Strategic Objective February 16, 2017 Valero Energy Outline Examine the current strategic objectives of Valero Energy. Determine the current structure of Valero Energy. Discuss how expanding to a global market may affect work functions. Recommend structural alternatives that may facilitate the new global strategy. How do these options differ?  What are their strengths and weaknesses? Determine the key components of a change management strategy for the restructuring. Recommend next steps for an action plan.  Mission, Vision & Values Mission Statement Vision Statement Values Valero’s Mission Statement: “Commitment to Excellence is a governing principle. We set the highest standards in all aspects of our business to ensure our efforts will continue to provide quality products to meet demand, as well as leadership in community service ("Mission Statement", n.d.).  Valero’s Vision Statement: “As we fulfill our vision to be a world-class competitor in the global energy business, we will do so in the safest way while continuing to nurture vibrant communities around our facilities and demonstrating improved environmental performance ("Vision Statement", 2015).  Values are essential for the success of any company. As a result, by incorporating the statements mentioned, all different areas of the business are exposed to illustrate Valero’s promises to everyone, from employees, to clients and stakeholders as well. 3 current strategic objectives of Valero energy Strategic Objectives Strategic Objectives: Valero’s strategic objective is to focus on how to tackle challenges and seize opportunities to provide for long-term earnings growth. Valero Energy firmly believes it is approaching the future from a position of strength. In addition, Valero Energy’s strategic objective is to continue to grow their core business by executing organic growth projects that optimize their refining and logistics operations in the energy business ("Being The Best", 2015).  4 current structure of Valero energy Current Structure Valero Energy’s Current Structure: Safety and dependable operations are aspects in driving company profitability. As a result, Valero Energy adopted a formal management structure to standardize operations, its Commitment to Excellence Management System (CTEMS), with the goal of becoming best-in-industry in all areas. In addition, Valero Energy’s employees are the heart of its success, and there is a purpose the company is an employer of choice in the fuels manufacturing and marketing industry. Valero Energy has a number of branded wholesale sites more than 7,500 wholesale markets. Valero Energy markets products in 44 U.S. states, six eastern Canadian provinces, United Kingdom, Ireland and the Caribbean region ("Focus On Excellence", 2014).  5 Valero in the global market Global market Areas where located Challenges/ Benefits Valero energy is a global energy plant found around the world. Valero Energy was fou.

1. Strategic Objective
February 16, 2017
Valero Energy
Outline
Examine the current strategic objectives of Valero Energy.
Determine the current structure of Valero Energy.
Discuss how expanding to a global market may affect work
functions.
Recommend structural alternatives that may facilitate the new
global strategy. How do these options differ? What are their
strengths and weaknesses?
Determine the key components of a change management
strategy for the restructuring.
Recommend next steps for an action plan.
Mission, Vision & Values
Mission Statement
Vision Statement
Values
Valero’s Mission Statement: “Commitment to Excellence is a

2. governing principle. We set the highest standards in all aspects
of our business to ensure our efforts will continue to provide
quality products to meet demand, as well as leadership in
community service ("Mission Statement", n.d.).
Valero’s Vision Statement: “As we fulfill our vision to be a
world-class competitor in the global energy business, we will do
so in the safest way while continuing to nurture vibrant
communities around our facilities and demonstrating improved
environmental performance ("Vision Statement", 2015).
Values are essential for the success of any company. As a
result, by incorporating the statements mentioned, all different
areas of the business are exposed to illustrate Valero’s promises
to everyone, from employees, to clients and stakeholders as
well.
3
current strategic objectives of Valero energy
Strategic Objectives
Strategic Objectives: Valero’s strategic objective is to focus on
how to tackle challenges and seize opportunities to provide for
long-term earnings growth. Valero Energy firmly believes it is
approaching the future from a position of strength. In addition,
Valero Energy’s strategic objective is to continue to grow their
core business by executing organic growth projects that

3. optimize their refining and logistics operations in the energy
business ("Being The Best", 2015).
4
current structure of Valero energy
Current Structure
Valero Energy’s Current Structure: Safety and dependable
operations are aspects in driving company profitability. As a
result, Valero Energy adopted a formal management structure to
standardize operations, its Commitment to Excellence
Management System (CTEMS), with the goal of becoming best-
in-industry in all areas. In addition, Valero Energy’s employees
are the heart of its success, and there is a purpose the company
is an employer of choice in the fuels manufacturing and
marketing industry. Valero Energy has a number of branded
wholesale sites more than 7,500 wholesale markets. Valero
Energy markets products in 44 U.S. states, six eastern Canadian
provinces, United Kingdom, Ireland and the Caribbean region
("Focus On Excellence", 2014).
5
Valero in the global market
Global market
Areas where located
Challenges/ Benefits

