...Chevron Faces Lawsuit Globalization, as defined by Guillén in our textbook, is a “Process fueled by, and resulting in, increasing cross-boarder flows of goods, services, money, people, information, and culture” (as quoted in Sanabria). Chevron, an American corporation, is a perfect example of how globalization can allow a company to increase in size continually. Their headquarters are located in San Ramon, California but they have been active in many countries around the world including: Argentina, Brazil, Colombia, Ecuador, and Venezuela. With the help of globalization, Chevron has been able to expand their organization and become the sixteenth largest corporation in the world (DeCarlo). Last December, however, the Brazilian government filed an $11 billion lawsuit against Chevron over an oil-spill that took place off its coast in November. The spill was comparable, by some, to one that took place in 2010, which flowed into the Gulf of Mexico continuously for three months. Although, another article that I found mentions that it was only 0.1 percent (3,000 barrels) of what was spilt into the Gulf of Mexico (PR Newswire). Regardless of the amount of the spill, the Brazilian government is taking action because they are not happy with how Chevron has handled the situation. In addition to the negative impact the spill has had, Chevron has also been said to “have downplayed” the spill. They have made it seem as if it’s not an issue at all. Many Brazilian environmental...
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...Analysis of Chevron Introduction Chevron Corporation is a multinational energy company that is based in the United States. It is the second largest U.S oil company after Exxon Mobil Corporation, and is also the fourth largest oil company in the world. Chevrons mission statement is “At the heart of The Chevron Way is our vision… to be the global energy company most admired for its people, partnership and performance.” Chevron was first founded in 1876 as Pacific Coast Oil Company in California. At that time oil started to gain a market and have a higher value. Pacific expanded dramatically after the discovery of oil in Saudi Arabia. Twenty years later, the company merged with Iowa Standard, forming Standard Oil California (Socal) as the new company. Socal successfully gained a market in the United States and Asia. In the 1970’s, the rise of the Organization of Petroleum Exporting Countries (OPEC) cast Socal out of the Middle East region, which caused a great loss to the company. In 1984 Socal purchased Gulf Corporation for $13.2 million, which, at the time, was the largest oil producer and distributer in the Middle East. Acquiring Gulf Corporation doubled Socal’s oil and gas reserves. As a result it generated great profit to the company by the late 1990’s because of the increase of gasoline prices. Socal also changed its name to Chevron during that period of time. Chevron grew and expanded because of the amount of subsidies and mergers that it gained from every region they operated...
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...Chevron’s Business Conduct and Ethics Code is the foundation of which the company’s core values are built. The principles that which Chevron stands for guides all business conduct and does clarify any misconceptions for any and all situations that may be encountered on the job. Furthermore, the code also provides a list of resources that may provide any assistance in resolving any issues that are not covered within the code. Within the list of resources, company policies and procedures are also available to help facilitate a resolution. Also within the resources are major concepts that are dear to the heart of Chevron. These concepts are the “Chevron Way, Operational Excellence, and Tenets of Operation”. (Chevron, 2011) These concepts will be discussed. The violation of any code articles and any policies within the code could result in disciplinary actions to include termination of employment and/or criminal prosecution. “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.” (Chevron, 2011) These values encompass integrity, trust, partnership, diversity, ingenuity, protecting the people and environment, and high performance. Code of Ethics The Code of Ethics is utilized daily and possibly with or without your knowledge. It has become a part of all...
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...Chevron in Libya Libya is among the World’s largest oil economies with approximately 3.5% of global oil reserves, more than twice those of the US. With 46.5 billion barrels of proven reserves, Libya represents 3.34 % of the world’s proven reserves. In contrast, US proven oil reserves are of 20.6 billion barrels (December 2008) according to the Energy Information Administration. The invasion of Libya under a humanitarian mandate served the same corporate interests as the 2003 invasion and occupation of Iraq. The underlying objective was to take possession of Libya’s oil reserves and destabilize Libya’s National Oil Corporation (NOC) and eventually privatize the country’s oil industry, namely transfer the control and ownership of Libya’s oil wealth into foreign hands. The Libya’s National Oil Corporation (NOC) is ranked 25 among the world’s Top 100 Oil Companies. Private companies were allowed into the country, and one of them was Chevron with a five-year license to explore in search for oil and natural gas. The company arrived on a wave of optimism that they would make big finds in Libya, which is home to Africa's largest proven oil reserves but was relatively under-explored. However, the reality did not meet their expectations. Discoveries were modest while the energy company also had to deal with a political and regulatory environment which could be unpredictable. Chevron was awarded interests in nine exploration blocks in the 2005 licensing round, but did not report...
