Weatherford Business Report

This report provides a comprehensive business analysis of Weatherford, a multinational oil and gas services company. It begins with a sector analysis of the UK oil and gas industry, followed by a company background overview. A detailed business analysis is conducted using SWOT and PEST analyses to identify strengths, weaknesses, opportunities, and threats. The report then delves into current change management issues faced by Weatherford, including job cuts, retirement plans, technological advancements, cultural aspects, political factors, and economic conditions. Future change issues are also explored, focusing on technological advancements, political instability, economic fluctuations, and environmental regulations. The report concludes with recommendations for Weatherford to address these challenges and improve its change management strategies. The report utilizes various academic journals and online resources to support its analysis and conclusions.

Weatherford Business
Report
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
Main Body............................................................................................................................................3
Sector Analysis................................................................................................................................3
Company Background.....................................................................................................................3
Business analysis of the Weatherford..............................................................................................4
Current Change Issues in the Weatherford......................................................................................6
Future Change Issues of the Weatherford........................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
Change Management is an essential part of the organization. The company should be ready in
accepting any change which they have to faced on day to day basis. The changes can be occurred by
the market transparency, global cash flows, instant communications, labour mobility etc. To able to
adapt the change in the business enterprise, the mangers should make the best strategic and tactical
plans (Arshad and Sparrow, 2010). They should considered the organization culture, its values and
ethics to accomplished their goals and objectives. Structural transformation in the company is
considered as a vital aspect in the organization. This is because it is an essential part of the business.
For conducting the present research, Weatherford company has been chosen. In this report, the change
management issues will be discussed on the basis organizational behaviour, culture and other aspects.
The business analysis of the chosen company will be done. Furthermore, the current and future issues
also been evaluated.
MAIN BODY
Sector Analysis
The oil and gas sector in the United Kingdom produced 59% oil and liquid which is consumed
by the host country as well as by international country. This industry is an importer of hydrocarbons
which is significant exporter in early 90's. The 98% of production is coming from the offshore fields.
There are number of wells in Lancashire & Yorkshire but only only few wells are been drilled because
of the considerable protest (Bevington and Samson 2012). The energy trading markets such as ICE
Futures plays an important role in financial services which is one of the UK's strengths. British North
Sea also supply Brent crude, therefore, their price is the major benchmark for the international oil
trade. National Balancing Point market is the benchmark for most of the gas traded across Europe. The
oil and natural gas in UK is coming from different parts of Europe as well as from the world. Few
years ago, only three quarters of the UK's top most oil and gas energy demand was met. UKCS
satisfied large number of demand of oil to all the domestic consumption (Green and Cameron, 2015).
The industry estimate that in 2020, leading energy consumed in the UK will come from oil and gas
from the renewable sources.
Company Background
Weatherford is a public limited company. it is one of the largest multinational oil and natural
gas services organisation. The business enterprise deals in completion, drilling, production and
intervention of oil and natural gas wells etc. The other products and services includes pipeline
construction and commissioning (Hayes, 2014). The purpose of the Weatherford is to support the
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sustainable development and production of oil and natural gas resources. It also ensured that the
world's current and future energy needs should be met innocuous, economically and with efficiency.
The firm's business operates in more than 100 countries globally and have 60,000 employees. The
company was founded in 1941 in Weatherford, Texas. From its origin, the organization pioneered an
innovative and creative technique and equipments for the cementing of oil wells. The organization is
using drilling and casing equipment from the field of Venezuela by the Gulf Oil Company. In Europe,
the firm has changed its location from Switzerland to Ireland. But has maintained their operational
office in Houston, Texas (Weatherford, 2016). The business enterprise has varieties of products and
services for the oil and gas industry. These helps in developing directional drilling services which can
expand by miles of bedrock with great precision and tubular running services. Only this company, is a
provider of all forms of artificial lift. It also deals in the various operations such as electronic well
measurement and monitoring, evaluation products and services etc. It is one of the world's most diverse
fleets of in-line inspection tools.
