ORIGINAL THOUGHTS ONLYPLEASE FOLLOW THE INSTRUCTIONS AND NO PLAGIARISMPlease see attached week 3 assignmentPurpose of Assignment This week students will review and revise their Week 3 Research Analysis for Business Signature Assignment based on economic analysis and the feedback provided by their facilitator. Students will also expand their Week 3 analyses to evaluate the challenges of expanding their chosen company’s production to a foreign market.About Your Signature AssignmentThis signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments might be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements. Assignment Steps Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business. Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment. Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor’s Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce’s Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis’s FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.Evaluate any competitors’ existing production in the chosen country.Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis’s FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?Assess how your chosen country’s current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country.Analyze the role of the selected country’s central bank on that country’s economy.Compare the availability, education, and job skills of the work force in the selected country. Discuss any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.Explain any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries.Based on the data gathered and analysis performed for this report write a conclusion in which you:Create business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations.Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.Propose how the firm’s position within the market and among its competitors will allow it to take your recommended action.Recommend strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government.Recommend any comparative advantages your company will have over competitors currently operating in that country, and defend your position, either for or against, expanding your company’s production into your chosen country based on your research. Integrate with the Week 3 Individual Assignment, and incorporate corrections and suggestions from the instructor’s feedback. The final report should be a minimum of 2,800 words. Cite a minimum of three peer reviewed sources not including the textbook. Include all peer-reviewed references and government economic data sources/references from Week 3. Format your assignment consistent with APA guidelines.Submit your assignment.ResourcesCenter for Writing ExcellenceReference and Citation GeneratorGrammar and Writing GuidesLearning Team ToolkitCopyright 2018 by University of Phoenix. All rights reserved.
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Running Head: Chevron Corporation
Instructor: ALI BOLOORIAN
Chevron Corporation competes in a perfect competition structure as they continue selling
their produce. The company’s operating margin is considered to be equal to other companies;
hence other companies competing with Chevron Corporation do not dominate in all areas in the
world and the United States. Chevron’s structure market has three specific characters which
Products from every company are similar.
These companies maximize their profits.
This type of market has free entry and exit points.
The company has managed to increase the shares by 10.27% in the Q4 of the year 2018 with
its price rising from $111.53 to 121.31 in the Q1 of 2019 (CSI Market 2019). They sold over 7
million shares in the previous financial year. During the last fiscal year, Chevron Company
managed to get more than $2.480 billion as an operating income and $148.124 billion as the
equity of their capitalized market share.
Their controlled prices help them in getting more profits while maintaining the market
price of their shares despite offering similar products which have different levels to every
customer present. Chevron has been benefiting from its regular profits earning. These trends
have been seen from them and the rest of the companies present in the region. These gains are
based on the market behavior and patterns in each level. Also, research factors that affect the
market structure which include; monetary policy, interests’ rates, unemployment, GDP and the
effects on the company itself.
The current financial reports show that Chevron Corporation is at par in competition with
other companies like Royal Dutch Shell, and Exxon Mobil. The company managed to gain
8.79% of the sales from the market despite financial reports which showing higher volatility in
the market when conducting exchange on the foreign currency and the unpredictable fluctuation
in the market industry. Despite the 8.79 % marginal profit from Chevron Corporation the whole
market managed to get almost 87.32% profit shared among other major oil companies (CSI
The company managed to generate high income of $141.7 billion previously from the oil
products like fuel, lubricants, and petrochemicals. Based on the products and services provided
by the company, it is possible for the company to set their effective price; hence they make high
profits which are similar to its competitors. Since the market structure is almost perfect, other
companies like Exxon Mobil manage to offer similar petroleum products for the same price to
ensure each company gets equal market share. However, Chevron Corporation had pledged to
invest over $2 billion on renewable sources of energy to ensure they have a defined position in
the Oil and energy market. The project expansion has helped the company in building and
solidifying their customer base. Despite a massive increase in the market share, Chevron
Corporation managed to get 10.27% increase in its customer base. And through the company’s
new project, the company is preparing itself to change in the future as Americans seek to move
from high carbon producing a car to electrically charged vehicles which offer a clean
environment. Based on the presented company’s business cycle, the company can quickly focus
on their future goals based on the generic strategy which ensures the managerial docket adhere
and implement the company’s business model leading to high production.
