Strategic Analysis: Chevron
Critical Issues
1. What can Chevron do about the increasing gas prices Is a decrease in price per gallon possible
2. How can Chevron adapt to the global climate change
3. How can Chevron decrease accidents Increase the safety of their employees and the public at large
Strategic Analysis
Economic Forces
The gasoline market is a highly competitive market. Gasoline prices have risen in response to market conditions and the market will correct any imbalances in supply and demand. Prices are the mechanism that allows market forces to work. Market conditions have resulted in sharp price increases in some areas, and the market will operate to moderate those increases as additional supplies reach customers.
Rising gasoline prices are the result of market forces operating in a rapidly changing environment. They are a reflection of increased costs and tightness in supply, particularly in the Midwest.
Rising pump prices reflect higher worldwide crude prices, which now exceed $30 per barrel, approximately 300% higher than the prices if a year-and-a-half ago. Crude oil costs are the single largest components of gasoline costs and petroleum refiners, marketer and retailers have had to pass those increased costs along to stay in business.
U.S. refiners are running at record
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