The institutional affiliation
Chevron Corporation is an American publicly traded international energy corporation with a headquarters located in San Ramon, California. Chevron is considered to be one of the largest oil and gas conglomerates operating in about 180 countries all over the world (Chevron, 2015). In the year 2015, the Chevron’s revenues reached $129.92 billion, while the operating income was estimated at $158 million (Chevron, 2015).
The company is divided into three technology companies, namely, Chevron Energy Technology, Chevron Technology Ventures, and Chevron Information Technology. The major technology centers are situated in Australia, the United Kingdom, and the United States. The company serves the place of employment for more than 64,700 employees all over the world (Chevron, 2015).
Chevron holds NAICS Code 211111, as the company is operating with crude petroleum and natural gas extraction (Siccode, 2017). The core activities of the corporation involve the exploration of different form of energy, as well as refining, manufacturing, transportation, generation, and distribution of power. The company’s cooperation agreements refer to a wide range of business interests within the energy sector. In addition, Chevron is specializing in alternative energy operations, including geothermal, solar, wind, biofuel, fuel cells, and hydrogen (Chevron, 2015). The company’s products provide the energy resources which are crucial for economic progress. Thus, Chevron aims to start up its production projects under construction and the total understanding of the cash flow involved. This allows lowering the capital spending and operating expenses.
The profit of the company is dependable on the profitability of its business sector. The biggest factor affecting the results of operations is the price of crude oil, as one of the major resources of energy. The price of crude oil has significantly decreased since 2014, reflecting persistently high global crude oil inventories and production (Chevron, 2015). The company has to reduce its operating expenses, including employee reductions and asset sales.
The Chevron’s major value is to conduct their business in accordance with the international law and universal human rights in the most responsible manner. Chevron sets its long-term marketing objectives in order to maintain the future events and conditions. The objectives include (Chevron, 2015):
• To expand the existing services and operations.
• To keep an agreement with current partners and suppliers.
• To target the customer base with the clear understanding of their needs.
• To organize sales activities in accordance with the customers’ preferences.
• To maintain the business strategies implemented by the closest competitors (such as British Petroleum, RD Shell, Exxon Mobil, India ONGC, and Bangladesh Petroleum Exploration Company).
PEST Analysis allows realizing how various outer changes can influence the company operations.
Political factors (Pitatzis, 2016):
• political contributions controlled by the central authorities;
• government cooperation in fuel exploration;
• enjoying tax benefit and tax exemption granted by the government in developing countries;
• government cooperation and support in fuel exploration.
Economic factors (Pitatzis, 2016):
• consistent and fundamental economic growth;
• exchange rate;
• important pricing stability;
• inflation in most of the Asian and African countries;
• the global economic crisis and the possible bankruptcy of the largest banks as the result of insufficient investments.
Social factors (Pitatzis, 2016):
• supporting public health programs;
• high standards of safety maintained in the production plant;
• creating educational opportunities in African and Asian countries.
Technological factors:
• leading through the innovative technology;
• technology solutions that drive business growth and support our worldwide operations;
• automation of the production process;
• venture capital for innovation.
References
Chevron. (2015). Chevron Annual Report. Retrieved 03 February 2017, from https://www.chevron.com/-/media/chevron/annual-report/2015/2015-Annual-Report.pdf
Pitatzis, A. (2016). PEST Analysis for Global Oil and Gas Companies Operations. Retrieved 03 February 2017, from https://www.linkedin.com/pulse/pest-analysis-global-oil-gas-companies-operations-athanasios-pitatzis
Siccode. (2017). Chevron Corporation. Retrieved 03 February 2017, from http://siccode.com/en/business/chevron-corporation-20
