Lukoil as an example of MNC
Rommy Vlashka Matrl. N - 1046275 As an example of a MNC- Multi National Corporation
Is one of the largest oil companies in Europe. It originates from Russia and its headquarters is in Moscow. Lukoil is formed in 1991 with the merger of the companies. A main role in the founding of the firm had the the Soviet deputy minister of oil production Vagit Alekperov.He believed the only way Russia could compete against western companies was to copy their business model. That is to vertically integrating the three branches of the industry - exploration, refining, and distribution(they were separate in the old Soviet system). This way they would be able to modernize and use all of the strengths they already possessed.
Nowadays Lukoil is one of the good examples of a company using the divisional structural model in order to achieve customer satisfaction decentralize the decision making and cope with the fast changes in the unstable environment of the oil trading market. You can see the internal structure of the firm in table shown. This table is taken from the official Lukoil Site and is owned by the
Lukoil Corp.
The company uses a lot of Market entry modes for its global goals. As the second largest oil company in Europe it has to cope with tones of issues and mainly with the cultural differences and market entry barriers. It is known that Lukoil has more than 300 Licensing structures as well as lots of aquisitations. The operations of the firm are orientated by country – that is by the demands of the local markets and by its barriers.
In order to keep the stakeholders informed and to please the communities that are always trying to protect the local markets , the environment and the working places in the host countries the corporation makes campaigns and events to introduce new products and methods in the refining and gaining of oil. The Company tends to
Is one of the largest oil companies in Europe. It originates from Russia and its headquarters is in Moscow. Lukoil is formed in 1991 with the merger of the companies. A main role in the founding of the firm had the the Soviet deputy minister of oil production Vagit Alekperov.He believed the only way Russia could compete against western companies was to copy their business model. That is to vertically integrating the three branches of the industry - exploration, refining, and distribution(they were separate in the old Soviet system). This way they would be able to modernize and use all of the strengths they already possessed.
Nowadays Lukoil is one of the good examples of a company using the divisional structural model in order to achieve customer satisfaction decentralize the decision making and cope with the fast changes in the unstable environment of the oil trading market. You can see the internal structure of the firm in table shown. This table is taken from the official Lukoil Site and is owned by the
Lukoil Corp.
The company uses a lot of Market entry modes for its global goals. As the second largest oil company in Europe it has to cope with tones of issues and mainly with the cultural differences and market entry barriers. It is known that Lukoil has more than 300 Licensing structures as well as lots of aquisitations. The operations of the firm are orientated by country – that is by the demands of the local markets and by its barriers.
In order to keep the stakeholders informed and to please the communities that are always trying to protect the local markets , the environment and the working places in the host countries the corporation makes campaigns and events to introduce new products and methods in the refining and gaining of oil. The Company tends to