Management Theory and Practice

Topics: Organizational structure, Corporation, Hierarchy Pages: 4 (1314 words) Published: August 7, 2013
MGT/230 – Management Theory and Practice

On April 20, 2010, approximately 4.9 millions of barrels of oil (Telegraph, 2010) spilled into the Gulf of Mexico immediately after an explosion that resulted in the loss of 11 lives and a total cost of 17.6 billion dollars. According to, Andrea Thompson of Live Science, “ROV robot subs, manufactured by a company called Oceaneering, have been an integral part of the effort to control the leaking oil.” The result of this tragedy has been top-down growth for Oceaneering and a complete and total restructuring of the organizational to adapt to the increasing growth. So how does a small air and mixed gas diving company adjust to the transition from a simple hierarchy to a multi-level divisional organization?

Started in 1964, Oceaneering International was as a mixed air and gas diving company. Today, Oceaneering provides engineered services and products for the global oilfield. Oceaneering provides remotely operated vehicles, built-to-order specialty subsea hardware, deepwater intervention and manned diving services, non-destructive testing and inspection, and engineering and project management (Oceaneering, 2013). This has been accomplished through the execution of a strategic growth plan that included acquisition of several tooling and engineering companies. As each company became a part of the Oceaneering family, the business practices and missions of those companies were also absorbed into those of Oceaneering. Rather than force each group to conform to one concept, Oceaneering split its business interest into divisions governed by one corporate concept. Each business group within the corporation acts on its own with the unified goal of increasing the capabilities and wealth of Oceaneering. This divisional organizational structure has proven both profitable and synergistic. Each group can concentrate on the products they provide while bringing attention to other groups when necessary. The product or...

References: "BP leak the world 's worst accidental oil spill". The Daily Telegraph. 3 August 2010. Retrieved 2010-08-15.
Oceaneering International. (2010). Oceaneering Reports Second Quarter 2010 Earnings [Press release]. Retrieved from http://www.oceaneering.com/oceandocuments/pressreleases/PR1060%20Q2%202010%20EPS%20FINAL.pdf
Head of the Class. Energy Magazine. 3 July 2012. Retrieved from http://www.businesswire.com/news/energymagazine/20130701006303/en
Oceaneeering About Page. (2013). Oceaneering.com
Oceaneering International. (2011). Oceaneering Inspection Report [Press release]. Retrived from http://www.oceaneering.com/oceandocuments/inspection/2011-02-inspection-news-v3/files/ocean-home-final%20(1).pdf
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