Chevron Report
BSB 5004 Introduction to Management
2012/2013
Done by:Eyad AlAnsari 201100251
Bayan Abdulhusain 201100548
Yazen Na’il
201100058
Jawad Ali
201100743
Tutor:PJ Bardsley
Class:06
Table of Contents
Introduction ..................................................................................................................................... 3
Strategy ........................................................................................................................................ 3
Mission, Vision, Values ................................................................................................................ 3
Financials...................................................................................................................................... 3
Corporate Communication .............................................................................................................. 4
Share/Stock-holders:- .................................................................................................................. 4
Employees-................................................................................................................................... 4
Organizational Culture ..................................................................................................................... 5
Corporate Social Responsibility ....................................................................................................... 6
Chevrons Efficient Solutions ........................................................................................................ 6
Chevron and Charity .................................................................................................................... 7
Effective Leadership ......................................................................................................................... 8
Conclusion........................................................................................................................................ 9
References:- ................................................................................................................................... 10
Introduction
Strategy
The company Chevron goes all the way back to 1879, where it was founded on
September the 10th by a group of explorers and went under the name of
“Pacific Coast Oil Co.” The companies name have changed several times over
the years, but it kept its spirit, grit, innovation and perseverance. Chevron
ended up eventually as a worldwide major energy corporation that provides
Oil, Gas and sustainable energy. (Chevron, n.d.)
Mission, Vision, Values
Chevrons mission is aimed to conduct the business using “The Chevron Way”,
which is known as the right way according to the company. The companies
vision defines its mission, which states the following:
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Provide a world class performance.
Provide essential energy products that are supportable to the human
development and economic progress.
Prove and show that they are the partner to choose
Prove and show their commitment and capabilities
Achieve the trust of their customers, investors, employees, local
communities and the government
Chevrons foundation is established on their values, which makes them unique
and directs their actions.
They conduct their business in an ethical responsible manner. They respect the
law, protect the environment, benefit the communities and support human
rights. Their main values are following: Integrity, Diversity, Trust, Ingenuity,
Partnership, High performance and Protecting people and the environment.
(Chevron, 2013)
Financials
Regarding Chevrons financial information (Chevrons Annual Report 2012),
Chevron ended up with an amount of sales and other revenues around of
230,590 Billion dollars. With the corporation’s net income reaching up to
26,179 Billion dollars. (Chevron, 2012)
Corporate Communication
Share/Stock-holders:Chevron sets annual meetings, through those meetings the board management
discusses all the financial records that are important and would affect the
stockholders.
The CEO David O’Reilly, Peter Robertson (Vice Chairman of Boards) and George
Kirkland with Mike Wirth (Executive Vice Presidents) discuss different factors
such as strategies, financial records, profit margins and other financial
statements that show what the company has achieved annually.
Specifically, the CEO David O’Reilly discussed the impact of technology on the
company and its production whereas Peter Robertson the Vice Chairman of
Boards talked about the financial returns of the company. The Executive Vice
Presidents George Kirkland and Mike Wirth discussed the strength of
Chevrons’ position worldwide.
Through those Annual Meetings, the company communicates with its
stockholders and clears up all the relevant information that matters them.
This would help in providing a clear image of the company that would
furthermore build a trustful relationship with its stockholders, especially
when it’s in a beneficial way to both the company and its stockholders.
To sum up, through those meetings the Share/Stock-holders of the company
have the opportunity of submitting any type of proposals. An example of that
are the 9 proposals of the Chevron Stockholders in the Annual meeting.
(Making The Watchlist: Chevron Highlights Record-Setting Year at Annual
Stockholders' Meeting, 2007)
EmployeesCommunication between employees in Chevron is done basically using the
development project done by IT Company which is called ‘’NetReady’’.
NetReady connects more than 50,000 desktops together which furthermore
provides a common network platform that all the Chevron employees are
able to communicate and collaborate through.
Employees can access information through any desktops connected to the
internet. It helps the company to overcome different types of difficulties, an
example of a challenge is the SARS incident in Philippines that led to closing
the Chevron office but with the help of the NetReady program, the
employees continued their job with few obstacles accessing information
through their personal desktops at home or hotel rooms.
Thus, the NetReady program represents the main factor which allows all the
employees to communicate together and accomplishing their tasks whether
within the workplace location or outside their offices. (Chevron Information
Technology Company, 2013)
Analysis:It is a very important factor to discuss all the topics that are related to the
stockholders and would seem interesting to them as they would like to know
what is going around in the company.