According to the business data presented on Stock Analysis On.net, Chevron Corporation
has managed to cut down on their entry debt from $46,126 million in 2016 to $34,459 million in
2018 which is still quite high. This situation is always worrying since they are financially
unstable due to similar competition from other several companies. The drop-in debt level is
attributed to a considerable increase in market share of over 10.27% which comes from the year
2017 and 2018 by raising their capital and implementing fair prices (CSI Market 2019).
The GDP is significantly affected by the unpredictable changes taking place
economically from the basis of the business cycle. All these patterns are considered to be a cycle
of the future of the company. The situation is similar to a slow-growing economy of a country
which experiences low interests’ rate which results to correct time to buy goods and benefit from
the recession which allows companies to grow. Also, the cycle increases a company’s purchasing
power which has been increasing from 2013. Chevron Corporation is estimated to grow its GDP
for the last five years by 4.85% (CSI Market 2015). When presented with a real personal
consumption, specific information about the GDP consumption can be seen to have grown over
the years. It clearly explains the increased dependency of the petroleum products by its customer
resulting in high incomes and low unemployment rates.
When a company has a great CPI, its purchasing power grows which is preferably seen
when inflation hits the economy. Companies like Chevron Corporation experience firsthand rise
in prices of fuel and petroleum products resulting in changes in the inflation. Based on the
country, the Chevron Corporation is operating from; their CPI index always appears to be higher
leading in higher purchasing power hence making it easy for the company to accommodate for
its needs. Despite governments efforts in capping this market by imposing high taxes onto them,
some of these tax rates infiltrate into other corporation resulting in an increased price of
products. During this time the company is affected the least. During this time, government
agencies that regulate the supply of oil energy across the country force these corporations to cap
their prices as a relief to the strain in a country’s economy. These measures are taken against oil
companies affects oil production and distribution across a region (Bloomberg 2019).
Since oil and gas are essential in the United States, the government chose to reduce
interest rates for companies operating in this industry. However, the purchasing power (CPI) for
these companies is still very high. Also, the oil and gas industry employees more Americans;
hence all the companies operating in this industry choose to play in the same level ecosystem to
avoid external influences. Some of the drastic measures taken by the federal government on the
essential commodities have affected net profits for companies like Chevron Corporation are
receiving (Bloomberg 2019).
Chevron annual/quarterly revenue history and growth rate from 2014 to 2018.
Chevron Corporation operates in a perfect market structure and changes implemented in
its business model as help the company to return in profitable glory period. The company
should maintain its current business plan to enable the company to cut back more on their
debt and continue building on their revenue and market share growth. Also, the Chevron
Corporation should establish other new policies which prohibit the company from
excessive spending and unnecessary funding of subsidiary company without returns.
Additionally, Chevron Corporation should be cautious of the projects being carried out
by the subsidiary companies since they are increasingly becoming unprofitable.
Finally, regular audits on the company and the employees would help the company solve
the high debt issue experienced by the corporation.
CSI Market (2019). Chevron corp. comparisons to its competitors, market share and its
competitiveness by segment. CSIMarket, Inc.
CSI Market (2015). Chevron (CVX) divisions, Quarterly segment Results and business segment
description. CSIMarket, Inc. https://csimarket.com/stocks/segments.php?code=CVX
Bloomberg (2019). Oil, Gas and Consumable Fuels: Company Overview of Chevron
Corporation. Bloomberg L.P.
Individual Assignment: Research Analysis for Business
Purpose of Assignment
The purpose of this assignment is the creation of a research analysis. Every day, consumers make
millions of decisions that impact the marketplace and influence firms’ decisions. Firms use economic
concepts, models, and other “tools” of economics to help determine pricing, output, and profit
maximization. As an MBA student of economics, you can apply the “tools” of economics to
microeconomic and macroeconomic data to create recommendations for how firms can maximize
revenue, profit and market share.
