TNK-BP (Russia) Case Analysis

Instructions: Please read the TNK-BP (Russia) 2008 case. This case portrays the highly uncertain scenario facing BP in Russia at the end of 2007. In the midst of unraveling relations with its cooperative partner and undesirable host government practices, ideal strategic conditions are implausible. In order to maximize outcomes under such imperfect circumstances, BP’s senior management needs to fully assess the situational risks, understand the dynamics and motivations driving stakeholder behavior, and establish a plan which can appeal to all interested parties. With this in mind, please review and answer the following questions.

Questions (4 questions in total):
1. As BP devises a strategy for managing business holdings in Russia, what risks does the company face (25 points)?
2. What important motivational factors are underlying the behavior of prominent stakeholders (25 points)?
3. What steps should BP take to protect its investments and ongoing global operations (25 points)?
4. How might BP handle issues related to corruption and other potential unethical business practices in the host country environment? How will these strategies improve their current operations (25 points)?

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