The Head management meeting with the stack/share holders represents many
benefits to the corporation as it builds trust between both sides which could
furthermore lead to a long-term business relationship between them.
Furthermore, the connection between employees whether during working hours
or off workplace helps the company to benefit from the connection of ideas,
information and files as it will help in Time-consuming and increasing
productivity.
Organizational Culture
The organizational culture is considered to be the behavior of the people who are
part of a company; it also refers to what is actually implied to the actions of
the people.
The company Chevron has developed its unique organizational culture based on
core corporate values which include: Integrity, Trust, Partnership, Diversity,
Ingenuity, Protecting people & the environment and the High performance.
The corporate culture of the company Chevron comes from putting these
values into action and applying them in the business. Their organizational
culture of the company Chevron is referred to as doing things: The Chevron
Way:
Not only “the Chevron way” explains the culture of the company and its employees,
but it also explains it to the people who interact with the company itself. Where
there are different characteristics that are linked to Chevrons corporate culture, such
as the stating of the company that they try to achieve the desired result for the
investor or the stakeholder. This statement is linked to the outcome orientation
characteristic. (The Chevron Way, 2013)
Another characteristic that links to the Chevrons corporate culture is the
companies’ attention to detail, where they show and implement that
characteristic in their strategies which include:
1- The investing in people in order to strengthen of the corporate capability and
to improve and develop the work force in order to get the best result by using
the most suitable approach.
2- The executions excellence by using strict applications of the companies’
operational excellence, its cost management systems and its capital
stewardship system
3- The increase of the profitably by the usage of the competitive advantage in
order to maximize value for the existing assets.
As you can see from the mentioned bullet points, there is a quite noticed
attention to the amount of details that was put into developing the corporate
strategies.
Analysis:Giving an example on organizational culture for the first mentioned bullet point is
the Reward program, which is a program that is implemented within the company
toward its employees. The program is sat to improve and develop the workforce by
encouraging them on achieving rewards based on their accomplishments. One of
Chevrons subsidiaries, Chevron Lubricants Lanka PLC, organized a ceremony night
with the title of “Star Awards”, where all the achievers within the company where
honored by the management and directory. (Strategies, 2013)
Corporate Social Responsibility
CSR is how an organization helps the environment, community, government or
any other factor that benefits the firm or the society. Some types of CSR’s
could be beneficial towards the company resulting increasing profits or
beneficial to the environment surrounding the company mostly.
Chevrons Efficient Solutions
Chevron Energy Solutions has contributed in developing learning environments
for students in Chariho and East Providence Vocational Technical Schools in
Rhode Island, who had difficulties in energy infrastructures within them
which resulted in a lack of domestic and heating water systems.
Chevron Energy Solutions project included implementation of upgrades to the
water systems helping in developing better heating and cooling systems.
This project included cutting costs by $139,000 per year to the school.
Furthermore, production of natural gas due to implementation and usage of this
system through heating and cooling, benefits the Chevron by increasing the
production of renewable energy that results in efficiency of projects.
Customers are also gained by implementing such systems due to the benefits
they carry. (Robert, 2007)
Chevron and Charity
Chevron is known for the charity funds they offer to organizations that help the
community. Chevron and Richmond gave an amount of $1million to help
groups around areas that are responsible and focusing on economic
development and education.
The funds were distributed between West County Bridge College and Contra
Costa Economic Partnership ($200,000 each) which helped them in
developing learning and education. The remaining $600,000 were handed to
Rubicon and the Community Housing Development Corp, who are
responsible for a program called New leaders which helps in supporting
job/entrepreneurship and emerging leadership academies.
Chevrons Corporation has approximately pumped $150 million since 2009 to
organizations, communities, charity projects that are responsible in
developing the community.(Rogers , 2012)
Analysis:We have seen that Chevron has contributed hugely in developing the
surrounding environment of the company as well as the employees and co
operation itself . Chevron is helping the economy not only now but also
within the years and has tremendously helped the company to built and give
a satisfactory image and impression to the customers and the community
which has resulted in attracting customers as they feel that this corporation
Cares about them and this has built a trustful relationship with them. Chevron
supports projects such as producing renewable energy and events that helps
to develop a brighter and a better environment for the future generation
Effective Leadership
John Watson , was assigned the CEO of Chevron. Watson has been working for
chevron since the 1980s and by 2005 he was assigned president of Chevron with
many responsibilities for the companies works outside North America , two years
later Watson was the Executive President for Chevrons strategy and development as
well as director and shortly after that he became the chief financial officer and
finally the CEO of the company. Watson has decided to focus on cost-efficient ways
to produce Oil. (Helman, 2013)
Chevron gets an income of about $24 per barrel of oil while other companies get
about $19 and Watson has said that he can keep these profits rising by making the
company work and grow from within, which is by the effective work of the
labours/employees inside.
