Strategic Management and Strategic Competitiveness - Essay Example

Running head: strategic Management and strategic competitiveness 7th July Introduction Chevron Corporation is a US based energy firm that deals with exploration, production and refining of oil. Being headquartered in San Ramon, California, the company is one of the largest firm that registered high sales and revenue in 2013 as indicated by Fortune Global 500. Some of the notable products that Chevron deals with include lubricants, petrochemicals, fuels and additives. Based on the quality products that the company produces, it has continued to experience high profits and sales in various regions where it operates including South Korea, US, Southeast Asia, South Africa, Gulf Coast and South Africa. Having being founded in 1984, the company has extensively invested in geothermal energy under the leadership of John Watson, the current chairman and CEO. Chevron success has not only been based on the product diversification but also due to merger and acquisition strategies that it has adopted. Some of the notable companies that Chevron has acquired include Texaco in 2000, GM Ovonics, Unocal Corporation and ATLAS Energy Incorporation among others. Impact of globalization and technology on Chevron Company Chevron Corporation is an international company that has established outlets in many countries that includes Angola, Australia, Azerbaijan, Brazil, Cambodia, Liberia, Kuwait, Russia, Thailand, Ukraine and Malaysia among may other countries. In this way, the company has been able to effectively distribute its brands resulting to high sales and sustainable profit. In order to ensure that the company meets the needs of all its stakeholders, Chevron supports diversity while at the same time it fosters inclusion. The company has rich diversity of ideas that has been generated by experienced and skilled workforce. Most importantly, the company has maintained The Chevron Way, which indicates that Chevron learns from and respect the cultures in which it operates. Additionally, the company is committed to being recognized as a global leader that backs its strategies with quantifiable results. During its operations, Chevron undertakes its operations in a way that indicates respect for its employees as well as the world community. One of the company achievements is that it was the first major energy firm to involve sexual orientation in its nondiscriminatory working policies. In 2012, Chevron was honored as the top corporation by Women Business Enterprise National Council due to its ability to provide adequate opportunities to women entrepreneurs. Similarly, the company was recognized in 2012 and was awarded Diversity Leader Award due to it commitment to diversity as well as for sharing diversity best strategies. As a way of promoting minority education, Chevron runs the University Partnership Program, whose aim is to provide scholarship and grants to various universities across the globe. Thus, Chevron has benefited from strong positive relationship with the global communities. In terms of technology, Chevron has established Chevron Technology Ventures (CTV) that seeks to assist the company to improve performance as well as to embrace emerging technologies. The company CTV’s Biofuels unit is responsible for developing technologies as well as distribution of non-food biofules in US market. As the result of the expansive technology that the company emulates, it is able to find new oil and gas fields (Korosec, 2011). Apart from CTV, the other two technologies companies that Chevron has established to support its businesses include Chevron Information Technology and Chevron Energy Technology Industrial organization model and the resource-based model to earn above-average returns In order to meet the needs of the shareholders which include increased returns, Chevron has a chance of using the industrial organizational model. According to this model, a company should study the opportunities that exist in the external environment and come up with internal skills to exploit the opportunities. One of the major aspects that Chevron should adopt is diversification of its market by entering new markets for example in the African region where the oil industry is not fully exploited and there are no barriers to market entry. Additionally, the company should increase its concentration in the areas increasing population. This will ensure that its customers easily access the company brands. Chevron can also use the resource based model to earn above average returns. According to this model, resources are essential in achieving high performance in a firm (Vadim, 2014). As competition becomes stiff in the global market, Chevron should expand its investment in terms of creating more tangible assets. For example, the company should open more branches in developing countries in the African region in order to take advantage of the unexploited oil industries. Additionally, the company should adopt modern equipments to explore oil fields. In this way, the company would expand its product portfolio as well as market thus increasing its total sales. Chevron can also use intangible assets to ensure that it remain competitive in the global market (Schmidt, 2012). For example, by improving the reputation of its brands by promotion and advertising, the company can create strong brand awareness in the emerging markets. Vision statement and mission statement of the Chevron Corporation Chevron vision is to be a global energy company that is most admired due to its people, partnership as well as performance. Through its vision, the company is able to provide safe products that ensure sustainable economic process. Additionally, the company has been able to be admired by its stakeholders including customers, investors, local and global communities and investors among others. Despite stiff competition in the US energy industry, Chevron has been able to deliver world class brands. Through the partnership that the company has established with other parties, Chevron has created a positive image with the public. The mission of Chevron is to do business in The Chevron Way. This involves explaining the company and its activities and the plan the company uses to interact. The company mission entails the use of integrity, trust, ingenuity, partnership, high performance, diversity and protecting the environment. Being a company that operates internationally, Chevron places priority on the safety of the employees as well as its assets and environment. The company’s Operational Excellence Management System aims at making the Chevron to be admired due to its world class performance. Stakeholder’s impacts on the overall success of Chevron Chevron high performance has not only been achieved due to large market segment but also the contribution of the various stakeholders. For example, the company employees who are approximately 64,600, ensures that the policies of the company are maintained while at the same time effectively distributing the products locally and internationally. The investors on their part play a vital role of ensuring that the company has strong capital base. In this way, Chevron is able to invest in other areas including purchasing of modern information system. The high quality brands that meet the needs of its consumers have made the company to enjoy strong customer loyalty in the local as well as international markets. On their part, Chevron directors led by John Watson the chairman and George Kirkland the vice chairman have adopted financial policies that make the company to remain competitive. As a company that focuses at being in line with the government regulations, Chevron has enjoyed strong support from the US government as well as other countries where it has established its branches. The local communities have also played a notable role of supporting the company due to the social investments that Chevron has initiated globally. For example, in 2013, the company spent more than $275 million on establishing social investments across the world. Chevron has continued to enjoy the support of debtors as well as creditors thus ensuring continuity of its activities as well as increased sales. Conclusion From the above discussion, it is clear that Chevron has adopted effective globalization strategy as well as technology changes thus becoming one of the competitive companies globally. Based on the company’s ability to utilize the opportunities that exist in the international market as well as extensive advertising, the company has a chance of earning above-average returns. Additionally, Chevron success and high performance has been as the result of strong vision and mission that is included it its The Chevron Way strategy. References Information on Chevron Corporation. Available from http://www.chevron.com/ Retrieved July 5, 2014. Korosec, K. (2011). Chevron uses solar power to produce more oil. SmartPlanet. Retrieved July 5, 2014. Schmidt, K. (2012). Chevron prepares to drill Nigeria relief well. Upstream Online (NHST Media Group). Retrieved July 5, 2014. Vadim K. (2014). Resource-based Model. Available from http://www.1000ventures.com/business_guide/mgmt_stategic_resource-based.html Read More