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Demonstrate application of the following from the case study.Business Strategy, Corporate Strategy, Acquisitions and Structure, International Strategy, Corporate Strategy. Apply any 3 Strategies...

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Demonstrate application of the following from the case study.Business Strategy, Corporate Strategy, Acquisitions and Structure, International Strategy, Corporate Strategy. Apply any 3 Strategies mentioned above in the following case study which i have provided
Answered Same Day Apr 30, 2020

Solution

Sarah answered on May 04 2020
147 Votes
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Assignment Title
Student Name
Course Name
Instructor Name
Date
Table of Contents
Executive Summary    3
Introduction    3
Business Strategy    4
Corporate Strategy    5
International Strategy    7
Conclusion    9
References    11
Executive Summary
Competitive strategy is essential for every business to sustain and succeed in the business. Case study about BP partnership in Russia is taken for conducting the analysis. The strategies alliance was formed between TNK-BP and AAR. According to the agreement, BP bore the costs of $571 million as the entry strategy and funded $40 million towards exploration (Hanson et al., 2017). BP slowly began to acquire stake with the partnered ventures to get significant hold and decision-making authority in the joint venture. It resulted in 50-50 partnership between AAR and BP. There is a detailed analysis of the alliance of BP with Russia (Hanson et al., 2017). The analysis is conducted using business strategy, corporate strategy and international strategy as they are appropriate for the chosen case. The supplier's power that is Russian political power is significant which poses a major threat to BP alliance, and lack of understanding about the importance of stakeholder power in Russia led to the failure of the alliance. Internationalization is feasible if the organization entering the foreign market understands the threats and external factors influence the business before decision making which is a major drawback in case of BP (Hanson et al., 2017). BP’s alliance with Russia is an interesting case for obtaining a deep understanding of how to form a strategy to sustain in the tough and competitive business.
Introduction
International expansion has become an important part of the business growth and development. There are various strategies available for the business to grow and expand their business in other countries. Russia is a country with a rich source of oil and gas which is a major target for most of the oil and gas companies across the globe. The case related to the "BP in Russia bad partner or bad partnership?" is chosen to conduct an in-depth competitive analysis (Hanson et al., 2017). The paper mainly focuses on the business strategy, corporate strategy and the international strategy of the strategic partnership between TNK-BP and AAR. From the in-depth analysis, it is clear that some issues in the strategic alliance led to the failure in the joint venture and not exploring best opportunities that were available for oil and gas industry in Russia.
Business Strategy
AAR and BP have a strategic alliance with Russia, but the business strategy was ineffective between them that resulting in more issues between them. When two organization are establishing strategic alliance business strategy should be efficient. From given case it is clear, that business strategy was not formed with consultation with BP. As BP is a foreign player, they could not get majority control over the business and ownership. It was a major setback for forming best internal environment and organization structure that can support the Russian operation and integrate along with their global operations. The strategic alliance in Russia did not accept BP's internal environment and organization structure and there was always unsolved incompatibility (Hanson et al., 2017). BP’s management ability was in demand for the joint venture between TNK-BP, but at the same time due to the difference in the culture between both the countries and organization system, there was conflict in the decision making.
Leadership style between both the organizations was different that was one of the main reasons for internal conflict (Strohhecker and Größler, 2012). In most of the strategic alliance with a foreign country, it is essential to determine which will be the appropriate leadership style the organization will follow and there should be a clear definition about roles and responsibilities which was a major reason for the failure of the strategic alliance. Analyzing strengths and weaknesses of the organizations are key to forming the strategic alliance and selecting the viable partner for exercising all the business strategy. There should be defined organization structure and line of control to ensure that the company strategic alliance is operating with a lower level of hindrance and conflict unlike between TNK-BP alliance. For a successful business strategy, trust, transparency, disclosure, and cooperation is essential. In case of TNK-BP strategic alliance, there was weaker trust existed, and it was mainly due to the AAR (Hanson et al., 2017). There was lack of initiative taken by TNK-BP alliance to fix the internal issues. When there are more weaknesses in the internal environment...
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