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TNK-BP Company Essay

TNK-BP is an oil company that was created by the international oil company BP and Russian consortium AAR (Alfa Group and Access-Renova Group). It’s a scope alliance since: 1. BP and AAR’s relationship is partners, they are not competitors. According to the passage, although AAR has some business to do with oil, namely Sidanco. But it was mainly focus on banking, retailing, telecommunications, media and vodka, but BP is the oil company, which obviously is doing oil business for living. So they rarely share things in common before TNK-BP. 2. Their contribution of resources is different. Russia is known to be the largest oil and gas reserve country in the world, and AAR has access to these massive nature resources.

And BP was the second largest private sector oil company in the world; it has retailing operations over 80 countries. So as it stated in the passage:”a landmark joint venture that brought together BP’s know-how with Russian natural resources” 3. The nature of alliance is different. For BP, because of the increasing demined in developing countries such as china and security problems in Middle East that threats the oil supply, it has to look for new oil fields to explore in order to secure the provision of oil in the long term in the future. And for AAR, it has resources, but it needs the western expertise and capital to exploit its vast energy reserves. So they actually have different purpose.

According to the definition of the link joint venture, also known as scope alliance, it’s “driven by complementarities between partners, -contribution of complementary competences and assets
-strategic move is different for each partner”

So TNK-BP is a perfect fit in, there’s no doubt that TNK-BP is a scope alliance.


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