10k Project

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Annual 10K Project

ACC 230

Introduction

This report will discuss five key areas of Schlumberger Limited. The first section of this report will review the history and overview of the company. The second section, Business Segments, will review the different groups in which Schlumberger has segmented its business lines and the services that they provide. The third section will discuss Schlumberger’s main competitor and how they sustain a competitive advantage. The fourth section, Business Strategy, will include topics of acquisitions and innovation through technology. The fifth section, Financial Analysis, will evaluate current financial performance against previous year and the future outlook of the company as a whole.

1. History/Overview

Schlumberger was the creation of two brothers of that name, Conrad, born in 1878, and Marcel, younger by six years.1 Founded in 1926, today the company employs over 118,000 people of over 140 nationalities working in approximately 85 countries.2 The company operates in North America, Latin America, Europe, CIS, Africa, the Middle East, and Asia. The process of Oil exploration and eventual production is a complex process that requires sophisticated technology. It involves identification of oil reservoirs through geological field work, geological modeling, seismic imaging, and exploratory drilling.3 Schlumberger supplies a wide range of products and services from formation evaluation through directional drilling, well cementing and stimulation, well completions and productivity to consulting, software, information management and IT infrastructure services that support core industry operational processes.4

2. Business Segments

In 2011, Schlumberger Limited segmented its business lines into three main groups and operate their subsidiaries from their strong and on going history of acquisitions. It operates through three groups: Reservoir...