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CHEVRON CORPORATION
1
CHEVRON CORPORATION
9Chevron Corporation
Lucy Rowell
BUS499 Business Administration Capstone
Professor’s Name
2/17/20
Chevron is a multinational corporation, a successor of Standard
Oil, founded in 1879. It has it headquarters in San Ramon,
California, United States. It is a public company that operates in
the industry of oil and natural gas, dealing with products such
as petroleum, petrochemicals as well as natural gas. Chevron
has operations in over 180 countries all over the world and has
been ranked on of the key players in the energy sector, with an
annual revenue of $15.45 billion in the year 2018. The
operation of Chevron, just like any other large corporation, is
largely influenced by general environment such as technological
factors, sociocultural factors, economic factors as well as
political/legal climate. Similarly, it is affected either positively
or negatively, by forces of competition such industry rivalry
and buyers bargaining power. It has strengths and weaknesses,
opportunities and threats, and core competencies and
capabilities which also affect its day to day operation in the
industry. Proper management of company resources; human,
material and financial resources, has played a key role in
maintaining the status of Chevron Corporation at the top. This
paper explains all these factors influencing its operation and
how their impact can be reduced so as to minimize the running
cost and boost profitability.
General Environment
General environment refers to those factors outside the
corporation that influencing its operation, affecting its long-
term profitability in a given market or industry. In our case, we
will only focus on the two main segments namely-
political/legal factors as well as economic factors.
Political/legal climate
Political impact in the profitability or even the survival of
Chevron Corporation is diverse. These political changes range
from mass unrest due to dissatisfaction by the government
decisions to prompt shift in current political regimes (Cherry et
al. 2012). The political stability determines whether Chevron
will invest in in a given location or not- where there is political
instability, it will shy away from risking its finances thus
affecting its income as well as profitability of the industry. The
laws that a country puts in place regarding businesses, like
contract law, outline what corporation is permitted to do and
what is not allowed to do, if Chevron finds the laws favorable,
it will invest in such place thus boosting both the organization
profitability as well as the industry at large. Similarly, in
countries where there are no policies to protect company’s
intellectual property, investors see it risky to invest with
Chevron. High taxation as well as stringed trade barriers will
demotivate Chevron Corporation from maximizing their profits,
and consequently that of the industry at large (Ketola 1993)
Economic factors
Economic factors have an effect on profitability of the
company. These include; interest rates, foreign exchange rates,
cost of labor and economic patterns. For instance, the rate at
which the GDP grows in a given country will indicate Chevron
growth in the days to come. When there are high interest rates,
individuals will want to borrow and invest more leading to more
growth of Chevron. Stability in interest rates will lure Chevron
corporation to indulge in international trade, therefore more
profits will be gained. When there is high rate of unemployment
in a country, it means that the demand for jobs is higher that
supply, and therefore individuals are willing to work at
minimum wages, lowering the cost of production for Chevron
Corporation thus maximizing profits of the organization and the
industry at large.Five Forces of Competition
According to Porter’s analysis of the competition a business
faces in a given industry, the forces of competition include; the
customers purchasing power, which refer to ability of your
buyers to bring down your prices, the industrial rivalry, which
is the stiffness of a competition from other existing corporation,
the supplier bargaining power, which determines their ability to
raise prices at will, threats from new firms entering the market
and lastly threats from products that can be used as substitutes.
In this case however, we will focus on the industrial rivalry as
well as the buyers bargaining power.
Industrial rival
Industry rivalry is the competition from other players in that
same industry. It is normally intense and could lead to lowering
of the of the product prices and bring the overall profitability
industry. Since chevron operates in a very competitive oil
industry, the competition may affect the long-term income of
the corporation
To tackle this, Chevron may need to sustainably differentiate its
products so as to avoid standardization as well as build a large
economy of scale so as to compete favorable in the capital
dominant industry. Lastly it may consider collaboration with
other competitors which will increase the market share rather
than just fighting for small market.
Bargaining power of buyers
Buyers can be quite demanding since they always want the best
quality offered for a minimum price possible. This will exert
pressure on the corporation profitability in the long term.
This can however be addressed by establishing a large customer
base to reduce consumer bargaining power, as well as invention
of new products by Chevron to curb defection of its existing
customers to other firms. It can also work towards improving
the quality of its products so that customers are not lured by
competitors due to low quality at Chevron Corporation.
Greatest External Threat
The threats to Chevron corporation may have negative effects if
left unchecked. These threats include; entrance of new firms in
the market, exchange rates devaluation, rise of fuel prices thus
high prices for inputs, increased competition, availability of
more substitutes and political uncertainties. The greatest of all
these is the threat from new firms entering the market. This is
because, when new firms enter the market, it means there will
be division of customers, implying that Chevron Corporation
will be required to share its existing customers with these new
firms, therefore reducing sales and consequently the
profitability of the firm as well as that of the industry as whole.
To address this issue the Chevron Corporation has to use its
strong capital base to diversify its markets as well as create a
strong consumer relation so that new firms find it difficult to
penetrate the market. It should also make sure its brand name is
well-established so that its consumers don’t forget it as soon as
new firms enter the industry. Its good should also be
differentiated such that they stand out from those of the other
firms and easily recognized. The quality of the said products
should also be checked so that existing consumers do not leave
them when the quality of these new firms is higher than that of
Chevron.Greatest Opportunity
The company website suggests that there are numerous
opportunities available for Chevron Corporation which can be
optimized for profitability. These include the availability of
internet where research and E-commerce can be done
efficiently, a strong social media base by which faster
advertisement with wide range can be made and household
income increment which reflects to consumer spending habits
thus high purchasing power. there is also onset of products
which are environmentally friendly plus subsidies by
government on these products. Lastly, the interest rates for
loans are low, thus high investment opportunity for large
projects. The greatest of these opportunities is the availability
internet and strong social media base. The internet is a great
opportunity for Chevron. This is because with the internet, the
corporation is able carry out research which is the very major
force that drives many companies past the rest. Research will
enable Chevron to come identify its customers current needs
and respond faster and better to them as well as helping the
company to know new niches available for investment so as to
raise its profitability. Research will also help the firm to
identify opportunities to diversify its market, say, in areas
where the demand is high but its products are not efficiently
available. A strong social media presence also helps Chevron to
market its products to a wide range of consumers at a lower cost
which would otherwise be costly.
