like today modern business ambience, beyond budgeting can be the suitable alternative with proper handling in the organization. As for the static business, ZZB can assist the breakthrough in the organization so that the business will develop more and achieve success in the future.

Essay --

Fantasia Goodwin is junior at the University of Syracuse and a starter for the varsity women’s basketball team. Fantasia finds herself in a precarious situation upon learning she is pregnant during the 2007 basketball season. Faced with many uncertainties, Fantasia encounters what is undoubtedly one of the biggest ethical dilemmas she has faced thus far in her life. There are many layers to her dilemma and they all need to be carefully taken into consideration. In order to help Fantasia make an informed decision she must first identify all of the ethical issues surrounding her pregnancy and the cause-effect relationship they will certainly have. First and foremost if she remains silent and continues to play through the season she faces the consequences of potentially damaging her unborn baby to the extent of birth defects, injuring herself and/or miscarrying. On a tertiary level, Fantasia is also faced with the consequences that disclosing her pregnancy could bring, such as, losing her scholarship, losing her eligibility, losing her position on the team and/or being pressured to abort the baby. Stakeholders in which Fantasia must take into consideration before making an informed decision include Fantasia. As the mother of the baby she is the primary stakeholder in this situation. The decision she makes could potentially have profound effects on the outcome of her future. The Syracuse department of athletics, teammates, the University of Syracuse and other Universities team members should be taken into consideration. Finally, regardless whether or not the father is involved in the decision making process, consideration of his thoughts and feelings must be given proper attention in this matter. Before a final decision ... ...thletes that became pregnant. Syracuse University at the time did not have guidelines nor did they have their female athletes sign any formal documentation to the effect of mandatory disclosure or a promissory note indicating scholarship funding would be pulled as a result of pregnancy. However, also in 2007 a track and field star from Clemson University set the stage for many Universities to address and add provisions as it pertained to pregnancy. Clemson University did have their female athletes sign promissory notes indicating funding and eligibility would be suspended as a result of pregnancy. Upon learning that their track and field star was pregnant her scholarship funding ended immediately as did her place on the team. Interestingly enough, there are absolutely no guidelines for male athletes that are fathers and this disparity has yet to be addressed.

Nietzsche And Platonism Essay -- essays research papers

In Twilight of the Idols Nietzsche writes, "My objection against the whole of sociology in England and France remains that it knows from experience only the forms of decay, and with perfect innocence accepts its instincts of decay as the norm of sociological value-judgments. The decline of life, the decrease in the power to organize, that is to tear open clefts, subordinate and super-ordinate -- all this has been formulated as the ideal in contemporary sociology." (p 541). The culture of Europe at the time of Nietzsche’s writing was experiencing a general decline in vitality which was exemplified in Christianity (Platonism) and anarchy or nihilism. Nietzsche saw himself as a kind of philosophical doctor, capable of diagnosing the sickness of man. These two types of decline made it especially apparent what was wrong with mankind, and in this decadence Nietzsche detected symptoms of nihilism, one of his biggest worries for the culture as a whole. To Nietzsche, Christianity is objectionable because it is a symptom of mankind’s world weariness. In rejecting the realm of the here and now in favor of a transcendent, heavenly afterlife, the Christian reveals his weakness. This weakness was first observed in Plato, whose logic is eventually carried out into the development of Christianity. Plato created the idea that this world is meaningless, and that people do not get rewarded for their actions until after death, and that worldly reality is not worth anything. Nietzsc...

