Chevron Entrance to Australia
The following essay is an attempt to study internationalization study of the multinational company Chevron and its advancement to Australia.
Overview
Chevron operations
Chevron is one of the biggest energy suppliers in the world. Today Chevron operates internationally, in more than 30 countries. The core activities of Chevron are exploration and production of oil and natural gas. Chevron is the world’s leader in natural resources extraction from the most difficult environments (Chevron.com, 2015). Additionally, Chevron is massively involved in manufacturing and product transportation. Chevron manufactures refined oil products, such as gasoline and distributes it using its own branded networks of petrol stations. As well as these products, Chevron is one of the industry leaders in chemical production. Its important products include lubricants and gasoline additives. It also has a wide network of pipelines, ships and transportation vehicles (Chevron.com, 2015).
Chevron location
As was briefly mentioned earlier, Chevron operates globally. Originally based from San Francisco US, today Chevron has bases all around the world. In particular, Chevron has representatives in Africa, Western Europe, Russia and Asia. USA is still a home country for Chevron, its headquarters located in San Ramon, California. It is the second largest oil producer in the country, and has big retail network in the country. Overall, there are more than 8000 of shops under the brand name of Chevron over all of the US. Even though it exists since 1879, Chevron still continues its development. In 2014 the construction of a new big refinery plant has begun, making Chevron the world’s largest oil provider (Chevron.com, 2015).
International strategies
The international operations of Chevron largely depend on the specifics of the country. For example, in Netherlands Chevron has heavily invested in research facilities and is treated as the industry’s leader in chemical research. In other countries, such as Kazakhstan, Chevron is one of the largest oil extractors and refiners. Chevron has a special relationship with Kingdom of Saudi Arabia. It is the only international company that maintains its presence in the country for seven decades (Chevron.com, 2015). There Chevron is heavily involved in many of oil-related projects and industries.
In Australia Chevron has a wholly owned subsidiary, that oversees its two big projects, Wheatstone and Gorgon. It also uses Australia as a basis of its trade with Asian countries, such as China and Japan (Chevron.com, 2015).
Recent performance
According to its annual report in 2014 Chevron had profits of $19,241 million. It is a 10% increase from its previous profits in 2013. It also reported 1,7 million barrels of oil produced per day and 5,2 billion cubic feet per day of natural gas. By the end of the year, Chevron employed 61,456 people, excluding service personnel (Chevron 2014 Annual Report, 2014).
Analysis
Internationalization drivers
Theoretical background
A significant impact on the studies of the internationalization has been made by John Dunning. He has established the foreign …