Extended Essay Business
- Submitted by: trey891
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- Category: English
- Date Submitted: 03/18/2010 01:37 PM
- Pages: 15
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Table of Contents
Introduction
ConocoPhillips in Russia
With the fall of the communist regime ofRussia in the early 90’s the doors to Russia’s resources were opened for foreign investors. ConocoPhillips was one of the first American Oil companies to come to Russia and have been active in Russia since the creation on Polar lights Company in 1992 (a joint venture between ConocoPhillips (50%) and Rosneft (50%)). Since within Russia ConocoPhillips took an aggressive role to obtain some of Russia’s oil market share, and in 2004 to 2005 purchased a minority of the shares of Lukoil.
ConocoPhillips and Lukoil
On September 9th 2004, ConocoPhillips started its investment of 7.5 billion dollars into Lukoil that by the end of 2005 was and is 20% of the company. This was an idea of both companies - for Conoco as a growth strategy and to have influence in the Russian Market, and for Lukoil to obtain western technology, practices and capital to make Lukoil more efficient.
Definitions
Joint Venture
A joint Venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise.
Growth Strategy
A growth Strategy is a strategy based on investing in companies that are growing faster than others in the same industry, with the goal of generating capital gains rather than dividends.
Research Proposal
Question
Was the joint venture between ConocoPhillips and Lukoil been as a growth strategy for ConocoPhillips, the most advantageous?
Rationale
The question is appealing because before Conoco and Phillips 66 merged, Conoco was present in Russia since the opening of the Russian Market over 16 years ago. They had many investment and joint ventures with Russian companies mostly Lukoil, but 5 years ago they...
Table of Contents
Introduction
ConocoPhillips in Russia
With the fall of the communist regime ofRussia in the early 90’s the doors to Russia’s resources were opened for foreign investors. ConocoPhillips was one of the first American Oil companies to come to Russia and have been active in Russia since the creation on Polar lights Company in 1992 (a joint venture between ConocoPhillips (50%) and Rosneft (50%)). Since within Russia ConocoPhillips took an aggressive role to obtain some of Russia’s oil market share, and in 2004 to 2005 purchased a minority of the shares of Lukoil.
ConocoPhillips and Lukoil
On September 9th 2004, ConocoPhillips started its investment of 7.5 billion dollars into Lukoil that by the end of 2005 was and is 20% of the company. This was an idea of both companies - for Conoco as a growth strategy and to have influence in the Russian Market, and for Lukoil to obtain western technology, practices and capital to make Lukoil more efficient.
Definitions
Joint Venture
A joint Venture is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise.
Growth Strategy
A growth Strategy is a strategy based on investing in companies that are growing faster than others in the same industry, with the goal of generating capital gains rather than dividends.
Research Proposal
Question
Was the joint venture between ConocoPhillips and Lukoil been as a growth strategy for ConocoPhillips, the most advantageous?
Rationale
The question is appealing because before Conoco and Phillips 66 merged, Conoco was present in Russia since the opening of the Russian Market over 16 years ago. They had many investment and joint ventures with Russian companies mostly Lukoil, but 5 years ago they...