Watsons decision to expand the company's profits by working together as one team
with the employees within the company on projects focusing on liquid natural gas
plants , deep water developments and massive oilfields will enhance Chevrons oil
and gas quantity by 25% which is equal to 3.3 million barrels each day over the
following four years .
Since Watson has taken the place of CEO the capital expenditure of the company has
raised up to $100 billion within 5 years.
Other decisions taken by Watson:1. Investing $25 billion for Kazakhstan's Tengiz mega field in order to make one
million barrels of oil per day instead of 750,000.
2. Invest $12 billion in Nigeria's offshore and $8 billion to construct the first gas to liquid
plant which transforms natural gas into more worthy diesel and lubricants. (White,
2009)
Analysis
It is noticeable that Watson is an effective leader and a transactional leader as well
as task oriented leader who takes excellent decisions that have profited Chevron in
many ways.
Watson is a transactional leader. He has made decisions like choosing team
members from within the company and asking them to work on projects which
might or might not be successful but he knows what he is doing and is confident as
well as has faith in the employees.
Watson is a task-oriented leader. Watson has become the CEO of chevron in a short
period of time and what Fadhel Ghiet the senior energy analyst of Oppeneimer & Co
has said about Watson " you could always tell that he was on the fast track" which
means that he focuses on his assigned tasks and goals and always did what needed
to be done and this is what has made him reach this position quickly .Another thing
said was by Weiss " he's a good track record and he takes over the company with a
very good pipeline of projects" showing that he controls the company by completing
tasks and projects and this has built a good image about him.
Conclusion
To sum up, Chevrons Corporations is well know world widely and has a strong brand
awareness around the world. It would be a good opportunity and an honor to work
for such a company due to its good reputation and benefits that could be gained by
being a part of it.
Due to the financial power of Chevron, it’s a very good idea to invest through this
company as all examples and previous partnerships has shown benefits and profit
margins. Chevrons Corporations is well known for its guaranteed investments.
References:1. The Chevron Way. (2013). Retrieved from Chevron Human Energy:
http://www.chevron.com/about/chevronway/
2. (2007, Feb 02). PR Newswire. Retrieved from
http://search.proquest.com/docview/451038123?accountid=62741
3. Strategies. (2013). Retrieved from Chevron Human Energy:
http://www.chevron.com/about/chevronway/strategy/
4. Chevron richmond announces $1 million in grants for local education, jobs
initiatives. Oakland Tribune. Retrieved from
http://search.proquest.com/docview/1240669791?accountid=62741
5. Helman, C. (2013). The World's Biggest Gusher. (cover story). Forbes, 191(3), 62-68.
Retrieved from: http://web.ebscohost.com/ehost/detail?vid=11&sid=9b857c62-c250-
44d3-8a3ae51e9ebc0a8d%40sessionmgr14&hid=23&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d
%3d#db=buh&AN=85639723
6. White, R. D. (2009, Oct 01). Chevron CEO to retire; his successor is named; vice
chairman john S. watson will replace david J. O'reilly. the move was expected but
not the timing. Los Angeles Times. Retrieved from
http://search.proquest.com/docview/422424774?accountid=62741
7. Making the watchlist: Chevron highlights record-setting year at annual
stockholders' meeting. (2007, Apr 26). M2 Presswire. Retrieved from
http://search.proquest.com/docview/446211861?accountid=62741
8. Chevron information technology company. (2013). Austin: Dun and
Bradstreet, Inc. Retrieved from
http://search.proquest.com/docview/230566541?accountid=62741
9. Masada, G., & Brown, P. (N.D.). TO CENTRALIZE OR DECENTRALIZE? Optimize,
4, 58-61. Retrieved from
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10. Chevron. (2012). Chevrons annual report. Retrieved from
http://www.chevron.com/annualreport/2012/documents/pdf/Chevron2012Ann
ualReport.pdf
11. Chevron. (n.d.). Company history. Retrieved from
http://www.chevron.com/about/history/