Chevron Corporation Essay Example

outside the United States. Furthermore, Chevron has invested in 15 power generating facilities in the United States and Asia. We aim to promote the progress of hydrogen fuel, biofuel, and renewable energy resources by utilizing advanced technologies.

Chevron's mission is to be a global energy company that provides high-quality products while adhering to legal and ethical standards. The company operates based on principles such as integrity, trust, partnership, diversity, ingenuity, high performance, and the protection of people and the environment (Company Profile, 2008).

SWOT Analysis

A SWOT analysis is used by organizations to identify strengths, weaknesses, opportunities, and threats within their internal and external environments. This analysis helps define organizational goals and objectives by evaluating both internal and external factors.

Internal Factor Analysis

Internal Factor Analysis is the process of evaluating an organization's internal strengths and weaknesses to determine the sustainability of its business. The company showcases its strengths through impressive earnings and cash flows, leading to five consecutive years of record profits. This financial achievement enables the organization to distribute dividends to stakeholders while also supporting a strong capital funding program (Ramon, 2008). Additionally, the company prioritizes product quality and brand strength by maintaining long-term refineries and undertaking significant capital projects to meet global energy demands.

The company Chevron, with its brand name Ramon (Ramon, 2008), is dedicated to operating in high-growth markets and delivering top-notch products. It leverages its marketing and technical expertise to effectively operate in diverse markets and assist in the global development and production of gas and oil. Moreover, Chevron has a strong reputation and ample resources within the oil and natural gas industry.

Chevron, ranked as the second largest energy

producer in the United States and the fourth largest company worldwide, has considerable assets and substantial market potential. While possessing a vast resource base, Chevron is lacking sufficient disaster management systems. This gap is apparent from production disruptions caused by hurricanes in the Gulf of Mexico region.

The text suggests that Chevron lacks a short-term strategy for addressing emergencies and struggles to adapt to fluctuating gasoline prices in the market, despite earning significant profits from its refining and marketing activities.

External Factor Analysis

External factor analysis entails identifying the opportunities and threats encountered by an organization during market operations. These factors have a critical impact on shaping the organization's marketing plan.

Opportunities

An important opportunity for Chevron is its robust presence in Asia, which was established through the acquisition of Unocal Corporation in 2005.

Chevron has strengthened its assets and position in the Caspian, Southeast Asia, and Gulf of Mexico reserves through the acquisition of Unocal Corporation. This acquisition has given Chevron an advantage in a high-growth region that has sufficient gas to meet the demand of the Asian market. Additionally, Chevron has obtained advanced ultra deep water drilling technology from Unocal Corporation. As a result, Chevron is now planning to collaborate with Reliance, India's largest oil refiner, to establish a new refinery in India (Chevron: Indian Opportunity, 2006). However, Chevron is facing challenges in certain areas such as Kazakhstan, where there are abundant reserves posing risks and impeding its growth.

In certain politically unstable nations, governments are demanding high taxes and the nationalization of reserves, which is endangering the company. As part of the organization's restructuring, Chevron has eliminated multiple positions, resulting in around 1,100 employees being laid off. Consequently, the

company is obligated to provide severance packages to these employees (Chevron to Lay-Off 1,100 Employees, 2008). The organization is also facing risks due to the rising prices of oil.

The profit margin of Chevron is decreasing due to the rising costs of crude oil. Additionally, Chevron is facing a new challenge in Ecuador where there is an environmental damage case against them. The President of Ecuador, Rafael Correa, plans to sue Chevron for damages totaling $16 billion. He will meet with Chevron officials and lawyers on behalf of 30,000 residents from the jungle who are also suing the company for the same amount. These residents claim that Chevron's Texaco unit has released 68 billion liters of oil-contaminated water in their area, causing pollution and health risks (Ecuadorian president to meet with Chevron over environmental damage, 2008).

Conclusion

Chevron holds the position as the fourth largest company in the global oil and natural gas industry.

Due to threats and weaknesses, Chevron's profits have declined in recent years. In an effort to reduce costs, Chevron is merging and eliminating repeat services and facilities. However, there are still opportunities for growth in remaining areas of the world.

References

1. Chevron: Indian Opportunity (2006, June). Retrieved August 27, 2008, from http://seekingalpha.com/article/11444-chevron-indian-opportunity-venzuelan-risk-cvx Company Profile (2008).
2. Retrieved August 27, 2008, from www. hevron. com Ecuadorian president to meet with Chevron over environmental damage (2008, August 17).
3. Retrieved August 27, 2008, from http://www. iht.com/articles/2008/08/17/business/chevron. php Paulson, A. (2008, May).
4. Chevron to Lay-Off 1,100 Employees.

According to a report from International Business Times (2008, August 27), Chevron is planning to lay off 100 employees. The article can be accessed at http://www.ibtimes.com/articles/20080509/chevron-lay-off-100-employees.htm. In addition, there is another report

on Chevron's annual meeting of stockholders which highlights their exceptional performance in the past year. This report can be found at http://www..

chevron.com/News/Press/release/?id=2008-05-28