The Role of Human Resource Management Related to Sexual Harassment in t

The Role of Human Resource Management (HRM) Related to Sexual Harassment in the Hospitality Industry Table of Contents Introduction 1 The Role of Human Resource Management (HRM) related to Sexual Harassment in Hospitality Industry 2 The Important Efforts of Human Resource Management (HRM) to Overcome Sexual Harassment in Hospitality Industry 4 Conclusion 6 References 7 Introduction â€Å"In May 2011 former IMF chief Dominique Strauss-Kahn was arrested for sexual assault employees in the hotel Sofitel New York† (ehotelier.com, 2013). The quote above shows an interesting case to study related to sexual harassment in the hospitality industry. A sexual harassment case was begun when Strauss-Kahn was a managing director of the International Monetary Fund (IMF) would have been arrested caused by presumptive that he raped a 32-year old hotel employee at the Sofitel Hotel in New York. According to the hotel employee, the event began when Strauss-Kahn emerged from the bathroom and suddenly did sexual assault in the room at the Sofitel hotel in New York's Times Square. Then Strauss-Kahn left the hotel after the sexual harassment. But a few hours later, police arrested Strauss-Kahn on the Air France flight, 10 minutes before the plane was to fly to Paris. New York’s court prosecutor demanded Strauss-Kahn with three counts: two charges of first-degree sex offenses, one count of first-degree attempted raped and first-degree sexual abuse. In the end, the case of sexual harassment made by Strauss-Kahn ended by agreeing the payment of money to hotel employee at the Sofitel New York Hotel with secret in number. This case is certainly a challenge that must be faced by the company due to such events either directly or indire... ...com News Archives. [ONLINE] Available at: http://ehotelier.com/hospitality-news/item.php?id=P20921_0_11_0_C. [Accessed 09 March 2013]. Sofitel Maid in Strauss-Kahn Scandal | ehotelier.com News Archives. 2013. Sofitel Maid in Strauss-Kahn Scandal | ehotelier.com News Archives. [ONLINE] Available at: http://ehotelier.com/hospitality-news/item.php?id=P20921_0_11_0_C. [Accessed 09 March 2013]. Sabitha, M., (2008), â€Å"Sexual Harassment Awareness Training at Workplace: Can it effect Administrators' Perception?† JOAAG, Vol. 3(2): 1-16. Willness, C.R., Steel, P. and Lee, K. (2007), â€Å"A meta-analysis of the antecedents and consequences of workplace sexual harassment†, Personnel Psychology, Vol. 60, pp. 127-62. Worsfold, P., & McCann, C., (2000), â€Å"Supervised Experience and Sexual Harassment,†International Journal of Contemporary Hospitality, Vol. 12(4): 249-255.

Human Interactions with Environment in Ancient Egypt Essay

Experience made them able hunters and gatherers, and later made them adept at herding. But, lacking the experience of modern people, they assumed that they were at the center of the universe, which they saw as flat, small and under sky. They were doing the best they could in drawing conclusions about the world around them. Much of the Paleolithic Age occurred during the period in the earth’s history known as the Ice Age. Around this time glaciers advanced and retreated many times. Because the people during the Paleolithic Age were living during such a harsh time they had to get adjusted to their environment so they started to depend on animals for their source of food. Since the paleolithic people were nomads and hunters and gathers, they followed their source of food. In this time their main source of food were the huge animals that traveled together such as mammoths. They used their environment to help them survive. The paleolithic people lived in caves and tents made from animal skin, their cloth were made from animal skin and leaves. It is hard to imagine how Neanderthals or Homo sapiens could have survived without fire during the Ice Age. The first stone tools were probably used as projectiles or to hit with them like with a mace. Later, the primitive humans observed that broken stones had cutting edges that could inflict deeper wounds or cut animals into pieces. Step by step, people learned to hit stone by stone to produce sharpened tools. The stone processing was used until the discovery of the metals by Homo sapiens, after the Neolithic[1]. Stone scrapers were used for removing the skins of the animals. Stone axes were used for wounding or cutting up the prey. They had handles made of wood or deer antlers. Stone drills were used too. During the Upper Paleolithic (40,000 to 10,000 BC), more complex stone tools appeared, like stone lamps that were filled with grease and had a wick made of plant fibers. The silex arrow points were complex, having rods that allowed them to be joined to the shaft via a resin or tendons. Bone harpoons and needles from this period were found in Europe[2] During the neolithic era people were developing ways to communicate, better ways to make weapons, better ways to obtain food and started to develop a religion. The neolithic people discovered a way to obtain a better source of food. They discovered how to farm. They started to grow crops and became farmers. They would usually look for sources of water and build irrigation systems. The great source of food now game them time to settle down and become civilizations. As they settled down they also found a way to domesticate animals. Their diet probably consisted of dairy products such as milk, cheese, meat and a variety of edible grains; wheat, barley, and rice. Because they discovered how to tame the animals they started to develop their technology they made their cloth from wool from the goats. Neolithic people were mostly farmers and herders, but then there were certain people who didn’t want to be a farmer or an animal tamer. These people started to specialize in different jobs, jobs that needed to be done. For example crafts like carpentry, weaving and pottery. Carpentry was needed to make homes and buildings, the weaving was needed for the cloth, and pottery was needed to make bowls or statues or even ornaments, decorative ornaments. They also developed sets of rules to guide ones behavior. With no defined difference between spirit and materiality, they believed that in preserving a corpse they were also helping to preserve the spirit of one who had died. And they believed that they could nourish the spirit of the corpse by putting gifts of food alongside it. They believed that a body went limp at death because the spirit that had been within it had left it for the invisible world of the spirits. They felt no urge to meld these ideas of spirits and materiality into the kind of consistent picture that modern people would demand for credibility. As you can see, both the neolithic and paleolithic ages had major impacts on the way civilizations started. They started everything. What we call technology today they, our ancestors created it. Applied science, even though they didn’t even know science existed they were smart enough to know that they needed to develop new ways to live as time passed on.