Strengths and Weaknesses
Online database proves that one of the greatest strengths of
Chevron Corporation is that it has a stable network of
distribution with large outlet numbers. It also has a strong
capital base, availability of skilled labor which is diversified,
innovative and excellently qualified, a social media platform
with strong presence and low-cost structure, giving it an added
advantage over its competitors. Its greatest strength is strong
capital base.
Weaknesses of Chevron are that it operates largely on
rented property which consume huge sums of money, low
amount is also spend on research which risks outdating, high
employee turnover rate as well as low motivation and morale
and finally liquidity problems where current liabilities are
higher than assets. The lack of motivation and morale of
workers remains to be greatest weakness of Chevron.
Strategy or Tactic
The Chevron Corporation should use its strength in strong
capital base to establish a stable network of distribution as well
as increase the number of outlets all over the globe as to make
sure that it reaches a wide customer base, therefore boosting the
sales and profitability of the firm. This will also help serve as a
barrier to new firms wishing to enter the market since Chevron
is already well-established.
The greatest weakness of Chevron Corporation which is lack of
motivation and morale among the employees can be remedied by
ensuring there are effective channels of communication, mostly
vertical, to enable employees to air their concerns to the
leadership as well as give feedback. Employees retention is a
big problem in this corporation, and therefore the corporation
should invest in its employee’s welfare and know why they keep
leaving after much resources and time has been invested on
them, to reduce overall cost. The employees should also be
rewarded on merit to promote healthy competition and lastly
create events for them to have fun and get to know each other
better.
Resources, Capabilities, and Core Competencies
In conclusion, company resources are all those assets which the
company has total control over and can be brought together for
achievement of its goals. For Chevron Corporation, these
resources include human resources, material resources and
financial resources. Human resources are the skills, experience,
qualification time availability and geographical location.
Material resources are machinery, computers and other inputs
while financial resources are cash, checks, bank deposits and
stocks and bonds. Chevron has its core competencies which
gives it competitive power over other corporations in the oil
industry. These core competences are;
· Healthy and sustainable environment- it has a very long
partnership with World Health organization to protect wellness
of people
· Natural gas, a core player in better future of the planet- these
natural gases products are available to over 5 billion on
affordable reasonable prices
· Development partnerships- Chevron has partnered with
Science and Mathematics faculties to improve on quality
provided, and change approach to these subjects
Sources
1. Hitt, Ireland, & Hoskisson. 2020. Strategic management:
Concepts and cases: Competitiveness and globalization (13th
ed.). Mason, OH: South-Western Cengage Learning
1. Cherry, M. A., & Sneirson, J. F. (2012). Chevron,
Greenwashing, and the Myth of'Green Oil Companies'. Journal
of Energy, Climate, and the Environment, 3.
2. Herman, T. (1999). Blood and oil: shooting deaths of young
Nigerian activists are linked to Chevron Corporation [Ilaje
region]. Alternatives Journal, 25(2), 8.
3. Ives, B., & Learmonth, G. P. (1984). The information system
as a competitive weapon. Communications of the ACM, 27(12),
1193-1201
4. Ketola, T. (1993). The seven sisters: Snow Whites, dwarfs or
evil queens? A comparison of the official environmental
policies of the largest oil corporations in the world. Business
Strategy and the Environment, 2(3), 22-33.
5. Lawrence, J. E., & Cerf, D. (1995). Management and
reporting of environmental liabilities. Management Accounting
(USA), 77(2), 48-55.
Running head: CHEVRON CORPORATION 1
CHEVRON CORPORATION 2
Chevron Corporation
Lucy Rowell
Introduction
Chevron is an American based multinational company that
operates within the energy industry. The headquarters of the
company is at San Ramon, California. Chevron was founded
back in 1849 and has operated for over 140 years. The operating
revenue of the company is at $158.9 billion with an operating
income $15.45 billion. It acted as the predecessor of standard
oil company and the company has continued to be fully
functional and a leading player within the energy sector.
Chevron operates in over 140 countries across the globe. It is
ranked as one of the largest oil companies around the world
which has positively contributed to the economic growth of the
country. It is also traded in the New York Stock Exchange
making it one of the leading players within the oil sector. The
paper explains the impacts of technology and globalization
together with the organizational model and resource-based
model.
Globalization
Globalization is one of the key issues that positively led to
the expansion of the company within the globe. The emergence
of other oil companies have led to the expansion of the
multinational corporation to other countries. Through Foreign
Direct Investment, chevron has managed to expand its services
to other parts of the globe (By, 2016). Companies such as BP
plc. Offered competition to the company making it to adopt
expansive strategy that facilitates it to be fully effective within
the industry that it operates within. However, factors such as
the great depression affected the prices of oil in the country
affecting the industrial position. The ability of the company to
evolve and adopt to the global industrial skeptics has enabled it
to be fully functional in both developed and developing
countries across the globe.
Technology
The change in technology within the oil sector is a factor
that has made Chevron to continuously evolve and remain
relevant within the industry. Today, Chevron is one of the
companies within the oil industry that has ensured that it
integrated IT with is administrative structure. The company is
keen at using social media sites such as Facebook and twitter as
part of its marketing strategy (Tarca, Vatuiu & Popa, 2016). The
existence of the company website https://www.chevron.com/
enables customers and employees to access the site and get
more information about the site. The website contains important
information such as project portfolio, operations, technology,
corporate responsibility and the company investors. The
company has highly been successful in integrating employee
information through systems that adjust to the needs of the
market that facilitates the company to be fully effective.
The Industrial Organizational Model
The industrial organizational model of the company is
highly organized and detailed to provide a clear understanding
of the process. The basic conditions for Chevron are perfectly
applied it entails key economic issue that the company needs to
consider such as the demand and supply. It also describes the
industrial structure that needs to be appropriately observed.
Relevant factors such as the conduct of the industry is
mentioned. A look at the general performance of the company in
the industry is also evaluated (By, 2016). The assessment of the
industry through the use of the model enable the company to
earn above average despite of the high level of competition
from other multinational companies. Additionally, the company
is likely to gain from the economies of scale that comes with
operating within the market. The model is perfectly aligned to
the goal of the company to the market.
