Valero Energy Corporation

VALERO ENERGY CORPORATION

2006 Valero Energy Corporation

Part 1 : Internal Analysis

I .1 Key Strengths of Valero

Strengths are the one component of internal analysis . The component describes any resources and capabilities that support a company to achieve its competitive advantage such as patents , excellent reputation low cost structure and many more

Concerning the strengths of Valero , I see that the company has maintained continual efforts in developing every single company 's division to have competitive advantage over their rivals

In this situation , I see that the major strength

of Valero is the company 's position as the largest refiner in North America with extensive throughput capacity about 3 .3 million barrels per day

In addition , Valero also has distinctive strengths in the number of distribution outlets , which outpaces the company 's rivals . In the company official web site ( HYPERLINK "http /www .valero .com www .valero .com , the company says that they have become a leader in its respective market with over 5 ,000 retail sites branded as Ultramar Valero , Beacon , and Diamond Shamrock in major states in the U .S Canada , Latin America and the Caribbean

In addition , other key strengths of Valero that stand the company out of the refineries industries include

Listed as the world 's top refiner in 2005 and 2004 Platts Top 250 Global Energy Company Awards

Mentioned by IndustryWeek Magazine as one of the World 's 100 Best-Managed Companies . This recognition is because Valero has recorded and maintained excellent performance over years

Acknowledged as the company who conduct best Points of Light Foundation Excellence in Corporate Community Service Award (one of just nine U .S companies honored ) in 1999

This achievement should strengthen the Valero 's brand equity in consumers ' mind and therefore it is very beneficial to the company 's competitive advantage . This is because consumers are likely to buy any product or service that is perceived to be high quality

I .2 Key Weaknesses of Valero

The second internal factor in a SWOT analysis is weaknesses . This is simply in contrast to the strengths of a company in which the weaknesses are shown in the absence of specific strength that lead to weaknesses of the company . The weaknesses also include a lack of patent protection high-cost structure and many more

Concerning the Valero 's weaknesses , I see that the company inability to manage their knowledge skills inventory was one obvious weakness . The inability to manage the business was drawback to Valero 's business since Valero , as major refiner in the U .S . and in the world , needs to have human resource (HR ) that meet the challenge in fast-changing and volatile Valero 's oil refineries business

In this situation , HR division of Valero should understand that corporate labor-supply- chain department is key actor in supplying labor solutions that will include the likes of full-time employees , both US citizens and foreigners

However , in recent months , I notice that Valero has taken appropriate strategy to turn the company 's weakness into company 's strength . The...