Dealing a Rigged Game
The case study concerns Pete Miller, CEO of National OilwellVarco (NOV) since 2001. Miller acquired over 200 companies, eachwith a strategic tie to the oil producing industry. The company nowhas a dominant share of the market for offshore drilling equipment,a segment of the industry that reported the most orders ever in2013. NOV stands to capitalize on all segments of the future oilindustry – the actual building of the drilling rigs, jack-ups, andships that have to go offshore and do the drilling.
Management Update: In November 2013, PeteMiller announced he was stepping down as NOV’s CEO to serve asexecutive chairman of DistributionNOW
Case Question: Recall our definition ofstrategy as “a comprehensive plan for accomplishing anorganization’s goals.” Explain why NOV’s approach to acquisitionsqualifies as corporate-level strategy. Be specific bydiscussing the company’s moves, the nature and state of theindustry that it’s in (drilling equipment and services), the natureand state of the industry to which it’s closely related (oil andgas drilling), and, most importantly, its goals. Whatare NOV’s goals?
