WHY IS THE BGS FIELD IMPORTANT TO MANAGERS?
To succeed in meeting its objectives, a business must be responsive to both its eco- nomic and its noneconomic environment. 19 ExxonMobil, for example, must effi- ciently discover, refine, transport, and market energy. Yet swift response to market forces is not always enough. There are powerful nonmarket forces to which many businesses, especially large ones, are exposed. Their importance is clear in the two dramatic episodes that punctuate ExxonMobil’s history—the 1911 court-ordered breakup and the 1989 Exxon Valdez oil spill.
In 1911 the Supreme Court, in a decision that reflected public opinion as well as interpretation of the law, forced Standard Oil to conform with social values favoring open, competitive markets. With unparalleled managerial genius, courage, and perspicacity, John D. Rockefeller and his lieutenants had built a wonder of efficiency that spread fuel and light throughout America at lower cost than otherwise would have prevailed. They never understood why this remarkable commercial performance was not the full measure of Standard Oil. But beyond efficiency, the public demanded fair play. Thus, the great company was dismembered.
In Alaska, one of the company’s massive tankers spilled 11 million gallons of crude oil when its captain, having consumed enough vodka “to make most people unconscious,” quit the bridge during a critical maneuver. Left alone, an unlicenced third mate ran onto a reef in pristine, picturesque Prince William Sound. 20 The captain was an alcoholic, lately returned to command after a treatment program, but known to have relapsed, drinking in hotels, bars, restaurants, parking lots, and even with Exxon officials. Although the company had a clear policy against
material things Tangible arti- facts of a society that shape and are shaped by ideas and institutions.
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