Running Head Chevron Corporation

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Analyze the impacts of technology and globalization together with the organizational model and resource-based model, focusing on Chevron Corporation’s strategies and market position.

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Chevron Corporation stands as one of the most prominent multinational energy companies globally, with its roots tracing back to 1879 and headquarters situated in San Ramon, California. As a leader in the oil and gas industry, Chevron’s strategic operations are deeply influenced by the forces of globalization, technological advancements, organizational structures, and resource-based advantages. Analyzing how each of these factors interacts provides insights into the company's sustained growth and competitive positioning.

Globalization has profoundly impacted Chevron’s operational scope and market reach. The era of global interconnectedness has facilitated Chevron’s expansion into more than 180 countries, leveraging Foreign Direct Investment (FDI) to establish oil exploration, extraction, refining, and marketing operations worldwide. The proliferation of international trade agreements and deregulation in many emerging markets have supported Chevron’s ability to extend its reach into developing countries rich in natural resources (By, 2016). This expansion is not without challenges, such as volatile oil prices, geopolitical risks, and local regulatory environments. Nevertheless, Chevron’s adaptive strategies—such as forming joint ventures and strategic alliances—have enabled it to navigate these complexities effectively.

Technological innovation is central to Chevron’s ongoing success and industry relevance. The rapid evolution of drilling technologies, including hydraulic fracturing and deepwater drilling, has been instrumental in increasing extraction efficiencies and reducing costs. Chevron’s investment in cutting-edge technology, including digital oilfield solutions and automation, enhances operational safety and environmental performance (Tarca, Vatuiu, & Popa, 2016). Furthermore, the incorporation of information technology into administrative functions—via company websites, social media engagement, and data management systems—has improved stakeholder communication, transparency, and decision-making processes.

Chevron’s organizational model exemplifies a structured yet flexible approach, integrating functional and divisional structures to promote efficiency and responsiveness. The company's corporate governance emphasizes a decentralized decision-making process, empowering regional units to tailor strategies to local markets while maintaining global corporate standards (Hitt, Ireland, & Hoskisson, 2013). This hybrid organizational framework allows Chevron to balance global integration with local responsiveness, a critical factor in an industry characterized by diverse geopolitical and economic conditions.

The resource-based view (RBV) of strategic management plays a pivotal role in elucidating Chevron’s competitive advantages. The company’s tangible resources—such as extensive oil reserves, advanced drilling equipment, and refining infrastructure—are complemented by intangible assets, including technological expertise, brand reputation, and strategic alliances. Chevron’s commitment to innovation and operational excellence creates a heterogenous resource base that competitors find difficult to imitate (Kung, Pui, & Chung, 2017). This resource heterogeneity, coupled with the immobility of core competencies like proprietary drilling technology and supply chain networks, provides Chevron with a durable competitive advantage in the industry.

The company’s vision to be “the global energy company most admired for its people and performance” reflects its aspirations aligned with strategic resource deployment and organizational excellence. Its mission emphasizes ethical conduct and social responsibility, fostering stakeholder trust and corporate sustainability (Hitt, Ireland, & Hoskisson, 2013). By cultivating a culture rooted in innovation, safety, and environmental stewardship, Chevron sustains its strategic vitality and social license to operate.

Globalization further influences Chevron’s strategic landscape by necessitating proactive stakeholder management and adaptation to local norms. Shareholders, employees, suppliers, and customers are vital stakeholders whose interests influence Chevron’s strategic choices. Shareholders’ investment decisions are driven by financial performance and risk management, necessitating transparent communication and sustainable practices. Employees’ skills and safety are prioritized through comprehensive training and technological investments, improving overall productivity and morale. Suppliers play a crucial role in ensuring a steady flow of raw materials, while customers’ preferences for cleaner and more sustainable energy sources push Chevron to innovate in renewable energy and emission reduction technologies.

In conclusion, Chevron’s long-term success is intricately tied to its ability to adapt and thrive amidst technological changes and globalization forces. Its organizational structure fosters agility and cohesion, while its resource-based advantages provide a formidable competitive edge. The company’s strategic management, emphasizing technological innovation, global expansion, and stakeholder engagement, sustains its leadership position in the energy industry. As the industry evolves toward renewable energy and decarbonization, Chevron’s continued investment in technology and sustainable practices will determine its future trajectory and competitiveness.

References

• By, S. L. (2016). Chevron, Sasol set natural-gas accord—joint venture will exploit method of converting natural gas to liquid. Wall Street Journal.
• Hitt, M., Ireland, R., & Hoskisson, R. (2013). Strategic management: Concepts and cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
• Kung, W. L., Pui, Y. L., & Chung, Y. Y. (2017). A collective organizational learning model for organizational development. Leadership & Organization Development Journal, 40(1), 3–19.
• Tarca, N., Vatuiu, T., & Popa, A. (2016). The importance of web technologies during the communication process between a company and its clients. Federal Reserve Bank of St Louis.
• Hitt, M., Ireland, R., & Hoskisson, R. (2020). Strategic management: Concepts and cases: Competitiveness and globalization (13th ed.). Mason, OH: South-Western Cengage Learning.
• Additional scholarly sources related to the oil industry, technological innovation, and globalization impacts on multinational corporations should be incorporated for a comprehensive analysis.