Mahalia Gauld
January 18, 2011
MGMT 2850
Case Study #1- Exxon Valdez

Situation in Brief:
On March 24, 1989, an Exxon supertanker spilled 11 million gallons of oil while traveling through the pristine waters of Alaska’s Prince William Sound. The consequences of this spill were detrimental and continue to affect life today. The oil spill killed thousands of wildlife, extensively damaged a portion of the beautiful Alaskan environment, and eventually affected the economy to global proportions. Unfortunately, this tragedy could have been prevented. Lack of adequate safety efforts, enforcement, and regulations all played a major role in this truly catastrophic event.
However, Prince William Sound’s remote location made government and
MORE PRIVATE-SECTOR INTERVENTION- Safety would improve with the implementation of new procedures and policies. * Pros: * Fresh thinking * Increased safety checks * Improved technology on the ship * Revised policies by people educated in the field * Cons: * Potential to be extremely costly * Government needs funds that will be likely be taken from taxes * Public might be angered and feel that the private sector would be in too much control of the industry 3. MORE PUBLIC-SECTOR INTERVENTION- Safety conditions would improve, as there would be heavy implementation of fines, fees, training, and enforcement. * Pros: * Effective in prevention for future oil spills * More rules would be in circulation; hopefully followed with strong enforcement * Cons: * Time-consuming for all parties involved * Formulation of new rules costs money * Lack of power of public-sector to enforce 4. INPUT FROM BOTH PRIVATE AND PUBLIC SECTORS- Safety will be maintained with a healthy balance that will be implemented efficiently. * Pros: * Safety guidelines are newly implemented and enforced equally * Prevention plans have opportunity to be put in