Global Business Strategy Essay Example | Topics and Well Written Essays - 3000 words

Global Business Strategy - Essay Example The study also includes the opportunities and the threats that might be faced by the organisation due to globalisation. It also highlights the varied assets and resources of the organisation, which has helped in expanding its functions in global markets. The study also aims to spotlight the numerous issues of Valero Energy Corporation that must be condensed in order to prosper and to sustain in future among other competing organisations. Table of Contents Executive Summary 2 History and Internationalisation Process of Valero Energy Corporation 4 Current External Environmental Conditions 5 Industrial Conditions 6 Resource Audit of Valero 7 Identification and Evaluation of Firm’s Current Strategy 8 Analysis of Strategic Approach of Valero to the Global Management of Its Operations 11 Issues Faced By Valero 12 Recommendations 13 References 16 Bibliography 20 History and Internationalisation Process of Valero Energy Corporation Valero Energy Corporation is one of the largest and autonomous oil refineries of the United States. It is a reputed brand and a Fortune 500 corporation with its head office located in San Antonio of Texas. Valero is the producer and the marketer of transportation oil along with varied other petrochemical products. Along with refining, it also functions in two other segments namely retail and ethanol. In addition, Valero encompasses and functions with the help of 15 refineries throughout the entire United States, Canada, Caribbean and the United Kingdom. With the help of the acquisition of the refineries, Valero produces a capacity of approximately 2.9 million barrels of oil every day. The prime objective of Valero is to offer its customers clean and sterile fuel and other petroleum products in order to enhance its consistency and dependency (Valero Marketing and Supply Company, 2012). Valero is a leading manufacturer of ethanol as well encompassing of a capability of generating about 1.1 billion gallons each year in order to satisfy the needs and the demands of its consumers. Valero is one of the foremost retail operators of refined fuels and markets its products on a wholesale basis throughout bulk and rack networks along with 6,800 retail outlets named as Valero, Beacon and Diamond Shamrock. The organisation was established in the year 1980, with the aim to diversify itself into an international conglomerate operating in oil and gasoline sector. Valero started its operation as a spinoff of a Coastal States Gas Corporation and is also recognised as the global manufacturer and dealer of transport fuel (Valero Marketing and Supply Company, 2012). Valero is a vehicle of advancement which always attempts to enhance its business operations throughout the world with the help of varied mergers and acquisitions such as Basis Petroleum Inc, Ultramar Diamond Shamrock and Pembroke Refinery. This strategy has mainly resulted due to the increasing demand of fuel in the eme rging markets across the globe in order to develop and update their economies along with sluggish growth rate of oil in the markets of the United States. It is one of the most imperative strategic challenges faced by Valero, which forced the management to undertake this tactical step. It proved quite beneficial for Valero to augment its international functioning resulting in improvement of its net revenue to US$ 125,987 million in the year 2011 as compared to US$ 82,233 million in 2010 (Valero Marketing and Supply Company, 2012). Moreover, the operating income also enhanced to US$ 31, 293 in 2011 from US$ 20, 561 in the year 2010 (Valero Energy Corporation, 2010). Thus, international business dealings helped Valero to augment its brand identity and equity among other competitors of this segment in the global market. The objective of the