BP Russian Case Analysis Study Example | Topics and Well Written Essays - 1500 words

BP Russian Analysis - Case Study ExampleWhile partnerships are live for the victor of an organization, they may become sources of business failure if their construction is not efficient. BP Russia is one of the companies that have enmeshed in partnerships that have undermined its potential to grow and compress advantage of the market. An analysis of BP Russia will reveal the confused aspects of partnerships that determinusine its failure or success and the way organizations can realise from such business partnerships.BP proposed an conjunction with Rosneft as part of the organization commitment to take advantage of mergers to increase organization productivity. The proposed partnership amidst BP and Rosneft would have numerous benefits if successful. The main aim of the strategic alliance was to use a collaborative appeal on the development of oil reserves of the Kara Sea in the Russian Arctic (University of Virginia 6). The first benefit of the alliance is that the two woul d have a greater financial worth, which would help to explore the Kara Sea in a more profitable manner. Since the exploration of oil and development of oil reserves is a dearly-won operation, it is difficult for any organization to go it alone without a partnership. On this note, the alliance would allow BP to take advantage of the oil reserves, develop them and hence increase productivity, which means higher profits for both organizations. Secondly, BP had a long-term plan in the terms of the partnership. The terms of the strategic alliance was that BP secure 9.5% of Rosneft bringing its entirety share of Rosneft at 10.8%. This share swap condition would have a long-term benefit for BP Russia. increase its share value in Rosneft would be an increase in its share value. On this note, it is possible to term the strategic alliance as a worthwhile development strategy for BP Russia.On the other hand, managers must(prenominal) be aware that there are always implications for success o r failure of a partnership. The success of the BP-Rosneft alliance would