Chevron (Value Chain + Core Competencies)

1409 Words Nov 5th, 2015 6 Pages
Table of Contents
Introduction 4
The Value Chain 4
Operations 5
Outbound logistics 5
Technology 6
Core Competencies 6
Conclusion 7
References 9



Introduction
Chevron Corporation is multinational energy organization engaged in every facet of the oil, natural gas and thermal energy industries. Its downstream operations include selling products such as fuels, lubricants and petrochemicals to the global market. Chevron’s success is greatly driven by their vision ‘to be the global energy company most admired for its people, partnership and performance’ (Chevron Corporation, 2015), reflecting their initiative towards being socially responsible as well as their ambition towards exceeding expectations.

Despite growing concerns
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As predicted by John Watson, CEO of Chevron, in the ‘Inside Chevron’ documentary, there will be a 40% increase in oil energy consumption over the next 20 years (Wellington Abreu, 2015). Having oil facilities throughout the world adds values of accessibility and convenience that allow Chevron to be closer to its consumers, as well as the future value in being located closer to potential future target segments of Asia and Africa (Carroll, 2014).

Technology

As Chevron still expects that fossil fuels will be the biggest fuel for needed over the next few decades, the company continues to improve its technology in the areas of hydraulic fracing and horizontal drilling. Chevron’s technological strategy of continuously developing and applying technologies critical to their core functions result in them gaining a competitive advantage over other large energy companies, as well as creating value by lowering operational costs and maximizing resource recovery (Corporation, 2010).
Core Competencies

More so than its competitors (Exxon, Shell), Chevron has a highly integrated value chain that allows them to produce, refine and distribute across a worldwide market. To measure the sustainability of Chevron’s core competencies, the VRIN framework is used to assess the companies resources and capabilities, evaluating its…

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