Managing Organisations in a Global Context. Chevron Corporation Essay

Managing Organisations in a Global Context. band Corporation - Essay interpreterGlobal scale of its operations, scarcity of skilled workforce, and a highly competitive commodity based craft makes band highly vulnerable to the external environs. For Chevron to retain its market leadership in a competitive global knowledge-based economy, it has to depend on efficient knowledge exchange between its operations groups (customer facing) and the engine room center staff (responsible for technology and support). Therefore, it is important for Chevron to actively engage in knowledge centering activities to increase useable efficiencies and over totally cost-advantages. The report analyses the structure, organizational culture and leadership of Chevron to study its congenital capabilities. Chevron has a decentralized organizational structure that poses both a threat and advantage to impose necessary changes for knowledge sharing and team collaboration. The principles of The Chevron Way that acts as a learning beam to communicate and reinforce the values and goals of Chevron is a key artifact for its team and learning-based organization culture. Chevron leadership has been instrumental in driving key initiatives as best practice sharing, operational efficiency management system and benchmarking wrt industry practices. The key issues that are important to be addressed for Chevrons long-term future are low-cost competition from state-owned oil companies, global communication scrap regarding surroundal concerns and its existing decentralized structure. Introduction The financial crisis of 2008 highlighted once again two key lessons for organizations all over the world firstly, that organization laughingstocknot operate in vacuum and is not invulnerable to what is happening in the external environment and secondly, the world is so interconnected that positive and negative effects in organizations can have ripple effects across the globe in a matter of minutes. Exte rnal environment comprises of factors such as administrative and legal (inter study, non-governmental policies and regulations, legislatures and legal frameworks), technology (innovations, research and development), politics (government support and semipolitical systems in the geographical region), economics (inflation, labour laws, opportunity costs, currency restrictions etc.), society and culture at local, national and regional levels and stakeholders (Harrison, 1970). There are evident examples of organizations that have been deeply impacted due to pressures of the external environment such as Kodak at the advent of disruptive innovation in digital imaging (Forbes, 2008), Lehman Brothers bankruptcy due to 2008 global financial crisis (Investopedia, 2009) etc. Globalization has transformed contemporary business environment into a knowledge-based economy that makes organizations even more vulnerable to changes. Oil and Gas companies are no exceptions to this turbulent environmen t. The relevance of geopolitical tensions, environmental considerations, oil economics and market dynamics make them complex entities to operate. They deal with a number of complex tasks, which reason the necessity of knowledge management system in the oil and catalyst organizations. Globalization, innovative technologies, outsourcing and offshoring, new joint ventures, government regulations and scarcity of experienced personnel have amplified the need to get by and mobilize knowledge, expertise and best practices across multi-national organizations to retain their competitive advantage (Leavitt, 2002). This report addresses the above factors in case of CHEVRON Corporation, and