Evaluation Essay on Chevron Company

Paper Type:  Research paper
Pages:  5
Wordcount:  1171 Words
Date:  2022-06-26
Categories: 

Introduction

Chevron is an American energy corporation and among the most successful companies of the Standard Oil. Located in San Ramon, over the years, the company has drastically expanded and now operates in more than 180 countries across the globe dealing, with production and refining of; natural gas, hydrocarbon exploration as well as the generation of energy. In 2017, it was ranked among the largest companies in the world in chemical manufacturing as well as in the generation of power (BBLC, 2010 34). The history of Chevron is dated back to the 18th century when Star Oil one of its predecessors that discovered oil in the Santa Mountains. The production oil was not significant, but the company managed to produce at least 25 barrels that led to the emergence of the Newhall Field. In 1879, a group of professionals led by Charles Felton established the Pacific Coast company that later purchases Star Oil with $1 million (BBLC, 201). As a result, the company was ranked the leading in California and also the largest oil producer at the time. Pacific Coast company operated for many years as a monopoly until 1906, when the Pacific company amalgamated with the Standard Oil forming a single company. Later in 1911, with the help of the Sherman Antitrust Act, the federal government divided the Standard oil into different pieces and one of the pieces was Chevron. In 2000, Chevron acquired Texaco a deal that was worth $45 billion making it one of the second largest companies in the U.S. In 2001, the company also purchases General Motors, and in 2005. It also purchased the Unocal corporation for $18.4 billion and this increased the both petroleum and natural gas that was purchased by the company by 15% more hence it became the biggest producer of geothermal energy.

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The strategy is the high-level plan that is set by the organization with the aim of attaining the set goals. The strategy used by any organization is about attaining and maintaining the advantage position through the exploitation of different resources. (the new possibilities). As a result of the company`s geographical expansion that has enhanced the growth, the company has been able to implement the segmentation, targeting and positioning strategies in its operation. According to.... Targeting involves identifying profitable market segments and then concentrating on the segments. Based on the information, Chevron focuses on investing in the people`s resources for operational excellence. Currently, the company has 11 refineries that manufacture, sell and transport the oil through the distribution network. This is successful due to the capacity of the organization to access different markets that have increased the sales of the company over the years. The presence of companies overseas helps in the company`s production enhancing profitability growth and building legacy position in the market.

There is also the application of the market mix strategy where the company deals with different products connected to natural gas, oil as well as geothermal energy. The market strategy includes the sale of different products such the lubricants, addictives, petrochemical, and fuels. The company further sells the renewable sources of energy like Geothermal, the wind power, hydrogen, biofuel and solar. The marketing mix strategy has created a diversity of the organization that has resulted in increased sales.

Analysis of the Company`s Mission Statement

"Our Company's foundation is built on our Values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment, and benefit the communities where we work." (Walters and Rainbird). The energy industry is surrounded by some ethical issues that positively and negatively affect the reputation of the organization, and this is the reason ethical consideration should be one of the primary goals. Based on the mission, universal human rights means that the company encourages equality. The manufacture of crude oil also pose challenges on the environment, but according to Chevron, the primary goal is to minimize cases that may affect the environment (Walters and Rainbird). Additionally, the organization aims at benefiting the community regarding creating the employment.

According to Millard(2010), the mission statement of the company should be realistic. The mission should provide the summary of why the company exist and describe the present not the future. For the Chevron mission statement, the company focuses on recent issues such as the environment, employment, and ethics, which are all current issues. The presence of these factors in the mission statement makes it a true mission and demonstrates the willingness of the company in the well being of the society. Competitors and their impact to the strategic decisions of Chevron

Competitor analysis reveals that Chevron is in a perfect position to act against the encroaching market invasion. The main competitors of Chevron are ConocoPhillips, Exxon Mobil, BP and the Royal Dutch Shell. Competitors pose a significant impact on different policies an organization, and one of them is the pricing policy. According to the report released by Chevron in 2014, the company had scheduled a reduction in the crude oil prices by more than 30%. The decision made by the company was not because the organization is making significant profits, but it is due to the increased level of competition(). The reduction of crude oil prices is so as the company is capable of surviving within the competitive market. Further, competitive advantage plays a critical role in Chevron`s marketing strategy. Chevron`s marketing strategy aims at allgning the suppliers as well as the partners so as to have better and enhanced understanding of the customer`s base. The application of the straregy is to enhance the capacity of the company to operate in the amidst of the competitors.

Geographically, Chevron categorizes its operations into three main segments which include the UK, US and the other parts of the globe. The airway also generates over 200 billion pounds in revenues as well as creating 28 million jobs globally enhancing its competitive level. The airline vision is to be the world most responsible airline by ensuring sustainability in its activities, and this is the factor that motivated the selection of CSR( Leo-Paul Dana, 2017). The decision for choosing to take part in CSR is because is a tool that help in attaining the company`s long term goals and enhance growth opportunities. Secondly, it is important in improving the efficiency as well as reducing the cost using the waste and the energy programs provided. It was also crucial in enhancing the corporate reputation as well as the feedback of the customer( British Airline 2017). To increase the reputation is for maintaining the client`s confidence in the BA products for the future benefit of the company. The airline also proposes that the CRS may help in risk management through identifying both the health and environment risks that may hinder investment. .

Work Cited

BBLC. Chevron Corporation: Gulf Oil, Texaco, Baku-tbilisi-ceyhan Pipeline, Chevron Corporation, Sam Nunn, Cobasys, Unocal Corporation. New York: General Books LLC, 2010.

Millard, Sian. "Characteristics of Mission." Hawau University (2010): 1-18.

Walters, David and Mark Rainbird. Strategic Operations Management: A Value Chain Approach. London: Macmillan Education UK, 2006.

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Evaluation Essay on Chevron Company. (2022, Jun 26). Retrieved from https://proessays.net/essays/evaluation-essay-on-chevron-company

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