Discuss Pest Analysis On Chevron Corporation within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Chevron Corporation (NYSE: CVX Euronext: CHTEX) is an American multinational energy corporation. Headquartered in San Ramon, California, and active in ...
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Pest Analysis On Chevron Corporation
Pest Analysis On Chevron Corporation - December 3rd, 2010
Chevron Corporation (NYSE: CVX Euronext: CHTEX) is an American multinational energy corporation. Headquartered in San Ramon, California, and active in more than 180 countries, it is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "supermajor" oil companies.
Chevron traditionally traces its roots to an oil discovery in Pico Canyon (now the Pico Canyon Oilfield) north of Los Angeles. The discovery led to the formation, in 1879, of the Pacific Coast Oil Company, the oldest predecessor of Chevron Corporation. Another side of the genealogical chart points to the founding of The Texas Fuel Company in 1901, a modest enterprise that started out in three rooms of a corrugated iron building in Beaumont, Texas. This company was known as the Texas Company and later Texaco.
Chevron Corporation was originally known as Standard Oil of California, or SoCal, and was formed amid the antitrust breakup of John D. Rockefeller's Standard Oil company in 1911. It was one of the "Seven Sisters" that dominated the world oil industry in the early 20th century. In 1933, Saudi Arabia granted SoCal a concession to find oil, and oil was found in 1938. In the early 1950s, SoCal discovered the world's largest oil field (Ghawar) in Saudi Arabia. SoCal's subsidiary, California-Arabian Standard Oil Company, developed over years, to become the Arabian American Oil Company (ARAMCO) in 1944. In 1973, the Saudi government began buying into ARAMCO. By 1980, the company was entirely owned by the Saudis, and in 1988, the name was changed to Saudi Arabian Oil Company (Saudi Aramco).
Standard Oil of California and Gulf Oil merged in 1984, the largest merger in history at that time. Under the antitrust regulation, SoCal divested many of Gulf's operating subsidiaries, and sold some Gulf stations and a refinery in the eastern United States. SoCal changed the name to Chevron Corporation.
is a global leader in cosmetics and as a company with global presence the company uses different bases for segmenting its customers and target markets. Among the bases of segmentation that Avon uses are:
1. Geographic - geographic segments mean location and this can include streets, towns, cities, regions, countries, continents etc (Proctor, 2000).
2. Demographic - demographics or social statistics includes age, sex, family, life cycle, job type/socioeconomic and group income level (Proctor, 2000).
3. Psychographic - psychographics attempts to segment according to psychological profiles of people in terms of their life-styles, attitudes, and personalities (Proctor, 2000). This approach according to Sternthal and Tybout (2001a) focuses on lifestyle rather than demographic information as a basis for describing segments. For this purpose, questions about activities, interests, and opinions are asked.
In recent years, Avon started focusing on capturing the market for younger women, College students, and men with disposable income. Avon also looks at extending market growth to include developing countries such as Poland, Vietnam, Cambodia, and Czech Republic.
In this section, the author will discuss the position of Avon in the market and in the minds of the customers. Positioning is a very important topic in marketing as it provides information to the company on where they are now and how they are faring compared to their competitors.
Positioning refers to the decisions and activities intended to create and maintain a firm’s product concept in the customer’s minds. Market positioning amounts to arranging for a product or service to occupy a clear, distinctive and desirable place relative to competing products – in the minds of target customers (Proctor, 200). Positioning is the process of distinguishing a company or product from competitors along such dimensions as product characteristics or values that are meaningful to consumers. Positioning strategy aids customers in evaluating product attributes that are of significance or value to them (Michman et al 2003). Once the segment is determined then a decision has to be made as to how to position the product. The idea of positioning is to find out how the consumers/ consumers in particular segments are going to perceive the product and service and the company’s message about these products and service (Kermally, 2003). According to Paley (2006), positioning is not what you do to a product, it is what you do to the mind of the prospect. Positioning is the act of designing the company offer and image so that it occupies a distinct and valued place in the target customers’ minds.
Image is extremely important to Avon. The company maintains the position as the world’s leading direct seller of beauty and related products. Avon embarks on expanding new marketing opportunities without disrupting the current direct sales.
This section discusses the different marketing strategies that Avon employs in order to reach its customers and to encourage customer patronage and loyalty, The company has diverse marketing strategies.
A major characteristic of direct selling is the personal contact between a sales person and a consumer, away from a retail store. Avon implements the door-to-door selling type of direct selling. Avon uses freelance salespeople or agents to visit people in their own homes and to demonstrate and explain the use of a range of beauty products. Direct-selling provides important benefits to individuals who desire an opportunity to earn an income and build a business of their own. It offers the prospect of self-determination and financial independence. It also offers an alternative to consumers who want something different from the traditional shopping centers, department stores or other forms of conventional shopping. It offers an alternative to traditional employment for those who desire a flexible income-earning opportunity to supplement their household income, or whose responsibilities or circumstances do not allow for regular part-time or full-time employment (Lancaster and Reynolds 2000).
Avon is popular for its product trial and sampling events. Avon uses events to encourage trial of its products among non-users and to encourage further purchases from existing customers. These events include demonstrations and sampling presented in supermarkets, shopping malls, and other locations where a big number of the desired target market can be reached. Avon focuses on product trial events as one of its forms of communication with the end customer. Its representatives, agents or distributors are recruited from their target markets and are encouraged to hold parties or events within their homes to offer friends and acquaintances the opportunity to try, feel, use the products, to interact with it in an experiential setting (Masterman and Wood 2006).
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Re: Pest Analysis On Chevron Corporation
Re: Pest Analysis On Chevron Corporation - June 27th, 2015
Building empire and setting up your business globally is not easy, it takes strenuous effort and even time consuming. It requires planning, research and impeccable strategy. Pestle analysis is the key to get holistic idea about business ambience and allow you to dominate the market. PESTLE is an acronym for Political, Economic, Social, Technological, Legal, and Environmental. This analysis is used to assess these six external factors related to your business situation.
There are ginormous and numerous problems appear while establishing business and the most prevalent is the law of that particular country that is more difficult to understand. Recently, the giants like TCS and Infosys faces law problem related to visa problem so, to avoid such situation to slow down your success pestle analysis is effective and highly efficient.
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