Business analysis of the Weatherford
The business analysis helps in knowing the financial position of the company as well as the
competitors of the organization. Through this, it helps in focussing the internal and external
environment of the workplace. The marketing audit can be done through SWOT and PEST analysis to
know the various aspects and competitors of the chosen business enterprise. The business analysis of
Weatherford are as follows:
SWOT Analysis
Strengths
 It is one of the largest oil and natural gas services company in the UK and in the World which
has global presence in more 100 countries.
 There are large number of employees which are employed in this organization is one of the
strength of the business enterprise (Lundy and Morin, 2013).
 It has a robust market research and development and it also serves in the substantial areas like
middle east etc. Weatherford constitutes strong brand reputation and image as well as brand equity.
Weaknesses
 The policies of the UK government is one of the factor which affects the operational efficiency.
This is because, so much of the intervention of the government is affecting the business
operations.
 Current biggest weakness of the chosen firm is losing of the number of human re4sources
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because of the ongoing recession period (From start up to grow up, 2014.). The profits margins of the company is also declining because of the rising costs such as
operational and labour costs which is affecting the company.
Opportunities
 There are growing demand for oil field equipments internationally so company can grab this
opportunity.
 The natural gas market is also increasing globally which is the one of the possibility for the
Weatherford to increased their market share (Senior and Swailes, 2010). The firm can discovered more oil wells and joint venture with other countries to expand their
market share as well as their profitability.
Threats
 The various government regulations which is pressurizing operations of the chosen company
which is the one of the threat for the organization.
 There are various development in the society of greener sources of energy which is affecting
the Weatherford oil and natural gas corporation (Sørensen, Hasleand and Pejtersen, 2011).
 There are high competition in the market from all the existing oil serves companies
internationally. The some competitors includes Baker Hughes, Halliburton Company,
Schlumberger Limited etc.
PEST Analysis
The oil industry is the strategic point in the political, economic and social needs of the country.
This is because it influences the transport capacity, energy production and social welfare etc. and they
are as follows: Political Factors: The various programs of the European Union have reduced the needs of the
fuel and this happens because of declining of the economic activities and the social welfare.
Due to the recession period, the need for the cheap price fuel has become the capacity (Thomas
and Hardy, 2011). Because of this situation, the Falkland islands has been reappear between
United Kingdom and Argentina. This all is stating that political stability in the UK is not stable. Economic Factors: The influence of the demand and supply of the oil prices is the part of the
economic factor. The exchange rates which is used in the country also plays a major factor in
influencing the economic situation (Frankland and et.al., 2013). During the economic crisis,
prices of oil and gas are low which was affecting the company's profitability. As aviation
industry is growing rapidly which has increased the demand of oil in UK. Social Factors: There are some people who see oil as a necessity for the development and
welfare. On the other hand, some population of the UK sees oil sector as an vital factor of
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pollution of the environment (Goetsch and Davis, 2014). In the UK, people are environment
friendly, so the government has some law on the oil and natural gas industry. This laws and
regulations has to be followed by the various oil industries. This will helps in reducing the fuel
consumption and others harmful products.
 Technological Factors: This factor helps in influencing the organisation from the internal basis
so to create the need to acquire the latest techniques. The technology which are used in the oil
industry are used exploration, in exploitation, various transport, in promoting strategies etc.
(Kuipers and et.al., 2014). The advanced and innovative technologies can influence the oil
industry from outside and inside. As well as also influences the entire oil sector that is upstream
and downstream.
Current Change Issues in the Weatherford
There are various current issues which are facing by the company and how it is managing in the
organization. This is the main aspect which can influence the business's profitability and its market
share globally. The current issues which are faced by the Weatherford are as follows: Structure of the Weatherford: The major current issue is job cut down in the company which is
influencing the structure of the organization. This is happening because of the falling oil prices
in the United Kingdom which led to the unemployment for the many of the employees
(Weatherford, 2016). The oilfield company has reduced the 100 jobs from the company which
affected the employees as well as the company profits margins. This is happening due to the
economic crisis which have directly influences the oil prices (By, Burnes and Oswick, 2012).
Due to this market environment, the cost structure of the company also gets influenced. So the
company should make some strategic plans and policies to overcome this situation. Retirement: The company is also following the current pension system that is old one. The
organization is not counting regular pension payments instead of this they are making
enrolment plans (Kotter’s Theory of Change, 2014). This is happening because large
corporations has used these plans as strategy which helps in controlling the retirement costs.
