POG303 - Strategic Management
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GSM London
STRATEGIC MANAGEMENT (POG303)
Added on 2020-04-13
POG303 - Strategic Management
GSM London
STRATEGIC MANAGEMENT (POG303)
Added on 2020-04-13
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Running Head: STRATEGIC MANAGEMENTStrategic ManagementName of the StudentName of the UniversityAuthor Note
1STRATEGIC MANAGEMENTTable of ContentsIntroduction..........................................................................................................................2Discussion on organisation..................................................................................................2Challenges, benefits and strategic choices of Schlumberger limited..................................3Recommendations................................................................................................................7Conclusion...........................................................................................................................9References..........................................................................................................................10
2STRATEGIC MANAGEMENTIntroductionOil field service industry involves greater complexity than any other industry. The oilfield services experience tough years during low prices and weak demand. The providers mustwork strategically and plan for the future being mindful of the risk. The US oilfield serviceproviders are preparing for an expected oil-price recovery after struggling for two years. Someare filing for bankruptcy. Without bankruptcy, the small and middle-sized companies may riskmissing out upturn that could follow the OPEC's plan to cut oil production. The leading oil fieldservice providing companies face great risk during low oil price environment. During the 2014-2016 oil price drop, Oilfield Service Providers also suffered under falling profits. It was due tothe issues facing their price cuts, customers, and the wider turbulent business environment. Thus,there is a need for strategic choices to share the risk and optimise the project delivery. The reportaims to critically analyse the oil field service provider operating during 2014-2017. For thispurpose, the assignment focuses on Schlumberger limited. The rationale for selecting thisprovider as this company is worthy of top spot in the list of the oil field services companies.Schlumberger has the exhaustive portfolio of the oilfield products by virtue of which it ranks 287in the Fortune Global 500 Company. In the Middle East, it is leading oil field service provider(www.bloomberg.com. 2017). The report analyses the challenges and benefits during 2014-2017with appropriate examples. Based on the analysis, the report provides recommendations for thechosen Oilfield Service Provider to improve their strategic direction. Discussion on organisation Schlumberger Limited is no exception to the parameters of oilfield service companiesthat is the provision of the equipment, infrastructure, services and intellectual property. These
3STRATEGIC MANAGEMENTparameters are needed by an international industry of this sector to transport the extracted crudeoil from earth to the consumer via refinery. Schlumberger limited supplies information solutiontechnology and integrated project management and optimises the reservoir performance forworking people in the oil and gas industry. Schlumberger supplies the petroleum industry withprocessing, seismic acquisition, well testing, formation evaluation, directional drilling, artificiallift, well cementing, stimulation, flow assurance and well completion. Schlumberger limitedoffers integrate field management solutions. It oversees and operates the assets on behalf of thecompany. The company is operating in more than one 85 countries with one of its principalexecutive office headquartered in the US (Texas) (www.slb.com 2017).Schlumberger limitedsupplies technology product to the oil and gas exploration. The reservoir characterisation groupsegment, provides the reservoir development services, imaging and monitoring services, wirelesstechnologies,slickline services; and petrochemical data servicing. The drilling group segment ofthe company markets fixed cutter drill bits provides pressure drilling. Its Production Groupsegment offers well services, and lastly, the Cameron Group segment offers drilling equipmentand integrated subsea production systems (www.bloomberg.com. 2017). Challenges, benefits and strategic choices of Schlumberger limited The company since last two years has been suffering from the weak financial position.The company is also exposed to several risks as it gets significant revenue from the Non-USstates. Further challenges come from the high dependency of revenue on the client's expenditurelevel. The threats for which the company needs strategic planning are the dynamic prices of thecrude oil and gas. Rise in the substitute fuels and sustaining the high environmental compliancecost demands the strategic choices (www.bloomberg.com. 2017). The company has faced manyother challenges in regards to the strict demands for the technology solution. It was challenging
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