Course: Senior Departmental Honors (Econ 085)
Topic: Baker Hughes Inc Analysis
Name: Abimbola Olurotimi Date: May 05,2014
Table of Contents
Executive Summary iii
Baker Hughes History 1
Internal Analysis 2
Stakeholder Map 2
SWOT Analysis 2
Strengths 3
Weaknesses 4
External Analysis 4
Opportunities 4
Threats 5
Current Market Outlook 6
Economic Overview 7
Porter’s Five Forces 7
Competitor Rivalry within the Industry 7
Threat of New Entrants 8
Threat of Substitute Products 8
Bargaining Power of Buyers 8
Bargaining Power of Suppliers 8
Organizational Value Chain 8
Primary Activities 8
Secondary Activities 9
Assets & Liabilities Survey 9
Balance Sheet Analysis 9
Workforce 9
Sustainable Competitive Advantage Analysis 11
People and Capital Analysis 11
Financials 11
Company Health 11
Revenue and Profitability Growth 12
Leverage 12
Liquidity 13
Baker Hughes Value 14
Management Efficiency 14
Recommendations 15
Works Cited 17
Appendix 21
Threats, Opportunities, Weaknesses and Strengths (TOWS) Analysis 21
Assets and Liabilities 22
Total Assets 22
Total Liabilities 22
Total Equity 22
Current Ratio 23
Quick Ratio 23
Executive Summary
Baker Hughes
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Also, they have not created an environment of change. BHI offers a large amount of services to the market, but they often times work within their silos without internal collaboration on present and future projects. Externally Baker Hughes is facing issues with negative press with regards to their directional drilling tactics, which has been giving the industry as a whole a bad name. Outside of the negative press, the competitive rivalry is intense, with several strong competitors in ahead of BHI such as: Schlumberger and Halliburton. Both of these companies have a broader global presence in the field and are much more of a household name within the drilling