The business firm is also giving more responsibilities on the workforce to make investment
decisions. Weatherford considered pension costs as the real problem for long period
(Ramnarayan, 2016). However, Weatherford can revamp the retirement program for the new
employees like the private sector. This will helps in the long term. Technological aspects: This factor is the important aspect in the organization in enhancing the
market share and increasing of the profitability. There are new and advanced technology which
are helping the company in their oil and natural gas corporation. The new technology for the
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business enterprise are used exploration, in exploitation, various transport, in promoting
strategies etc. (McCarthy and Eastman, 2013). Advanced technology can impact the internal
and external environment of the business. The firm can introduced e- commerce website which
is only for the dealer or supplier on which Weatherford can make deals with their seller. Focus and commitment: The company has the powerful focus and commitment over the
mission and vision of the organization. As the business enterprise is supporting the sustainable
development and helping in the conserving of the environment (Nordin and et.al., 201). The
firm is also focussing on the manufacturing of oil and gas resources which helps in their profits
margins to grow. The company is one of the largest oil and natural gas services company which
focuses on the becoming a market leader off this sector in the world. The company can
conserve the environment through making some policies in which they can't harm the
environment (Top 10 Challenges in Oil and Gas Industry, 2016.). The company should ensure
that their energy should be made effectively and efficiently. Cultural aspects: The company can use this aspects for its benefits which reduces the hazards
around people as well as maintain the importance of the consistency. The work culture within
organizations and the importance of using this culture rather than searching the limitations for
the culture in the workplace will only increase the issues (Hamraz, Caldwell and Clarkson,
2012). The organization can resolve their internal issues by the effective communications as
well as by balancing the rational and emotional elements to work with the employees. Political aspects: There are certain laws and regulations which are to be followed by the
Weatherford company to operate its business in UK. There are some wells which are been
drilled and some are protest by the political parties which has been the loss to the company. The
opposition which takes place against the chosen company will affect its business reputation
(Geppert, Matten and Williams, 2016.). As with voters in a political campaign, people want to
know that their opinions and concerns are both heard and taken into consideration before they
will support the company. So the organization should listen to this, to solve the issues.
 Economic aspects: This factor is important in the organization on the basis of various rates
such exchange, interest, operation rates etc. the exchange rates of the particular country can
affect the rates of other countries (Weatherford, 2016). This happens when there is export and
import business are there in the company. In the economic crisis, the oil prices are low which is
is affecting the business profitability and their sales. This can overcome by the the interest rates
which is low in the UK which will helped the company in their profit margins.
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Future Change Issues of the Weatherford
As per the structured evaluation of the Weatherford, the company can face number of issues in
the future that may influence its overall working. In this regard, the business firm can face number of
issues in respect to diverse factors such as technological, political, economic financial, environmental,
etc. Technological aspect is considered as one of significant factor that may create barriers for the oil
and gas sector (Politics And The Oil Industry, 2016). It is a factor that changes in rapid manner and it is
difficult for business firms to anticipate the future of technology. For example, the technology and
equipments regarding oil and gas has changed. It means the management of Weatherford needs to
change its technological tools in order to meet the industrial standards. It also demands skilled
workforce who can easily operate these equipments. It may also increase the cost of operational
activities which may be a great issue for the company (Sørensen, Hasle and Pejtersen, 2011). Training
and development programs needs to be arranged in order to develop skills of employees so that they
can easily adopt newly installed equipments and work in effective manner.
Political issues are also critical aspect that may influence the overall working of the oil and gas
organisation. It has been identified that the political conditions in Arabic nations are changing because
of high pressure of terrorist groups. In this aspect, it is possible that the company may face issues while
operating business in Arabic nations (Lundy and Morin, 2013.). It may impact business of oil and gas
firm in negative manner and create further issues. It has been identified that the business opportunities
of Weatherford depends upon relationship of Swiss government with other nations. This is because the
success and business activities are related to the oil and gas import and export so if government is not
having good relationship with other nations. It is possible that the business firm operational activities
may be influenced (Weatherford, 2016.). For example, the future opportunities of oil and gas sector
depends to the Asian market and Swiss government does not have good business relations with Asian
countries. In this situation, it is possible that the business of Weatherford may be influenced.
