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Culture Pervasiveness And The Difficulty Of Defining Essay

Culture pervasiveness and the difficulty of defining it is one of the reasons why it is attributed for many merger failures. 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. WorleyParsons acquired SEA Engineering in 2007 and INTEC Engineering April 2008 and combined these organizations to form INTECSEA. The capabilities found in these organizations were needed for WorleyParsons ability to facilitate a comprehensive solution for their clients working in deep waters. However, one year on and INTEC's entire management team resigned and staff retention remains a major issue. To understand why this trend is occurring, this analysis will review and apply theory to the transition process to the case of INTECSEA and provide insights to the causes by identifying the effects. Contents

Introduction

Problem Statement

2.1 Background 5

2.2 Where it all started 6

2.2.1 Worley Parsons History 6

2.2.2 INTEC Engineering history 6

2.2.3 Sea Engineering History 7

3 Aim of the Project 7

4 Objectives 9

5 Literature Review 9

Overview of 9

5.1 Mergers and Acquisitions 9

Phases of Mergers and Acquisitions 9

5.2 9

5.3 M&A Trends 10

6 M & A Due Diligence 11

7 Organisational Culture 11

7.1 Defining Culture 12

8 Culture change 14

8.1 Role of Culture in merger and acquisitions 14

9 Mergers and acquisitions cultural approach 16

10 Organizational culture change 19

10.1 Creating Culture Change 23

10.1.1 Cultural approach 23

10.2 Reaction to change in mergers and acquisitions 23

10.2.1 Reaction to change 24

10.2.2 Factors causing resistance to change 25

10.2.3 Appearance of resistance 25

10.2.4 Managing Resistance 26

10.3 Significant factors of organisational culture for integration 27

10.3.1 The role of management 29

11 Methodology 30

12 Data Collection 32

13 Data Collection and Verification 33

14 Research questions 34

15 Conclusion 35

15.1 Recommendations 36

16 Bibliography 38

1 Introduction (tell the reader what the report is about) 4

2 Problem Statement 5

2.1 Background 7

2.2 Where it all started 7

2.2.1 Worley Parsons History 7

2.2.2 INTEC Engineering history 8

2.2.3 Sea Engineering History 9

3 Aim of the Project 9

4 Objectives 9

5 Literature Review 10

Overview of 10

5.1 Mergers and Acquisitions 10

Phases of Mergers and Acquisitions 10

5.2 10

5.3 M&A Trends 11

6 M & A Due Diligence 11

7 Organisational Culture 12

7.1 Defining Culture 13

8 Culture change 15

8.1 Role of Culture in merger and acquisitions 15

9 Mergers and acquisitions cultural approach 16

10 Organizational culture change 19

10.1 Creating Culture Change 23

10.1.1 Cultural approach 23

10.2 Reaction to change in mergers and acquisitions 23

10.2.1 Reaction to change 24

10.2.2 Factors causing resistance to change 25

10.2.3 Appearance of resistance 25

10.2.4 Managing Resistance 26

10.3 Significant factors of organisational culture for integration 27

10.3.1 The role of management 29

11 Methodology 30

12 Data Collection 33

13 Data Collection and Verification 33

14 Research questions 34

14.1 Research limitations 35

15 Bibliography 37

Introduction (tell the reader what the report is about)

WorleyParsons acquired SEA Engineering in 2007 and INTEC Engineering April 2008 and combined these organizations to form INTECSEA.

WorleyParsons, after over three years of pursuing the acquisition, finally acquired INTEC Engineering in April 2008 (now known as INTECSEA). INTEC is a leading international offshore deepwater Hydrocarbons engineering and project services company with its many years of experience and a strong reputation. This organization was acquired to complete the missing link in Worley Parsons' hydrocarbons business and strategically positioned the company to provide comprehensive solutions for large scale integrated deepwater facilities, subsea, and marine systems projects.

In 1984 INTEC Engineering began operations by 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 members. 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 most known for.

