Chevron Case Study
Case 1: Chevron
October 24, 2011 Introduction of the Company
Chevron began with the discovery of oil north of Los Angeles in 1879 and was originally named the Pacific Coast Oil Company. Later John D. Rockefeller’s Standard Oil bought Pacific Oil in 1900 to form Standard Oil (California). In 1911, the Sherman Antitrust Act would force the breakup of the parent Standard Oil and Chevron became Standard Oil of California or Socal. Socal would go on to form joint venture with Texaco in 1936 to form Caltex, to develop and market oil in the Middle East and Indonesia. It would then go on to form the Aramco partnership in the Middle East, which composed of Socal, Texaco, Exxon and Mobil but by 1980, Aramco was completely owned by the Saudis and became the Saudi Arabian Oil Corporation. In 1984 the merger between Standard Oil of California (Socal) and Gulf Oil was the largest merger in history at that time, nearly doubling the company’s size and as part of the merger Socal changed its name to Chevron Corporation. By 1988 Chevron was one of the largest gas producers in the United States. In 2001, Chevron expanded again by acquiring Texaco for $37.5 billion. Today Chevron is the second largest integrated energy company in the U.S. and among the largest in the world.
Mission Statement Analysis “Our Company 's foundation is built on our Values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment, and benefit the communities where we work." Since Chevron is an oil company, it is imperative that their mission statement reflects the importance of operating in a responsible and ethical manner. They want to let the world know that they respect the laws, human rights, the environment, and more importantly want to provide a benefit to the communities it serves rather than bring harm to them.
Internal Assessment
October 24, 2011 Introduction of the Company
Chevron began with the discovery of oil north of Los Angeles in 1879 and was originally named the Pacific Coast Oil Company. Later John D. Rockefeller’s Standard Oil bought Pacific Oil in 1900 to form Standard Oil (California). In 1911, the Sherman Antitrust Act would force the breakup of the parent Standard Oil and Chevron became Standard Oil of California or Socal. Socal would go on to form joint venture with Texaco in 1936 to form Caltex, to develop and market oil in the Middle East and Indonesia. It would then go on to form the Aramco partnership in the Middle East, which composed of Socal, Texaco, Exxon and Mobil but by 1980, Aramco was completely owned by the Saudis and became the Saudi Arabian Oil Corporation. In 1984 the merger between Standard Oil of California (Socal) and Gulf Oil was the largest merger in history at that time, nearly doubling the company’s size and as part of the merger Socal changed its name to Chevron Corporation. By 1988 Chevron was one of the largest gas producers in the United States. In 2001, Chevron expanded again by acquiring Texaco for $37.5 billion. Today Chevron is the second largest integrated energy company in the U.S. and among the largest in the world.
Mission Statement Analysis “Our Company 's foundation is built on our Values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment, and benefit the communities where we work." Since Chevron is an oil company, it is imperative that their mission statement reflects the importance of operating in a responsible and ethical manner. They want to let the world know that they respect the laws, human rights, the environment, and more importantly want to provide a benefit to the communities it serves rather than bring harm to them.
Internal Assessment
References: Strategic Management, Concept & Cases 13th ed., David 1. www.Chevron.com 2. www.moneycentral.com 3. www.money.msn.com 4. www.morningstar.com 5. www.rigzone.com 6. www.yahoo.com