Case based synopsis on how exactly have computerization and information technology lowered costs at chevron and merck ?

1.1 introduction to companies Chevron Corporation Chevron Corporation is an American multinational energy corporation. Headquartered in San Ramon, California, and active in more than 180 countries, it is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's six "super major" oil companies; as of 2013, it ranked eleventh in the Fortune Global 500 list of the world's largest companies. Operations

Upstream Chevron's oil and gas exploration and production operations are primarily in the US, Australia, Nigeria, Angola, Kazakhstan, and the Gulf of Mexico. As of December 31, 2010, the company had 10.545 billion barrels (1.6765 billion cubic metres) of oil-equivalent net proved reserves. Daily production in 2010 was 2.763 million barrels per day (439.3 thousand cubic metres per day). In the United States, the company operates approximately 11,000 oil and natural gas wells in hundreds of fields occupying 4,000,000 acres (16,000 km2) across the Permian Basin, located in West Texas and south eastern New Mexico. In 2010, Chevron was the fourth largest producer in the region.

In February 2011, Chevron celebrated the production of its 5 billionth barrel of Permian Basin oil. The Gulf of Mexico is where the company's deepest offshore drilling takes place at Tahiti and Blind Faith. It also explores and drills the Marcellus Shale formation under several North Eastern US states. Downstream

Chevron's downstream operations manufacture and sell products such as fuels, lubricants, additives and petrochemicals. The company's most significant areas of operations are the west coast of North America, the U.S. Gulf Coast, Southeast Asia, South Korea, Australia and South Africa. In 2010, Chevron sold in average 3.1 million barrels per day (490×103 m3/d)of refined products like gasoline, diesel and jet fuel. The company operates approximately 19,550 retail sites in 84 countries. The company also has interests in 13 power generating assets in the United States and Asia and has gas stations in Western Canada.

Chevron is the owner of the Standard Oil trademark in 16 states in the western and south eastern U.S. To maintain ownership of the mark, the company owns and operates one Standard-branded Chevron station in each state of the area. Additionally, Chevron owns the trademark rights to Texaco and Caltex fuel and lubricant products. It owns and operates five active refineries in the United States, one in Cape Town, South Africa, and one in Burnaby, British Columbia. Chevron is the non-operating partner in seven joint venture refineries, located in Australia, Pakistan, Singapore, Thailand, South Korea, and New Zealand. Chevron's United States refineries are located in Gulf and Western states.

Merck Merck & Co., Inc. in the outside of United States and Canada, is an American pharmaceutical company and is one of the largest pharmaceutical companies in the world. Merck headquarters is currently located in Whitehouse Station, New Jersey and will be relocating to Summit, New Jersey shortly. The company was established in 1891 as the United States subsidiary of the German company now known as Merck KGaA. Merck & Co. was confiscated by the US government during World War I and subsequently established as an independent American company. It is currently one of the world's seven largest pharmaceutical companies by market capitalization and revenue.

Merck also publishes The Merck Manuals, a series of medical reference books for physicians, nurses, and technicians. These include the Merck Manual of Diagnosis and Therapy, the world's best-selling medical textbook, and the Merck Index, a compendium of chemical compounds. In 2012 the company received the "Facility of the Year"-Category Winner for Facility Integration Award for the Vaccine Bulk Manufacturing Facility (VBF) Program of Projects in Durham, North Carolina, USA.

Merck ranks among the world’s leading pharmaceutical, chemical and life science companies. We operate our businesses in four divisions: Merck Serono (biopharmaceuticals), Consumer Health (over-the-counter pharmaceuticals), Performance Materials (high-tech chemicals) and Merck Millipore (products for pharmaceutical research and biotechnology).


1.3 SWOT ANALYSIS SWOT ANALYSIS OF CHEVRON STRENGTH 1.Financial stability 2.Global market presence 3.Big Global Brand WEAKNESS 1.Cost of environmental hazards 2.Declining products and reserves 3.Legal issues

OPPORTUNITY 1.Increasing fuel/oil prices 2.Increasing natural gas market 3.Capital investments in sector 4.CSR activities 5.To reposition itself as energy company THREATS 1.Government regulations 2.High Competition 3.Fuel Cell and Electric Automobiles SWOT ANALYSIS OF MERCK STRENGTHS Continues to benefit from strong M&A activity Has a diverse portfolio of product offerings Strong research & developmental pipeline with 20 products in late-stage development. WEAKNESSES Significant litigation involving Vioxx. Uncertainty regarding new product development in Biologics OPPORTUNITIES Emerging Global Markets are growing at double-digit percentage rates. Generic Biologics Market to exploit competitor’s patent expirations. New Mergers and Acquisitions, Joint Ventures, and Licensing agreements are promising. THREATS

Competition from generic drugs due to Patent expiration.Uncertainty in Global regulations, trade agreements, and political conditions.