ASSIGNMENT 1 FRONT SHEET
Qualification

BTEC Level 5HND Diploma in Business

Unit number and title

Unit 17: Understanding and Leading change

Submission date

5/10/2022

Date Received 1st submission

Re-submission Date

Date Received 2nd submission

Student Name

Nguyen Thanh Vinh

Student ID

GBS200095

Class

GBS0908B

Assessor name

Truong Anh Tuyet

Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature
Grading grid

P1

P2

P3

M2

M2

D1


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Submission Format:

Format:

This assignment is an individual assignment in the form of a comparative analysis and impact
statement report. The recommended word limit is 2,000 words.
You must use font Calibri size 12, set number of the pages and use multiple line spacing at
1.3. Margins must be: left: 1.25 cm; right: 1 cm; top: 1 cm and bottom: 1 cm. The reference
follows Harvard referencing system. The recommended word limit is 2.000 words. You will
not be penalized for exceeding the total word limit. The cover page of the report has to be
the Assignment front sheet 1.

Submission Students are compulsory to submit the assignment on due date and in a way requested by
the Tutors. The form of submission will be a soft copy posted on
/>Note:

The Assignment must be your own work, and not copied by or from another student or from

books etc. If you use ideas, quotes or data (such as diagrams) from books, journals or other sources, you
must reference your sources, using the Harvard style. Make sure that you know how to reference properly,
and that understand the guidelines on plagiarism. If you do not, you definitely get fail.


Unit Learning Outcomes:

LO1 Compare ways in which change impacts on an organization’s strategy and operations.
LO2 Evaluate the influences that drivers of change have on organizational behaviors.

Assignment Brief and Guidance:

The COVID-19 Pandemic affects global economy and the way people and organizations do business. In
response to this unexpected external environmental factor, many companies have to adapt to it and
make critical decisions to change.


You are required to choose two companies as case studies, one local and one global to analyze and
compare how COVID 19 affects the strategies and operations of the chosen companies; and to evaluate
how drivers of change influence organizational behaviors in the two cases.

You are expected to apply appropriate change management theories and models to guide your
discussions, make and justify your analysis and recommendations.
The submission is a comparative analysis and should include the followings:
An overview of the organization case studies and how the COVID 19 affects the chosen organizations.
An analysis to identify external and internal drivers of changes and compare how they affect
organizational strategies and/or operations in the two cases is in short and long term.
An evaluation of how related drivers of change affect leadership, team, individual behaviors and their
responses to change as well as long term impacts in the two cases.

Make recommendations for the companies in the level of business strategy and operations to have
better response to the identified changes as well as to minimize negative impacts of the changes on
organizational behavior.

Contents

Introduction......................................................................................................................................................... 5

I.
II.

An overview of the companies and how Covid-19 affects them .................................................................. 5

1.

Petrolimex ........................................................................................................................................................ 5

2.

How Covid-19 affects Petrolimex .................................................................................................................. 6

3.

Chevron............................................................................................................................................................ 7

4.

How Covid-19 affects Chevron ...................................................................................................................... 7

III.
1.

3.

External and internal drivers of changes and their impact on organizational operations and strategies.
8

External drivers of changes............................................................................................................................ 8
1.1.

Petrolimex ................................................................................................................................................ 8

1.2.

Chevron.................................................................................................................................................. 10

SWOT ............................................................................................................................................................ 13


3.1.

Petrolimex .............................................................................................................................................. 13

3.2.

Measures to minimize negative impacts of change on organizational behavior: ............................ 13

3.3.

Chevron.................................................................................................................................................. 14

3.4.

Measures to minimize negative impacts of change on organizational behavior. ............................ 14

4. How related drivers of change affect leadership, team, individual behaviors and their responses to
change as well as long term impacts in the two cases ........................................................................................ 14

4.1.

In Petrolimex ......................................................................................................................................... 14

4.2.

In Chevron ............................................................................................................................................. 15

5. Evaluate measures that can be taken to minimize negative impacts of change on organizational
behavior ................................................................................................................................................................. 16
Recommendation .......................................................................................................................................... 17

IV.
V.

Conclusion ......................................................................................................................................................... 18
Reference ....................................................................................................................................................... 18

VI.

I.

II.