The Human Rights Act

Amy has dementia and lives in a residential home. In the mornings Amy has always been able to get out of bed and get dressed with some minimal support and then walk independently down to the dining area where she has chosen to have breakfast. Over the past week Amy has been staying in bed longer and longer; she is reluctant to get up in the morning and does not do very much for herself when getting dressed. Her mobility has reduced also and she has started to get pressure sores. Amy’s appetite has also become very poor and she usually only eats a few spoonful’s of her food. When carers encourage her to eat more she refuses.The Human Rights actThe human rights act is there to protect people, young, old, rich and poor. They give people the right to freedom of speech, right of freedom, privacy and to be equally treated (not discriminated). This links to Amy because with Amy having dementia she may do certain things that are not appropriate. An example could be when she goe s to the toilet she decide not to close the door and leave it wide open for people see inside. As one of her care workers it would be my duty to try my best to close the door. As much as Amy may protest it is part of my job to protect Amy’s privacy and dignity.The Mental Capacity actThe mental capacity act has been put into place to make it possible for adults who are unable to make decisions for them to be able to make certain decisions for themselves. ‘Under the Mental Capacity Act a person is presumed to make their own decisions â€Å"unless all practical steps to help them make a decision have been taken without success†.’ This would link into Amy when she decisions for example if she decides she wants to live on her own for the rest of her life. At some point in this decision there will be a problem financially and providing a one to one carer for the whole of the day and night.Putting people first FrameworkPutting people first was put in place to out line responsibilities of care workers when working with dementia. Some of the responsibilities include; making sure the patient has taken any medication they need to take, ensuring they have had something to eat and drink throughout the day. It is very easy for somebody with dementia to become anorexic or obese because their short term memory can make them forget that they have had nothing to eat or in the opposite way that they have already had their something. This framework will help Amy because it would be their care workers responsibility to make sure they have had breakfast and write it down if she has or not for the next care worker who may be a part of her team because then they cannot just assume Amy has had something to eat or not.There are many different types of roles and responsibilities that come with being a care worker for somebody with dementia. The care worker has to promote dignity for the service user. Respect them and give them independence, their rights and pri vacy.Again giving them privacy could just be by closing their toilet door so nobody can see them when on the toilet. Focusing on strengths and the things they have the ability to do. For example when lied in bed if they can’t sit up to help themselves out of bed, rather than saying ‘you know you can’t do that on your own, you don’t need any help’ ask them ‘do you want some help? I’ll help you up, you swing your legs out of bed then you can get up’. By focusing on the things they can do you’ll be helping to promote their independence to do something else.Involving their friends and family is another responsibility to a care worker to help the individual interact with family member and friends. This could just be by taking the service user for a walk to the park on a nice day with one of their friends. Giving them the chance to get some fresh air and interact with friends. Acting in the best interest of the individual.This c ould be just by when you do take them for a walk by making sure you use a pedestrian crossing rather than just crossing the road because there are no cars coming down the road. This links into the case study with Amy for because in the case study it says ‘she is reluctant to get to get up in the morning and does not do very much for herself when getting dressed.’ As well as promoting her independence, when giving her the opportunity to interact with friends and family your giving her a reason to want to get up in the morning.The job role of a care worker is mainly working within a team and not as an individual. For example if a service user has 3 or 4 different care workers throughout the day, the care workers would communicate in a diary by saying when the service user has had their breakfast and what time they took their medication. They may also promote their independence by using a tablet box. This would work because in the diary the first care worker could say â₠¬ËœAnn took her first tablet at 9 o’clock, she is next due to take her tablet 4 hours later which will be 1 o’clock, give her the tablet box and tell her she needs to take tablet 2’.By doing this you’re giving Amy as the service user independence to take the tablet herself your just supporting her by telling her when to take it. This would help to improve the service user’s health because it means all their tablets will be taken at the right time. Also having the professionals work as a team writing different things into the diary such as what time they had their breakfast and what they had will help to minimise chances for obesity. This will help Amy by trying to keep her health and fitness levels balanced.This will also help because each different professional will also know what they had and if they had something unhealthy such as fried bacon and egg on toast, the next professional may say ‘right ok you had fried foods for breakfast lets h ave something healthy for dinner such as a tuna pasta salad or a chicken and salad pita bread with a Muller light yoghurt. By doing this they are getting more of a balanced diet. They could also write in the amount of exercise the service user has had from going for a 20 minute walk with the dog, a half an hour game on the Nintendo Wii.There are many different approaches to dementia care and all the different approaches can have their own effect to Amy as the service user. For example in the case study it says ‘Amy has always been able to get out of bed and get dressed with minimal support’ then it says ‘over the past week Amy has been staying in bed longer and longer; she is reluctant to get up in the morning and does not do very much for herself when getting dressed.’ There are different approaches to how the care worker could work with this problem.If the care worker decides to help them get up by physically  helping them, lifting them up and swinging their legs around to get them up and then get them dressed there could be quite a few possible outcomes with strengths and weaknesses of their own. One strength of this approach could be how Amy will then be up and ready for the day ahead. However a weakness to this approach could be how Amy has not done anything within the process. Another weakness to this approach could be how Amy may now expect to get this help every morning, because she has had full help and not had to do anything independently. A different approach to how the care worker could work with this problem could be by helping her with minimal help like usual.Saying to Amy ‘come on Amy, I’ll help you sit up, you swing your legs around if you can.’ Once Amy is up by then helping her get ready rather than just getting her ready. A strength to this approach could be how Amy will of managed to get herself with minimal support just like n a regular day. A weakness to this approach could be pain Amy may f eel when swinging her legs out of bed to get up.’ However another strength to this approach is how Amy has still had her independence promoted because she has still been able to do things for herself when getting ready. Therefore no matter what approach the care worker uses to encourage Amy to get up and get ready there will be strengths and weaknesses and effects to her. Whether or not they be good or bad effects.

