BP in Russia
BP is one of the best oil and gas industries in the world. Over the past years bp has made partnerships with other oil companiess like Rosneft in Russia, Tyumen (TNK), Sidanko, Alpha Access Renova (AAR), all with an aim of reducing cost, to improve on its efficiencies as well as to develop and expand internal competencies. Currently Russia is the second largest oil producing country after Saudi Arabia. BP is said to have had a history of creating and also managing honourable strategic partnerships as well as coming up with lucrative mergers that have assisted in expanding its share of oil market globally. The current mergers have shown that BP happens to be lacking some skillS required for good partnerships and therefore strategic management. The following are some of the problems that have been experienced from the alliances made by BP.
BP undermined the agreement that they made with AAR which stated that AAR and BP must implement all the projects of gas and oil in Russia and Ukraine through TNK-BP that is if only the shareholders dubbed a projecy as uninteresting. This demonstrates that BP as an oil company lacks the vital skills required for good partnership considering the fact that the company undermined an agreement made with AAR.
BP failed to notifiy AAR or rather the chief executive of TNK-BP to offer a view of consideration within 45 days, as a result the London court was able to grant AAR temporary injuction against the statregic alliance made between BP and Rosneft.
Considering the problems encountered by the BP together with other alliances especially the Russians, the following are some of the recommendations that need to be put across and what the company should be in a position to do in the near future. In order to meet the company objectives and goals the industry should have all the skills for are good partner which for instance we have, openness. BP was not open enough to AAR and this shows that BP did not abide to their agreement since the componey did not involve AAR about the new agreement made with the Ranseft therefore involving other concerned partners is one strategy to acquire successful results in the future.BP in Russia
Successful partnerships are based on service and not selfishness, this is demonstrated when sidanko filled for bankruptcy and auctioned some of its assets. BP accused TNK for temparing with the court to influence bunkrupcty. In response to the allegations TNK returned the oil field to sidanko and both sidanko, BP and TNK benefited from the service. In the future the company should work together and not to be selfish to acquire everyting for their personal gains.
Lastly; the company should embrace the challenges in order to come up with strategies to overcome the problem. Challenges make partnerships stronger, this is articulated by the problems that BP company has experienced to the point of having a court hearing on the AAR allegations bt the company did not stop working with Rosneft. The company struggled and came to an agreement with the partners. Challenges are always there especially for a growing company and therefore it is important that the company should accept the changes and come up with strategic management ways to ensure success in the future.