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...Chevron’s Amazon Disaster Hallie Richardson ETH/316 May 14, 2012 Professor Jeff Codner Chevron’s Amazon Disaster In 2001, Chevron bought out Texaco Oil Company; as a global corporation Chevron also took on responsibilities that Texaco had left behind. Oil drilling had taken place in Ecuador’s rainforest region for 28 years, the cost-cutting methods that Texaco used caused many indigenous areas to be contaminated by this drilling. The environmental catastrophe was dubbed the “Rainforest Chernobyl” by experts (“Chevron Toxico”, 2012). The Issues The cultural issues that became apparent from this problem were environmental issues as well as human rights issues. Pollution and exposure to certain toxic waste affected nearby villages of indigenous peoples of Ecuador. According to "Chevron Toxico" (2012), “Texaco’s oil extraction system in Ecuador was designed, built, and operated on the cheap using substandard technology from the outset” (A Rainforest Chernobyl). The rainforest environment that was affected housed 350 oil wells and Texaco left behind roughly 1000 toxic waste pits. Toxic waste pits were not properly built; in America at this time it was known that these toxic pits were dangerous and precautionary items like a plastic pool were built to avoid seepage into the ground water and nearby rivers. However, in Ecuador, the same pits did not have these certain structures, therefore, seepage occurred and toxins were freely left to absorb into the groundwater and pollute...
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...Chevron Corporation What began as the Pacific Coast Oil Company on September 10, 1879 in San Francisco transformed into what is now Chevron Corporation, recently ranked 8th among the world’s top oil companies by Petroleum Intelligence Weekly in 2011, second among US oil companies behind ExxonMobil. The company has a market capitalization of over $204.9 billion. They have expanded into essentially every area of the energy industry, including exploring for, producing, and transporting crude oil and natural gas; refining, marketing, and distributing transportation fuels and lubricants; manufacturing and selling petrochemical products; generating power and producing geothermal energy; providing energy efficient solutions; and developing energy resources for the future, such as advanced biofuels. In 2011, Chevron produced, on average, 2.673 million barrels of oil per day, 75% of which was done outside of the US. By the end of 2011, Chevron’s global refining capacity reached 1.96 million barrels of oil per day. They are the largest private producer of oil in Kazakhstan, oil and natural gas producer in Thailand, and overall oil producer in Indonesia. Currently, Chevron has numerous projects underway that will tap into new resources around the globe, including several offshore projects in Africa, Asia, and Europe. They are also involved with the development of the Athabasca Oil Sands project in Canada and the development of steam used to recover oil. As mentioned, they have begun...
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...1) Background and Issues Is Chevron guilty? This memo outlines the issues Chevron is facing through the Amazon lawsuit in Ecuador and identifies how the management can handle this squint situation. The Amazon lawsuit is a very big threat to the company’s profit, since the penalty payments will cover over 50% of the company’s current profit. To understand the situation of Chevron today we need to take a closer look at the background story. The Story goes back to the 1960’ies when Texaco, an acquisition of Chevron, was involved in the oil drilling in Ecuador. Back then Texaco had a Joint venture with Petro Ecuador which was mainly owned by the Ecuadorian government and had a share of 62.5 percent. This Joint venture named Texpet drilled 1.7 billion barrel oil from government properties until the end of contract in 1984. After finishing the work Texpet was suit by the Ecuadorian government, because of violation of environmental laws. These violations included the direct release of toxic wastewater into rivers instead of filtering and dumping in isolated areas and unclosed pipelines that additionally caused the pollution of soil, groundwater and plants. Back then Texpet paid a 40 million Dollar penalty and from 1995 to 1998 Texaco undertook a remediation of 161 out of 430 pits to clean their share of agreements according to the governments criteria. The Story of Texaco in Ecuador seemed to be terminated, but the appearances were deceptive. A cancer study by the Harvard medical...
