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

BP Russian Analysis - Case Study Example While partnerships are vital for the success 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 engaged in partnerships that have undermined its potential to grow and take advantage of the market. An analysis of BP Russia will reveal the various aspects of partnerships that determine its failure or success and the way organizations can benefit from such business partnerships. BP proposed an alliance with Rosneft as part of the organization commitment to take advantage of mergers to increase organization productivity. The proposed partnership between BP and Rosneft would have numerous benefits if successful. The main aim of the strategic alliance was to use a collaborative approach 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 would 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 costly 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 strate gic alliance was that BP secure 9.5% of Rosneft bringing its total share of Rosneft at 10.8%. This share swap condition would have a long-term benefit for BP Russia. Increasing 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 be aware that there are always implications for success or failure of a partnership. The success of the BP-Rosneft alliance would