PR Implications assignment

PR Implications assignment
Name: ____________________________
1. Summary of Current Event:
The falling oil prices in the last few months declined from $115 per barrel to close to $28 now. The excessive decline in the oil prices follows the increasing supply and declining demand as the U.S started to its massive oil production to counter the growth of the Chinese and Brazilian economies (Bawden, 2016). In addition, the lifting of trade sanctions on Iran also places much concern on pushing the oil prices even lower than the current prices as it could open a way for Iran to become a major global exporter of oil. The various economies are concerned about the impacts of the declining of oil prices, since they rely on oil to support their economic growth (Krauss, 2016). For example, Venezuela has had adverse economic effects from the declining oil prices. In spite of all, the individual firms and companies operating in the affected economies are facing difficult times.
2. Three Articles:
Bawden, T. (2016, January, 18). Oil price crash: How the industry’s decline will affect the UK economy. Independent News. Retrieved from http://www.independent.co.uk/news/business/news/oil-price-crash-how-the-industrys-decline-will-affect-the-uk-economy-a6820096.html.
Bowler, T. (2015, January 19th). Falling oil prices: Who are the winners and losers? BBC News. Retrieved from http://www.bbc.com/news/business-29643612.
Krauss, C. (2016, January 15). Oil prices: What’s behind the drop? Simple economics. The New York Times. Retrieved from http://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html?_r=0.
3. The Main Players Involved:
Affected Party Rationale

Business Organizations Businesses suffer the most when oil prices declines as the market and economic situation of the economies are highly stressed. This mainly occurs in nations, which relies on oil resources. The business organization is relevant in understanding the progress of the economies.

Government The government relies on the oil business to grow its economy appropriately. The falling oil prices are a relevant issue to the government as it tries to control the progress of the economy. It is important to evaluate the nature and implications of the oil prices within the government.

Public The public faces severe negative economic conditions as the inflation rates would increase to cover for the economic costs endured from the reduced incomes from oil business, more so in oil exporting nations.

Oil exporting Nations
Most of the oil exporting nations has had severe economic effects following the reduction of the oil prices. For example, Venezuela exchange rates have significant impact on the economic situation and metrics.

Investors The falling oil prices will affect the investors significantly due to the adverse impacts on the markets. The investors will be unable to invest at the current market situation. The investors are relevant in trying to come up with measures to deal with the falling oil prices.

4. PR Implications
There are significant PR implications on the falling oil prices in the world economy. PR will assist in ensuring that the news release on the impacts of falling oil prices is not exaggerated. The PR campaign of the companies will seek to analyze the news articles posted to determine the extent of their accuracy and reliability in understanding the impacts of falling oil prices. The main PR implications are to support the going concern of the businesses. Considering the negative impacts of the event, the PR department will come up with better measures and controls to understand the actual impact of the failing oil prices. For instance, the PR department is expected to maintain continuous open communications with other departments (Bowler, 2015). Such action would help in maintaining strong understanding of the impacts of the events on the companies.
References
Bawden, T. (2016, January, 18). Oil price crash: How the industry’s decline will affect the UK economy. Independent News. Retrieved from http://www.independent.co.uk/news/business/news/oil-price-crash-how-the-industrys-decline-will-affect-the-uk-economy-a6820096.html.
Bowler, T. (2015, January 19th). Falling oil prices: Who are the winners and losers? BBC News. Retrieved from http://www.bbc.com/news/business-29643612.
Krauss, C. (2016, January 15). Oil prices: What’s behind the drop? Simple economics. The New York Times. Retrieved from http://www.nytimes.com/interactive/2016/business/energy-environment/oil-prices.html?_r=0.