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...INVESTMENT GROUP 10.6.2009 IME Chevron Corp. RECOMMENDATION: BUY Stock Data Price (52 weeks) Symbol/Exchange Beta Shares Outstanding Average daily volume (3 month average) Current market cap Current Price Dividend Dividend Yield Valuation (per share) DCF Analysis Comparables Analysis Target Price Current Price $56.12 – 81.92 CVX / NYSE From regression or other method 2 (Biln) 9,766,056 $153.5 (Biln) $76.64 $2.76 (annually) 3.5% $108 $165 $113 (.9 DCF & .1 Comps) $76.29 Summary Financials (millions) Revenue Net Income Operating Cash Flow $55,112 $23,931 $29,632 BUSINESS OVERVIEW Chevron Corporation’s (CVX) core business provides their customers with fully supportive administrative and financial management dealing with the integrated petroleum, chemicals, and coal mining segment of the Integrated Oil sector. The company is centered around and ran by CEO David O’Reilly. As of January 2000 O’Reilly and company Covering Analyst: Matt Hollands Email: mhollan1@uoregon.edu The University of Oregon Investment Group (UOIG) is a student run organization whose purpose is strictly educational. Member students are not certified or licensed to give investment advice or analyze securities, nor do they purport to be. Members of UOIG may have clerked, interned or held various employment positions with firms held in UOIG’s portfolio. In addition, members of UOIG may attempt to obtain employment positions with firms held in UOIG’s portfolio. Chevron Corp. university of oregon...
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...to 1878, in the Santa Elena Peninsula. In Ecuador, minerals are owned by the government and developed through government entities. In 1964, Petro Ecuador, which is Ecuador's state oil company and Texaco Petroleum, created a business partnership called a consortium, to produce oil in the Orient region of the Amazon. Texaco Petroleum's was under a 28-year concession agreement with the government. During this time period plaintiffs believe, the company is responsible for billions of gallons of oil dumped in the region. Also, that this pollution has caused the loss of livelihood, and the widespread health problems including 1,400 related deaths. When Chevron took over Texaco in 2001, they acquired this lawsuit. Today, Chevron is not involved in producing oil in Ecuador. A. One of the issues following Chevron is whether or not Chevron had the proper jurisdiction as a corporation to operate outside our national borders, in Ecuador. As a corporation the first step in moving operation into other countries, is first receiving approval form the share holds. Corporations must seek proper approval from there shareholders before seeking many changes. Corporations often engage in an acquisition of other corporation by a friendly merger. A merger happens when two corporation come together. One corporation is absorbed into the other corporation. However the merged corporation ceases to exist, leaving the surviving corporation. The surviving corporation automatically gains all the rights...
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...Management Practices of Chevron Dwayne D. Pavelka MGT 330 Management for Organizations Instructor: Richard Allen March 9, 2015 Management Practices of Chevron There are basically five basic management practices that are implemented in the workplace for a majority of businesses: planning, leading, organizing, staffing, and controlling (Baack, Reilly& Minnick, 2014). In order for a business to maintain some decorum of profitability, the management of the company must consistently review all aspects of this practice. Chevron is a large oil and gas corporation with a global presence. With a corporation comprised of many business units, it is imperative management remain in constant motion with regard to the five basic management practices and pay strict attention to sudden shifts or changes in these particular areas. Chevron is a world leader in this industry and in order for the corporation to remain high up in the rankings of similar corporations; they must exceed the standard in all aspects of their business. Planning is high priority at Chevron. With decrease in the demand of oil and the inventories rising as opposed to being distributed to production companies to process the oil for usage as well as the production of gasoline, Chevron has found it necessary to prepare for this price decrease. While in the process of their planning, they were analyzing models with statistics and potential projections that would offer a glimpse of turn-around in the market prices...
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...ELECTRONIC ASSIGNMENT COVERSHEET | | Student Number | 32695016 | Surname | Zhang | Given name | Ming | Email | Zhangming_90@hotmail.com | | | Unit Code | BUS317 | Unit name | Strategic Management | Enrolment mode | | Date | 4th Oct 2015 | Assignment number | 1 | Assignment name | Short Eassy | Tutor | Frankie Yee | Student’s Declaration: * Except where indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another unit. * This submission complies with Murdoch University's academic integrity commitments. I am aware that information about plagiarism and associated penalties can be found at http://www.murdoch.edu.au/teach/plagiarism/. If I have any doubts or queries about this, I am further aware that I can contact my Unit Coordinator prior to submitting the assignment. * I acknowledge that the assessor of this assignment may, for the purpose of assessing this assignment: * reproduce this assignment and provide a copy to another academic staff member; and/or * submit a copy of this assignment to a plagiarism-checking service. This web-based service may retain a copy of this work for the sole purpose of subsequent plagiarism checking, but has a legal agreement with the University that it will not share or reproduce it in any form. * I have retained a copy of this assignment. * I will retain a copy of the notification of receipt of this assignment. If you...
