International Business Group Project 5 IP
American Intercontinental University
September 13, 2011

ABSTRACT In a global business that requires many different individuals around the world to start and finish a project no matter how big or small it’s important that every line of communication is open, communicated correctly, planning and all the follow-through from every level of management to every employee around the world that Pride International now known by Ensco employ and rely on a team effort to get their jobs done with success.

INTRODUCTION Pride International also known as Ensco is the world largest drilling deep ocean oil rigging in the world. We will take a look at what they do, how the work and the meaning behind their beliefs to benefit the employees and the environment in which they work and try to maintain a healthy balance.

PRIDE INTERNATIONAL OTHERWISE KNOWN AS ENSCO Pride International started doing business in 1966 in Alice, Texas and at that time only had six workover rigs operating. Later on in 1988 Debalk a subside of Pride International merged its offshore and went globally and stocking in the NASDAQ and with seventeen servicing well and acquired twelve more rigs and out branching to other parts of Texas and California and even started horizontally re-drill wells. In 1991 Pride International spread out again acquiring a total four hundred nine servicing wells, acquired twelve more rigs throughout Texas and bought out nine oil companies acquiring eighty-three more rigs from those companies that they had purchased. In 1991 Pride International turned into an incorporated business mainly because Kuwait Petroleum needed their emergency services to help fix the oilfield to flow once again due to the Persian Gulf War. Pride International, Inc. has worked around the globe and throughout the United States. They currently service Korea, Angola, Venezuela, Brazil, Gulf of Mexico, South Africa, Russia, Argentina, Columbia, Saudi Arabia, Egypt, Asia, Europe, Mediterranean and the Middle East. The service over fifty countries with across six continents has seven drill ships, thirteen dynamically-positioned semisubmersibles, seven moored semisubmersibles, forty-nine premium jackups, two deep water managed units. In the Ultra deep water fleet they have and provide thirteen deep-water rigs operating and seven more under construction. They are the leading industrial leader with the largest fleet of active premium jackup rigs, more than four hundred’ water depth jackups than any other driller in the world, 1 billion invested in jackups and drill ships since 2005 and still continue to grow and they have two ultra-premium harsh environmental under construction. This summarizes they bulk of Pride International, Inc. (Pride International, 2011) However, the original owner decided to sell the corporation to a London based in the United Kingdom know as Ensco. Ensco of 2011 bought Pride International for 7.3 billion dollars making it the world largest drilling offshore deep ocean oil and gas excavators and drillers. The vision that they company stands by is this: (Quoted by Pride/Ensco Corporation) As the offshore driller of choice, we will go beyond what is expected to achieve a safe, zero-incident workplace and to be the clear choice among employees, customers and investors. Their Core Values; Ethical values include no harm to people, property, or to the environment, Success for employees, customers and shareholders (Ensco, 2011). This global corporation is very large and employs over 13,000 employees around the world with Houston, Texas being the home base and London, United Kingdom being the second base work together to supply employees with work, maintain and sought out by their customers and have a very ethical work production to uphold laws pertaining in the United States as well as International laws. The identification is the company’s service that they provide globally and the way they do business. Ensco is using centralization to run its company. The company does seem to lean more on centralization. This is used to typically for companies who operate multiple lines of business or in many international markets. This company has a fleet which includes seven drill ships, 13 dynamically positioned semisubmersibles, seven moored semisubmersibles and 49 premium jack ups. The company’s operations reach out over six continents. They have a customer base of some of the top leading energy companies, national oil companies and many independent operators. Each rig has to report to the company’s headquarters in London. This is the company’s main headquarters and it manages the business through five regions; North and South America, Brazil, Europe and the Mediterranean, Middle East and Africa, and Asia and Pacific Rim (Enscoplc.com, n.d.). Pride/Ensco is an oil industry servicing company, specifically a contract offshore oil/gas well drilling company. Pride/Ensco does not offer products to its customers, but it does have the ability to adapt the service that it offers to fit the offshore areas of the world in which it drills for oil or gas. Pride/Ensco employs an array of oil/gas drilling rigs and equipment to include; Ultra-deepwater drillships, Semisubmersibles, and premium Jackups. This different type of equipment allows Pride/Ensco to deliver its services in a timely and efficient manner to its customers. (Pride/Ensco, n.d.) Ultra-deepwater drillships have the ability to operate in water depths of 10,000 feet and are capable of drilling to maximum depth of 40,000 feet. The Ultra-deepwater drillships are utilized for the regions of the Middle East, Africa, Brazil, and North and South America. The semisubmersible drilling rig has the capability to operate in water depths of up to 8,500 feet and is able to drill to a maximum of 35,000 feet. The Semisubmersible drilling rig is utilized in waters around North America, South America, the Asia Pacific Rim, Brazil, the Middle East, Africa, Europe and the Mediterranean. The Jackup drilling equipment is used for offshore drilling in the areas of the Asia Pacific Rim, Europe, the Mediterranean, Africa, the Middle East, and North and South America. The Jackup drilling equipment operates in water depths of up to 400 feet and is able to drill to a maximum depth of 40,000 feet. (Pride/Ensco, n.d.) With this type of diversity allow Pride/Ensco to fit into many different global environments in order to provide its services to its clients. In addition, Pride/Ensco has become the next to the largest global oil/gas well drilling service provider. (Pride/Ensco, n.d.) Organizational Structure, according to John J. Wild, Kenneth L. Wild, and C.Y. Han (2010), can be defined as the “way in which a company divides its activities among separate units and coordinates activities among those units. Choosing the right organization strategy is very