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are
also additional tutorials via the web offering support for Office products.
Identified the market structure student’s
chosen firm operates in, analyzed student’s
chosen firm’s current market share, and
identified the firm’s local/global competitors.
Analyzed the barriers to entry in this market to
Market Structure analysis
might include the use of a
Concentration Ratio. A
concentration ratio is the ratio
of the combined market
shares of a given number of
illustrate the potential for new competition and
its impact on firm’s future in the market.
Identified and explained trends in current
macroeconomic indicators for last three years
• Current stage of the business cycle.
• Real gross domestic product (GDP).
• Inflation as measured by the consumer
price index (CPI).
• Unemployment rate.
• Federal funds rate.
• Current rate for borrowing funds such as
the so-called “prime rate.”
Evaluated trends in demand over last three
years and explained their impact on the
industry and the firm. Included quarterly (last
two quarters) and annual sales (last three
years) figures for the product student’s firm
sells. Created business strategies by
analyzing information and data related to the
demand for and supply of firm’s product(s) to
support student’s recommendation for the
firm’s actions. Included a graphical
representation of the data and information
used in student’s analysis.
Examined available, current data and
information, such as pricing and the
availability of substitutes, and explained how
student could determine the price elasticity of
demand for firm’s product. Assessed how the
price elasticity of demand impacts the firm’s
pricing decisions and revenue growth.
Applied the concepts of variable and fixed
costs to firm for informing its output decisions.
Analyzed how different kinds of costs (labor,
research and development, raw materials)
affect the firm’s level of output.
firms to the whole market
size. It is commonest to
consider the 3-firm, 4-firm or
5-firm concentration ratio.
Concentration ratios are used
to assess the extent to which
a given market is
oligopolistic. Although there
is no definitive ‘rule’ about
what ratio constitutes an
oligopoly, a 4-firm
concentration ratio of over
60% would indicate a highly
I encourage you to review the
Federal Reserve’s frequent
assessments of credit
markets when making
A thorough analysis of
Elasticity of Demand should
include an evaluation of
consumer reaction to price
changes, appropriate for the
given market structure.
Profit maximization occurs
when Marginal Cost =
Based on the data gathered and analysis
performed student’s conclusion included:
• Business strategies, including price and
non-price strategies, based on market
structure to ensure the market share and
potential market expansions. Also
included exploration of global
opportunities for student’s business in a
dynamic business environment and
• A recommendation for how the firm can
manage its future production by
synthesizing the macroeconomic and
microeconomic data presented.
• Proposal for how the firm’s position within
the market and among its competitors will
allow it to take your recommended action.
• Recommended strategies for the firm to
sustain its success going forward by
evaluating the findings from demand
trends, price elasticity, current stage of
the business cycle, and government
Cited a minimum of three peer-reviewed
references and a minimum of two government
economic data sources/references.
The analysis is a minimum of 1,050 words in
Recommendations based on
findings are generally fitting
for your chosen firm and
industry. However, the
support for the conclusions
lacks sufficient detail. Please
applying course concepts
and terms to support your
findings and reasoning. Also,
more consideration to the
current stage of the business
cycle and government
policies should be given as
well as focus on synthesizing
the macroeconomic and
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
• Perfect competition: Perfect competition happens when numerous small firms compete against each other.
Firms in a competitive industry produce the socially optimal output level at the minimum possible cost per unit.
• Monopoly: A monopoly is a firm that has no competitors in its industry. It reduces output to drive up prices and
increase profits. By doing so, it produces less than the socially optimal output level and produces at higher
costs than competitive firms.
• Oligopoly: An oligopoly is an industry with only a few firms. If they collude, they reduce output and drive up
profits the way a monopoly does. However, because of strong incentives to cheat on collusive agreements,
oligopoly firms often end up competing against each other.
• Monopolistic competition: In monopolistic competition, an industry contains many competing firms, each of
which has a similar but at least slightly different product. Restaurants, for example, all serve food but of
different types and in different locations. Production costs are above what could be achieved if all the firms sold
identical products, but consumers benefit from the variety.
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