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

Global Business Strategy - Essay ExampleThe 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 ContentsExecutive analysis2History and Internationalisation Process of Valero Energy Corporation4Current External Environmental Conditions5Industrial Conditions6Resource visit of Valero7Identification and Evaluation of Firms Current Strategy8Analysis of Strategic Approach of Valero to the Global Management of Its Operations11Issues Faced By Valero12Recommendations13References16Bibliography20History and Internationalisation Process of Valero Energy CorporationValero Energy Corporation is cardinal of the largest and main(a) 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 deportee 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 end-to-end 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 turn 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 producer of ethanol as well encompassing of a capability of generating about 1.1 billion gallons each course 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 rhombus 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 emerging 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 instruction 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