important. Having these two things marry up will allow your company to be more efficient. “Organizational structure is not permanent but is often modified to suit changes both within a company and in its external environment” (John J. Wild, 2010). This means that if a company’s corporate strategy changes they will more than likely change their organizational structureto match it. Ensco is an offsore drilling company whose global reach spans six continents (Company Profile: Ensco). They are headquartered in London, England with major offices in Angola, Brazil, Mexico, Scotland, Singapore, the United Arab Emerites, and the United States (Company Profile: Ensco). They have two Senior Vice Presidents that oversee these branches. A Senior Vice President of the Eastern Hemisphere and a Senior Vice President of the Western Hemisphere. According to this breakdown, Ensco’s organizational structure would be classified as an International Area Structure. International Area Structure is the “organizational structure that organizes a company’s entire global operations into countries or geographic regions” (John J. Wild, 2010). This type of organizational structure works when global companies like Ensco view their national or international markets individually (John J. Wild, 2010). This can work to Ensco’s advantage because it will allow the region’s Vice President’s and area managers to work closely with the people in the local economy and build and strengthen business relationships. International strategy is the constant and expansive management technique a company uses to operate and compete in businesses beyond national borders (Heil, K., & Punnett. B. J., 2001). This process should be handled through all management levels in order to be a complete success; everyone must be onboard in this process. This can be accomplished by collaborating with companies in other countries; or taking over a company in another country. There are two types of International Strategy: the first is Multinational Strategy. This strategy adapts and overcome; it uses a separate strategy for each of the multiple nations that the products will be marketed (Wild, J., Wild, K., & Han, J., 2010). These self-sufficient units are constructed to research, develop products, and marketing techniques that appeals to the target market and customers of that area. It is better equipped to handle cultural, geographic, and language barriers that may differ from region to region. Governmental regulations, political differences, as well as multi-currency concerns within the global market are also better suited to be handled within this strategy. The main benefit of this strategy is consumer choices can be better watched and audited for trends and changes and adjustments promptly and adequately made. The main drawback of this strategy is, due to the number of independent units the structure cost is more expensive therefore resulting in higher prices to the consumer; also because of this competition and knowledge is not readily shared among units (Wild, et al., 2010). The second strategy is Global Strategy: this is a strategy of offering the same product, and marketing strategy to all global markets (Wild, J., Wild, K., & Han, J., 2010). With this strategy the company chooses optimal locations and economies for the production of the complete inventory. Their research, product development, and marketing is done in one centralized headquarter or a choice locality rather than breaking it up in multiple locations. The main benefit of this strategy is the savings. This is a win-win strategy that benefits both the company and the consumer. The business can offer lower prices to the consumer because of its savings, thereby attracting more customers with equals greater profits and market share gains. The main drawback is a neglect to recognize buyer choices between markets, with the ability to adjust products and markets accordingly. This can leave a big hole for a competitor to be able to supply (Wild, et al., 2010). Ensco’s corporate headquarters is in London with major offices in Angola, Brazil, Mexico, Scotland, Singapore, UAE, and the United States. It operates business in five global regions: North and South America; Brazil; Europe and Mediterranean; Middle East and Africa; and Asia and Pacific Rim (Ensco plc, 2011). By strategically placing these businesses in the most profusely productive locations in the world; both domestic and international gas markets Ensco has become the world’s second largest offshore driller. Ensco operates under the Global International Strategy. Ensco corporate office was faced with an issue where a more flexible environmental management was needed to achieve regulatory, cultural, and customer requirements. An independent agency, OASIS was hired by corporate office to assess the environmental systems for all the regions and develop a strategy and action plan that accommodates the environmental management systems worldwide. Technical applications that tracked legal requirements, procedures, as well as employee training for all regions were implemented. As a result one Global plan was developed that addressed each individual regions environmental issues and “managers from locations around the world benefited from information sharing that helped increase environmental management knowledge at all levels of the company (OASIS, 2010). This is a perfect example of how the company developed one global plan with many facets that benefited each individual region and the whole body at the same time. Ensco has a team of 13 small and large businesses. They offer the Navy Virtual SYSCOM. Some of these team members are Aerotech Management Incorporated, AgileCast, Inc., ASG Renaissance, Bowhead technical and Professional Service, Capstone Corporation, Carter Aviation Technologies, Center for Organizational Excellence, Digicomp Research Corp., Ensco, Inc., JES Tech, Mark Logic, Michael Baker Jr., Inc., and RDA, Inc. (Ensco, 2011). All these teams offer different skills. They have team member that offer engineering support, interoperability/TE, and trails. There are team members that can do direct placement, executive search, engineering staffing, and engineering project management. Bowhead has the skill in software development, program support, administrative support, public affairs, and configuration management. There is so many other skills these team offers (Ensco, 2011). Team Ensco proposes to support zones 1, 2,3,4,5, and 6 with zone presence established through office location in each of these zones. The team’s aggregate expertise enables them to respond to virtually all seaport-e requirements with responsive, best in class support. Ensco will continue to analyze synergies with other prospective teammates and will add additional partners in the future to support specific task orders as needed (Ensco, 2011).

