Culture Pervasiveness and the Difficulty Essay

Pages: 19 (5510 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business


"INTEC's competences exclusively supplement the present abilities of the Sea Engineering occupational, a specialist in deep water hulls, risers and mooring, learned in January 2007. Worley Parsons now has the competence to deliver services that will be all over the whole range from transmission to subsea line.

"INTEC have been able to establish a track record that has spanned something like 20 years having calculated subsea and pipelines manufacture systems in water depths that at one time were thought to be unbearable to get to. The business at the moment is creating projects that are low points of up to 3,500 meters in places that are varied as the offshore West Africa, Gulf of Mexico, the Gulf of Mexico, Black Sea, the Arctic Ocean, and the South China Sea.

conductingperforminga case study identifying the issues involved during implementing a new organisation culture, employee's reaction to change and any significant issues in the integration process. The report is based on the acquisition by Worley Parsons of INTEC Engineering in 2008.

This project aims to understand more clearly the effects of culture change post-merger by researching INTECSEA, and what the causes were of resistance to change, by comparing theory to measure success of change post-merger, in light of the different organisational cultures at the two companies.

Key research questions such as;

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What effect has change had on employees within the organisation and, what are the causes of resistance to change, there is a need to involve those experiencing change and those implementing change in the research. The most noticeable troubled area is staff retention.

As noted above, the aim of this project was to conduct a review of the relevant peer-reviewed and scholarly literature concerning organisational culture's effects post-merger in order to better understand these effects on INTECSEA and the causes of resistance to change. In support of this aim, the main objectives of this project were to review, identify, assess, and evaluate the respective organisational cultures at INTECSEA and Worley Parsons.

Problem Statement

TOPIC: Essay on Culture Pervasiveness and the Difficulty Assignment

The problem considered in this study was the unstable operating environment that existed following the acquisition of INTEC Engineering by Worley Parsons which was likely caused by differences in organizational cultures.

Merger integration is a chaotic and frustrating process that is also an extensive and complex project according to Galpin & Herndon (2000). However, the business must continue operations and pursue the company's strategy aims to focus on selected niche markets, which will undoubtedly contain expansions as a result of mergers and acquisitions of profitable and highly experienced businesses in carefully selected target markets.


Four years have since passed since Worley Parsons acquired INTEC Engineering. The aimobjective of the acquisition by Worley Parsons was to fill a gap in the their hydrocarbons business and strategically position the company in the oil and gas industry. The acquisition was intended to allow the company to provide comprehensive solutions for large scale integrated deep-water facilities, subsea, and marine systems projects which would allow the organization to catch up with its competitors in the fast moving oil and gas industry.

The history of both companies is presented below. The case study provides insights into the scenario and discusses how the more critical aspects of the acquisition, such as the strategic objectives and how the integration and alignment of the organizations were implemented by WorleyParsons, as well as the individuals who were involved in the integration. Furthermore, interviews with employees of INTECSEA were undertakencarried out.

The creation of INTECSEA occurred via two parallel but independent companies operating in the same industry INTEC Engineering and Sea Engineering. These two entities were joined together by WorleyParsons after they acquired both companies. The history section below describes how it all happened.

In 1984 INTEC Engineering started up business providing offshore Hydrocarbons engineering and project management services in the Oil & Gas Industry, and over the past twenty eight years has diversified locally and internationally, employing more than one thousand professional staff in four continents. The London office is the focus of this research and employs approximately two hundred staff. Whilst it has a strong and growing credibility for successfully completing a range of complex projects, it is perhaps the track record of involvement in major trunk line and offshore pipeline projects for which the reputation of the Company is founded on. In 2008 INTEC Engineering was acquired by Worley Parsons, the Chief Executive Officer, of Worley Parsons said: "The remaining oil of the world reserves are progressively being established in difficult access areas, pushing our customers to look further afield in their discovery for reserves that are new."

