Competitive Strategy for British Petroleum in Russia

Running head: COMPETITIVE STRATEGY
Competitive strategy
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1COMPETITIVE STRATEGY
Executive summary
The aim of this report is to discuss about the current strategies and business approaches of British
petroleum and the extent to which they are effective enough. In this report, the Russian operation
of British petroleum is considered and further analysis is being done accordingly. It is identified
that b British petroleum is facing lawsuits and other complexities in managing their joint venture
in Russia and thus their average production from the country is getting hampered. This also
caused barriers in the Arctic project of British petroleum. In Russia, they are having joint venture
with that of Roseneft and AAR. Different strategic models such as SWOT, PESTLE and Porter
five forces are used to identify the key issues for British petroleum and on the basis of them, it is
recommended that British petroleum should follow international strategy. In addition, it is also
recommended that British petroleum should follow diversification strategy.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Case background..........................................................................................................................3
3. Identification of the strategic issues............................................................................................4
3.1 SWOT analysis......................................................................................................................5
3.2 PESTLE analysis...................................................................................................................6
3.3 Competitive analysis..............................................................................................................8
4. Application of strategy model...................................................................................................10
5. Conclusion.................................................................................................................................11
6. Reference...................................................................................................................................13

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1. Introduction
In the current business scenario, it is important for the contemporary business entities to
have the access and expertise for initiating different business strategies. This is due to the reason
that the current business scenario is highly challenging for the business and more diverse factors
are getting involved. This is same in the case of British petroleum because they are one of the
leading players in the global oil and gas sector and are having their presence across the world.
Thus, the business factors of British petroleum are also diverse in nature. In this case, it is
important for British petroleum to have proper strategic intent in dealing with the issues
(Kapustin and Grushevenko 2018). This is due to the reason that effective and suitable strategic
intent will ensure that British petroleum is gaining the maximum return from the market. In the
given case study, it is identified that there are multiple challenges being faced by British
petroleum in their business in Russia in terms of different factors. It is important to review the
current strategic intent of British petroleum in view to their problems. On the basis of their
current strategies, gaps should be identified and new practices should be recommended
(Klimovets 2015).
This report will discuss about the current strategies being followed by British petroleum
along with the challenges they are facing. These issues will be identified on the basis of the
strategic concepts and suitable strategies will be recommended for British petroleum.
2. Case background
It is reported that British petroleum first started their business operation in Russia in 1997
and they went for partnership with two of the leading oil and gas companies of Russia, Rosneft
and AAR. However, the joint venture with two competitors from the same market caused