Monday, February 6, 2012

NIS: Geopolitical Breakthrough or Strategic Failure?

NIS: Geopolitical Breakthrough or Strategic Failure?
© 2012 INSEAD Case Study

Russian oil giant Gazpromneft acquires a controlling stake in the only Serbian vertically integrated oil company, NIS, in a major deal between the Serbian government on one side and the Russian government and Gazpromneft on the other. Gazpromneft assembles a team of 50 managers to take charge of NIS. The new management faces unparalled challenges in turning the sleeping giant (which represents 15% of Serbia's economy but operates at less than 50% of its capacity) into a commercially viable enterprise. Sceptics say the project has no economic logic, but the team is determined to prove them wrong.

Pedagogical Objectives:  To make students aware of the challenges of investing into an emerging economy and buying into a state-owned enterprise: - Managing multiple issues in an acquision - Creating a high-performance culture - Developing a strategy combining global experience and local expertise - Leading multicultural entreprises and teams Developing business in the Balkan region Transforming a state-owned company into a commercial enterprise.