4. Valero energy is a global energy plant found around the world.
Valero Energy was founded in the states of Texas in 1980.
Valero Energy quickly became the energy company in Texas by
purchasing 50% interest in Corpus Christi refinery’s. In 2005
Valero Energy became the largest independent refiner in North
America. However, in 2011, Valero became a global company
by acquiring the Pembroke refinery in Wales, along with related
marketing and logistics operations throughout the United
Kingdom and Ireland (Valero Energy, 2017).
A company can find many different challenges when becoming a
global company. One challenge Valero Energy had to adapt too
and prepare for was the of the environmental laws.
Environmental laws can vary outside of the United States by
being more strict or more lenient. Valero Energy prides itself in
being environmental friendly by abiding and surpassing all
OSHA laws and requirements. This is the toughest challenge
Valero Energy ran into as they are an energy company and the
world is becoming more environment aware of the possible
effects of the type of organizations and how they conduct day to
day business.
Although there are some challenges the business a have many
benefits in the global market as well. When a company chooses
to join the global market the company expands its customers.
Valero energy gained customers through its local gas stations
and business’s in that country. This will bring in more money
for the company. While money is the overall point of a business
the company must prepare itself before joining the global
market. A company can also suffer if done incorrectly.
Company’s have gone out of business when attempting to join
the global market. A company must have good strategic
planning and good international management.
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5. Structural Alternatives
Geographical
Provides structure for organizations operating in several
locations nationally and internationally
Local customers feel at ease with local representatives
Functional
Based on each job’s duties
High degree of specialization for employees
To assist with Valero’s strategic objective to focus on how to
tackle challenges and seize opportunities to provide for long-
term earnings growth, we may want to examine two structural
alternatives. The geographical structure can greatly assist a
company especially those who can benefit from being near it’s
sources or supplies or customers. Local representatives can
assist with local laws, customs, and business practices.
(Sephton, 2017) Additionally, customers feel more at ease when
speaking with a local community member while looking for a
business to patronize. Unfortunately, it can be easy for decision
making to become decentralized under this organizational
structure, especially if the headquarters is located hundreds or
even thousands of miles away. (Devaney, 2014)
A functional organizational structure is one of the most common
types of structures. It sections off portions of or
departmentalizes a company or organization based on the job
functions it has in common. (Devaney, 2014) “It allows for a
high degree of specialization for employees and is easily
scalable should the company grow”. (Devaney, 2014) The
downside to this structure is it can cause barriers between

6. different tasks. Inefficiencies can also arise if the company has
a variety of products and services. (Devaney, 2014)
7
Valero Restructuring
What is the current situation
Identify obstacles
Interviews, surveys and focus groups
Limit some information
Feedback checks
Organizational Change Management should begin with a
systematic diagnosis of the current situation in order to
determine both the need for change and the capability to
change( Tamilarasu, 2012). When Valero is looking at change
management for their restructuring they need to first identify
any obstacles that might hinder the changes such as employee
attitudes, cultural norms, bureaucracy, lack of technology or
any other difficulties that they feel might cause some road
blocks. Valero should also utilize employee engagement
techniques as well as employee communication to ensure the
changes are as smooth as possible. Some possible employee
engagement techniques Valero could employ are interviews,
surveys and focus groups. These mechanisms can help the
corporation learn a lot about their employees and feelings on
how much they are in lined with the companies future plans.
Are these employees here to do whatever it takes and can go
along with any changes the company is wanting to make or are
they just coming to work and doing a job to make a living. Are
employees aware of our Vision and the path we are on. In the
initial phases of implementing the restructuring we need ensure

7. that only information that employees need to know is released.
Not all of the employees need to know every aspect of the
restructuring. Some information is only for supervisors and
mangers as not all the changes will affect everyone. Throughout
the change process Valero should perform feedback checks to
gage how the restructuring is affecting employees and if there
are any issues or concerns throughout the whole process and to
determine the progress of the changes.
8
Action plan
Take proactive, strategic approach
Align corporate vision, mission, and activities
Hire and train experienced managers for different locations
Distinguish and establish our competitive advantage
Valero in its globalization venture would take a proactive,
strategic approach to evaluating and understanding both the
risks and costs in order to stay one step ahead of the
competition and obtain the benefits of a successful globalization
initiative. Valero would align corporate vision, mission, and
activities and leverage corporate strengths while identifying
opportunities in our desired and compatible markets. Valero
would hire and train managers for the specific markets that we
are trying to enter so that the managers are aware and can
handle the cultural differences and traditions that might help in
the expansion. Going into these new markets we would need to
ensure we have a clear competitive advantage and establish who
our customers would be. We would go into our new markets
understanding cultural habits and perceptions in order to
accurately forecast sales, interpret trends and evaluate the
existing competition. By Valero understanding the regions

8. overall economy and how to best position our products and
services we would ensure success in our globalization venture.
9
Questions?
References
Being the Best. (2015). Retrieved from
https://www.valero.com/en-
us/Documents/SAR/2015%20Summary%20Annual%20Rep
ort.pdf
Devaney, E. (2014). The Pros and Cons of 7 Popular
Organizational Structures. An Illustrated Guide to
Organizational Structure.
Focus on Excellence. (2014). Retrieved from
https://www.valero.com/en-
us/Documents/SAR/2014%20Summary%20Annual%20Rep
ort.pdf
Mission Statement. (n.d.). Retrieved from
http://valerocorptrent.weebly.com/vision-and-mission-
statement.html
Sephton, C. (2017). What are the Advantages and Disadvantages
of Geographical Structure? Retrieved from http://business-
finance.blurtit.com/2902318/what-are-the-advantages-and-
disadvantages -of- geographical-structure
Tamilarasu, V. (2012). Change management. International
Journal of Management Prudence, 4(2), 26-31. Retrieved
from
https://search.proquest.com/docview/1490677206?accountid=45
8
Valero Energy. (2017). Company History. Retrieved from
https://www.valero.com/en -
us/AboutValero/CompanyHistory
Vision Statement. (2015). Retrieved from

9. https://www.valero.com/en-us/AboutValero/VisionStatement