The acquisition of INTEC filled a needed gap in WorleyParsons hydrocarbons industry capabilities which they had...

These capabilities were needed for WorleyParsons ability to facilitate a comprehensive solution for their clients working in deep waters. However, for WorleyParsons to survive the increasing competitiveness within the oil and gas industry they will face many challenges. The company must continue to expand into new areas and 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 objective, the alternatives are mergers and acquisitions by pursuing the route of acquisitions in certain niche areas to complement and increase its own skills.
The acquisition introduced the need for INTEC to integrate into the WorleyParsons realm but also to provide a catalyst leap forward in technology, globalization and growth. WorleyParsons put in place teams from both companies to oversee the integration of the transition planning process labelled the transition 5-5-5. (Journal, 2008) However, one year on and INTEC's entire management team resigned and staff retention remains a major issue. To understand why this trend is occurring, this analysis will review and apply theory to the transition process to the case of INTECSEA and provide insights to the causes by identifying the effects.

Merger integration is a chaotic and frustrating process it is also an extensive and complex project according to Galpin & Herndon (2000) but business must continue and the company's strategy aims to focus on selected niche markets, which contains a significant expansion in the form of mergers and acquisitions of profitable and highly experience businesses in carefully selected market.

In 2008 Worley Parsons acquired INTECSEA, with its many years of experience and reputation, to complete the missing link in Worley Parsons' hydrocarbons business. After the merger the entire management team resigned and staff retention has been the most noticeable issue, by reviewing and applying theory on the process and tools of integration to the case of INTECSEA, to establish the causes and identifying the effects on the company's organisational culture and the causes of resistance to change.

Established in 1984 as the original office of the now Worley Parsons INTECSEA London Office has amassed 28 years of experience in executing pipeline and subsea projects for clients around the world.

INTEC in April 2008, leading international offshore deepwater Hydrocarbons engineering and project services companies, completed the missing link in Worley Parsons' hydrocarbons business and strategically positioned the company to provide comprehensive solutions for large scale integrated deepwater facilities, subsea and marine systems projects.

In 2008 Worley Parsons bought INTEC Engineering. INTEC Engineering provides project services and engineering to the offshore examination & manufacture and transportation segments of gas and oil with a certain emphasis on deep-water. Parts of technical knowledge consist of offshore pipelines, terminals and marine production risers, operability and subsea production systems, flow assurance, and floating manufacture systems for offshore field expansion. The corporation likewise has been able to create a good status for upkeep of Arctic and developments that regard cold water.

Global capital spending in offshore gas and oil is anticipated to grow to about U.S.$250 billion per year by 2014. It is predictable that this subdivision will carry on to mature as the vital operators that are pushing into waters that are deeper in discovery of hydrocarbons. It is recognized that the technical encounters that these expansions that are present will be able to make excellent chances for engineering businesses with the correct technical competence. INTEC is able to bring an antiquity of technical novelty and has established numerous business standards that also comprise of the deepest subsea creation, the deepest risers and marine pipelines, the lengthiest manufacturing subsea tieback, the very first Arctic offshore oil channel, as well as the design of the biggest FPSO (Floating Production Storage & Offloading) vessel.

INTEC's clients comprise many of the world's biggest energy businesses many of whom are also customers of Worley Parsons, and the includes the following: BHP Billiton; BP; ChevronTexaco; Conoco Phillips; Exxon Mobil; and Shell. Headquartered in Houston, INTEC has over 500 expert staff with offices in London, Delft, Rio de Janeiro, Kuala Lumpur, Perth, and Lagos.

Worley Parsons and INTEC are the ones that were able to work in unison up under a tactical association on numerous projects in current years and have an arrangement to provide offshore gas and oil customers in the Asia-Pacific section a complete key for large scale combined deep water services, marine and subsea systems developments. As part of the transaction Worley Parsons and Heerema Group have agreed to constrict values for the establishment of manufacturing facilities to the Heerema Group.

"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…

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