Bp Ethical Culture to the Gulf Coast

Question 1) Introduction BP is one of world’s largest energy company, they must have enough capital, technical and experience a responsibility to keep theirrefinery safe and run smooth in their working area. But some problem appeared from BP inside to cause this crude oil spill disaster. Save cost for to overlooked safe for the system;Assigned Transocean to drill oil; and continue to drill oil when technician looked out rig’s blowout preventer was leaking are main reason in this disaster.Everyone totally not accept this overlooked in one history and technical energy company. Save Cost Nowadays save cost from an existing business is logic and comment. We understand and accept save cost to keep competition in the market but first concern is keep high quality production after save cost. If not it will cause many problems from this action. This is a simple logic for business beginner. So lots of people don’t know why a huge and history company forgot this main point. Oil drilling is one of dangerous and careful job in this world.Each step must need circumspect and 100% safe before action. So risk management most important for that, but BP cut corners like to save money. For example, no remote control to urgent shut-off switch install on the rig. This one is last insurance for the protection but they can miss it for save cost. Also, on simple procedures, they cut out some step and quality test for the pipe. Each industrialist must understand final quality check is one of main step in the production. This step if missed may cause the company loss a large amount and product confidence.Especially, public confidence is important for each product or service. They need spend too much capital and time to build up. Unfortunately, BP looks like forget this main point. They miss some step and quality test intentionally. The test is for the pipe mainly to detect the gas in the well. I know these actions can save some cost for their production. But they are loss a huge amount and crude oil, confident of public and 11 technical staff. Contractor investigation Based on there is no risk management and they contracting out oil drill to Transocean.In records that almost four incidents were owned by Transocean almost three years. They can make an investigation before contract if they have risk management. No Risk sense One technical staff whois worked on Deepwater Horizon oil rig and points out BP negligence. He report to BP that the rig’s blowout preventer leaked before explosion but BP still no action for stop production. BP’s management are not only no risk management for save cost, and then they only knowledge how to earn more money to negligence safety. Conclusion BP is a history and largest energy in the world.Money may cover their ethical knowledge. They destroyed a one heaven location for travel, fishing industry in Gulf Coast, tourism, 11 staff’s life, their thousands of gallons crude oil and main point is lost reputation and trust from public. Question 2) Introduction Lots of victims are in this unfortunate accident, environment of Gulf coast, tourism, fishing industry, 11 technical staff etc. But not included BP in this case. They are murderer totally in this oil spill disaster based on their company failed in the management of potential risk.Refer to question 1,their management should be stop production before explosion when their staff appear the rig’s blowout preventer leaked. If they can stop the production immediately, history should be no this disaster and BP continue to work smooth in the market. Management of potential risk is important for them, but they completely to ignore it. In this case, one of true victim is their staffs who are killed by this explosion. Before employ this job, all staff must understood how dangerous for their job. They put down their worry and accept this dangerous job ecause they believe a largest company had a completely system to protect their life and promise their parent safety back home every day. They are happy to get a stable meaningful job and they are working in one largest company. Also, lots of human can enjoy energy for their live, useful plastic accessories because they painstaking to delve crude oil. However their largest company betrays their truth and got their life base on oversight. Unfortunately, eleven employees can’t back home on time because they killed by this disaster. ConclusionGulf Coast oil spill disaster no more excuse to shirk responsibility from BP. If they can increase safety sense and risk management, they no need to pay 80% penalty money for Gulf Coast restoration. Based on save cost and earn more profit to miss safety and quality control system is impolitic absolutely. Finally, senators