Introduction
Covid-19 is an epidemic that affects not only people but also the global economy. In this
article, we will highlight the impact of Covid on the oil and gas industry and, more clearly, the
two companies, Petrolimex in Vietnam and Chevron in the United States. The report will use
the Pestel and Swot models to show what the two companies can achieve and what they need
to overcome. In addition, it is advisable to help these two companies through the crisis through

Swot analysis.
An overview of the companies and how Covid-19 affects them
1. Petrolimex


Source: Petrolimex ,2021
Vietnam National Petroleum Corporation (Petrolimex) is a Vietnam National Petroleum
Corporation shareholder. Petrolimex's principal activities are to import, export, and trade
in petroleum, refinery, and petrochemicals and invest capital in other companies as
prescribed by law. Petrolimex focuses on petroleum, lubricants and petrochemicals,
liquefied petroleum gas and transportation, petroleum engineering and equipment, and
other business services (Petrolimex, 2021).
Petrolimex plays a leading role in the domestic market in the petroleum sector, with 29
large companies and 120 petroleum distributors. 43/69 Petrolimex member units directly
trade petrol and oil in 62/63 provinces and cities. For Retail Petroleum Products Trading:
Out of more than 14,000 CHXs belonging to all economic sectors, Petrolimex has 2,471
(data as of January 10, 2017). Products are available throughout the country (Petrolimex,
2021).
2. How Covid-19 affects Petrolimex
The Covid-19 pandemic has prevented a promising start to 2020 around the world. For
the first time in history, the price of WTI crude oil traded at $37.63 per barrel on April
20, 2020, for futures contracts that closed in May 2020. Petrolimex in the first quarter
could not avoid the widespread impact caused by Covid-19. In the second quarter,
gasoline prices increased again, although this increase was not balanced by the sharp
decrease in the first quarter (PVN, 2021).
Also, according to Petrolimex, in the first quarter of 2020, due to the impact of the
COVID-19 epidemic, oil prices. The world dropped sharply and continuously from 61.18
USD/barrel at the beginning of the quarter to 20.48 USD/barrel at the end of the quarter
(equivalent to a decrease of 66%), directly affecting the amount of capital sold during the
period (PVN, 2021).


Source: Cafef, 2020


Figure 1: Profit before tax.
In the second quarter of 2020, world oil prices rebounded after a sharp decline at the end
of the first quarter of 2020. However, before the outbreak of COVID-19 in April, when
the whole country implemented directive 16, In the face of the isolation of the entire
society, at the same time, the oil and gas industry was still affected by oil prices. For
example, market supply and demand decrease during a down period, and supply pressure
during a bullish period apply to significant market leaders such as Petrolimex.
3. Chevron

Source: Chevron, 2022
The Chevron Corporation (commonly referred to as Chevron) is a multinational energy
company with headquarters in San Ramon, California, and operations in more than 180
countries. Chevron's businesses include exploration, production, and transportation of
crude oil and natural gas, refining, marketing, distributing transportation fuels and other
energy products, manufacturing and selling petrochemicals, generating electricity and
geothermal energy, providing energy-saving solutions, and developing the future of
energy sources such as biogas and other forms of renewable energy. Chevron products
are under three brand names: Chevron, Texaco, and Caltex (Chenron, 2020).
4. How Covid-19 affects Chevron
Chevron Energy Corporation (USA) was introduced on January 29, 2010, to make a loss
withinside the fourth sector of 2020, finishing a tough 12 months for oil and fuel line
agencies while the outbreak of the COVID-19 epidemic precipitated considerable
limitations. Demand for petroleum products (Chevron Policy, 2021).
The "giant" US oil enterprise has taken measures to lessen employees and spend on
manufacturing substances to "struggle" to conquer the recession, finishing the 12 months
with a lack of five billion USD, compared to earnings of USD 2 nine billion in 2019.

