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Case
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Reference no. 9-804-089
Subject category: Entrepreneurship
Published by: Harvard Business Publishing
Originally published in: 2003
Version: 17 May 2005

Abstract

Taught in the elective MBA course entitled The Evolution of Global Business. Examines the development of an international cartel in the oil industry in the 1920s and 1930s. Focuses on the decisions and actions of the leading multinational oil companies - particularly Standard Oil of New Jersey, Royal Dutch/Shell, and Anglo-Persian (BP) - in acting together to try to stabilize prices and market shares beginning in the late 1920s through the Achnacarry or ?As-is? Agreement. Set against the backdrop of the development of the global oil industry, it examines the causes of the change in firm strategy from competition to co-operation and offers an opportunity for readers to assess the success of efforts at inter-firm co-ordination and stabilization. Also explores the personal and professional relationships between the leading oil-industry executives who forged the cartel, including Henry Deterding, Walter Teagle, and John Cadman. Important sub-issues include the changing nature of the oil industry in the 1910s and 1920s, the rise of oil diplomacy, and the impact of US antitrust laws on the global oil business. The teaching purpose is to illustrate the forces behind the spread of international cartels in the inter-war years.
Location:
Industry:
Other setting(s):
1900-1939

About

Abstract

Taught in the elective MBA course entitled The Evolution of Global Business. Examines the development of an international cartel in the oil industry in the 1920s and 1930s. Focuses on the decisions and actions of the leading multinational oil companies - particularly Standard Oil of New Jersey, Royal Dutch/Shell, and Anglo-Persian (BP) - in acting together to try to stabilize prices and market shares beginning in the late 1920s through the Achnacarry or ?As-is? Agreement. Set against the backdrop of the development of the global oil industry, it examines the causes of the change in firm strategy from competition to co-operation and offers an opportunity for readers to assess the success of efforts at inter-firm co-ordination and stabilization. Also explores the personal and professional relationships between the leading oil-industry executives who forged the cartel, including Henry Deterding, Walter Teagle, and John Cadman. Important sub-issues include the changing nature of the oil industry in the 1910s and 1920s, the rise of oil diplomacy, and the impact of US antitrust laws on the global oil business. The teaching purpose is to illustrate the forces behind the spread of international cartels in the inter-war years.

Settings

Location:
Industry:
Other setting(s):
1900-1939

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