Free Sunk Costs: The Plan to Dump the Brent Spar (A) Case Study Solution | Assignment Help

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Harvard Case - Sunk Costs: The Plan to Dump the Brent Spar (A)

"Sunk Costs: The Plan to Dump the Brent Spar (A)" Harvard business case study is written by Michael D. Watkins, Samuel Passow. It deals with the challenges in the field of Negotiation. The case study is 14 page(s) long and it was first published on : Apr 1, 2003

In addition, Shell's communication strategy was ineffective. The company relied heavily on technical arguments to justify the plan, which failed to resonate with stakeholders who were concerned about the environmental impact. Shell also failed to anticipate the emotional response that the plan would generate, which led to a public relations disaster.

4. Recommendaations

Based on the analysis of the case study, we recommend that Shell should have taken the following steps to mitigate the risks associated with the Brent Spar disposal plan:
  1. Engaged with stakeholders early in the planning process to identify their concerns and develop a plan that addressed those concerns.
  2. Developed a communication strategy that was designed to build trust and understanding with stakeholders.
  3. Anticipated the emotional response that the plan would generate and developed a strategy to address it.
  4. Monitored the situation closely and made adjustments to the plan as needed.

5. Basis of Recommendaations

The basis for these recommendations is the importance of stakeholder management and communication in decision-making. By engaging with stakeholders early in the planning process, Shell could have identified and addressed their concerns, which would have helped to build trust and understanding. A well-developed communication strategy would have helped to inform stakeholders about the plan and its benefits, which would have helped to mitigate the emotional response that it generated.

6. Conclusion

The Brent Spar case study is a valuable reminder of the importance of stakeholder management and communication in decision-making. By failing to adequately engage with stakeholders and communicate effectively, Shell created a situation that led to the failure of the plan and damaged the company's reputation.

7. Discussion

Other alternatives that Shell could have considered include:
  1. Recycling the Brent Spar platform.
  2. Using the Brent Spar platform as an artificial reef.
  3. Sinking the Brent Spar platform in a deeper part of the North Sea.

Each of these alternatives has its own advantages and disadvantages, and Shell would have needed to carefully consider the trade-offs involved before making a decision.

8. Next Steps

If Shell were to revisit the Brent Spar disposal plan today, it would need to take the following steps:
  1. Engage with stakeholders early in the planning process.
  2. Develop a communication strategy that is designed to build trust and understanding with stakeholders.
  3. Anticipate the emotional response that the plan would generate and develop a strategy to address it.
  4. Monitor the situation closely and make adjustments to the plan as needed.

By following these steps, Shell would be able to mitigate the risks associated with the plan and increase the likelihood of its success.

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Case Description

This case explores the conflict between Shell Oil and Greenpeace over Shell's plans to sink the aging Brent Spar oil platform in the North Atlantic. It details the tactics Greenpeace employed and examines Shell's responses.

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