Miss
Group 4
Contents Executive Summary 3 TNK-BP Overview 4 British Petroleum 4 TNK 4 Merger of TNK-BP 4 External Analysis 5 STEEP 5 Porter’s Five Forces 7 Competitor Assessment 8 Internal Analysis 8 Capabilities 8 SWOT Analysis 9 Financial 10 Current financial performance of TNK-BP 11 TNK-BP financial objectives 12 TNK- BP’s Strategies 12 Current Strategy 12 Future Strategies 13 References 14
Executive Summary
This report contains an analysis of “Case 28” and the firm TNK-BP (Russia) by Andrew Inkpen and Michael Moffett. TNK-BP is made up of BP and AAR both holding 50%. The company is managed by the two different business style, resulting in inefficiencies. The merger brings much needed access of resources to BP.
The STEEP analysis contended that: * Demand for energy is relative to population and economic growth, the world’s population is projected to increase by 1.4 billion over the next 20 years, while its real income is likely to grow by 100% over the same period. * Technology, new mixs of fuels, reducing carbon, transport fuel from hard to get places * Economic – Rises in GDP 4.4% Russia = increase in need for energy * Gas is likely to play a significant role in years to come due to it environmentally friendly characteristics * Pressure and friction created if BP is to take a stake in Rosneft as government pressure will be immense
The Porters analysis contended that: * Low rivalry and threat of new entrants – High Govt. Restriction * Low substitutes and low buyer power – Not many mainstream alternative sources of energy * Supplier power low – It’s a customer’s market, best bid wins contract
The Competitors analysis identified: * Immediate Competitors - Gazprom and Lukoil * Impending Competitors - Rosneft * Invisible Competitors – Schtokman, Statoil
Strategies identified:
BP will benefit from maintaining access to the Russian resources and experiencing great stability by
Contents Executive Summary 3 TNK-BP Overview 4 British Petroleum 4 TNK 4 Merger of TNK-BP 4 External Analysis 5 STEEP 5 Porter’s Five Forces 7 Competitor Assessment 8 Internal Analysis 8 Capabilities 8 SWOT Analysis 9 Financial 10 Current financial performance of TNK-BP 11 TNK-BP financial objectives 12 TNK- BP’s Strategies 12 Current Strategy 12 Future Strategies 13 References 14
Executive Summary
This report contains an analysis of “Case 28” and the firm TNK-BP (Russia) by Andrew Inkpen and Michael Moffett. TNK-BP is made up of BP and AAR both holding 50%. The company is managed by the two different business style, resulting in inefficiencies. The merger brings much needed access of resources to BP.
The STEEP analysis contended that: * Demand for energy is relative to population and economic growth, the world’s population is projected to increase by 1.4 billion over the next 20 years, while its real income is likely to grow by 100% over the same period. * Technology, new mixs of fuels, reducing carbon, transport fuel from hard to get places * Economic – Rises in GDP 4.4% Russia = increase in need for energy * Gas is likely to play a significant role in years to come due to it environmentally friendly characteristics * Pressure and friction created if BP is to take a stake in Rosneft as government pressure will be immense
The Porters analysis contended that: * Low rivalry and threat of new entrants – High Govt. Restriction * Low substitutes and low buyer power – Not many mainstream alternative sources of energy * Supplier power low – It’s a customer’s market, best bid wins contract
The Competitors analysis identified: * Immediate Competitors - Gazprom and Lukoil * Impending Competitors - Rosneft * Invisible Competitors – Schtokman, Statoil
Strategies identified:
BP will benefit from maintaining access to the Russian resources and experiencing great stability by
References: 1 Prime 2012, “News” http://www.1prime.biz/news/0/%7B447052D3-0BB1-4123-A0D6-01D0A6296485%7D.uif (Accessed 80/10/2012) 4 Traders, “Figure Income Statement Evolution” http://www.4-traders.com/TNK-BP-HOLDING-OAO-6498768/financials/ (Accessed 28/10/2012) Gazprom 2012, “About Gazprom”, http://www.gazprom.com/about/ (Accessed 25/10/2012) Lukoil 2012, “General Information”, http://www.lukoil.com/static_6_5id_29_.html (Accessed 20/10/2012) Inkpen A & Moffett M 2008, “TNK-BP (Russia) 2008”, Case 28: TNK-BP (Russia) 2008, p.400-401. Swinburne Blackboard (Accessed 28/10/2012) Oversight 2012, “The BP Oil Spill Recovery Effort: The Legacy of Choices 2011”, U.S Rosneft 2012, “Rosneft at a glance”, http://www.rosneft.com/about/ (Accessed 22/10/2012) Shtokman 2012, “About the company”, http://www.shtokman.ru/en/about/ (Accessed 1/11/2012) TNK, “TNK quality lubricants”, http://www.tnk-oil.eu/ (Accessed 23/10/2012) TNK-BP 2012, “About company in brief” http://www.tnk-bp.ru/en/company/company/ (Accessed 25/10/2012) TNK-BP 2012, “Financial reporting” http://tnk-bp.ru/en/investors/reports/financial/ (Accessed 25/10/2012) Webbooks 2012, “eLibrary” http://www.web-books.com/eLibrary/ON/B0/B58/034MB58.html (Accessed 25/10/2012)