Chevron lost $ 665 million within the fourth sector of 2020, compared with a lack of $
6.6 billion within the equal duration in 2019, after a significant deduction of assets.
US oil costs bottomed out in April 2020, while futures costs fell right into a lousy quarter
because of a growth in oversupply, brought on with the aid of using a blockade of the US
economic system to save them from the unfold of COVID-19. As marketplace situations


III.

deteriorated, Chevron decreased its spending on manufacturing methods by using 35%
compared to 2019 and reduced different running costs (Chevron Policy, 2021).
Sales within the fourth sector of Chevron of 2020 reduced by 30.5% compared to the
equal duration in 2019 to $ 25.2 billion. In 2020, the group's sales decreased by 35.4%
from the preceding 12 months to 94.7 billion USD.
External and internal drivers of changes and their impact on organizational operations
and strategies.
1. External drivers of changes
1.1.Petrolimex
- Politic Factor:
To make sure the stableness of the fee level, to keep away from primary
fluctuations in fees affecting manufacturing and consumption, the extent of gas
and oil fees is stored surprisingly strong via way of means of the State for a
remarkably long duration of time, regardless marketplace withinside the covid
duration.
Especially with Vietnam having to import extra than 70% of the petroleum fed
domestically, the home petroleum fee relies closely on the arena petroleum
marketplace. Meanwhile, the political arena scenario motivated via way of means
of Covid currently has many complex developments, affecting oil supplies and
pushing Vietnam's oil fees down due to the quarantine selections from the
authorities. Typically, while the epidemic breaks out, massive towns are banned

from tourism by the rules or pressured to drop sports consisting of Da Nang, Hai
Phong, Ho Chi Minh City, and Hanoi. In addition, in keeping with the
Government's Directive No. 16/CT-TTg, ensuring social distance, preserving
distance among humans, network, and network. To limit the threat of network
infection, ask humans to live at home and determine whether going out, besides
instances in which it is undoubtedly necessary (Mah, 2020). Such political
impacts have precipitated Petrolimex's gas income to drop dramatically.
- Economic Factors:
When the price of oil falls, the supply curve shifts to the right. This leads to an
increase in the economy's output and a decrease in prices (a reduction in the
consumer price index). To do so, retail gasoline prices must decrease, electricity
prices decrease, water prices decrease, transportation costs decrease, and storage
costs decrease. This encourages companies to lower prices and produce more
products to increase sales.
For the 2020 economy experiencing Covid fluctuations, all industries such as
tourism, services, hotels, or transportation will be delayed, affecting people's
income. After that, even the high unemployment rate made people less interested
in commuting. The UNWTO report indicates that the number of international
tourists worldwide by 2020 will drop to 1.1 billion. Total global tourism revenue


-

-

lost $1.1 trillion; about 100-120 million industrial workers lost their jobs (Linh,
2020).
In addition, under the impact of the Covid-19 epidemic, from the beginning of
February 2020, the transport industry in this country began to "paralyze" due to a
sharp decrease in the number of passengers (about 90%). The reason is the

decreasing demand for travel; people cancel trips, and students miss school
because the remote social order restricts travel while on the move. Moreover,
according to the International Air Transport Association (IATA), in 2020, global
aviation industry revenue decreased by 60%, losing more than 118 billion USD
(news, 2020). Therefore, Petrolimex had to lower gasoline prices to the lowest
possible level to stimulate demand. Due to the economic recession, many
industries need to mobilize, leading to a loss of revenue for the petroleum
industry, especially Petrolimex.
Technology
The technologies, strategies, and approaches that influence organizational
performance are called technology influences (Palmer, 2009). The Covid
situation also affects the technology element of Petrolimex. Learning from
experience and technology will also become more complex as translation takes
place.
The platform currently provides customers abroad; if the epidemic lasts for a long
time, the border gates are closed, and international flights will stop, affecting the
contract performance. In addition, with oil and gas technology service contracts
abroad, it is not easy to bring workers abroad because most countries restrict entry
and exit during this time. (Thiet, 2020).
Even the worst case is the forced closure of mines and oil refineries; The Group's
subsidiaries must increase sharing of information, resources, and markets to
optimize the efficiency of the Group's technological processes.
Social
Society is a broad concept with many interpretations related to all aspects of
human material and spiritual life. Culture distinguishes members of one group
from another.
Ho Chi Minh City is increasingly developing; with a large population, the mine
needs to consume much oil, and the oil demand is higher than in other provinces
and cities. This is a favorable field (low cost, high demand), and competition in
the oil field is relatively fierce. However, during the current covid pandemic, most

