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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

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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

http://cms.greenwich.edu.vn/

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

I Introduction 5

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 External and internal drivers of changes and their impact on organizational operations and strategies 8 1 External drivers of changes 8

1.1 Petrolimex 8

1.2 Chevron 10

3 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

IV Recommendation 17

V Conclusion 18

VI Reference 18

I 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

II 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

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

III 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