Chevron And Exxoncoxon Case Study

706 Words 3 Pages
A Comparison of the Organizational Strategies between Chevron and ExxonMobil

MBAA 604: International Business Administration

Embry Riddle Aeronautical University Worldwide

Submitted to: Dr. Lahlou

Rose Carlson
Anthony Davis
Carlos Diaz
Michael Dinnell
George Faris

Table of Contents
ABSTRACT 3
CHEVRON’S STRATEGY 4
EXXONMOBIL’S STRATEGY 4
STRATEGY COMPARISON 5
CONCLUSION 28
REFERENCES 29

Abstract

Chevron’s Strategy
Chevrons’ organizational structure is the geographic area structure. According to a press release pertaining to the merger of Chevron and Texaco, “For the company’s businesses, the new organization relies mainly on decentralized operating companies segmented by business and geography, with "strategic business units" managing relevant operations” (Chevron, 2014). This is basically the definition of a geographic area structure which organizes the MNE according to different geographic areas (countries and regions) and is appropriate for a localization strategy (Peng, 2014, pg. 401). According to Peng (2014), both of the advantages and disadvantages of this structure lie in its local responsiveness (pg, 401).
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Exxon Mobile has its headquarters for some of its subdivisions in Irving, Texas, and some in Fairfax, Virginia (n.a., 1999). Comparatively, Chevron operates in a geographic area structure. Rooting from its merger with Texaco, Chevron stated that the new organization was to rely mainly on decentralized operating companies that are segmented by business and geography through merging relevant operations in strategic business units (Chevron, 2014). Doing so, Chevron is able to organize itself according to different geographic areas (Peng,

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