Strategic Management

Topics: Akbar Hashemi Rafsanjani, Iran, Petroleum Pages: 4 (962 words) Published: May 11, 2012
Strategic Management
BUSA 5051
MBA Part Time Saturday
Dominik Heil

Strategic Management
BUSA 5051
MBA Part Time Saturday
Dominik Heil

Nelson Ferreira – 9800909F
Managing the transactional environment: reputation and stakeholder management Nelson Ferreira – 9800909F
Managing the transactional environment: reputation and stakeholder management Statoil - Managing Reputation Risk

Statoil - Managing Reputation Risk

Table of Contents
Structure and analysis of the case3
The nature of the deal that Statoil entered into3
Why Statoil entered the deal4
The problems with the deal4
How well is Statoil prepared for the controversy4
Assessment of the Statoil response5

Structure and analysis of the case

By 2000 Statoil allocated NOK 43.3 billion of its funds strategically to triple their foreign production of oil and gas by 2007. However they had to manage the inherent risk to their reputation the investment was allocated for politically sensitive countries like Venezuela, Angola, Algeria, Azerbaijan and Iran, all which were known for corruption, bribery and human rights violations. Statoil’s largest strategic target was Iran, who held 9% of the worlds known oil reserves and 15% of its natural gas deposits. Statoil’s CEO maintained, in 2002, that due to Norwegian fields being mature, Statoil had to look outside Norway. He believed that doing business with these countries would be smooth.

Less than one year after being awarded a contract to develop one of the world's largest offshore petroleum fields, Statoil's future in Iran as well as its reputation appeared to be in jeopardy. Statoil found itself at the center of a corruption investigation that had resulted in the resignations of three of the company's top executives. The spot light was pointed at the alleged bribes paid by Horton Investments, mandated by Statoil, to secure lucrative petroleum development contracts in Iran. According to the Iranian government and Norwegian media,...
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