Business Scenarios Part Ii
Business Scenario Part 2 – Decisions in Paradise Expanding Chevron’s Business Presence in Kava
Marian Folds
Mgt350 / Nicole Baum
University of Phoenix
January 5, 2009
Expanding Chevron’s Business into Kava – Part 2 As discussed in Part 1, Chevron Asia Pacific is investigating expanding its energy business to the island nation of Kava. Kava is of significant size and located near the Cook Islands off the coast of Australia. This country has recently been overwhelmed by a series of natural disasters that have left the people, the environment and the country’s economy in a state of emergency. Chris Morales, founder of Chevron, requested a feasibility study on the potential for expanding Chevron’s business presence in the country of Kava. Part 1 of the study explored issues associated with an increased presence in the country and how Chevron, its key stakeholders and the country of Kava would benefit from such a move. Part 2 will propose suggestions for expanding Chevron’s presence in Kava, using the decision-making techniques and tools available on the Chevron Project Development and Execution Process web site. The tools chosen for this business scenario are SWOT analysis and the Six Thinking Hats method. Problems Identified in Kava The problems identified in Part 1 of this business scenario include extreme structural, environmental, and economic damage to Kava by several natural disasters. In addition, Kava has the potential for repeated natural disasters such as typhoons, earthquakes and floods. Diverse ethnicity, religion and languages in the country present problems of difficult communication and gaining cooperation of the citizens, as well as providing the potential for terrorist attacks from inside and outside the country. Finally, since half the population of Kava is under the age of 15, Chevron may face problems with unskilled labor and lack of available engineers and scientists on the island. Opportunities in Kava The Kava government owns oil and
Marian Folds
Mgt350 / Nicole Baum
University of Phoenix
January 5, 2009
Expanding Chevron’s Business into Kava – Part 2 As discussed in Part 1, Chevron Asia Pacific is investigating expanding its energy business to the island nation of Kava. Kava is of significant size and located near the Cook Islands off the coast of Australia. This country has recently been overwhelmed by a series of natural disasters that have left the people, the environment and the country’s economy in a state of emergency. Chris Morales, founder of Chevron, requested a feasibility study on the potential for expanding Chevron’s business presence in the country of Kava. Part 1 of the study explored issues associated with an increased presence in the country and how Chevron, its key stakeholders and the country of Kava would benefit from such a move. Part 2 will propose suggestions for expanding Chevron’s presence in Kava, using the decision-making techniques and tools available on the Chevron Project Development and Execution Process web site. The tools chosen for this business scenario are SWOT analysis and the Six Thinking Hats method. Problems Identified in Kava The problems identified in Part 1 of this business scenario include extreme structural, environmental, and economic damage to Kava by several natural disasters. In addition, Kava has the potential for repeated natural disasters such as typhoons, earthquakes and floods. Diverse ethnicity, religion and languages in the country present problems of difficult communication and gaining cooperation of the citizens, as well as providing the potential for terrorist attacks from inside and outside the country. Finally, since half the population of Kava is under the age of 15, Chevron may face problems with unskilled labor and lack of available engineers and scientists on the island. Opportunities in Kava The Kava government owns oil and