In-Depth Analysis: SWOT, PESTLE, and Value Chain for Baker Hughes

This report provides a comprehensive internal and external analysis of Baker Hughes, utilizing strategic tools such as PESTLE, Porter's Five Forces, core competency analysis, and value chain analysis. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting the company, highlighting the effects of government policies, economic fluctuations, social considerations, technological advancements, legal regulations, and environmental concerns. Porter's Five Forces assesses the competitive intensity of the oil and gas industry, considering the threat of new entrants, bargaining power of suppliers and buyers, the threat of substitutes, and rivalry among existing firms. The core competency analysis identifies Baker Hughes' key strengths, including well engineering, project management, and supply chain management. Finally, the value chain analysis evaluates the company's supply chain, emphasizing the use of technology, cost advantages in transportation, and the development of effective teams. The report concludes with recommendations for Baker Hughes to enhance their supplier network and adopt advanced technologies to maintain a competitive edge.

SWOT ANALYSIS

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTLE analyses of Baker Hughes ............................................................................................1
Porter five forces of Baker Hughes .............................................................................................2
Core competency analyses of Baker Hughes ..............................................................................2
Value chain analyse of Baker Hughes ........................................................................................2
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Internal and external analyses refers to the analyses of internal and external factors of
business which are having both positive and negative impacts on business of organisation. It is
one of the important and valuable strategic tool of business which helps to develop different
types of strategies in business which enables management to become more competitive .
PESTLE analysis helps company to analyse their external factors of organisation which helps to
becomes more reactive in market. The organisation which is taken here for conducting PESTLE
analyses is Baker Hughes
MAIN BODY
PESTLE analyses of Baker Hughes
It refers to those tool of external analyses which helps to analyse the impact of different external
factors on business of company. There are six factors are present in this analyse such as political,
economical, social, technological, legal and environment. The brief discussion related to these
factors on business are given below;
Political :- It refers to those factor of analyses which reflects the impact of different policies and
strategies of government on business of entity. The relations of company with government
official due to their business is positive which reflects effective growth for organisation. The
impact of Russia dominating behaviour in international market are negative for organisation
(AlMarwani, 2020).
Economical :- As the economy of all countries faces negative growth due to COVID pandemic
which enables all factors of economy such as inflation, unemployment and many more reflects
negative results. The fluctuations in oil and gas prices in international market becomes threat for
organisation and also fluctuation in international currencies negatively impacts business of
company (Pambudi, 2022).
Social :- The management of Baker Hughes conduct their in many countries so it becomes
important for them to analyse and concern about social factors of all these countries. It is
important for management of company to focus upon the class structure of country (Mo, 2021).
Technological :- The management of Baker Hughes has used different types of new and advance
technology which helps company to deal with their competitors.
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Legal :- There are different types of laws and regulations are present which management of
company need to follow such as equality law, patents, health and safety and many more. The
business of oil and gas contains different types health risks (Weidong, 2020).
Environment :- Waste management is one of the important and valuable concern of company
which helps them to satisfy needs of natural environment.
Porter five forces of Baker Hughes
Threat of new entrant :- The force of new entrant are low in oil and gas business because the
start up of business requires different types of permission and huge amount of funds (Tikhonov
and Zelentsova, 2021).
Bargaining power of supplier :- The management of Baker Hughes purchase their raw
materials from number of suppliers so it becomes effective for them to develop effective supply
chain which helps them to create dominating position.
Bargaining power of buyer :- The bargaining force of customers are low in oil and gas business
because government fixed market price.
Threat of substitute :- One of biggest substitute of gas is electric vehicle which can replace oil
from motor vehicles.
Rivalry among existing customer :- There are only few companies are present in industry and
government fixed prices which reduces the force of rivalry (Weidong, 2020).
Core competency analyses of Baker Hughes
It is a process of identify company strength which is helpful for them to survive in market and
enables them to achieve huge returns. The brief discussion related to core competencies of Baker
Hughes are given below:
Well engineering :- There are large number of experts and established engineers are present in
company which makes them more competitive.
Project management :- The effective managerial aspect of company helps management to
complete all project efficiently.
Supply chain, logistics, and contractor management :- The supply chain of company helps
management of organisation to develop effective and valuable growth in market (Jelassi, and
Martínez-López, 2020).
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Value chain analyse of Baker Hughes
Value chain analyses refers to evaluate each aspect of supply chain of company which helps to
find different types of opportunities from the same. The supply chain of company is one of the
important aspect of company which helps to provide products at different levels of sales. The
supply chain of Baker Hughes is part of their core competency and the brief discussion to their
analyses are given below:
 The management of company used different types of technologies in their supply chain
which helps them to becomes more competitive.
 The production of oil and gas by company are used in their transportation process which
helps the company in their cost advantage (Chen, Xu, Tao and Hua, 2022).
 There are large number of teams are developed in supply chain of company which
enables company to achieve their goals and objectives.
The above analyses are very helpful to conduct effective SWOT analyses because there are
different types of strengths and weaknesses are concluded in above analyses. The pestle analyses
helps to develop effective judgement about the survival of organisation.
Recommendations
 It is recommended to management of Baker huge to develop huge chain of suppliers so
that it becomes easy for them to develop effective position and dominate prices of raw
material.
 It is recommended to management of company to acquire new and advance technology
which helps to survive and achieve effective opportunities in market (Destino and
Cunningham, 2020).
CONCLUSION
It is concluded from this report that internal and external analyses of business helps
company to analyse different factors which enables to develop different types of counter
strategies. This report concludes PESTLE analyses which helps to evaluate the impact of
external factors on company. It also concludes, value chain analyses, core competency which
helps to evaluate the strength of organisation.
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REFERENCES
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