Resource-based Model
As a multinational corporation the company is keen at has
a resource-based model that is clearly focused on the goals and
objectives. The model explains the resource-based view that
explains how it relies on both tangible and intangible that
should be both immobile and heterogenous. This is a key
contributing factor that makes the company one of the major
players within the industry that it operates within. The company
mostly gets its raw materials through importation and the
utilization of the local oil wells (Kung, Pui & Chung, 2017).
The activity has fully been effective in giving the company a
competitive advantage. The workforce of the company is both
skilled and unskilled that employs various engineers and miners
that offer the best services. The activity leads to the creation of
a competitive advantage within the industry. Aligning the
company with the goals is a clear matter of concern that
resource based model.
Vision and Mission Statement Assessment
The vision of Chevron Corporation is to the Global Energy
Company most admired for its people and performance. The
mission of the company is our company’s foundation is built on
values which distinguish us and guide our actions. We conduct
our business in a socially responsible and ethical manner. the
vision and mission of the company are deeply aligned with its
success. It sets up the targets that the company requires to be
fully functional within the market. Ideally, it instills an
organization culture among employees that is deeply embedded
in the company values that reflects the overall needs of the
company in a positive way (Hitt, Ireland & Hoskisson, 2013).
Its mission and vision drive the important departments of the
company to focus on the organizational success which
positively elevates the position of the company.
Stakeholder Impact
Shareholders play an important role in the expansion of the
company within the industry. They provide the relevant
investment that enables the company to pursue its goal and
expand within the industry. The employee are the important
stakeholders that are responsible in driving the goals of the
company towards success (By, 2016). It is an important
elemental factor that contributes to the expansion of the
company processes and daily activities. The supplies play a key
role in ensuring that the supply of raw material within Chevron
Corporation is steady. It is a positive practice that leads to the
expansion of the company within its industry. The customers are
important stakeholders that Chevron focuses on to ensure that it
retains its industrial position. Therefore, each stakeholder plays
an important role in the survival and expansion of the company.
Conclusion
In summary, the paper explains the impacts of technology
and globalization together with the organizational model and
resource-based model. Globalization is one of the key issues
that positively led to the expansion of the company within the
globe. The emergence of other oil companies have led to the
expansion of the multinational corporation to other countries.
The vision of Chevron Corporation is to the Global Energy
Company most admired for its people and performance. The
mission of the company is our company’s foundation is built on
values which distinguish us and guide our actions. As a
multinational corporation the company is keen at has a
resource-based model that is clearly focused on the goals and
objectives. The model explains the resource-based view that
explains how it relies on both tangible and intangible that
should be both immobile and heterogenous.
References
By, S. L. (2016). Chevron, sasol set natural-gas accord --- joint
venture will exploit method of converting natural gas to
liquid. Wall Street Journal
Hitt, M, A., Ireland, R, D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competitiveness and
Globalization (10th ed.): Mason, OH: South-Western Ccengage
Learning.
Kung, W. L., Pui, Y. L., & Chung, Y. Y. (2017). A collective
organizational learning model for organizational
development. Leadership & Organization Development
Journal, 40(1), 107-123.
Tarca, N., Vatuiu, T., & Popa, A. (2016). The importance of the
web technologies during the communication process between a
company and its clients. St. Louis: Federal Reserve Bank of St
Louis.
Running head: BUS499 BUSINESS ADMINISTRATION
CAPSTONE 1
BUS499 BUSINESS ADMINISTRATION CAPSTONE
2
Lucy Rowell
Bus499 Business Administration Capstone
3/12/20
Introduction
The paper discusses how the Chevron, an American based
multinational company operating in the energy industry, can
effectively carry out its operations, to realize business
sustainability. The energy industry is highly competitive,
especially in the global markets, and therefore, the participants
are required to adopt effective business-level strategies. Key
elements to be covered in the paper include; analysis of the
business-level strategies and Corporate-Level Strategies of the
firm and proposal of the strategies that I think are the most
appropriate in the company’s long-term success. The paper will
also look into the competitive environment to determine the
greatest competitor to the firm. The final consideration will be
the market cycles, and whether the made choice of strategy will
differ under slow and fast-cycle markets.
Business-Level Strategies
Chevron long term sustainability in the business is mainly based
on its focused differentiation within a small market niche. The
company identifies the market segments to offer its products,
based on its interests, organizational goals and mission. Its
main market segment is small businesses, who consume its
products. The business strategy has been critical in promoting
inclusive market environment, as it does help not only the
company but also the small suppliers. Differentiation is further
enhanced by targeting specific age groups. For instance, the
company targets for educational purposes only and views
students at the college levels as potential customers for its
products. The business strategy adopted by this company has
been effective in creating adequate product awareness at the
market place. Through the differentiation strategy, the company
has been able to establish a positive business relationship with
local and small businesses, and they trust that the company
offer quality and safe products.
Differentiation strategy adopted by the Chevron Corporation is
ideal for its long-term business sustainability, as it creates
customer loyalty. Customers form the backbone of businesses,
as sales must be made for profits to be realized. Chevron has
created a large pool of loyal customers, which guarantee a
regular flow of income to the company. The revenues can be
used in funding business operations and facilitating further
expansion or growth.
Chevron does not experience any issues in executing its
business-level strategy, as it has got the capability to do so. It
has an adequate resource base, which funds the marketing
campaigns, ensuring that the smallest targeted markets have
been served effectively. Again, the company has got an
experienced marketing team, who interact with the customers
positively, thus creating a good relationship. It is through such
positive relationships with the customers that the company has
secured a significant market share and high sales. It is quite
difficult for other firms to get market share in areas where
Chevron has won (Chevron Corporation, 2020).
Corporate-Level Strategies
The corporate level strategy adopted by the Chevron is an
expansion strategy, mainly focusing on concentration. Under the
concentration expansion strategy, a firm focuses on directing
the organizational resources, towards attaining specific goals. In
the case of Chevron, the company is after achieving huge
financial growth, disciplined or sound spending and increasing
its production. Such targets are expected to have materialized
within a span of five years.
The expansion strategy will have a significant effect on the
company’s future sustainability, considering that it will increase
its market share and revenues. The idea of increasing
production results in large economies of scale, which will have
got the benefit of reducing the production cost per unit. The
lower the production costs, the higher the firm’s profitability.
