Tnk-Bp: Tread with Caution

Joint ventures (JV) are a popular method of foreign market entry because they theoretically provide a way to join complementary skills and know-how, as well as a way for the foreign firm to gain an insider’s perspective on the foreign market. Since China began its market opening in 1978, joint ventures have been the most commonly used form of foreign direct investment (FDI), with about 70% of FDI in China in the 1980s and 1990s taking the form of joint ventures (Qui, 2005, p. 47). The Chinese company, as well as the foreign investor, has since 1978 been drawn to the joint venture form. Walsh, Wang & Xin (1999) note that from the Chinese

During the late 1970’s to the early 1980’s, Iran went through a great revolution. It was during this time that the Shah Mohammad Reza was forced out of power. At the beginning of Mohammad Reza’s rule, he faced very few issues. However, once the Prime minister of Iran made the decision to nationalize the oil industry of Iran the problems began. Prior to this, the Anglo-Iranian Oil Company brought in great profits to Britain. Not only did it hinder their international relations, Shah Mohammad Reza saw this as a threat to his power. Shah Reza decided that in order to ensure that he would remain in power, he must take out the prime minister. This decision was a questionable one because the public held great favor for the prime minister. Together with the CIA, Shah Mohammad Reza took

It all started in 1950, when the Iranian people elected Mohammad Mosaddegh as prime minister. He nationalized Iranian oil industry, which was under British control since 1913. This way the Iranian population was in charge again over the Iranian oil. But in 1953 Masaddegh was removed from power through cooperation between the American CIA and the British MI6. Mahammed Reza Pahlavi

JON L. PIERCE University of Minnesota at Duluth DONALD G. GARDNER University of Colorado at Colorado Springs RANDALL B. DUNHAM University of Wisconsin at Madison LARRY L. CUMMINGS University of Minnesota at Minneapolis

BP plc, unsurprisingly, is a British company. It was founded in 1908 and owes its early prosperity to exploitation of Iranian (formally Persian) oilfields, where it continued to operate until the revolution in Iran in 1979. Although having lost access to the Iranian oilfields, BP plc had expanded operations to the North Sea and Alaska during the 1960s and 1970s. During the 1980s the British government sold off its holdings in the company under the privatization drive. At the end of the decade the company underwent severe corporate restructuring and downsizing. In the 1990s BP plc undertook several corporate acquisitions which resulted in BP becoming the second largest oil company at that time. Moving forward to the present day, according to the Forbes Global 2000

BP was a company established by William Knox D’ Arcy, an Englishman who venture to Persia to explore oil.

British Petroleum as a company was founded in 1954, however its roots go back another half century. British geologists discovered oil underneath Iran in 1908 and by 1909 the Anglo-Persian Oil Company (APOC) began drilling for the British government. APOC benefited from World War I as it was predicted all British naval ships will soon be converted from coal to oil and the company could spread further into Europe. Refineries were built in Whales, Scotland and were bought in France and Australia. In 1935, APOC was officially changed to Anglo-Iranian Oil Company (AIOC) due to Persia being referred to as Iran.

Businesses in Russia operate in the atmosphere of economic instability and elevated legal risks, which makes successful adoption of technologies virtually impossible. Although the rates of technology adoption in Russian business are gradually increasing, the country is still an eternity away from creating a perfect and profitable business-technology synergy.

British petroleum (BP) is one of the seven super major oil company in the world. BP are the fourth largest gas and oil company in the world. BP has a hand in every aspect of the oil business from exploring for new oil to marketing and distribution. BP originally started as the Anglo-Persian Oil Company in 1908, established as a subsidiary of Burmah Oil Company. The Burmah Oil Company. Would capitalize on discoveries they made in Iran and the middle east. The company would take its current name as British a petroleum in 1954. The company slowly started to expand from their roots in the middle east. BP chose to expand to Alaska in 1965. BP would continue their expansion in America when the gain the majority control of Standard Oil of Ohio in 1978. Also during the time BP would continue their ongoing exploration for new sources of oil. They became the first company to strike oil in the North Sea. The British government gradually privatized Standard Oil of Ohio for 1978-1987. In the last half of the 20th and the beginning of the 21st century BP took two major steps to expand their company. BP first major expansion occurred when they partnered with Amoco during this time they also acquired and absorbed Burmah Castrol in 2000. Also for 2003 to 2013 BP had a joint partnership with the oil company TNK of Russia. BP tireless effort towards expansion have made them highly successful and one of the top four oil and gas companies in the world. BP turned a profit of 6.48 billon U.S.

The phenomenon of Joint Ventures (JV) in both international and local level has been growing the last decades (Geringer and Woodcock 1989; Harrigan 1988; Hergert and Morris 1988). According to Geringer and Hebert (1991:2)

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

Cheong-A Lee Pusan National University Ho-Yeol Bang Pusan National University Jong Wook Ha Columbus State University Joo Young Lee The University of West Alabama Young Hee Yun Kim Tuskegee University ABSTRACT Research on the entry mode of multinational companies (MNCs) to a new market has been one of the major topics in the international business, and the cultural factor has been regarded as one of the major factors to explain the entry mode selection of MNCs. Based on the development on the cultural factors on entry mode, MNCs can enter a market with joint venture or

Russia is a country that is culture and historically filled with dramatic turning points. The country has made significant strides both economically and politically to attract business opportunities such as a joint venture; however, the country’s policies could potential affect growth. Furthermore, initiating a joint venture with another oil company within the country may prove to challenging if there is no clear understanding of culture. This essay will discuss the research results from the consultant’s perspective on Russia, as well as the impact of cultural dimensions on the emerging leadership development and operation of the joint venture in Russia.

What cultural factors influence the decision of ownership of subsidiaries from the conventional perspective or asymmetric perspective? This problem statement is the main area of research in this study. To be able to answer the problem statement several research questions have been studied

he decision-making processes in multinational organisations are linked to several variables, such as political, social and legal elements. In the growth of international trade, foreign direct investment and the cross border flow of technology, increased emphasis is placed on culture in business. Culture is taking on a vital role in ensuring benefits for businesses, mainly with regard to business success or risk. The integration of cultural characteristics with management practice is now considered to be the main principle at work in accomplishment.