During the course of this article we would be discussing the different mission and strategies that are applied by the Chevron Corporation in order to fulfill its responsibilities as one of the biggest and highest revenue generating multinational corporations in the world. In addition to this we would also be looking at the mission statement of the organization and the subsequent changes that have taken place in it in contemporary times.
Current mission statement
At the heart of The Chevron Way is our vision …to be the global energy company most admired for its people, partnership and performance. (Chevron.com) With the passage of time and the recent debacles that have engulfed different oil multinationals Chevron has taken the right approach in making changes in its mission statement by aligning its motives and objectives by delivering a message to its people of global energy sustenance and an ecologically compatible environment.
Strategies regarding Strengths and opportunities
Chevron possesses many strengths, which is why it so huge and known worldwide. Chevron works with petrochemical businesses globally by a network of the subsidiaries and trading brands that include ARCO, Amoco, and Chevron connect, chevron express, chevron travel center, Burmah Castrol, Am-Pm and so on. chevron actively takes part in the stock exchange in London, IPO in the stock exchange in New York, and it is also included in the FTSE 100 index, which is the index of the share of the 100 most greatly capitalized companies in the UK that are included in the stock exchange in London. The trading brands of chevron are some of the main strengths of chevron. Chevron always creates new ideas and inventions to make their company better than the rest, this is done by them either by discovering oil locations and then creating an oil field, using improved equipment for a platform, a procurement contract, or decreasing carbon emissions at their refineries in the industrial sites. They work efficiently with causing only minute harm to the environment. Chevron takes the advanced recovery very critically.
Strategies regarding Opportunities and Threats
Chevron production and refining workings are known to world-wide oil and natural gas prices and use. Because of the low utilization of natural and oil gas items in latter part of 2008 and the beginning 2009, chevron fired around thousands of its employees and remove capital expenses significantly as part of the Chevron strategy to decrease yearly prices that were $32 billion in 2007 and became around $28 billion in the financial year of 2009.
Chevron worldwide accomplishment provides the company an aptitude to access “unexploited” reserves, many of its workings is represented as a political danger in those countries. Specifically, Chevron workings in Russia, confronted significantly executive problems in the year 2008, but these issues were decreased in January 2010 by appointing Maxim Barsk to CEO.
Strategies for handling threats and challenges
In the year 2008, the crude oil cost rose rapidly high and the financial markets had to bear unanticipated loss. Issues like this can be solved by having extra resources and an increase in the credibility of the company. For the past 22 years out of the 25 years, chevron has continuously increased their reserves.
However, many of the newer investments are difficult to manage in areas like deserts or floating sites that are located far from the sea shore. About 70% of the world’s known reserves are only found in 3 countries, which is why there is definitely a need to diversify to succeed in the competitive market (CHEVRON, 2010).
The issues faced by chevron is not limited to oil and gas, the changes in the climate and creating a little carbon in the coming years is very important as in concentrating on researching on alternative resources, to change the users behavior and aptitude is also very important. Their controversial business with Baku-Tbilisi-Ceyhan pipeline became a great disadvantage for them.
The spilling of the crude oil that was approximately 270 000 gallons in Alaska along with the hazardous spill of 2000 gallons of methanol was spilled resulted in the loss of Chevron reputation and profit. The explosion of the chevron refinery in Texas, U.S.A resulted in having around 100 people injured and 15 deaths in the year 2005(CHEVRON, 2010).
Furthermore, from now to the year 2030, a venture of $26 billion is required to meet the ever increasing energy demand of the consumers. This not only includes chevron finding new oil fields or creating new wind farms but to introduce new technology use the traditional methods that were used before, creating improved equipment as well as providing the teams that are operating with correct equipment. If the above mentioned ideas are followed then chevron can definitely overcome many challenges that come their way easily and efficiently.