Chevron stands to benefit from significant business growth,
based on the adopted corporate-level strategy. I believe that
Chevron has adopted an effective corporate strategy, which will
enable it to have a better position at the market in future when
compared to its rivals.
Chevron has the necessary capacity for ensuring that the
business expansion strategy has been executed successfully. It
has got huge resource endowment, which will fund the business
expansion needs. The company has got an effective management
team, hence the key reason behind its success at the market. The
management has got the capacity of making sure that the
organizational resources have been allocated wisely and
effectively utilized, towards realizing the expansion plans.
Besides, the team will be able to manage the expanded business,
as it has got the capability and experience (Chevron
Corporation, 2020).
Competitive Environment
The energy industry is highly competitive, and that possesses a
threat to Chevron’s success at the market and executing its
business and corporate-level strategies. The greatest rival to
Chevron Corporation is the Exxon Mobil. The company has
remained to be the greatest competitor to the Chevron
Corporation because the two seem to operate on under similar
business and corporate strategies.
In the case of business-level strategy, Chevron Corporation
focuses on serving the needs of small markets and suppliers,
hence forming the basis of expanding to larger markets
(Chevron Corporation. (2020). Exxon Mobil also uses a similar
strategy. The company has invested heavily in technology and
creating positive relationships with the communities it serves,
in the process of trying to achieve global prosperity (Exxon
Mobil Corporation, 2020). The two companies have established
loyal customers to almost the same extent.
Concerning the corporate level strategy, even although the two
companies have adopted an expansion strategy, Chevron has
mainly focused on expanding its production and growing
financial returns. In the case of Exxon Mobil, the main company
focus is realizing a greater market share by going global (Exxon
Mobil Corporation, 2020). The two companies have been
differentiated by the corporate level strategy, which is ideal in
determining the long-term business sustainability of growth.
Comparing the two companies, Exxon Mobil is most likely to be
successful in the future. Business success mainly depends on
the market share and the number of customers served. Exxon
Mobil is most likely to realize huge market share globally,
hence generating large amounts of revenues when compared to
the Chevron. The higher the market served, the higher the sales,
and cost-saving arising from economies of scale (large scale
operations). Not unless Chevron adopts effective corporate-
level strategy, it will not be able to compete effectively with its
rival, Exxon Mobile, in the coming years.
Market Cycles
A slow market cycle occurs where resources have been
shielded, and the concerned company maintains high monopoly
levels at the market place, in such that the competitive pressures
are put under adequate control (prevents competitors from
joining the market). The fast cycle markets are the exact reverse
of the slow market, as the markets are normally characterized
by highly competitive pressures. To survive in the market,
companies are required to remain innovative and effectively
track the business strategies adopted by competitors. Companies
are also required to identify new market gaps and serve them
effectively (Hitt, Ireland, & Hoskisson, 2020).
In my choice under the competitive environment, I have argued
that Exxon Mobil, which is after going global, will be more
competitive than Chevron, which is focusing on financial
growth and increasing production. The business-level strategies
do not differentiate the two companies, with respect to the
future, as they have got similar strategies.
In the case of a slow market cycle, even although the two
companies stand to grow at the same rate due to lack of
competition, still Exxon Mobil will be better off. The company
will easily cover a large global market, hence generating high
sales. The difference between the two companies will be on the
size of the market served. My choice will still remain the same.
Under the fast market cycle, the choice will also remain
unchanged. Both companies will be facing similar threats at the
market (competition pressures), which inhibit their expansion
plans.
However, Exxon Mobil has got an advantage over its rival,
Chevron Corporation. The global market will provide huge
business opportunities, which the firm can tap and make the
best out of it. Chevrolet will face stiff competition at its limited
market. In the end, irrespective of the state of the market
cycles, Exxon Mobil will perform better than the Chevron
Corporation. Such observation tells us that the long-term growth
of business mainly depends on the adopted business level and
corporate strategies.
Sources
1. Hitt, Ireland, & Hoskisson. 2020. Strategic management:
Concepts and Cases: Competitiveness and globalization (13th
ed.). Mason, OH: South-Western Cengage Learning
2. Chevron Corporation. (2020). Retrieved
from https://www.chevron.com/
3. Exxon Mobil Corporation. (2020). Retrieved
from https://corporate.exxonmobil.com/
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BUS499 Capstone
Assignment 4
Insert Student’s Name Here
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SWOT Analysis of Company NameStrengths
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firmWeaknesses
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firmOpportunities
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firmThreats
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SWOT Analysis Strategy
Strengths and Opportunities
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and opportunities
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4
SWOT Analysis Strategy
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Competitiveness Strategy
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Profitability Strategy
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Communications Plan
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Communications Plan
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9
Corporate Social Responsibility
Responsible (ethical) corporate citizen
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1st bullet point on the impact the efforts have on the company’s
bottom line – specific example
2nd bullet point on the impact the efforts have on the
company’s bottom line – specific example
Insert exactly what you would say to your executive audience to
describe each bullet point on this slide
You should thoroughly assess efforts by this corporation to be a
responsible (ethical) corporate citizen and thoroughly determine
the impact these efforts (or lack thereof) have on the company's
bottom line. Provide specific examples to support your
response.
10
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic
management: Concepts and cases: Competiveness and
globalization (10th ed.). Mason, OH: South-Western Cengage
Learning.
Insert second source
Insert third source
Insert any additional sources
You should use at least three (3) quality references, one of
which should be the course textbook. Wikipedia and similar
websites do not quality as academic resources.
