Group Assignment II Organization and Management Year 2023

Strategic Analysis of Existing Organizations

By :

Angelina Jolie (014202300226)

Bayu putra kusuma (014202300126)
Intan Tiara Tarihoran (014202300225)
M. Febri Setiawan (014202300062)

Faculty of Business,
President University
2023
Introduction
In this assignment, we will present a comprehensive analysis of Strategic Planning and
Organizational Structure, how the company's decision-making processes, leadership styles,
and communication methods within the organizational hierarchy. And we will prepare a
detailed report incorporating a SWOT analysis of the company's strategic planning and
organizational structure. Which consists of the company's strengths, weaknesses,
opportunities, and threats in the context of its strategic initiatives and organizational design.

Content
Valero Energy Corporation's strategic planning and organizational structure demonstrate
strong integration in supporting company goals. Here is a comprehensive analysis:

 Company Goals:
Valero Energy has long-term goals that include expanding its refining and marketing
operations, increasing market share, and diversifying its product portfolio. This
reflects the company's commitment to sustainable growth and risk reduction by
covering a wide range of products and markets.

 Innovation Strategy :
Valero Energy adopts an innovation strategy through massive investments in research
and development. This reflects the company's focus on continuously improving its
refining processes and developing new products, making them competitive and able to
meet changing market needs.

 Market Position:
By focusing on expanding refining capacity and product diversification, Valero
Energy achieved a strong position in the petroleum refining and marketing industry.
This helps the company to meet growing demand in various market segments, such as
transportation fuels, petrochemicals and electricity.

 Organizational structure:
Valero Energy's organizational structure is hierarchical with centralized decision
making. This supports strategic objectives by ensuring consistency in operations.
Strong leadership from an experienced and industry-knowledgeable management
team helps guide the organization towards achieving its goals.

 Decision Making Process:

A centralized decision-making process at the corporate level ensures that decisions
taken are in line with the company's long-term vision and goals. This helps achieve
consistency in strategy and operations.
  Strong Leadership:
Strong leadership helps motivate and guide an organization toward achieving strategic
goals. The leader's extensive experience and knowledge helps in taking the right
decisions and achieving the expected results.

 Effective Communication:
An effective communication system ensures that all members of the organization
understand the vision, goals, and necessary changes. This helps achieve good
coordination in achieving common goals.

SWOT
Strengths :
 Clear Long Term Goals:
Valero Energy has strong long-term
goals, including expanding its refining
operations, increasing market share and
diversifying its product portfolio.
 Innovation Strategy:
The company invests in research and
development, creating competitive
advantages by improving refining
processes and developing new
products.Posisi
 Strong Market:
Focus on expanding refining capacity
and product diversification has helped
Valero Energy achieve a strong
position in the industry
Opportunities :
 Renewable Energy Market
Growth:
Valero Energy may consider further
diversification into renewable
energy to address changes in
consumer demands and stricter
regulations.
 International Expansion:
Expansion opportunities into
international markets can help
companies reduce their dependence
on the domestic market.

Weaknesses :
 Centralized Decision Making:
While it can ensure consistency,
centralized decision making can slow
response to rapid market changes.
 Dependence on the Petroleum
Industry:
Valero Energy is still highly dependent
on the petroleum industry, making it
vulnerable to fluctuations in oil prices
and market demand.
Threats :
 Petroleum Price Volatility:
Fluctuations in petroleum prices
could threaten Valero Energy's
profitability.
 Strict Environmental Regulations:
Stricter environmental regulations
can lead to additional costs and
challenges in complying with the
rules.
Recommendation
 Comprehensive Analysis:
Overall, Valero Energy Corporation's strategic planning and organizational structure
are mutually supportive. The company's long-term and short-term goals are aligned
with innovation strategies, centralized decision making, strong leadership, and
effective communication within the organization. This creates a solid framework for
the company's long-term growth and success in the energy industry.

 SWOT Analysis :
This SWOT analysis provides an overview of Valero Energy Corporation's position in
the energy industry, by identifying strengths that can be maximized, weaknesses that
need to be corrected, opportunities that can be pursued, and threats that must be
addressed.

References
file:///C:/Users/Lenovo/AppData/Local/Microsoft/Windows/INetCache/IE/GBIDB77F/2
0cf5e24-4e27-423d-bbc1-1f2e1853584d[1].pdf
file:///C:/Users/Lenovo/AppData/Local/Microsoft/Windows/INetCache/IE/X0OP92RA/
VLO-2Q23-Earnings-Release[1].pdf
https://www.valero.com/about