of the oil consumption will be delayed due to banned social demand resulting in
lower funding. During the Covid outbreak today, Vietnam’s largest oil consumer
also showed signs of social recession. People rarely use public transport such as
buses or buses, and there are no signs of crowding. People in this city have turned
to walk more because society is extremely complicated during the epidemic


season. People will not stray too far from home due to the blockade of 33 areas.
This social factor has caused Petrolimex to fall into poverty (Tinh, 2020).
1.2.Chevron
- Economic Factors
Economic factors include the influence of supply and demand on petrol prices,
supply and demand on alternative sources, USD exchange rate (oil policy - US
dollar). On April 20, the world crude oil price fell negatively for the first time
(below 0 USD/barrel) and was the lowest price on the New York Commodity
Exchange. In the context of oversupply and economic downturn, Chevron cannot
keep up with the Covid season (An, 2020).
As in Vietnam, the economy slowed down when the Covid epidemic broke out in
the United States. Even data on October 15 from the US Department of Labor
showed that the number of jobless claims in the past week was 898,000 people,
equivalent to the end of August, causing the national economy to shrink, dragging
down the economy. According to the nature of the Vietnam industry (Ha, 2020).
In particular, the US Chevron corporation is facing many troubles due to the
prolonged unemployment of people, leading to less transportation.
- Technology:
Technology has rapidly disrupted many different fields. This case is typical of the
oil sector and Chevron Petroleum. Due to the complicated outbreak of Covid,
Chevron has also restricted the concentration of people in technology production
plants, disrupting Chevron's technology business, which requires many people to
handle. In addition, staff cuts due to translation have slowed down many Chevron

factory operations and failed to keep up with the latest technologies (Yen, 2020).
- Political Factor
The presence of a political body (party, state, or other organization) at the
national, regional, or international level is called a political force. Most countries
see the oil and gas industry (upstream and downstream) as the strategic spearhead
of a country's political, fiscal, and social needs. However, during the covid-19
outbreak, the government made decisions that put Chevron in a difficult position
as the San Francisco Bay Area was the first to ban civilians by order of the
government. Then came the ban on people leaving their homes in California, and
other states also enacted bans. This makes people's travel demand plummet,
leading to a sharp decrease in people's gasoline consumption due to the Covid
epidemic (Thoa, 2020).
- Social Factor
Although Covid-19 has a beneficial impact on the environment, it is precisely
because of the lack of travel with large numbers of people that has resulted in a
significant reduction in CO2 emissions into the atmosphere from oil. According
to Carbon Brief, researchers in 2020 estimate this to be the most significant drop


on record. Carbon dioxide (CO2) emissions have fallen significantly in the
world's highest emitting countries and regions, with the United States down 12%
and the European Union (EU) down 11% (Chung, 2020).
Reducing CO2 can be good for humans during the Covid-19 epidemic, but it is
directly harmful to plants because it will negatively facilitate the photosynthesis
process of plants. Greenery of Covid-19.
2. PEST
Political Factor

Economic Factor


Petrolimex
Covid duration of gas and
oil fees is stored via way of
means of the State for a
remarkably long time,
regardless of marketplace
within the covid duration.
Vietnam must import more
than
70%
of
the
domestically
fed
petroleum;
the
home
petroleum fee relies closely
on the arena petroleum
marketplace. Meanwhile,
behind the scenes, the
political arena scenario has
many
complex
developments, affecting oil
supplies
and
pushing
Vietnam's oil fees down.
When oil prices drop,

Petrolimex
sees
a
rightward change in the
supply curve. Because of
this, economic production
rises while prices fall (a
reduction in the consumer
price index). Lowering the
cost of fuel, power, water,
and
transportation
is
essential. In addition, the
Covid-19 pandemic caused
a dramatic drop in
passenger volume (about
90%) in early February
2020, thereby "paralyzing"
the transportation sector in
this country.

Chevron
During
the
Covid-19
outbreak, the government
made decisions that put
Chevron in a difficult
position.

The
San
Francisco Bay Area was
the first to ban civilians by
government order. This
makes people's travel
demand plummet, leading
to a sharp decrease in
people's
gasoline
consumption.

