Case analysis 2 tnk bp russia

The Federal Antimonopoly Service said that it saw gas prices rise irregularly beginning in March, and that the biggest growth occurred at TNK-BP and Bashneft — by more than 30 percent for some types of gas, according to a statement. The FAS said it had sent letters to the three companies in December, asking them to explain the reasons behind their swelling prices and warning them that they needed to prevent unreasonable price increases. Oil prices continued to rise, however, with winter diesel fuel prices climbing by 53 percent from October to the end of January and prices for aviation kerosene rising by 30 percent over the same time period, according to the regulator.

Case analysis 2 tnk bp russia

Joseph a From an industry-based view, explain why alliances are a frequent mode of entry for the oil industry in Russia. Alliances are a common mode of entry for the operators in the oil industry whereby two or more oil companies cooperate and get mutual benefit from each other. The risks involved in the oil and gas industry are so high such that the companies involved must come up with ways of mitigating such risks.

Alliances enable the companies in the oil and gas industry to turn away from being competitors in the market, two partners in business and this enables them to take control of the market forces in their operational environment Rex, Through alliances, companies are able to maximize on the scale of operations and take advantage of the economics of scale in the nature of their business.

Alliances provide the means by which firms mitigate significant risks that arise in the course of their business operations Cordner, Moreover, the companies that enter into alliances are able to explore avenues of cost reduction by investing together in new processes, technologies, and standards that enable them obtain potential cost savings in their internal operations.

By developing alliances in with other firms in the new firms, the companies in the oil and gas industry can develop and protect their competitive advantage, especially in strategic alliances Beschorner, Both TNK and BP have enough experience in the oil industry and their alliance would enable them to amalgamate their resources as they seek to expand their oil business.

Both companies have good capital based in addition to experienced human resources that would support their ventures in the oil business. Particularly, TNK has huge resources of crude oil, while BP has the expertise that can effectively mine the crude oil and realize profits for the two companies.

Being a partner in business, BP is advantaged to find a partner by which it can dispose of some of its assets and still realize some benefits, without doing so to its competitors. One of the formal rules is that TNK-BP is an independent company that has the mandate to exploring business opportunities both in the Russian soil and in other foreign countries they deem appropriate.

In this regard, BP would stand to benefit if TNK-BP exploits the opportunities in rogue countries that the American owned companies are now allowed to exploit. As an ethics consultant to BP, how would you advise it during both episodes of the conflicts with AAR? As an ethical consultant, I would allow TNK-BP to carry out global business without restrictions as such would give a positive outlook of the company Neiman, In addition, I would advise PB to treat the Russians as partners as opposed to subjects as that would reduce unnecessary problems during the management of the company.

Moreover, I would advise the management to observe and obey the local labor laws in order to avoid collision with the government and to avoid constant drama with the police. The decision by BP to acquire Roffset in the same country with their initial partners is unethical and should be rescinded as that would spoil the bad relationship between them.

Ethical theory and business practices: The case of discourse ethics. Journal of Business Ethics, 66 1 A social contract for international business ethics. Journal of Business Ethics, 1 Strategic business alliances-finding strength in numbers. A model of business ethics. Journal of Business Ethics, 77 3TNK-BP (Russia) Case Solution,TNK-BP (Russia) Case Analysis, TNK-BP (Russia) Case Study Solution, The associates had many areas of disagreement, including international expansion, dividend payouts, the level of capital investment, the amount of expatria.

Tutor: Connie Chan, Tutorial: Wednesday, Name: Jiaxin Chen, SID: CASE ANALYSIS – TNK-BP (RUSSIA) Case Analysis – TNK-BP (RUSSIA) Summary of the Case TNK–BP is a joint venture company between TNK and BP in Russia.

BP was . Start studying IBUS Lecture 7 - Making Strategic Alliances and Networks Work. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

Case analysis 2 tnk bp russia

Case study discussing the role of TNK-BP in Russia and possible strategies. * it should be noted that this document (a university project) was created a week before TNK-BP's announcement which came to the same resolution as this report.5/5(2).

Rosneft said on Monday it planned to buy out the remaining holders of ordinary shares in TNK-BP Holding for about $ billion, at a rate of 67 roubles ($) per share and 55 roubles per.

Case Study Design/delivery of complex diagnostic equipment and installations reduced from to 2 years down to 9 months Among its customers are of Rosneft, Lukoil, TNK-BP, Nizhny Tagil Metallurgical Combine, TMK, Uralvagonzavod, and the Tikhvin Railway Car Building Plant. 3D modeling is critical to success.

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