Determination of company’s key value drivers: case of Schlumberger

Abstract

Goals: to analyze how value is created through cause-and-effect mechanisms and to introduce framework for determination of key value drivers’ (KRIs and KPIs) and their role in shareholder value creation. For the purpose of the research case of Schlumberger Limited was considered as key value drivers may differ even for the companies from same industry. In order to achieve the goal of the research following objectives were set: Analysis of the theoretical findings regarding Value-based Management, value chain analysis, Balanced Scorecard and strategy map concepts their interrelation and integration Analysis of the existing value enhancement measures and choice of the measure for further use Development of the framework for determination of company’s key value drivers and their role in shareholder value creation based on integration of the concepts Analysis of oilfield services industry Schlumberger Limited operates in main trends, risks and opportunities Analysis of Schlumberger Limited from the point of view of the framework developed Bringing forward set of key value drivers for Schlumberger Limited Research objectives were achieved. Schlumberger key value drivers were determined and their role in shareholder value creation was defined implementing framework developed.