Tnk-Bp: Tread with Caution

10644 WordsDec 24, 201243 Pages
Page 35 TNK-BP: TREAD WITH CAUTION Christopher T. Bluhm, Saint Mary’s College of California Mary Vradelis, Saint Mary’s College of California Catherine Li, Saint Mary’s College of California Brett Threlkeld, Saint Mary’s College of California J. Tomas Gomez-Arias, Saint Mary’s College of California CASE DESCRIPTION The primary subject matter of this case concerns the management of international joint ventures. Secondary issues examined include: business in Russia; government’s intervention in business and how it affects multinational companies; market entry and modes of market entry decisions;; and dimensions and elements of culture (Fang 2003). The case has a difficulty level appropriate for first or second year graduate level. The…show more content…
During the war, the British government expropriated the company’s assets and sold them to Anglo-Persian in 1917. Over the next decade, gas and electricity replaced kerosene for home heating and gasoline-fueled trucks competed with railroads and the automobile age had begun. In 1935, Persia changed its name to Iran and Anglo-Persian changed its name to AngloIranian. Then in 1939 Britain entered World War II and gasoline was rationed. With the high risk in transporting oil from Iran to the UK, the company increased production at a field in Nottingham, England. The quantities were small but large enough to help the country get by. The field was one of the best-kept secrets of World War II. After World War II, as Europe rebuilt, Anglo-Iranian invested in refineries all over Europe and began selling gas in New Zealand. Middle Eastern nationalism was rapidly expanding, and Britain’s control over Iran was rapidly diminishing. In 1951 the Iranian Parliament nationalized oil operations within the country’s borders. Governments around the world boycotted Iranian oil, and within 18 months the Iranian economy was in ruins. Eventually a new arrangement was worked out with a consortium of companies including Amoco and others running the operation with Anglo-Iranian’s stake down to 49%. In 1954 the board changed the company’s name to The British Petroleum Company. In the 1960’s, expeditions started finding oil in places like Abu Dhabi, Nigeria and Libya. In 1965, BP found

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