Reference no: EM132225393
EXECUTIVE SUMMARY
Problem Statement: The problem statement is to be one simple sentence, not a compound sentence, identifying the root-cause issue you perceive to be the focus of the case. NOTE: Each student may perceive there to be a different issue for each case. It depends on your point of reference based on your individualized experience base. There is no single “right” answer!
Facts Given: Identify the facts stated in the case. Do not include your assumptions and do not “read between the lines”. ONLY THE FACTS Please. Choose important facts only, not ALL facts should be listed. Present this section only in bullet format and paraphrase facts – do not copy word-for-word.
II. CASE EXAMINATION: Examine the case demonstrating critical thinking skills. Analyze the problem or problems. This is not an in depth report, but an overview of your determination of the root problem stated in section I. Where applicable utilize the ratios listed in Appendix II: A-1 through A-5 [pages xiv – xvi] to enhance the analysis. This is not a cursory glance - this is a synthesis of your analysis, reading from the text, and experience in the work place. Give your determination of the problem and suggestions for a course of action for the company. Briefly conclude this section of the report with your recommendations.
III. RELEVANCE OF THE CASE TO MY WORK ENVIRONMENT State the relevance of the case scenario to your work situation. Identify new knowledge evidenced and its transferability value. “Transfer” this new knowledge to reasonable application in your work environment. This can be a creative application that stems from the reading and analysis of the case. Evaluation will be based on your skillful application of critical thinking, synthesis, and evaluation.
TNK-BP-Rosneft Mini Case
The Russian oil and gas industry is heavily regulated. The industry has 6 large firms. One of the larger players is TNK. Several years ago, TNK and BP formed a joint venture. The joint venture provided about 25 percent of BP’s oil production and about 40 percent of its oil reserves.
Russia needed BP’s operations capability and BP gained access to Siberia. Oil extraction was easier and safer than the unsafe deep water drilling in places such as the Gulf of Mexico. In 2010, the massive oil spill occurred in the Gulf of Mexico.
In January 2011, BP announced a new $16 billion strategic alliance with a second oil producer in Russia- Rosneft. At that time Rosneft was Russia’s second largest oil company. BP stayed in its joint venture with TNK and tried to enter into a venture with Rosneft. Several senior level TNK managers attempted to block this new strategic alliance with Rosneft.
In March 2011, the Russian government voted not to grant this new strategic alliance. BP abided by the decision to not engage in the Rosneft strategic alliance.
In September 2011, Rosneft entered into a strategic alliance with Exxon Mobil. Exxon Mobile is the largest oil and gas firm in the world.
Discussion Question: 1. What happened to BP as a result of this new alliance?