11

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CHEVRON CORPORATION .docx

  • 1. CHEVRON CORPORATION 1 CHEVRON CORPORATION 9Chevron Corporation Lucy Rowell BUS499 Business Administration Capstone Professor’s Name 2/17/20 Chevron is a multinational corporation, a successor of Standard Oil, founded in 1879. It has it headquarters in San Ramon, California, United States. It is a public company that operates in the industry of oil and natural gas, dealing with products such as petroleum, petrochemicals as well as natural gas. Chevron has operations in over 180 countries all over the world and has been ranked on of the key players in the energy sector, with an annual revenue of $15.45 billion in the year 2018. The operation of Chevron, just like any other large corporation, is largely influenced by general environment such as technological factors, sociocultural factors, economic factors as well as political/legal climate. Similarly, it is affected either positively or negatively, by forces of competition such industry rivalry and buyers bargaining power. It has strengths and weaknesses, opportunities and threats, and core competencies and capabilities which also affect its day to day operation in the industry. Proper management of company resources; human, material and financial resources, has played a key role in maintaining the status of Chevron Corporation at the top. This paper explains all these factors influencing its operation and how their impact can be reduced so as to minimize the running
  • 2. cost and boost profitability. General Environment General environment refers to those factors outside the corporation that influencing its operation, affecting its long- term profitability in a given market or industry. In our case, we will only focus on the two main segments namely- political/legal factors as well as economic factors. Political/legal climate Political impact in the profitability or even the survival of Chevron Corporation is diverse. These political changes range from mass unrest due to dissatisfaction by the government decisions to prompt shift in current political regimes (Cherry et al. 2012). The political stability determines whether Chevron will invest in in a given location or not- where there is political instability, it will shy away from risking its finances thus affecting its income as well as profitability of the industry. The laws that a country puts in place regarding businesses, like contract law, outline what corporation is permitted to do and what is not allowed to do, if Chevron finds the laws favorable, it will invest in such place thus boosting both the organization profitability as well as the industry at large. Similarly, in countries where there are no policies to protect company’s intellectual property, investors see it risky to invest with Chevron. High taxation as well as stringed trade barriers will demotivate Chevron Corporation from maximizing their profits, and consequently that of the industry at large (Ketola 1993) Economic factors Economic factors have an effect on profitability of the company. These include; interest rates, foreign exchange rates, cost of labor and economic patterns. For instance, the rate at which the GDP grows in a given country will indicate Chevron growth in the days to come. When there are high interest rates, individuals will want to borrow and invest more leading to more growth of Chevron. Stability in interest rates will lure Chevron corporation to indulge in international trade, therefore more profits will be gained. When there is high rate of unemployment
  • 3. in a country, it means that the demand for jobs is higher that supply, and therefore individuals are willing to work at minimum wages, lowering the cost of production for Chevron Corporation thus maximizing profits of the organization and the industry at large.Five Forces of Competition According to Porter’s analysis of the competition a business faces in a given industry, the forces of competition include; the customers purchasing power, which refer to ability of your buyers to bring down your prices, the industrial rivalry, which is the stiffness of a competition from other existing corporation, the supplier bargaining power, which determines their ability to raise prices at will, threats from new firms entering the market and lastly threats from products that can be used as substitutes. In this case however, we will focus on the industrial rivalry as well as the buyers bargaining power. Industrial rival Industry rivalry is the competition from other players in that same industry. It is normally intense and could lead to lowering of the of the product prices and bring the overall profitability industry. Since chevron operates in a very competitive oil industry, the competition may affect the long-term income of the corporation To tackle this, Chevron may need to sustainably differentiate its products so as to avoid standardization as well as build a large economy of scale so as to compete favorable in the capital dominant industry. Lastly it may consider collaboration with other competitors which will increase the market share rather than just fighting for small market. Bargaining power of buyers Buyers can be quite demanding since they always want the best quality offered for a minimum price possible. This will exert pressure on the corporation profitability in the long term. This can however be addressed by establishing a large customer base to reduce consumer bargaining power, as well as invention of new products by Chevron to curb defection of its existing customers to other firms. It can also work towards improving
  • 4. the quality of its products so that customers are not lured by competitors due to low quality at Chevron Corporation. Greatest External Threat The threats to Chevron corporation may have negative effects if left unchecked. These threats include; entrance of new firms in the market, exchange rates devaluation, rise of fuel prices thus high prices for inputs, increased competition, availability of more substitutes and political uncertainties. The greatest of all these is the threat from new firms entering the market. This is because, when new firms enter the market, it means there will be division of customers, implying that Chevron Corporation will be required to share its existing customers with these new firms, therefore reducing sales and consequently the profitability of the firm as well as that of the industry as whole. To address this issue the Chevron Corporation has to use its strong capital base to diversify its markets as well as create a strong consumer relation so that new firms find it difficult to penetrate the market. It should also make sure its brand name is well-established so that its consumers don’t forget it as soon as new firms enter the industry. Its good should also be differentiated such that they stand out from those of the other firms and easily recognized. The quality of the said products should also be checked so that existing consumers do not leave them when the quality of these new firms is higher than that of Chevron.Greatest Opportunity The company website suggests that there are numerous opportunities available for Chevron Corporation which can be optimized for profitability. These include the availability of internet where research and E-commerce can be done efficiently, a strong social media base by which faster advertisement with wide range can be made and household income increment which reflects to consumer spending habits thus high purchasing power. there is also onset of products which are environmentally friendly plus subsidies by government on these products. Lastly, the interest rates for loans are low, thus high investment opportunity for large
  • 5. projects. The greatest of these opportunities is the availability internet and strong social media base. The internet is a great opportunity for Chevron. This is because with the internet, the corporation is able carry out research which is the very major force that drives many companies past the rest. Research will enable Chevron to come identify its customers current needs and respond faster and better to them as well as helping the company to know new niches available for investment so as to raise its profitability. Research will also help the firm to identify opportunities to diversify its market, say, in areas where the demand is high but its products are not efficiently available. A strong social media presence also helps Chevron to market its products to a wide range of consumers at a lower cost which would otherwise be costly. Strengths and Weaknesses Online database proves that one of the greatest strengths of Chevron Corporation is that it has a stable network of distribution with large outlet numbers. It also has a strong capital base, availability of skilled labor which is diversified, innovative and excellently qualified, a social media platform with strong presence and low-cost structure, giving it an added advantage over its competitors. Its greatest strength is strong capital base. Weaknesses of Chevron are that it operates largely on rented property which consume huge sums of money, low amount is also spend on research which risks outdating, high employee turnover rate as well as low motivation and morale and finally liquidity problems where current liabilities are higher than assets. The lack of motivation and morale of workers remains to be greatest weakness of Chevron. Strategy or Tactic The Chevron Corporation should use its strength in strong capital base to establish a stable network of distribution as well as increase the number of outlets all over the globe as to make
