Business Case Analysis of Tnk-Bp Essay
and the Alfa, Access/Renova group, more commonly known as AAR. Both BP and AAR each own 50% of
TNK-BP. TNK-BP was created in 2003 after a merger between BP and TNK that settled the dispute
between the two companies over Sidanco and its subsidiary Chernogorneft’s ownership that had been on-
going for years. The partnership combined BP’s knowledge, equipment, and experience; and Russia’s new
supply of oil fields. The business relationship that seemed to begin as a win-win for both parties has seen
its share of issues over the years.
Being a profitable business has not seemed to be a problem that TNK-BP has faced. From 2002-
2011 …show more content…
that they were dealt and attempt to make something out of it.
Russia was a communist country known as the USSR until the fall of the Berlin Wall in 1989. A
communist government holds all businesses as a public entity: the government controls business. Although
Russia is no longer a communist government, they have not completely evolved into a democratic republic
either. They are still in transition and somewhere in between the two, and so are the people and its culture.
The culture of Russia during communism was clouded with fear and government control. One does not
simply wake-up the day after the fall of communism and become no longer afraid and free. Change takes
time, especially cultural and political changes.
A joint venture is a strategic alliance between two or more organizations that establishes a legally
autonomous organization in order to share resources and capabilities to compete in tentative markets. The
joint venture between AAR and BP brought together AAR’s resources of oil and contracts and BP’s
capabilities of tacit knowledge of the business. This would seem to be a match made in business heaven.
However it became more of a match made for divorce court. Constant disputes and arguing have plagued
this 50/50 joint venture from the beginning.
TNK-BP was created to settle the