The acquisition of INTEC finished the absent link in Worley Parsons hydrocarbons industry which they had been pursuing to seal for many years and, deliberately pointed to Worley Parsons ability to facilitate their clients working in deep waters. As such, for Worley Parsons to survive the increasing competitiveness within the oil and gas industry, into new areas, it is imperative for them to make changes to come in line with new technologies, new competition, new markets, and demands for greater performance by implementing programs of change, to achieve this the alternatives are mergers and acquisitions by pursuing the route of acquisitions in certain niche areas to complement and increase its own skills.

Where it all started

Worley Parsons History

Worley Parsons is woven around the vision of the current Chief Executive Officer, when in 1971 he joined Smith, de Kantzow & Wholohan which led to the 1976 establishment Wholohan Grill and Partners, a small Australian engineering consultancy.

Wholohan Grill and Partners grew steadily throughout the 1970's and '80's and in 1987 acquired the Australian interests of Worley, an American-based engineering firm with a strong reputation in the offshore gas and oil arena. The company changed its name to Worley and from this point began expanding steadily, throughout the 1990's Worley expanded both its industry sector and geographical footprint.

At the start of the new millennium Worley was well poised to continue its industry sector and geographic expansion with 30 offices and 3,000 personnel globally. This success enabled Worley to diversify further through additional partnerships and acquisitions.

In 2002 Worley became a publicly listed company on the Australian Stock Exchange leading to a period of acquisitions of increasing magnitude around the globe, In 2004 Worley acquired Parsons E&C, a global leader in downstream hydrocarbons, Worley merged operations with Parsons E&C and commenced trading as Worley Parsons.

INTEC Engineering history

INTECSEA started out in business in Founded in 1984 as INTEC Engineering, the company was organizedfounded by a group of engineers with participation and financial backing of a Finnish shipbuilding company.

. The company provides offshore Hydrocarbons engineering and project management services in the Oil & Gas Industry.

After a successful start, INTEC suffered with the rest of the oil industry, when in early 1986 the price of crude oil dropped from $35 to $10 per barrel. As a result of a sustained international business development effort and after several lean years, the company started growing again in 1988. In December 2000 - INTEC was acquired by the Heerema Group, retaining its original organisationalorganizational culture as well asnd its own management and supervisory board. This independent status allowed INTEC the autonomy to continue providing its unbiased engineering services to the energy industry worldwide.

December 2001 - INTEC opened an office in Brazil, where activities actually started in January 2003 when a strategic plan was put forth to increase INTEC operations in the country.

June 2002 - INTEC opened an office in Perth as part of the Asia Pacific regional operation, providing engineering and project management services to the local oil and gas industry.

April 2003 - INTEC Engineering launched the LNG Business Unit. Building on its proven track record in the marine industry, INTEC Engineering provided LNG services to support operators in the offshore development of LNG services.

Mid-2005 - INTEC had grown to become a truly international engineering company with over 500 employees. Operations in Houston, Delft, Woking, Perth, Kuala Lumpur and Rio de Janeiro At the same time, project offices were established in Cairo, Lagos and Moscow. Reference?

Sea Engineering History

Sea Engineering Associates, Inc., originally founded by Pieter G. Wybro in 1991, was establishedreestablished in 1998 as a privately held engineering services company to the oil & gas industry. The mission of Sea was to provide the highest standards of independent engineering services for the complete systems design of floating systems.

Sea headquartered in Houston, Texas, in 2006 established a high value engineering office in Hyderabad, India.

January 2007 - Sea became part of Worley Parsons and their name changed to Worley Parsons Sea. Following the acquisition of INTEC by Worley Parsons in 2008, INTEC joined with Worley Parsons Sea to form INTECSEA. Reference?

Worley Parsons History

Worley Parsons is woven around the vision of the current Chief Executive Officer, when in 1971 he joined Smith, de Kantzow & Wholohan which led to the 1976 establishment Wholohan Grill and Partners,… [END OF PREVIEW] . . . READ MORE

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