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...Positioning * Marketing Program – Pages 18-21 a. Product Strategy b. Price Strategy c. Promotion Strategy d. Place Strategy * Financial Data and Projection – Page 21 a. Past Sales Revenues b. Five Year Projection * Organizational Structure – Pages 22-24 * Implementation – Page 24 * Evaluation and Control – Pages 24-25 * Bibliography – Page 26 Executive Summary Chevron Corporation’s (CVX) core business provides their customers with fully supportive administrative and financial management dealing with the integrated petroleum, chemicals, and coal mining segment of the Integrated Oil sector. Despite volatility in commodity prices, depressed financial and debt markets, and political uncertainties, Chevron has been able to grow the business at a healthy rate. The demands for the corporation’s products are largely a function of global economic activity, weather patterns and governmental stability. The development of projects is very crucial for a business within the energy sector in order to maintain market share and bottom line growth. Chevron Corporation’s (CVX) has many...
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...Report Two: Global Business Issues Abstract As a group we were posed with the task of addressing six different issues using ten different articles from Business week and five sources of peer reviewed articles. The first issue that we addressed was Global Self-Awareness which is “the continuum through which students develop a mature, integrated identity with a systemic understanding of the interrelationships among the self, local and global communities, and the natural and physical world.” The next issue addressed was Perspective which is “Taking the continuum through which students develop a mature, integrated identity with a systemic understanding of the interrelationships among the self, local and global communities, and the natural and physical world. Another issue we addressed was Cultural Diversity which is “the ability to recognize the origins and influences of one’s own cultural heritage along with its limitations in providing all that one needs to know in the world.” The next issue talked about was Personal and Social Responsibility which is “the ability to recognize one’s responsibilities to society-locally, nationally, and globally- and to develop a perspective on ethical and power relations both across the globe and within individual societies.” The next topic discussed was Understanding Global Systems which is “the complex and overlapping worldwide systems, including natural systems and human systems, which operate in observable patterns and often are affected...
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...the rainforest for around three decades, poisoning the water, air and land. The pollution has created a ‘death zone’ that has been increasing the rates of cancer, leukemia, birth defects, and several other health illnesses. This ‘David and Goliath’ story brings up an array of topics: human rights, the power of the media, global politics, multinational corporate power, and celebrity activism. The film was shot in different countries and in multiple languages. Berlinger presented the situation and issue from all viewpoints, capturing the drama and events as they slowly unfolded. There were many people involved, but their main focus was to advocate and fight against the environmental and human suffering in the Amazon. The lawsuit against Chevron, the 5th largest corporation in the world, has been going on for 16 years already. They’re hoping that Amazon will run out of funds to fight against the company. In the beginning, there were only a few people supporting and helping the Amazon. But through interviews like Vanity Fair, it allowed the families and parents living in Amazon to tell their heartbreaking stories. Many of them have lost their children from birth defects, cancer, and died from poison because they drank from the streams. The Vanity Fair gained a lot of global recognition and soon, the President of Ecuador and the wife of the lead singer of ‘The Police’ were both trying to use their social and political status to advocate Chevron’s destruction and contamination of Amazon...
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...BUSINESS DETAILS This business proposal is confidential and I request that it be treated as such. I must solicit your confidentiality and assure you that I am contacting you in good faith and this proposal will be of mutual benefit. I am Richard Gerrald, a solicitor at law. I am the personal attorney/sole executor to a client of mine, who died along with his family in a plane crash on the 14th of August 2005. My late client a formal Sub-Comptroller working with Chevron Texaco Oil here in the United Kingdom and had Left behind a deposit of Sixteen Million British Pounds Sterling only (£16,000,000.00) with a bank. After the death of my client, the finance company contacted me, as his attorney to provide his next of kin who should inherit his fortune this according to them is their policy in sure circumstances. Since the death of my client, I have written several letters to the embassy with intent to locate any of his extended relatives whom shall be claimants/beneficiaries of his abandoned personal estate and all such efforts have been to no avail. I had to inform the finance company about my fruitless effort in locating my late client's close relative or his next of kin. The board of directors of the finance company now adopted a resolution and I was mandated to provide his next of kin for the payment of this money or forfeit the money as an abandoned fund. The company had planned to invoke the abandoned property decree of 1996 to confiscate the funds after the expiration...
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