Yellow Ticket Oilfield Services Case Analysis

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Yellow Jacket Oilfield Services is a start up company established in 2012. They offer a variety of production services to the oil and gas industry to assist in the preparation for extraction of underground resources used for energy. As a start up company their primary focus was to build a respectable name by offering quality work with a strong safety record to secure long-term relationships to have continuous revenue. One of the strengths of this company is the forty plus years experience combined from the front line management of each division. With the experience from working in the oil and gas industry this management team collectively had an outstanding network including people in Texas all the way to South Dakota. Troy Mcgaugh was my mentor…show more content…
Before the oil and gas industry Jerry was a banker and went to college for his MBA in business, so he was brought into the business to handle financial reports. Although he was highly educated and experienced Jerry was ignoring small factors that eventually turned into large problems. According to Al Golin, “there’s always some issue that is being neglected”. (p.59, line 28) For example, Jerry wanted to dominate a specific service so he hired a manager who had a network large enough to support the company from that service alone with enough equipment. The problem was not only that Yellow Jacket did not have the equipment but also had a no compete clause that would not expire for six months. Jerry ignored all of these factors and proceeded to hire the manager whose service could not legally be pursued because he thought the oil and gas industry would continue to flourish. Only little did he know oil prices would soon plummet causing him to suffer the consequences of a service that could not yet support itself. Troy tried to warn Jerry knowing the inconsistency of the oil and gas industry, which taught me not to ignore the little things and to always have a back up…show more content…
Al Golin also says something similar to this by stating, “Trust emerges from a series of actions over time; it’s the cumulative power of these actions that helps change stakeholders’ minds about a company or strengthens their faith in a respect for a company.” (p.215, lines 21-24) Before my internship was over I could tell Jerry was beginning to take everyone’s thoughts into consideration before making an executive decision. He began to realize just because some of the people he worked around were not fortunate enough to attend college does not mean they are useless in major financial decisions. By working as a team this start up company has the network and experience to expand and be extremely profitable in the near future. Even though work is slowing down in the oil and gas industry Yellow Jacket is still operating profitably because they were able to gain the trust of their customers through safety and treating everyone

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