Supply and demand for
gasoline,
alternative
energy sources, and the US
dollar value are all
examples of economic
considerations (oil policy US dollar). On April 20th,
the price of crude oil hit a
record low on the New
York
Commodity
Exchange, falling below
zero dollars a barrel for the
first time in history.
Chevron cannot keep up
with the Covid season
because of overstock and
the economic slump (An,

2020). Similar problems


Social Factor

Technological Factor

Vietnam, the world's most
significant oil consumer,
also experienced a societal
downturn amid today's
Covid pandemic. There is a
vast population in Ho Chi
Minh City. Thus the mine
has to use oil to operate.
Due to restricted societal
demand,
most
oil
consumption will be put on
hold. To a large extent,
Petrolimex's
economic
decline can be attributed to
these societal factors (Tinh,
2020). People in this city
have taken to walking more
than usual because of the
disease, but they still won't
go too far from their homes

because 33 districts have
been sealed off.
As knowledge becomes
increasingly intricate via
study and practice, so will
technology.
Contract
performance
may
be
impacted if the pandemic
lasts for an extended
period, closing borders and
halting
international
flights. The technical side
of Petrolimex is likewise
being affected by the Covid
crisis.
Furthermore,
moving personnel overseas
with oil and gas technology

have plagued the US
Chevron firm in Vietnam,
where high unemployment
has reduced the availability
of drivers. The United
States had a similar
economic slowdown to

Vietnam when the Covid
outbreak broke out.
Although
Covid-19
positively influences the
environment, the decrease
in CO2 emissions from the
absence of large-scale
travel
is
primarily
responsible. According to
Carbon Brief, experts in
the year 2020 believe this
will be the most significant
decrease ever recorded.
The
United
States
decreased by 13% and the
European Union by 11%.

Additionally, Chevron has
limited the concentration
of employees in its
technology manufacturing
facilities, destabilizing its
technology business. Due
to translation-related staff
reductions,

several
Chevron plant processes
have slowed down and
failed to keep up with the
newest technology. This
case is representative of the
petroleum industry and
Chevron Petroleum.


service contracts is not
straightforward since most
nations limit entrance and
leave during this period.
3. SWOT
3.1. Petrolimex
Strength
PGC's main asset is its long-standing
reputation in the field of liquefied
petroleum gas in Vietnam, currently in
the top 3 in the market with a market
share of 20%. The distribution system
includes general agents covering 64
provinces and cities. In addition,
together with the predecessor GAS,
under the Vietnam National Petroleum
Corporation, PGC's products are also
distributed by 40 oil and gas companies
and branches under the Vietnam
National

Petroleum
Corporation
(Trang, 2010).
Opportunity
As 2010 begins, Vietnam's gas business
environment is expected to be healthier
because the market has the highest legal
framework
governing
business
practices, the Gas Trading Decree.
Vietnam is expected to grow at a 7-10%
rate in the coming years (Trang, 2010).

Weakness
Petrolimex Gas does not have a GAS
processing plant; 50% of Petrolimex
Gas sources are from PV gas (at Dinh
Co factory). Thus, PV GAS is both a
competitor and a supplier of PGC, with
a market share of approximately 30% to
35% of market demand. The possibility
of price pressure and production is very
high. From 2011, the company will no
longer benefit from the 50% corporate
tax exemption (Trang, 2010).

Threat
The retail price of domestic gas is highly
dependent on the volatility of liquefied

natural gas prices and the global oil
market. This is a very volatile market,
making pricing and planning difficult.
Competition in the gas distribution and
retail industry is becoming more and
more fierce when information is not
perfect, and consumers are more
concerned with price factors than
quality (Trang, 2010).
3.2.Measures to minimize negative impacts of change on organizational behavior:
Based on analyzing and assessing opportunities and challenges of the market and
comparing with the existing capacity of PLC, Petrolimex’s strength is that the
national petroleum company should have capital through Swot analysis. State,
besides, there are many branches nationwide. However, many difficulties and
challenges in covid translation need to be solved. Recommendations are based on
SWOT, such as not cutting gas prices too profoundly during the season to avoid
devaluation and lower income. In addition, the strict implementation of epidemic
prevention activities by livestock establishments to prevent infection from inside
led to a series of gas stations having to close because of the disease. Another tip


