Chevron

Write a 2- to 3-page memo to the CEO of the company you’ve been assessing throughout the course, outlining your plan to create economic, social, and environmental value. In your memo, include the following items:

• An executive summary of the memo
• A summary of the organization’s strengths and weaknesses, and recommendations for converting weaknesses into strengths
• A summary finding on Porter’s Five Forces
• A summary of on the Diamond of National Advantage
• A summary of analysis of the firm as a learning organization
• Strategic recommendations based on your previous work in this course. Include the opportunity, the move into the country identified (Republic of Guyana), and any recommended moves toward being a learning organization. Provide rationale for each recommendation.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Submit your assignment.

ANSWER

Chevron

Executive Summary

Sustainable development has become the subsequent objective of all business activities. The social, economic and environmental value are jointly aligned with the company goals to allow all employees to utilize resources and core competencies to maintain productive processes. Chevron has a strong brand profilio and competitive advantage which allows it to venture successfully into markets. The strategic analysis of Chevron shows that they need to focus on creating social, economic and environmental values. Implementing new technologies and value propositions will enable Chevron create economic, social and environmental value at Chevron.

Chevron’s Strengths and Weaknesses, and Recommendations

Chevron is a global fossil fuels cooperation that has continued to work with human progess to offer clean and improve on global energy accomplishments for the future. Chevron has been known as a forward thinking organization which had enabled them build a high level of customer satisfaction (Manna, Marco, Letterman & Mullen, 2014). They have invested in building a strong brand portfolio and new product categories. Chevron has focused on global net zero ambitions which have allowed them to build on affordable, clean, and reliable energy thus reducing the carbon intensity (Chevron, 2020). However, the organization’s brand image has been influenced by legal issues, poor workforce diversification and inadequate financial status. Legal issues linked with ecological harm have been on the rise within the organization. Chevron needs to focus on top leadership diversity to prevent the issues of workforce diversity. Great efforts have been acknowledged in their strive to train and empower employee diversity.Chevron needs to focus on technology investment to facilitate economic value with an affordable  and reliable energy.

Porter’s Five Forces

Threats of new entrants have put pressure to Chevron due to their low pricing strategy, implementing new value propositions and reducing customer costs. Suppliers in the energy industry have lowed the margin of Chevron due to high supplier bargaining power. Chevron is facing a high buyer bargaining power which has influenced its profitability. With similar products and services in the market to meet the customers’ demands, the industrial profitability has greatly suffered. Rivalry exists from both existing companies as well as new companies.

Diamond of National Advantage

Chevron’s competitive advantage comes from its size and financial strength in the energy sector. The operational expertise of the company has facilitied a remarkable cost cutting which has enabled it to venture successfully into new markets. Chevron has been able to maintain its competitive advantage since it has strategically positioned itself.

Chevron as a Learning Organization

Chevron has been raising the human performance through training and development which has encouraged thinking, culture, work systems, and processes. Inclusion and diversity at Chevron has built an organization aimed at improving skills, acquiring knowledge and modifying behavior.The company has empowered people around the world to meet their goals and potentials.

Strategic Recommendations

To create economic, environmental and social value, Chevron should focus on developing new technologies and innovations that will support the future of their business (Kathy, Lyn, and Faith, 2009). New technologies and innovations that the competitors have developed have been a threat to the company, given the scale of operations and expansions in different geographies that the company plans to venture into. The company needs to focus on diversity and inclusion through applying and managing knowledge in all areas. Information technology tools will be effective in boosting Chevron as a learning organization. Focusing on operational excellence through environment, workforce safety, and  process safety will facilitate success in economic, social and environmental value creation within Chevron.

References

Chevron. (2020). Chevron. The Human Energy Company. Available at: https://www.chevron.com/

Kathy Moore Cowan, Lyn E. Haralson, Faith Weekly. (2009). The Four Key Elements of Innovation: Collaboration, Ideation, Implementation and Value Creation.

Manna, D. R., Marco, G., Letterman, D., & Mullen, J. (2014). Sustainable Case Study: Chevron Corporation. Journal of Sustainability Management (JSM), 2(1), 31-34.