Other than this, economic issues are factors that may impact the business of Weatherford in
diverse manner. It has been witnessed that the economic changes are also element that influence wok
culture of oil and gas sector in diverse manner (Goetsch and Davis, 2014). For example, the prices of
crude oil are decreasing day by day which creates failure issues for the company. As per the prediction
of experts the prices of crude oil will decrease more till the end of year 2016. It means the profit
margin ratio of company will also reduce that may create number of conflict situations for the firm. It
also influences the economic conditions of the nations which will impact future of oil and gas sector in
diverse manner. Moreover, the trade authorities and government experts are also looking forward to
establish various environmental policies that can impact the working of Weatherford. In addition to
this, the EU is looking forward to set some standards in environmental policies so that carbon emission
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issue can be reduced (Green and Cameron, 2015.). These kinds of changes in policies will force
companies to cut down the pollution through use of new technological equipments. Furthermore,
installation of equipments require high level of investment that can be another big issue for the
company. This is because the oil and gas market predictions are not favourable that may decrease profit
margin ratio.
In order to overcome these kinds of issues, it is essential for business firm to analyse economic
conditions and market scenario in appropriate manner. Management of Weatherford needs to invest on
market research techniques in order to understand the future of oil and gas sector (Thomas and Hardy,
2011). It will allow business to design strategies in most suitable manner so that issues can be
overcome in optimistic way. Regular training and development programs needs to be organised so that
workers remain updated about changes in sector and technological tools. It will reduce the instant
burden on cost of operation that businesses require during change in technology (Weatherford, 2016.).
Number of business summits can be arranged between oil and gas companies of different nations. It
will assist in building better relationship with different countries which is beneficial to overcome
political issues. Investment on research and development division is also one of significant aspect that
can assist in overcome various issues such as technological, environment, etc. (Ramnarayan, 2016).
For example, Weatherford has introduced new equipment that can reduce the carbon emission. It will
facilitate in overcome environmental issue and reduce the expense on purchase of equipments.
CONCLUSION
In this report, it has been concluded that, Weatherford is one of the largest company in the oil
and natural gas sector. The business audit has been done for the to know the aspects of organisational
behaviour, cultural, technological, political and social aspects as well as economic strengths and
weaknesses of the chosen organization. The marketing analysis has done through SWOT and PEST to
know the internal and external environment. Furthermore, there are some current and future issues
which are affecting the change management of the chosen firm. These issues has been evaluated and
recommendations are given.
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REFERENCES
Journals and Books
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Frankland, R. and et.al., 2013. Integrated change management unit. U.S. Patent 8,484,111.
Geppert, M., Matten, D. and Williams, K., 2016. Challenges for European management in a global
context: Experiences from Britain and Germany. Springer.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Pearson.
Green, M. and Cameron, E., 2015. Making Sense of Change Management: A Complete Guide to the
Models Tools and Techniques of Organizational Change. Kogan Page Publishers.
Hamraz, B., Caldwell, N. H. and Clarkson, P. J., 2012. A multidomain engineering change propagation
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Hayes, J., 2014. The Theory and Practice of Change Management. 4th ed. Palgrave Macmillan.
Kuipers, B. S. and et.al., 2014. The management of change in public organizations: A literature review.
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Lundy, V. and Morin, P. P., 2013. Project Leadership Influences Resistance to Change: The Case of the
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McCarthy, C. and Eastman, D., 2013. Change management strategies for an effective EMR
implementation. Himss.
Nordin, N. and et.al., 2012. A framework for organisational change management in lean manufacturing
implementation. International Journal of Services and Operations Management. 12(1). pp.101-
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Ramnarayan, S., 2016. 13 Habitual mindsets to mindfulness: Wise approaches to change management.
HRD, OD, and Institution Building: Essays in the Memory of Udai Pareek. p.159.
Senior, B. and Swailes, S., 2010. Organizational Change. Harlow: FT Prentice Hall.
Sørensen, O. H., Hasle, P. and Pejtersen, J. H., 2011. Trust relations in management of change.
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Online
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Weatherford. 2016. [Online]. Available through : <http://www.weatherford.com/en/homepage#>.
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