Analysis of Schlumberger’s External Environment

SCHLUMBERGER TECHNOLOGIES
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Introduction
Schlumberger provides information and technology by ushering integrated project
management solution to international industries which deal with production and exploration
of oil and gas. It is further categorized into segments to aid its operations namely: drilling
group, reservoir characterization group and production group1. Each segment has its specified
duties with the reservoir characterised group consisting principal technologies essential in
finding and defining resources that are hydrocarbonate. On the other hand, drilling segment
consists of principal technologies that are used in the drilling and positioning of gas and oil
wells. The Production group segment entails provision of technologies relevant to a lifetime
production of gas and oil. This company was founded in 1926 by Marcel Schlumberger and
Conrad Schlumberger and holds its headquarters at Houston, TX.
Analysis of Schlumberger’s External Environment
Schlumberger has met a ‘PEST’ analysis through a number of characteristics2. It has
continually followed government’s rules on payment of taxes. This organization is driven
towards addressing the welfare of its employees as it provides motivational gifts in jobs well
done. Employment of many employees reflects its contribution to economic growth. Socially,
Schlumberger attends to their customers’ needs by providing an array of options to choose
from. Moreover, integration of advanced technology has helped in efficient utilization of
resources and provision of convenient products.
Schlumberger’s Market Competitiveness
1 Kaushik, Bhanu, and Samir Menasria. "METHODS AND SYSTEM TO REDUCE
IMPERCEPTIBLE LAB EXPERIMENTS." U.S. Patent Application 15/187,138, filed
December 21, 2017.
2 Trevino, Linda K., and Katherine A. Nelson. Managing business ethics: Straight talk
about how to do it right. John Wiley & Sons, 2016.

2
Schlumberger has maintained its global competitiveness over the years by registering high
profits all along. In the beginning of 2018, it posted a $525 million quarterly profit which was
in correlation to 88% annual increase together with a revenue of $7.8 billion which
represented a 14% increase3.
Schlumberger’s Business Model
Schlumberger adopts a business model of buying stakes in its customers’ gas and oil
projects using billions of dollars, and then invests in the same it supplies with expertise and
equipment. This expanded operational authority means that it doesn’t have to bid for each
and every major job that require separate contracts in the case of a large drilling project and
thus acquiring the ability to lock out its competitors.
Schlumberger’s Expectations
So as to enhance oilfield efficiency, Schlumberger technologies enable their customers to
drill at a faster and accurate rate while lowering adverse environmental impact in the process.
They advocate for a reduction in unplanned release of oil and other corresponding fluids,
lowering of greenhouse gas emissions and optimization of water used in the field4.
Schlumberger also aims at being a committed steward of the world by striving to meet global
environmental regulations and standards. It exceeds its customers’ expectations through risk
management, pollution prevention, and minimization of natural resource consumption and
waste.
3 Hori, Hiroshi, Ram Sunder Kalyanraman, Hiroshi Nakajima, and Henri-Pierre Valero.
"Method and system of model-based acoustic measurements for a perforated casing." U.S.
Patent Application 15/550,039, filed January 25, 2018.
4 Trevino, Linda K., and Katherine A. Nelson. Managing business ethics: Straight talk
about how to do it right. John Wiley & Sons, 2016.

3
The technology possessed by Schlumberger technologies help their customers reduce
emissions, save energy and reduce amount of resources used in each phase of gas and oil
exploration and production. There exists a global research and engineering network that
support their Reservoir Characterization, Cameron Groups, Drilling and Production. In an
aim of promoting environmental sustenance, Schlumberger encourages its employees to
involve themselves in an array of workplace initiatives together with volunteering for
community projects which uphold reduction of environmental impact and building a local
capacity thereof. This provides workplace solutions as employees champion many strategies
that aim at improving internal efficiency via innovative programmes.
Recommendations
In order for Schlumberger to maintain its global competiveness, there is a dire need to
uphold profitability improvements all along. Employees should be reimbursed for mileage to
enable save on insurance and maintenance costs of a company car5. Telecommunication is
quite efficient as it reduces business trip costs. Shipment ought to be delivered directly to its
customers so as to avoid additional costs on storage. In the event of the firm’s need of part-
time help, it should consider hiring subcontractors.
Conclusion
Schlumberger meets the required standard of a healthy business enterprise as it is able to
conduct environmentally friendly operations. The high profits it registers reflect how efficient
its operations are. Its ability to outmatch its competitors is quite remarkable given the perfect
business plan in play. Moreover, advancement of its technology implies that their end
products are quite satisfactory.
Bibliography
5 Delgado, Miguel Marcel Jose. "System and Methodology for Determining Forces Acting
on Components." U.S. Patent Application 15/109,916, filed November 17, 2016.

4
Delgado, Miguel Marcel Jose. "System and Methodology for Determining Forces Acting on
Components." U.S. Patent Application 15/109,916, filed November 17, 2016.
Hori, Hiroshi, Ram Sunder Kalyanraman, Hiroshi Nakajima, and Henri-Pierre Valero.
"Method and system of model-based acoustic measurements for a perforated casing." U.S.
Patent Application 15/550,039, filed January 25, 2018.
Kaushik, Bhanu, and Samir Menasria. "METHODS AND SYSTEM TO REDUCE
IMPERCEPTIBLE LAB EXPERIMENTS." U.S. Patent Application 15/187,138, filed
December 21, 2017.
Trevino, Linda K., and Katherine A. Nelson. Managing business ethics: Straight talk about
how to do it right. John Wiley & Sons, 2016.