is to keep gas stations open during necessary hours and reset business hours to
avoid unnecessary costs to maintain business and reduce staff costs when the store
is empty.
3.3.Chevron
Strength
Weakness
The financial situation is solid, and the Earnings from refined products
income is constantly increasing continued to decline. Market
daily—a strong global presence in knowledge for different product

more than 180 countries worldwide. lines. Gas and Crude Oil Stocks
Chevron Corporation is the world's Decline (SWOT & PESTLE, 2021)
sixth largest oil super company.
Diverse in oil, gas, and geothermal
energy,
including
refining,
exploration, and production (SWOT &
PESTLE, 2021).
Opportunity
Threat
World
energy
demand. Environment regulation.
Environmentally friendly energy Economic instability.
sector with renewable form. Fuel price High competition in the fuel sector.
increase. Colossal oil field discoveries The increasing price of raw materials
worldwide (SWOT & PESTLE, 2021) (SWOT & PESTLE, 2021).
3.4.Measures to minimize negative impacts of change on organizational behavior.
From a fundamental perspective, Chevron is in a good position, and the oil
recovery could help the company. Chevron still had some technical difficulties.
First, to limit Chevron, there are still no effective policies to reduce the impact of
Covid. Second, to minimize the effects of Covid 19, Chevron should provide
absolute safety for employees to avoid community transmission leading to gas
station closure due to widespread within the company.
4. How related drivers of change affect leadership, team, individual behaviors and
their responses to change as well as long term impacts in the two cases
4.1.In Petrolimex
Petrolimex is preparing a short-term strategy to sell all outstanding treasury shares
between 2020 and 2021 to fulfill the Group's demand for increased commercial

advantage and development investment, particularly in light of capital discounts
resulting from adverse business outcomes. The year 2020 is distinguished by the
Covid-19 pandemic and the precipitous decline in oil prices. In addition, under the
amended Securities Law and supporting rules, corporations holding treasury shares
will be required to cancel or decrease their share capital between 2020 and 2021. This
influence has impacted the company's interests, particularly state shareholders
(Petrolimex, 2020).
Several projects of Petrolimex, including the Petrolimex petrol receiving and
distribution warehouse in Nghi Son Economic Zone, Thanh Hoa province; investing
in the construction of My Giang LNG terminal; the project to relocate the Duc Giang


petrol depot; and the B12 petroleum port, are essential and long-term strategic
projects of Petrolimex that should be studied and invested in, according to the
industry leader. Prior to the incomplete initiatives, Petrolimex developed a long-term
strategy; all of the plans above have been modified and put on hold for a while owing
to the effect of the illness epidemic. To counteract the Group's primary business of
battling illness, Petrolimex must immediately adopt all processes and procedures
recommended by a multi-sector business model, particularly by 2020, successful
business in other disciplines (petrochemical, transportation, etc.). (Petrolimex, 2020).
In order to respond to the strain of covid-19, Petrolimex has made a minor personnel
adjustment in the near term. For instance, expediting service by deploying more
employees to oil and gas pumping stations so that consumers may get free oil
changes. This helped Petrolimex win over customers in the middle of the 19th century
(Petrolimex, 2020). Because of the outbreak, several plant employees were forced to
resign to protect Petrolimex's finances and profit margins. In addition, all workers are
required to report and wear masks while working at Petrolimex branches or factories
to avoid community diseases and the spread of Petrolimex activities that led to the
closure of essential Petrolimex components.
The Covid-19 outbreak has severely impacted the national economy and the oil and

gas sector in general. The leadership of Petrolimex provided particular tactics, such
as first using the online SMO model to increase the effect of online sales. Ho Chi
Minh City and Vietnam National Petroleum Group on preventing and controlling
COVID-19. Petrolimex Saigon has been actively implementing quick, effective, and
synchronous solutions, such as promoting the application of the Online Ordering
Program (SMO) in business transactions - thus reducing direct contact with the guard,
employee health, and ensuring the source of goods not only for Petrolimex internal
but also for customers and partners.
According to figures for the first three months of 2020, average between 1,000 and
1,500 orders are completed daily. Covid-19 substantially influences Petrolimex's
workforce, and the company must optimize expenses by cutting gasoline prices to
promote demand. They establish a department of personnel to assist e-commerce,
have a policy regarding customer and staff distance, and produce medical reports.
4.2.In Chevron
Chevron had a difficult time making choices once the Covid pandemic broke out.
Chevron's long-term strategy for human resources involves laying off almost 20,000
workers to preserve the company's financial stability. Chevron Corp has been obliged
to re-apply for employment as part of a preliminary cost-cutting scheme that will
result in losing 15% of the workforce globally. According to a warning Chevron sent
to the state of Texas, around 700 workers in Houston (USA) will be let off beginning
on October 23.


