Valero Energy - Research Paper Example

Valero Energy VALERO ENERGY Titus Rock Manickam Order No. 294605 06 May 2009 VALERO ENERGY Critically discuss what kind of corporate entrepreneurship exists at Valero Energy. Evaluate how the company manages the innovation process and provide 3 examples of product innovation or process innovation at Valero Energy Valero Energy is known for its commitment to excellence, challenging work environment and commitment to community. The company has a commitment to safeguard environmental concerns, provide best products and services to its customers, provide the best working environment for teamwork, creative thinking, respect, and open communication amongst its employees, and remain responsible to society at large. The company has a policy of using state-of-the-art technology to provide cleaner-burning gasoline. The company manages its innovation process by focusing on alternative energy and latest technologies. It has invested in wind farms outside its McKee Refinery in the Texas Panhandle. The innovation process gets tremendous boost through such investments as energy is generated without environmental concerns. The 3 examples of product innovation are: investments in new infra-red technology to quickly find and repair leaks of gaseous hydrocarbons, investments in new flare-gas recovery systems which is an emission-reducing technology and meeting the challenge of greenhouse gas reduction through scientific, economic, and technological analyses. Product innovation consists of either improving the present product or acquiring technologies for environment-friendly alternative energies (Valero Energy Corporation). Critically evaluate whether Valero Energy is a learning organization. In your answer discuss 3 examples of how the company's leadership structure has affected the degree of learning that occurs within the company The Board of directors of Valero Energy consists of men and women of substantial experience and qualify for a learning environment in the company. As qualified and experienced members, they are in a position to foster a learning environment in the company to encourage innovation and growth. Thus, the company's leadership has succeeded in establishing an attitude for competitive and healthy growth with a socio-economic thrust that balances social needs with economic advantages. The company ranks number one on Fortune magazine's listing of the nation's Best Big companies to work for two consecutive years. It also ranks number five among petroleum refining companies on Fortune magazine's listing of America's most admired companies. It is also ranked at number seven on Fortune's magazines listing of most admired companies worldwide. Besides these, the company has secured many other environmental and safety awards. Such accolades on a continuous basis every year bespeak the company's enlightened leadership in learning. The company is also involved in philanthropic activities and generously donates for volunteer activities and educational support programs. Needless to add, these recognitions can only mean that the culture of learning in the company is sufficiently high to merit them (Valero Energy Corporation). Critically evaluate the competitive dynamics of the industry Valero Energy is in. Provide 3 examples in your answer of how Valero Energy can utilize an entrepreneurial strategy to compete more effectively globally The petroleum industry is a fast evolving industry because of environmental issues. On the one hand, petroleum is required for transportation, power and a host of other economies. On the other hand, the use of petroleum has to be minimal because of its greenhouse gas emission that makes it important to adhere to technologies that reduce air pollution. The company has bolstered its image and revenues through social commitments and growing national network of distributors. Gasoline is a product of universal demand. The only way to grow in the gasoline industry is through achieving technological breakthroughs to address environmental concerns and quality enhancement. The three ways how Valero Energy can utilize an entrepreneurial strategy to compete more effectively globally are: make fuel more efficient and environment-friendly at low cost. Use carbon credits strategy to achieve and maintain global leadership in the petroleum industry. Increase use of alternative, cleaner energies alongside conventional energy. The company is already producing high-value clean fuels from less expensive heavy crude oil. It must remain vigilant for technologies that continue to improve quality and lower costs (Valero Energy Corporation). Critically discuss whether Valero Energy has diversified its products and services. Provide 3 recommendations with a timeframe included of how Valero Energy can create better value through diversification of its corporate-level strategy The company diversified its activities geographically through opening of branches and acquisitions all over America, Canada and the rest of the globe. However, there has been no significant diversity in products and services. Valero Energy continues to operate in the field of energy. The demand for energy is colossal and Valero Energy does not feel the need for diversifying its products and services. Nonetheless, there are possibilities to create better value through diversification at the corporate-level. Industries such as travel and tourism, telecommunications, and construction provide promising scope for better value. Three recommendations with timeframe are: Valero Energy can embark on a five year diversification plan by opening tourist centers at popular as well as emerging tourist locations. The administration and organization of the tourist centers must be independent of Valero Energy's gasoline activities. The second recommendation is also a five-year plan. This recommendation must not run concurrently with the tourist plan. In this plan, Valero Energy diversifies into telecommunications. The third recommendation is diversification into the construction industry. All the three recommendations must be independent of Valero Energy, although Valero Energy will have stakes in their ownership ((Valero Energy Corporation). Critically discuss whether Valero Energy has created and sustained a competitive advantage through its business-level strategy. Provide 3 examples of different environmental influencers that have affected its business-level strategy Valero Energy has consistently followed the path of technological research and innovation. Its policy of treating its employees as its asset number one as also its social and educational commitments has greatly enhanced its market position. The company has scrupulously followed its growth pattern of expansion through opening of new branches and acquisitions. All these factors have positively contributed to its competitive advantage. The company has improved its competitive stake through high-visibility advertising, name events such as Valero Texas Open and Valero Alamo Bowl, and its growing national network of stores. The company's emphasis on growth through emerging technologies, geographical expansion, and cleaner fuel has paid rich dividends in terms of recognition and revenues. The three examples of different environmental influencers are: the company is wedded to its policy of providing cleaner and environment-friendly gasoline. Two, the company is focused on excellence in production and sales. Three, the company provides challenging, enjoyable and rewarding work environment that enables its employees achieve peak performance. With these strategic concepts of product improvement and marketing wisdom, Valero Energy has been able to sustain its superiority in the industry (Valero Energy Corporation). Source: Valero Energy Corporation, http://www.valero.com/default.aspx Read More