REFERENCES

RIGZONE, (2011). Pride international [Web log message]. Retrieved from http://www.rigzone.com/news/company.asp?comp_id=213

ENSCO, (2011, February 7). Ensco to buy rival offshore driller: pride international [Web log message]. Retrieved from http://dealbook.nytimes.com/2011/02/07/ensco-to-buy-pride-international-in-7-billion-deal/

Ensco. (n.d.). Eno plc - about us - company profile [Web log message]. Retrieved from http://www.enscoplc.com/About-Us/Company-Profile/default.aspx

Ensco/Pride International, (2011). Ensco plc - home [Web log message]. Retrieved from http://www.enscoplc.com/

Heil, K., & Punnett, B. J., (2011) Reference for Business-Encyclopedia of Business, (2nd ed),
Strategy in the global environment. Retrieved from http://www.referenceforbusiness.com/management/Str-Ti/Strategy-in-theGlobalEnvironment.htm OASIS environmental Services, (2010). Ensco International strategy development; compliance management; corporate responsibility. Retrieved from http://www.oasisenviro.com/ehs_management_Ensco.html John J. Wild, K. L. (2010). International Business: The Challenges of Globalization, Fifth Ed. Upper Saddle River: Prentice Hall.

Wild, J., Wild, K., & Han, J. (2010). International Business: The challenges of globalization (5th ed.). Upper Saddle River, NJ: Prentice Hall.

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