The Baker Panel Report - ABSA

ENDNOTES FOR SECTION IV1 Forbes.com, accessed at http://www.forbes.com/finance/mktguideapps/compinfo/ForeignCompanyTearsheet.jhtml?cusip=0798059 onJanuary 7, 2007; see also Forbes.com, Scott DeCarlo, editor, “Special Report: The World’s 2000 Largest Public Companies,” March 30,2006, accessed at www.forbes.com/2006/03/29/06f2k_worlds-largest-public-companies_land.html on December 1, 2006 (also ranking BPthe eighth largest public company in the world based on a composite score for sales, profits, assets and market value).2 BP p.l.c., “Making Energy More: Annual Report and Accounts 2005,” (2006), pp. 8, 100.3 See Joel Podolny and John Roberts, British Petroleum (A2): Organizing for Performance at BPX, case study S-IB-16A2 (Graduate School ofBusiness Stanford University, revised April 2, 2002).4 Ibid, pp. 1-2.5 Ibid, p. 2.6 BP p.l.c., “Making Energy More: Annual Report and Accounts 2005,” (2006), p. 162.7 Joel Podolny and John Roberts, British Petroleum (A2): Organizing for Performance at BPX, case study S-IB-16A2 (Graduate School of BusinessStanford University, revised April 2, 2002), pp. 7-9, 17-18.8 Ibid, pp. 7-9.9 Ibid, p. 7.10 Ibid, pp. 4-7.11 Ibid, p. 7.12 Ibid.13 BP p.l.c., Press Release, “Robert A. Malone to Lead BP America, Inc.,” June 19, 2006.14 The Group Chief Executive Meeting (GCEM) represents the principal executive leadership of the Group and is instrumental in developing andimplementing the Group Strategy.15 BP p.l.c., “Making Energy More: Annual Report and Accounts 2005,” (2006), p. 8.16 Ibid.17 Ibid, p. 14.18 Joel Podolny and John Roberts, British Petroleum (A2): Organizing for Performance at BPX, case study S-IB-16A2 (Graduate School ofBusiness Stanford University, revised April 2, 2002), pp. 7-8.19 See generally ibid.20 BP p.l.c., “Making Energy More: Annual Report and Accounts 2005,” (2006), p. 174.21 Ibid.22 Ibid.23 BP p.l.c., Statement of The Lord Browne of Madingley, Group Chief Executive, during the BP Second Quarter 2006 Results and StrategyUpdate Press Conference, July 25, 2006.24 Texas City has a complex management history. Unlike the other U.S. refineries, Texas City had both refinery and chemical operations until2004. Facilities with both refining and chemical operations were called Star Sites, and BP struggled with how to manage them. From 2000 to2004, BP had a Complex Director for Texas City with responsibility for the overall refining and chemical operations. During that period, therefinery plant manager for the Texas City refinery had limited responsibilities and was not even required to be based in Texas City (e.g., for aperiod, the nominal Texas City refinery plant manager was the Group-Vice President for Refining based in London). During this interval, theTexas City Operations Manager effectively ran the refinery. Eventually BP determined that it needed a more senior manager present at the siteand responsible for its performance. In 2004, BP sold its chemical operations, and the Texas City refinery plant manager began reportingdirectly to Gower in late 2004.Overview of BP’s Organizational Structure and Its Five U.S. Refineries C 44