  • 6. sure that it reaches a wide customer base, therefore boosting the sales and profitability of the firm. This will also help serve as a barrier to new firms wishing to enter the market since Chevron is already well-established. The greatest weakness of Chevron Corporation which is lack of motivation and morale among the employees can be remedied by ensuring there are effective channels of communication, mostly vertical, to enable employees to air their concerns to the leadership as well as give feedback. Employees retention is a big problem in this corporation, and therefore the corporation should invest in its employee’s welfare and know why they keep leaving after much resources and time has been invested on them, to reduce overall cost. The employees should also be rewarded on merit to promote healthy competition and lastly create events for them to have fun and get to know each other better. Resources, Capabilities, and Core Competencies In conclusion, company resources are all those assets which the company has total control over and can be brought together for achievement of its goals. For Chevron Corporation, these resources include human resources, material resources and financial resources. Human resources are the skills, experience, qualification time availability and geographical location. Material resources are machinery, computers and other inputs while financial resources are cash, checks, bank deposits and stocks and bonds. Chevron has its core competencies which gives it competitive power over other corporations in the oil industry. These core competences are; · Healthy and sustainable environment- it has a very long partnership with World Health organization to protect wellness of people · Natural gas, a core player in better future of the planet- these natural gases products are available to over 5 billion on affordable reasonable prices · Development partnerships- Chevron has partnered with Science and Mathematics faculties to improve on quality
  • 7. provided, and change approach to these subjects Sources 1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning 1. Cherry, M. A., & Sneirson, J. F. (2012). Chevron, Greenwashing, and the Myth of'Green Oil Companies'. Journal of Energy, Climate, and the Environment, 3. 2. Herman, T. (1999). Blood and oil: shooting deaths of young Nigerian activists are linked to Chevron Corporation [Ilaje region]. Alternatives Journal, 25(2), 8. 3. Ives, B., & Learmonth, G. P. (1984). The information system as a competitive weapon. Communications of the ACM, 27(12), 1193-1201 4. Ketola, T. (1993). The seven sisters: Snow Whites, dwarfs or evil queens? A comparison of the official environmental policies of the largest oil corporations in the world. Business Strategy and the Environment, 2(3), 22-33. 5. Lawrence, J. E., & Cerf, D. (1995). Management and reporting of environmental liabilities. Management Accounting (USA), 77(2), 48-55. Running head: CHEVRON CORPORATION 1 CHEVRON CORPORATION 2
  • 8. Chevron Corporation Lucy Rowell Introduction Chevron is an American based multinational company that operates within the energy industry. The headquarters of the company is at San Ramon, California. Chevron was founded back in 1849 and has operated for over 140 years. The operating revenue of the company is at $158.9 billion with an operating income $15.45 billion. It acted as the predecessor of standard oil company and the company has continued to be fully functional and a leading player within the energy sector. Chevron operates in over 140 countries across the globe. It is ranked as one of the largest oil companies around the world which has positively contributed to the economic growth of the country. It is also traded in the New York Stock Exchange making it one of the leading players within the oil sector. The paper explains the impacts of technology and globalization together with the organizational model and resource-based model. Globalization Globalization is one of the key issues that positively led to the expansion of the company within the globe. The emergence of other oil companies have led to the expansion of the multinational corporation to other countries. Through Foreign Direct Investment, chevron has managed to expand its services
  • 9. to other parts of the globe (By, 2016). Companies such as BP plc. Offered competition to the company making it to adopt expansive strategy that facilitates it to be fully effective within the industry that it operates within. However, factors such as the great depression affected the prices of oil in the country affecting the industrial position. The ability of the company to evolve and adopt to the global industrial skeptics has enabled it to be fully functional in both developed and developing countries across the globe. Technology The change in technology within the oil sector is a factor that has made Chevron to continuously evolve and remain relevant within the industry. Today, Chevron is one of the companies within the oil industry that has ensured that it integrated IT with is administrative structure. The company is keen at using social media sites such as Facebook and twitter as part of its marketing strategy (Tarca, Vatuiu & Popa, 2016). The existence of the company website https://www.chevron.com/ enables customers and employees to access the site and get more information about the site. The website contains important information such as project portfolio, operations, technology, corporate responsibility and the company investors. The company has highly been successful in integrating employee information through systems that adjust to the needs of the market that facilitates the company to be fully effective. The Industrial Organizational Model The industrial organizational model of the company is highly organized and detailed to provide a clear understanding of the process. The basic conditions for Chevron are perfectly applied it entails key economic issue that the company needs to consider such as the demand and supply. It also describes the industrial structure that needs to be appropriately observed. Relevant factors such as the conduct of the industry is mentioned. A look at the general performance of the company in the industry is also evaluated (By, 2016). The assessment of the industry through the use of the model enable the company to
  • 10. earn above average despite of the high level of competition from other multinational companies. Additionally, the company is likely to gain from the economies of scale that comes with operating within the market. The model is perfectly aligned to the goal of the company to the market. Resource-based Model As a multinational corporation the company is keen at has a resource-based model that is clearly focused on the goals and objectives. The model explains the resource-based view that explains how it relies on both tangible and intangible that should be both immobile and heterogenous. This is a key contributing factor that makes the company one of the major players within the industry that it operates within. The company mostly gets its raw materials through importation and the utilization of the local oil wells (Kung, Pui & Chung, 2017). The activity has fully been effective in giving the company a competitive advantage. The workforce of the company is both skilled and unskilled that employs various engineers and miners that offer the best services. The activity leads to the creation of a competitive advantage within the industry. Aligning the company with the goals is a clear matter of concern that resource based model. Vision and Mission Statement Assessment The vision of Chevron Corporation is to the Global Energy Company most admired for its people and performance. The mission of the company is our company’s foundation is built on values which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. the vision and mission of the company are deeply aligned with its success. It sets up the targets that the company requires to be fully functional within the market. Ideally, it instills an organization culture among employees that is deeply embedded in the company values that reflects the overall needs of the company in a positive way (Hitt, Ireland & Hoskisson, 2013).
