COMPANY ANALYSIS OF CHEVRON

Company Analysis of Chevron

Company Analysis of Chevron

Chevron's History

Chevron is one of the world's largest integrated energy companies with subsidiaries that conduct business worldwide. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewable.

Economic Conditions

Chevron is a global energy company with significant business activities in the following countries: Angola, Argentina, Australia, Azerbaijan, Bangladesh, Brazil, Cambodia, Canada, Chad, China, Colombia, Democratic Republic of the Congo, Denmark, Indonesia, Kazakhstan, Myanmar, the Netherlands, Nigeria, Norway, the Partitioned Neutral Zone between Saudi Arabia and Kuwait, the Philippines, Republic of the Congo, Singapore, South Africa, South Korea, Thailand, Trinidad and Tobago, the United Kingdom, the United States, Venezuela, and Vietnam.

The company's operations, especially upstream, can also be affected by changing economic, regulatory and political environments in the various countries in which it operates, including the United States. Civil unrest, acts of violence or strained relations between a government and the company or other governments may impact the company's operations or investments. Those developments have at times significantly affected the company's operations and results and are carefully considered by management when evaluating the level of current and future activity in such countries.

The company continues to closely monitor developments in the financial and credit markets, the level of worldwide economic activity and the implications to the company of movements in prices for crude oil and natural gas. Management is taking these developments into account in the conduct of daily operations and for business planning. The company remains confident of its underlying financial strength to deal with potential problems presented in this environment. (Refer also to discussion of the company's liquidity and capital resources on page 34.)

Ethical Issues

Chevron takes seriously the conduct of its employees and requires questionable conduct to be reported. This may include, for example, violations of company policy or of the Chevron Business Conduct and Ethics Code. One reporting method is the Chevron Hotline, which is operated offsite by Global Compliance Services (AlertLine®), an independent agent. In 2008, AlertLine® received 555 reports, compared with 391 in 2007 and 262 in 2006. The largest percentage of reports applied to two categories: people- management issues (63 percent) and financial and internal controls (17 percent).

There are a wide range of areas which come under ethical issues in Chevron, ranging from professional ethics, particularly relating to certain professions such as doctors and lawyers, to employee rights. Employee rights include the right to a fair wage, a safe working environment and non-discriminatory policies. Ethical issues in Chevron also exist in areas such as sales and marketing, whereby companies should not, for example, make false claims about products, indulge in anti-competitive practices such as price fixing, or break copyright laws.

Marketing Strategies

When it comes down to it, marketing is like every other activity you focus on in your ...