Strategic Management & Strategic Competiveness
Globalization is the rising economic interdependence among nations and their organizations as revealed in the flow of goods and services, knowledge as well as the financial capital all over the world regardless of the national borders. Chevron Corporation is a global energy company dealing with oil and gas. Its headquarters is situated in the United States of America, and the company operates in several parts of the globe (Rutledge, 2006). The corporation deals in energy services, power generation, petroleum products, mining, and chemical products. It was established in the year 1879 with its initial name Pacific Coast Oil Company. Afterward, the company name was changed to Standard Oil Company and later on, with the acquisition of Gulf Oil Corporation in the year 1984, it was changed to the current name Chevron Corporation. Over the years, Chevron Corporation has remained viable globally due to its competitive strategy. This paper assesses how globalization and technology changes, the industrial organization model and the resource-based model, the vision and mission statements as well as each category of stakeholder influence the overall success of Chevron Corporation.
Globalization and Technology Changes
Taking into consideration the existing trend of globalization in the business over the years, the corporation has carried out its business by expanding to other parts of the globe. Globalization has made it possible for the firm to acquire more customers for its products and services as Chevron is in the position to market and trade the products worldwide. Through globalization, the business has learned new techniques of production from other competitors since there are so many interactions on the market. A wide variety of talents has been incorporated into the firms activities because workers possessing different experiences have been attracted from the various parts of the world (Hitt, Ireland, & Hoskisson, 2013).
Modern technology is also a crucial element in the world of business in the modern world, and it has been utilized by the Chevron Company in carrying out its activities (Rutledge, 2006). By the use of technology, the corporation has been in a position to cut back its human labor, thereby reducing on the cost of labor because the recently invented machines turn out to be effective. It has facilitated quality improvement as well since the machines are very precise in carrying out required tasks. It can also be noted that technology has assisted the business in facilitating communication with the prospective investors across the globe. This is significant in that it has helped the company to acquire investors that have enabled to meet the capital needs by means of the sale of shares. More oil reserves have also been discovered through technology.
Industrial Organization Model and the Resource-Based Model
The corporation can implement both the industrial organizational model as well as the resource-based model strategies. The industrial organizational technique is the focus on the industrial business setting prior to establishing business decisions. On the other hand, the resource-based technique allows the company to look into its internal abilities as well as its resources prior to coming up with decisions. To incorporate the two, Chevron must strive and attempt to comprehend the internal competitive benefits, including the external competitive ones it is comprised of (Hitt et al., 2013).
For the company to adopt the industrial organizational strategy, it must recognize his competitors and the variety of products that they provide. This will assist in choosing the suitable variety of products to produce. The organization must attempt to reduce its costs of production below those of its competitors to gain competitive advantage. Furthermore, the company should utilize the resource-based model in an effort to flourish in the market. This can be undertaken by incorporating the utilization of resources that include management competency, equipment, capital and worker skills. Thus, it should strive to gain a competitive advantage by merging its abilities and resources in a way that it can never be outdone by its competitors (Rutledge, 2006).
The Vision Statement and Mission Statement
The unrelenting accomplishments of the Chevron Company can be associated with the dedication to its mission and vision statements. The mission statement of the corporation affirms that its foundation is built on its values that differentiate it and steer its actions. It is also the firms mission to carry out its business, at the same time ensuring its ethical and social responsibility (Hitt et al., 2013). The organizations mission statement is to achieve the position of being the worldwide energy firm whose presentation, the partnership, and the people are commendable.
The companys mission statement is crucial because it is a continuous reminder to all the stakeholders that their organizational values are rather significant for the accomplishments of the organization. Thus, it inspires them to work with sincerity in their dealings in an effort to achieve high ethical values for the good of the business. It allows them to embrace cultural diversity and the variety of different talents of the stakeholders. On the other hand, the vision statement of the company reminds the workers that their products are significant in the community and they must be of good quality. It also inspires the stakeholders of the corporation to uphold good customer relationship since the organization desires to be accepted for its partnership (Hitt et al., 2013).
Chevron Corporation is comprised of various stakeholders that add up to the many ways towards its accomplishments. These stakeholders include employees, government, suppliers, communities, customers, stockholders, and some of the non-governmental agencies like the research partners (Friedman & Miles, 2006). The government is an essential stakeholder as it contributes towards the achievements of the corporation by allowing the business the legal rights to acquire raw materials, to spread out its operations both locally and internationally, and to carry out research. The stockholders of the business assist in attaining its production activities by offering the needed capital through the purchase of the shares. They also assist in the decision-making process. The surrounding communities help the company by establishing a peaceful and enabling environment crucial for business.
On the other hand, Chevrons customers are other very crucial stakeholders since they offer the market for the companys products. They buy the products, thereby bringing revenues for the company. Other major stakeholders are the workers of the corporation. The workers assist in the processes and procedures of production and availing Chevrons products to the customers. Suppliers are significant in that they offer raw materials for the production of the companys products. Finally, the research partners guide the corporations success because they help in the unearthing of new mineral deposits as well as discovering new production processes (Friedman & Miles, 2006).
In conclusion, it is worth noting that in an effort for a business to compete constructively, it should merge several management approaches and work with stakeholders in making decisions where possible. In the 21st century competitive environment, the basic nature of competition has transformed. Therefore, those making strategic decisions should assume a new approach that is universal in nature. Companies and corporations should learn the manner, in which to compete in extremely unstable and messy environments that generate confusion and too much uncertainty. The globalization of industries and their markets and speedy and crucial technological alterations are the two basic aspects leading to the 21st century setting. In the course of their actions, corporations try to find strategic competitiveness as well as above-average returns. Strategic competitiveness is attained when a company has established and learned the manner, in which to execute a value-creating approach.