  • 11. Its mission and vision drive the important departments of the company to focus on the organizational success which positively elevates the position of the company. Stakeholder Impact Shareholders play an important role in the expansion of the company within the industry. They provide the relevant investment that enables the company to pursue its goal and expand within the industry. The employee are the important stakeholders that are responsible in driving the goals of the company towards success (By, 2016). It is an important elemental factor that contributes to the expansion of the company processes and daily activities. The supplies play a key role in ensuring that the supply of raw material within Chevron Corporation is steady. It is a positive practice that leads to the expansion of the company within its industry. The customers are important stakeholders that Chevron focuses on to ensure that it retains its industrial position. Therefore, each stakeholder plays an important role in the survival and expansion of the company. Conclusion In summary, the paper explains the impacts of technology and globalization together with the organizational model and resource-based model. Globalization is one of the key issues that positively led to the expansion of the company within the globe. The emergence of other oil companies have led to the expansion of the multinational corporation to other countries. The vision of Chevron Corporation is to the Global Energy Company most admired for its people and performance. The mission of the company is our company’s foundation is built on values which distinguish us and guide our actions. As a multinational corporation the company is keen at has a resource-based model that is clearly focused on the goals and objectives. The model explains the resource-based view that explains how it relies on both tangible and intangible that should be both immobile and heterogenous. References
  • 12. By, S. L. (2016). Chevron, sasol set natural-gas accord --- joint venture will exploit method of converting natural gas to liquid. Wall Street Journal Hitt, M, A., Ireland, R, D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competitiveness and Globalization (10th ed.): Mason, OH: South-Western Ccengage Learning. Kung, W. L., Pui, Y. L., & Chung, Y. Y. (2017). A collective organizational learning model for organizational development. Leadership & Organization Development Journal, 40(1), 107-123. Tarca, N., Vatuiu, T., & Popa, A. (2016). The importance of the web technologies during the communication process between a company and its clients. St. Louis: Federal Reserve Bank of St Louis. Running head: BUS499 BUSINESS ADMINISTRATION CAPSTONE 1 BUS499 BUSINESS ADMINISTRATION CAPSTONE 2 Lucy Rowell Bus499 Business Administration Capstone 3/12/20
  • 13. Introduction The paper discusses how the Chevron, an American based multinational company operating in the energy industry, can effectively carry out its operations, to realize business sustainability. The energy industry is highly competitive, especially in the global markets, and therefore, the participants are required to adopt effective business-level strategies. Key elements to be covered in the paper include; analysis of the business-level strategies and Corporate-Level Strategies of the firm and proposal of the strategies that I think are the most appropriate in the company’s long-term success. The paper will also look into the competitive environment to determine the greatest competitor to the firm. The final consideration will be the market cycles, and whether the made choice of strategy will differ under slow and fast-cycle markets. Business-Level Strategies Chevron long term sustainability in the business is mainly based on its focused differentiation within a small market niche. The company identifies the market segments to offer its products, based on its interests, organizational goals and mission. Its main market segment is small businesses, who consume its products. The business strategy has been critical in promoting inclusive market environment, as it does help not only the company but also the small suppliers. Differentiation is further enhanced by targeting specific age groups. For instance, the company targets for educational purposes only and views students at the college levels as potential customers for its
  • 14. products. The business strategy adopted by this company has been effective in creating adequate product awareness at the market place. Through the differentiation strategy, the company has been able to establish a positive business relationship with local and small businesses, and they trust that the company offer quality and safe products. Differentiation strategy adopted by the Chevron Corporation is ideal for its long-term business sustainability, as it creates customer loyalty. Customers form the backbone of businesses, as sales must be made for profits to be realized. Chevron has created a large pool of loyal customers, which guarantee a regular flow of income to the company. The revenues can be used in funding business operations and facilitating further expansion or growth. Chevron does not experience any issues in executing its business-level strategy, as it has got the capability to do so. It has an adequate resource base, which funds the marketing campaigns, ensuring that the smallest targeted markets have been served effectively. Again, the company has got an experienced marketing team, who interact with the customers positively, thus creating a good relationship. It is through such positive relationships with the customers that the company has secured a significant market share and high sales. It is quite difficult for other firms to get market share in areas where Chevron has won (Chevron Corporation, 2020). Corporate-Level Strategies The corporate level strategy adopted by the Chevron is an expansion strategy, mainly focusing on concentration. Under the concentration expansion strategy, a firm focuses on directing the organizational resources, towards attaining specific goals. In the case of Chevron, the company is after achieving huge financial growth, disciplined or sound spending and increasing its production. Such targets are expected to have materialized within a span of five years. The expansion strategy will have a significant effect on the company’s future sustainability, considering that it will increase
  • 15. its market share and revenues. The idea of increasing production results in large economies of scale, which will have got the benefit of reducing the production cost per unit. The lower the production costs, the higher the firm’s profitability. Chevron stands to benefit from significant business growth, based on the adopted corporate-level strategy. I believe that Chevron has adopted an effective corporate strategy, which will enable it to have a better position at the market in future when compared to its rivals. Chevron has the necessary capacity for ensuring that the business expansion strategy has been executed successfully. It has got huge resource endowment, which will fund the business expansion needs. The company has got an effective management team, hence the key reason behind its success at the market. The management has got the capacity of making sure that the organizational resources have been allocated wisely and effectively utilized, towards realizing the expansion plans. Besides, the team will be able to manage the expanded business, as it has got the capability and experience (Chevron Corporation, 2020). Competitive Environment The energy industry is highly competitive, and that possesses a threat to Chevron’s success at the market and executing its business and corporate-level strategies. The greatest rival to Chevron Corporation is the Exxon Mobil. The company has remained to be the greatest competitor to the Chevron Corporation because the two seem to operate on under similar business and corporate strategies. In the case of business-level strategy, Chevron Corporation focuses on serving the needs of small markets and suppliers, hence forming the basis of expanding to larger markets (Chevron Corporation. (2020). Exxon Mobil also uses a similar strategy. The company has invested heavily in technology and creating positive relationships with the communities it serves, in the process of trying to achieve global prosperity (Exxon Mobil Corporation, 2020). The two companies have established
