Exxon Valdez, GROUP 3,Summer2010VIDEOWORKS

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Slide 1: 

Management Lessons from Exxon Valdez Managerial Decision Making Bus 5663-Summer 2010 Group 3: Alishia Nelson Chibuzo Daniel Chris Redmond Dayna Jennings La Verne Burrus Monica Eberhard

Slide 2: 

Agenda Sequence of Events The Good, the Bad & the Ugly Tylenol Comparison Life after Oil Summary

Slide 3: 

Prince William Sound

Slide 5: 

March 23,1989

Slide 6: 

984ft tanker calmly sailing at 9:12 PM. Captain Hazelwood -Left 3rd mate Greg Cousins at the wheel -Seaman Robert Kagan at the helm at 11:53 PM. Tanker runs aground on Bligh Reef Prince William Sound at 12:04 AM. 11 million gallons of crude oil spilled 8 of 11 cargo tanks ruptured

Slide 7: 

Exxon’s Response: The Good, The Bad… Response Time Ineffective Communi-cation Failed clean up attempts Refusal to accept responsibility

…and The UglyExxon company executives refused to acknowledge the extent of the problem and refused to comment on the spill. : 

…and The UglyExxon company executives refused to acknowledge the extent of the problem and refused to comment on the spill.

Slide 10: 

Safety First eliminated the disaster response team rejected tankers with double hulls rejected a better radar system downplayed risk and eliminated back-ups promised, but did not deliver Lesson 1:

Slide 11: 

ECONOMY TAKES A HARD HIT AFTER THE SPILL: Over $300 million in economic harm to more than 32,000 people South central Alaska-tourism spending down 8% South west Alaska-tourism spending down 35% Loss of 9,400 visitors Loss of $5.5 million in state spending

Slide 13: 

“You cannot lead if you do not show up” $287M – 1994 Actual damages determined $5B – 1994 Punitive damages awarded $507.5M – 2008 Reduced punitive damages award Court ordered payments… Lesson 2:

Slide 14: 

PEOPLE WERE NOT THE ONLY ONES TO SUFFER Thousands of animals died due to the Exxon Valdez oil spill 22 Orcas 250,000 Seabirds 1,000 Harlequins

Slide 15: 

Learn from History Lesson 3:

Slide 16: 

Lesson 4 “You cannot act fair and square by cutting corners”

Slide 17: 

Alcoholic fined $50,000 and 1-year Community service

Slide 18: 

Exxon and Mobil merge under a $73.7 billion agreement Seariver Mediterranean prohibited in Alaskan waters under the 1990 Oil Pollution Act Court deny request to operate Seariver in Prince William Sound Exxon Valdez is renamed the Seariver Mediterranean One of the world’s largest publicly traded companies (XOM) 38 oil refineries in 21 countries 1990 1991 1996 2010 Late 1990 …snapshot 20 years later

Life After Oil : 

Life After Oil Current Conditions Oil is still present on many beaches Wildlife, fish, and intertidal animals are still being contaminated by toxins and subsurface oil. Plants have yet to grow back in some areas Mandated Laws Oil Pollution Act 1990 Congress enacted “Double – Hulled” by 2015 Satellite Monitoring Escort Vessels Specific Weather Criteria Disaster Contingency plans w/ capacity of a 12.6 million gallon spill

Lesson 5 “It’s always a good time to do the right thing” : 

Lesson 5 “It’s always a good time to do the right thing” Modified tanker routes Developing and applying new spill-detecting technology Implementing periodic assessment of vessels and facilities Restricting safety-sensitive positions to screened employees Drug and alcohol testing programs for safety sensitive positions Strengthening training programs for vessel captains, pilots, and crew Applying new technology to improve navigation and oil containment systems EXXON after the Oil

Slide 21: 

YOU CAN CRY OVER SPILLED OIL……

Synthesis of Management Lessons : 

Synthesis of Management Lessons Safety First You can not lead if you do not show up Learn from history You can’t act fair and square by cutting corners It is always a good time to do the right thing

Slide 23: 

Thank You Managerial Decision Making Bus 5663-Summer 2010 Group 3: Alishia Nelson Chibuzo Daniel Chris Redmond Dayna Jennings La Verne Burrus Monica Eberhard

Sources : 

Sources Exxon Valdez facts. (n.d.). Oceana. Retrieved from: http://na.oceana.org/en/our-work/stop-ocean-pollution/oil-pollution/learn-act/exxon-valdez-facts Exxon Valdez Facts. (n.d.) Oceana. Retrieved July 28, 2010 from http://na.oceana.org/en/our-work/stop-ocean-pollution/oil-pollution/learn-act/exxon-valdez-facts Exxon Valdez oil spill litigation update (July 27, 2010). Faegre and Benson. Retrieved August 2, 2010, from http://www.faegre.com/showarticle.aspx?Show=2881 Hoffman, R. (2010). Video: BP oil spill déjà vu for couple that witnessed Exxon Valdez disaster. Retrieved July 28, 2010 from http://blog.al.com/live/2010/07/video_bp_oil_spill_reminds_cou.html

Sources, 2 : 

Sources, 2 Holusha, John. (1998, April 21). "Exxon's public-relations problem." The New York Times. Retrieved from: http://www.nytimes.com Hossmer, L. T. (1998). Lessons from the wreck of the Exxon Valdez: the need for imagination, empathy, and courage. Business Ethics Quarterly (Ruffin Series, 1). Retrieved from: http://www-rohan.sdsu.edu/faculty/dunnweb/rprnts.exxon.html Lertola, J. (1989, July 24). Environment: Joe’s Bad Trip on the Exxon Valdez. TIME Magazine.  Retrieved on: July 28 2010, from http://www.time.com/time/magazine/article/0,9171,958192,00.html Mauer, R. (1989, May 17). Exxon Valdez had problems before spill. Alaska Daily News. Retrieved on July 28 2010, from http://www.adn.com/evos/stories/EV329.html

Sources, 3 : 

Sources, 3 Mauer, R. (1989, March 27). Unlicensed mate was in charge of ship that hit reef, Exxon says. The New York Times. Retrieved from: http://www.nytimes.com Pohlman, R. A., Gardiner, G. S., & Heffes, E. M. (2000). The creation and destruction of value over time: cases, examples, and anecdotes. In Value Driven Management: How to Create and Maximize Value over Time for Organizational Success. Chicago: AMACOM. Accessed through the Business Source Complete database via the TWU library portal: http://www.twu.edu/library/databases.asp Ramsey, R. D. (2004). Responding to a crisis. Supervision 65(10), 6-7. Accessed through the Business Source Complete database via the TWU library portal: http://www.twu.edu/library/databases.asp Williams, S. (2002). Making Better Business Decisions: Understanding and Improving Critical Thinking and Problem-Solving Skills. Sage Publications.

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