What is a strategic plan?
Strategic planning is an administration’s process of describing its policies or directions and assembling decisions on shared out resources to follow this policy, in order to define directions of the business. It is essential to comprehend its existing position and the likely opportunities through which it can pursue a specific sequence of action. It compacts with three queries: what do we do? ,to whom do we do? And how do we excel (Armstrong, 1996)
What is the background of chevron?
Chevron is one of the world’s leading integrated energy companies, with branches that conduct business worldwide. It started with the location of oil in the north of Los Angeles in 1879 followed by creation of pacific coast Oil Corporation, the oldest antecedent of Chevron Corporation. Standard Oil Company that was owned by John D. Rockeller bought pacific coast oil in 1900 and six years later the name became standard oil company. Chevron Texaco Corporation was founded in 2001 union of California-based Chevron Corporation, the Standard Oil Trust, and Texaco company whose past traces back to the prompt years of the Texas oil industry. ChevronTexaco started its survival as the number two United States centered integrated oil company and number four worldwide.
Chevron is the second biggest oil company in the United States and among the biggest corporations worldwide. Its headquarters is at San Ramon, California. It engages in every phase of gas industry and crude oil. It has approximately 66,000 employees. It has a refining aptitude of approximately 2MM barrels of oil per day.
What is the vision of chevron?
The vision of Chevron is to be the world’s most appreciated Energy Company owing to its people, performance and partnerships. Their vision is to provide energy products to sustain commercial progress and human development worldwide, have greater capabilities and commitment both at employee and organizational levels, and provide world-class enactment and earn admiration of all stake holders. The vision statement of Chevron is to be the global energy company most appreciated for its people, performance and partnership.
What is the mission of chevron?
The mission of the company is to ensure that its foundation is put up on their values that differentiate them from the others and guide their activities. Their business is conducted in a socially and ethical manner. Their mission is to respect the law, protect the environment, support universal human rights, and benefit the community.
The advantage that the company will gain from producing their own unique products is that it will attract a large market. Clients will be lured towards trying out new things enabling the company to stand out from the crowd. The cost leadership strategy which entails reducing costs of the products and offering discounts will enable the company to maximize sales hence record large profits. However, it should be noted that adapting alternative strategies can be costly and time consuming. Creating new unique products will require significant capital and time. This is the disadvantage that the company will face if it chooses to adapt these new strategies. It is however possible that these corporate scenarios can be agreed upon and developed considering the fact that the company has been in operation for many years hence it is stable and has gained competitive advantage.
References
Armstrong, J. S. (1986). The value of formal planning for strategic decisions. New York, NY:
Harper and Row
Barrionuevo, Alexei (2008)."Chevron and Phillips Petroleum to Form Venture with $5.7 Billion
in Revenue. Wall Street Journal.
