Essay on Analysis of Chevron

Abstract

For organizations to perform their administration tasks effectively, certain aspects need consideration. For proper operation, employees need to perform their duties effectively. Customers need to value the firm and legal aspects respected. This paper analyses the importance of organizations’ vision, mission statements. It further illustrates how stakeholders influence corporation. To illustrate the idea closely, the paper concentrates on Chevron Corporation.

Introduction

While analyzing the contributions of companies on the economy of the United States of America, various factors need consideration. One the aspects that influence the performance of companies include its vision. Mission statements on the other hand have an influence on the sales value of organizations. The mission statements of companies guide operations as well as employee interactions. In relation to the influence of stakeholders on the performance of organizations, one needs to consider different types of stakeholders. Organizations have different stakeholders groups. Some of this groups influence corporation’s daily transactions an example of employees (Guyaguler & Ghorayeb, 2006). On the other hand, stakeholders may include investors, government bodies or other groups.

As a practice in administration of organizations’ operations, various teams utilize these aspects to meet corporate demands. Visions are important to organizations in the management of budgets. Mission statements on the other hand provide directions to team actions and procedures. It is then imperative for one to consider stakeholders needs. Consideration of stakeholder needs ensures that the organization maintains a profitable edge in the market (Johnson et al 2011). This is because stakeholders represent customers, government agencies and investors. Interactions with investors ensure continuality of the business. Understanding government rules of the business ensures operations meet standards.

Chevron

In relation to the above phenomena, an analysis of Chevron reveals various details. Chevron is a leading corporation in the United States of America in the oil and gas industry. The corporation’s operations have made considerable contributions to the economy of the country. As a leading player Chevron, was nominated and ranked 16^th in the year 2005. A closer look at its sales volume reveals that it made over $184 billion at the same period (Guyaguler & Ghorayeb, 2006. An analysis of its profits reveals that the corporation was able to make over $ 14 billion. In the same year, the company’s assets were at the value of $124.81. All of these aspects are a result of its operation and administration practices. Organizations profitability depends on the operations of teams and units. It is therefore important for organizations to design effective mission statements, work schedules and visions (Guyaguler & Ghorayeb, 2006).

Vision Contribution to Strategy

The vision of Chevron Corporation is to be a leading energy company on the global scene. The company’s important vision aspect is to be the most admired organization in the region and over all edges of the world. The company additionally values their partnership interactions (Guyaguler & Ghorayeb, 2006. As a goal of the corporation, the management team strives to provide sustainable energy products to the community (Johnson et al 2011). Throughout its operation, teams in the organization provide services that are beneficial to human development and the economy. The organization is a partner of choice for organizations wishing to get a partner. Moreover, it is the goal of the organization to earn admiration from stakeholders. Chevron values stakeholders needs such as their employees, customers, government and the local community. With operations in many countries, Chevron values diversity.

In order for organization to meet their strategic goals, visions need to be in line with plans. The strategic plans of organizations therefore concentrate on formulation of objectives, tactics and strategies. Visions are important for organizations since it assists the management make decisions. Visions have the ability to guide decision making related to strategic goals. On the other hand, visions assists align best practices to procedures (Johnson et al 2011). For example, visions’ influence on the functions of employees meets overall corporate goals. Proper designing of visions by corporations assist in maintaining stakeholder partnerships. Visions additionally, guides organizations strategy in terms of its objectives, tactics and strategic methods of operation.

Mission and Strategy

The mission statement is an important element in the management of organizations. Mission statements assist organizational teams bind together. Missions’ importance relates to their influence on the day-day operations of organizations’ duties. On the other hand, mission statements assists organization improves its performance (Johnson et al 2011). Research details from scholar, reveals that mission statements are important in motivating employees, improvement of corporate image and in decision making. Further mission statements are good philosophical guides and contribute in foundation of strategic plans.

In relation to Chevron Corporation, its mission is to conduct business “The Chevron way”. This way of conducting business relates to their operations being legally correct and operationally right (Guyaguler & Ghorayeb, 2006). Further the mission of the corporation borders on certain important aspects. These aspects include value on integrity, diversity of operation, partnerships, building trust and protecting the environment. The corporation has been improving its global network that it now ventures in almost all regions of the world (Johnson et al 2011). This expansion would not be possible if the corporation did not have a strong commitment. Its commitments include valuing laws and global human rights.

Influence of Stakeholders to Strategy

Chevron operations cover vast regions of the world. The company has interest in Saudi Arabia, in Africa and in other regions. In order to meet their goals, the corporation has to work with various stakeholder groups. With an upsurge in violence in their regions of operations; like in Nigeria delta Chevron plans incorporates stakeholder needs. For example in Nigeria, the company negotiates with its stakeholders (Frooman, 1999). This negotiation results in a mutual agreement thus promoting efficient operations. The company’s management through its corporate social responsibility function meets the needs of stakeholders.

Stakeholders for the corporation include local communities, customers, governments and environmental agencies. Stakeholder analysis is an important aspect for organizations. This is because stakeholders have an influence on the performance of organizations (Johnson et al 2011). For example, environmental agencies influence earth excavation tasks. Governments’ rules influence performance. The performance of employees as stakeholders influences corporations operations. Customers influence the performance of organizations (Guyaguler & Ghorayeb, 2006). On the other hand, partners have a stake on the profitability of organizations. While surrounding communities influence the operations of an organization (Frooman, 1999). Therefore, stakeholders influence strategic plans, operation plans and future engagements.

References

Guyaguler, B., & Ghorayeb, K. (2006). Integrated Optimization of Field Development Planning and Operation. In SPE Annual Technical Conference and Exhibition. Society of Petroleum Engineers.

Johnson, G., Whittington, R., Scholes, K., & Pyle, S. (2011). Exploring strategy: text & cases. Harlow: Financial Times Prentice Hall.

Frooman, J. (1999). Stakeholder influence strategies. Academy of management review, 24(2), 191-205.