BP in Russia: Business Strategy and Competitive Advantage

Running Head: MANAGEMENT 0
COMPETITIVE AND
ADVANTAGE

MANAGEMENT 1
Executive Summary
In this research, Case 7 is being selected named as BP in Russia: bad partners or bad
partnerships so as to evaluate the business strategy of BP while applying the theories of
strategy development with relevant foundational strategy development models applied to the
case. This case study reveals about large world of energy organisations and forming joint
ventures and therefore, it discusses BP partnering with different institution such as Alpha
Success and Rosneft as a part of their international strategy. The key focus of the report is on
the business strategy of BP in Russia that help the company to gain competitive advantage
and resources.
This report outlines the strategic issue faced by BP in Russia, various theoretical concepts of
business strategy, applications of business strategy and lastly the summary. In the last, it was
found that BP needs bigger plans and higher investments to increase its gas potential.

MANAGEMENT 2
Table of Contents
Introduction and About the company.........................................................................................3
Summary of the case..................................................................................................................4
Identification of Strategic Issue.................................................................................................5
Theoretical Concept...................................................................................................................6
Application of strategy model....................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10
Appendix..................................................................................................................................12

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Introduction and about the company
In 1990, British Petroleum was firstly opened in Moscow and from that time, the organisation
is operating with association with various leading Russian gas and oil corporations. As of
2018, BP had its operations in more than 78 countries and the headquarter of the company is
situated in London, United Kingdom. By the end of 2018, it was reported around 73,000
employees globally in BP. The revenue for BP in the year 2018 was approximately as US$
299 billion. The company also operates in various developed and developing countries
including Europe and Eurasia, Americas, Africa, Middle East and Asia Pacific. Apart from
this, the company also undertake various environmental sustainability measures with
delivering of lower emission and evading other impacts too. The company is currently
running its business in various parts of the world with the fuel of energy and transportation.
In addition, the company is growing its business in Russia with conglomerate with various
organisations like Alpha Access, Rosneft and TNK. They entered the Russian oil market with
partnership of different organisations such as Alpha Access and Rosneft. In Russia, when BP
is undertaking its business, some of the strategic characteristics need to be taken into
consideration . In this research, the strategic analysis of BP in Russia is being focused with
reflecting factors relating to collaboration of BP-TNK.
Furthermore, this report also summarises the case – “BP in Russia: bad partners and bad
partnerships” with identification various strategic issues such as ineffective partnership,
challenges related to HR resources, Organisational instability and Russian oil industry
structure. Later on, various theoretical model related to business strategy of BP in Russia has
been derived with application of strategy models. At last, a summary of the whole assessment
is being derived help the user to understand various concepts related to business strategy and
competitive strategy.