  • 16. loyal customers to almost the same extent. Concerning the corporate level strategy, even although the two companies have adopted an expansion strategy, Chevron has mainly focused on expanding its production and growing financial returns. In the case of Exxon Mobil, the main company focus is realizing a greater market share by going global (Exxon Mobil Corporation, 2020). The two companies have been differentiated by the corporate level strategy, which is ideal in determining the long-term business sustainability of growth. Comparing the two companies, Exxon Mobil is most likely to be successful in the future. Business success mainly depends on the market share and the number of customers served. Exxon Mobil is most likely to realize huge market share globally, hence generating large amounts of revenues when compared to the Chevron. The higher the market served, the higher the sales, and cost-saving arising from economies of scale (large scale operations). Not unless Chevron adopts effective corporate- level strategy, it will not be able to compete effectively with its rival, Exxon Mobile, in the coming years. Market Cycles A slow market cycle occurs where resources have been shielded, and the concerned company maintains high monopoly levels at the market place, in such that the competitive pressures are put under adequate control (prevents competitors from joining the market). The fast cycle markets are the exact reverse of the slow market, as the markets are normally characterized by highly competitive pressures. To survive in the market, companies are required to remain innovative and effectively track the business strategies adopted by competitors. Companies are also required to identify new market gaps and serve them effectively (Hitt, Ireland, & Hoskisson, 2020). In my choice under the competitive environment, I have argued that Exxon Mobil, which is after going global, will be more competitive than Chevron, which is focusing on financial growth and increasing production. The business-level strategies do not differentiate the two companies, with respect to the
  • 17. future, as they have got similar strategies. In the case of a slow market cycle, even although the two companies stand to grow at the same rate due to lack of competition, still Exxon Mobil will be better off. The company will easily cover a large global market, hence generating high sales. The difference between the two companies will be on the size of the market served. My choice will still remain the same. Under the fast market cycle, the choice will also remain unchanged. Both companies will be facing similar threats at the market (competition pressures), which inhibit their expansion plans. However, Exxon Mobil has got an advantage over its rival, Chevron Corporation. The global market will provide huge business opportunities, which the firm can tap and make the best out of it. Chevrolet will face stiff competition at its limited market. In the end, irrespective of the state of the market cycles, Exxon Mobil will perform better than the Chevron Corporation. Such observation tells us that the long-term growth of business mainly depends on the adopted business level and corporate strategies. Sources 1. Hitt, Ireland, & Hoskisson. 2020. Strategic management: Concepts and Cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning 2. Chevron Corporation. (2020). Retrieved from https://www.chevron.com/ 3. Exxon Mobil Corporation. (2020). Retrieved
  • 18. from https://corporate.exxonmobil.com/ How to Use This Template Each slide needed in your submission is provided in this template. Do not add slides Do not delete slides (except the “How to Use This Template” slide) Replace the “blue” font on each slide with your presentation content Change all font to black Use bullet points on the slides Do not type every word you plan to say on the slide Enter the text/transcript of your talk in the speaker notes section The speaker notes section is the gray area below each slide Do not enter your speaker notes in comment boxes Do not include audio or video clips Delete this slide before submitting your assignment Delete this slide before submitting your assignment Notes: This is the speaker notes section of the PowerPoint presentation.
  • 19. Do Not type every word you plan to say on the slide. Everything you would say if you were giving a live presentation should be provided in text form in the speaker notes section of each slide. 1 BUS499 Capstone Assignment 4 Insert Student’s Name Here Insert what you would said to introduce yourself to your executive audience and tell them what you are going to cover in your presentation Do Not type every word you plan to say on the slide. Use bullet points only. Everything you would say if you were giving a live presentation should be provided in text form in the speaker notes section of each slide. 2 SWOT Analysis of Company NameStrengths Insert a bullet or two describing strengths of the firmWeaknesses Insert a bullet or two describing weaknesses of the
  • 20. firmOpportunities Insert a bullet or two describing opportunities available to the firmThreats Insert a bullet or two describing threats to the firm Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to capitalize on its strengths and opportunities. 3 SWOT Analysis Strategy Strengths and Opportunities Insert a bullet describing the strategy to capitalize on strengths and opportunities Insert another bullet describing the strategy to capitalize on strengths and opportunities Insert exactly what you would say to your executive audience to describe each bullet point on this slide
  • 21. You should thoroughly outline a strategy for the company to capitalize on its strengths and opportunities. 4 SWOT Analysis Strategy Weaknesses and Threats Insert a bullet describing the strategy to minimize weaknesses and threats Insert another bullet describing the strategy to minimize weaknesses and threats Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a strategy for the company to minimize its weaknesses and threats. 5 Competitiveness Strategy Competitiveness 1st bullet point of levels and types of strategies to maximize competitiveness 2nd bullet point of levels and types of strategies to maximize competitiveness
  • 22. Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly discuss the various levels and types of strategies the firm may use to maximize its competitiveness. 6 Profitability Strategy Profitability 1st bullet point of levels and types of strategies to maximize profitability 2nd bullet point of levels and types of strategies to maximize profitability Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly discuss the various levels and types of strategies the firm may use to maximize its profitability. 7 Communications Plan Competitiveness Strategies 1st bullet point on the plan to communicate the competitiveness
  • 23. strategies to stakeholders 2nd bullet point on the plan to communicate the competitiveness strategies to stakeholders Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended on the previous slide known to all stakeholders. 8 Communications Plan Profitability Strategies 1st bullet point on the plan to communicate the profitability strategies to stakeholders 2nd bullet point on the plan to communicate the profitability strategies to stakeholders Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly outline a communications plan the company could use to make the strategies you recommended
  • 24. known to all stakeholders. 9 Corporate Social Responsibility Responsible (ethical) corporate citizen 1st bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example 2nd bullet point on the assessment of efforts by the corporation to be a responsible (ethical) corporate citizen – specific example Impact of efforts on company’s bottom line 1st bullet point on the impact the efforts have on the company’s bottom line – specific example 2nd bullet point on the impact the efforts have on the company’s bottom line – specific example Insert exactly what you would say to your executive audience to describe each bullet point on this slide You should thoroughly assess efforts by this corporation to be a responsible (ethical) corporate citizen and thoroughly determine the impact these efforts (or lack thereof) have on the company's bottom line. Provide specific examples to support your response. 10 References
  • 25. Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning. Insert second source Insert third source Insert any additional sources You should use at least three (3) quality references, one of which should be the course textbook. Wikipedia and similar websites do not quality as academic resources. 11