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Case 6 Schlumberger

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Case 6 Schlumberger
BA 291.2 - Strategic Management 2 Group #10
Eliza Asis Royson Ong Edaine Joyce Paz Niño James Ramos

Case 6. Schlumberger Case Analysis (Organizational Change and Renewal)

Background:

“One of the world’s largest leading oilfield service providers”

Schlumberger is the world’s leading supplier of technology, integrated project management and information solutions to customers working in the oil and gas industry worldwide. Employing approximately 120,000 people representing over 140 nationalities and working in more than 85 countries, Schlumberger provides the industry’s widest range of products and services from exploration through production.

It was one of the world’s best-managed multinational companies. In 1980s, Schlumberger was worth $16 billion and only AT&T, IBM and Exxon’s net worth were higher than Schlumberger. Its net income grew by about 30% for annually since 1971 to 1981 and its EPS rose by more than 30% year-on-year. Profit as a percentage of revenue was 21%, which was higher than any other leading industrial companies. It had very little long-term debt. It paid 37% in dividends between 1975 and 1980. Schlumberger logged 70% of the worlds’ wells that was a near-monopoly. Many of Schlumberger’s subsidiaries ranked at or near the top of their various industries. Science and technology were the foundations of Schlumberger.

Objectives

This paper will analyze the following:
1. Personal values and leadership style of Jean Riboud and how he influenced Schlumberger’s culture and strategy
2. Factors that led to the success of Schlumberger: its Corporate Strategy and Structure

Analysis of Jean Riboud’s Personal Values

After the death of Marcel Schlumberger in 1953, the company functioned in four separate segments for about three years without a central bond. In 1956, after a strong lobbying by Jean Riboud and other executives, Schlumberger Limited (Ltd.) was created to draw the company together. Pierre Schlumberger was named the first president

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