Chevron also had to devise a short-term strategy to restrict the number of hours and
employees in factories to stop the spread of Covid.
Chevron's long-term structure and well-defined strategy constitute the single most
important shift throughout the current covid epidemic. According to the sources,
when demand for oil and gas dropped owing to constraints and travel restrictions to
avoid the spread of COVID-19, Chevron CEO Mike Wirth and his ExxonMobil
colleague Darren Woods contemplated combining the two firms. ExxonMobile's

market capitalization alone is close to $190 billion, bringing the total market cap of
the two firms to well over $350 billion.
If ExxonMobil and Chevron merged, they would become the world's second-largest
oil firms in market value and production (AFP, 2020). Chevron's short-term approach
prioritizes snow safety by maintaining spotless fueling stations and offices.
Therefore, Chevron must consistently contract outside cleaning and disinfecting
services to maintain its facilities daily. As a result of this shift in strategy, Chevron
will likely devote a larger share of its earnings to its cleaning operations.
Chevron also had to develop a short-term strategy to restrict the number of hours and
employees in plants to stop the development of Covid since technological activities;
machines need temporary human resources processing to be slower.
When international events like COVID-19 occur, Chevron's priority is the well-being
of its employees and the integrity of the networks in which it engages. In particular,
we will be doing frequent daily cleanings of hand-contact surfaces. Also, Chevronrun gas stations across the world adhere to CDC regulations and standards and local
recommendations from doctors.
Management at Chevron and Petrolimex use distinct approaches to staff retention. It
provides its workers with protective gear, masks, and a secure environment to do their
duties.
5. Evaluate measures that can be taken to minimize negative impacts of change on
organizational behavior


IV.

(Paton, R. A., and McCalman, J.,2008)
An organization must use effective change management to mitigate the negative
consequences of any change in organizational behaviors, whether structural, technical,
or human. External and internal variables that might create change include new laws and
regulations, technological advancements in products and processes, competitor and
supply chain activities, natural disasters, and other events. Petrolimex Corporations and

Chevron Holdings are attempting to mitigate the harmful effects of technological product
advances and unexpected environmental catastrophes. The Code of Conduct at
Petrolimex is an amalgamation of the company's core policies regarding its workers, the
environment, occupational health and safety, stakeholder obligations, and social
responsibility. Petrolimex takes great pride in its employees at all levels are committed
to and consistently demonstrating the company's guiding values and objectives. In
addition to a compensation system, recognition, and greater participation, Petrolimex
creates several policies, procedures, and activities representing the business culture of
justice and empowerment. Petrolimex, a market leader in the Petroleum industry, is
cognizant of its role in fostering social progress and community. Petrolimex recognizes
that a company’s success may be measured by its revenue and profit and its exceptional
and lasting value to its clients and the community. In light of the present pandemic
scenario, the convenience of making payments through the app is welcomed. The
strategy may be used for a considerable time in COVID-19 evaluation.
Recommendation
First and foremost, firms must make adjustments to their hiring practices. The company is
responsible for providing its employees with health and safety training, particularly in light of
the current COVID19 outbreak. They are responsible for ensuring the safety of their customers
and staff. The company should revamp its internal structure. Businesses' income has dropped
due to the COVID-19 pandemic, necessitating a reorganization to compensate for the loss of


V.

VI.

sales. The company's responsibility is to devise marketing strategies and other methods to
increase business earnings.
Conclusion
In summary, the report outlined the challenges that the oil and gas industry, in general, and

Petrolimex and Chevron are facing. Furthermore, combining Pestel and Swot will be more
specific about the two companies' strengths, weaknesses, formulas, and opportunities. Through
detailed assessments that include measures to minimize the negative impact of the change on
organizational behavior.
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