introduce legislation to dedicate at least 80% of BP penalty money for Gulf Coast restoration on 21 July 2011. (Source by http://landrieu. senate. gov/mediacenter/pressreleases/07-21-2011-1. cfm) Ques tion 3) IntroductionBP is one of world’s large energy companies even the disaster happened. A company can ups and downs over hundred years, it must go through lots of incident. Mr. William D’Arcy (a British Petroleum and the Anglo-Persian Oil Company founder) used over six years of drilling in Middle East with his experts and scientists against his finances and patience were coming down. Finally, they had approached around 1200 feet when the source of oil shot out. Go through a few years to drill oil with painful, dissatisfy and nearly give up, a BP was born against these unfavorable factors.Mr. D’Arcy became rich because his company opened a trade on the stock market and their first location to set up a refinery is in Iran. Everything look like smooth going, however BP was go bankrupt nearly on 1914. In 1914, they loss a heating and kerosene lamp markets base on their oil came from Persian was a strong smell. And Automobile was not a primary market product. How ever, the company had a lot of stock in oil. But the market demand can’t fulfill. Since the first crisis passed, they met a second crisis during a coup in Libya and led by Muammar al-Gaddafi.He nationalized BP’s share of oil operation in Libya. And this action to make other oil rich countries in Middle East, like Saudi Arabia, Abu Dhabi, Iran etc.. tonationalize. They made BP drop down from 140 million to 500,000 barrels in oil production in Middle East between 1975 and 1983. Above two crisis are very seriously, they cause BP’s lost a huge amount in their business, capital and source. But they can’t compare the explosion in Gulf Coast region on April 2010. This unfortunate event is not only loss money, capital, source and technical staff. Their reputation destroyed in a short period.The whole process is like a nightmare for their public relation. Because rebuild a over hundred years history company is very difficult and need a long time and no any mistake appear again during this period. I understand their public relation is professional and technical. They must still hard to rebuild their reputation. But some idea suggests them to do in the future. 1) Fully support victim in fishing industry Before the explosion, one of main business in Gulf Coast is fishing industry. However, their marine products already got crude oil pollution.BP had a big representation to help all fishermen rebuild fishing industry and subsidies their cost of living. 2) Invite senators, experts, scientist to visit their refinery and Gulf Coast Base on their oversight to cause explosion and oil spill. They must always invite some good reputation experts, scientist, senators and media to visit their other refinery. Media can make more people understand BP how to drill the crude oil and each step is careful to handle and guarantee to public the disaster never happen again. Experts and scientist for double insurance to their machines and procedures is regular and correct.About some senators visit Gulf Coast, they must cause public to follow with interest. And they can show to public BP how to help Gulf Coast restoration. Like President Obama visited Gulf Coast after the disaster happened forth month. (Information source by http://obamafoodorama. blogspot. com/2010/08/as-gulf-coast-visit-ends-obamas-enjoy. html) They can help to Gulf Coast better to rebuild the tourism. 3) Solve Environment Effect After explosion rocked the rig and made them fire and sank. Thousands of gallons of crude oil were spilling to into the sea.The environment around Gulf of Mexico becomes environmental catastrophe. The spilled oil must make the sea on the sea. It hurts lots of marine life and fish. According patch up this disaster, BP and US government use lots of different method to control and clean up the spilled oil. However, they also used chemistry materials to control them. Some expert points out thatthetechnical limitationsand historical experienceshow that t heclean-upworkmay not be abletorestoretheoriginal environmentofthe Gulf of Mexico, butthiseventisto provideatesting groundfor exploringthefutureof oilpurificationmethod. Information source by http://www. futenworld. com/_d270860491. htm) Base on no one want to meet again offshore oil disaster, their risks associated with offshore drilling activities must handle better than before. They must set a rule and guideline to each class of management how to handle if meets the rig in something wrong. And monthly report to local government to report each step is follow the guideline and 100% safe for oil drilling.