Organization and Attributes

Published: 2022-08-01
Organization and Attributes
Type of paper:  Critical thinking
Categories: Risk management
Pages: 5
Wordcount: 1285 words
11 min read

Organization and Attributes

Majority of the successful companies in the world usually undergo incredible journeys before they reach their present day's status. Often, the issue of leadership comes along, and with the proper management of affairs, a company can survive business storms in unusual ways. However, problems usually emerge that may risk business organization someday which as well requires a prudent response. The situation is not different for Texaco. As a company dealing with a sensitive area of business, there are some management and crisis handling strategies that one can learn and apply to solve issues as well.

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In its description, Texaco, Inc. primarily deals with oil production in the United States. As a subsidiary of Chevron Corporation, the company hadn't got it smooth in its path to success. Historically, it is among the companies that managed to survive a deadly crisis after some employees filed a lawsuit protesting racial discrimination in 1994 (Cantoria, 2011). After its victorious triumph in the case and stabilizing it business after that, it is justified to deduce that one of its attributes includes crisis management skills. Indeed, it is a vital aspect that enhances business growth even if some companies have been incapable of handling issues in such an incredible way.

Apart from crisis management, the other admirable attribute in the way Texaco, Inc. responds to issues is planning and preparedness. In connection, one of the goals of Texaco is to develop a preparedness pathway that protects its employees, enhance client delivery while minimizing unnecessary business interruptions, and come up with ways to protect the company's brand and reputation. Above all, it is vital to note that Texaco, Inc. has been dealing with chemical and safety hazards in its day to day operations. Its leadership has been incredible when dealing with issues that can put the organization in danger of legal accusations.

Types of Crisis

Crises include anything that can put workers and the society in harm. After Texaco began its operation in 1964 and exhausted oil exploitation in 1992, several issues emerged which in doubt proved to be a significant risk that put the company in crisis. The well-known ones include chemical and health problems as well as safety concerns. More so, Texaco did not come up with effective ways of mitigating pollution and compensating the residents (FEMA, n.d.). For that reason, it is evident that technical risks were many, but the responses saved the company from a mess.

Health crisis: with no doubt, people are highly sensitive when it comes to health matters. Whenever there is an issue that can put people into health problems, an organization can find itself into lawsuit problems. Occupational illness resulted from the exploitation of oil in the Oriente region. Other health risks included environmental harm with leaching and oil discharge among the leading areas of concern. Above all, pipeline spill also went to water sources (Patel, 2012). From these concerns, it was essential for Texaco, Inc. to come up with reasonable plans to mitigate extensive damage.

Chemical and safety crisis: when a business is operating, safety concerns often encompass situations that can lead to physical injuries or harm. Irrespective of the operational size and type of business, it is injudicious to rule out the occurrence of chemical hazards. By and large, they emanate from the artificial condition of the products used in a particular enterprise (FEMA, n.d.). In connection, Texaco has been dealing oil products whose chemical content is somewhat high hence the probability of leading in chemical risks. Also, the workplace environment is never free from the physical breakdown of machines which as well leads to safety risk.

Leadership Needed for Success

In many business organizations, it is not all leadership approaches that can help to address management issues. For this reason, James and Wooten (2011) assert that good leadership is not an exclusive case of resource management or employees but also protecting the premise and the environs. When it reaches such a point, the best leadership process in Texaco is the one that applies Business Impact Analysis (BIA). With such an approach, it becomes more convenient for Texaco to comprehend what takes places in its day to day operations. In particular, BIA helps to identify risks and come up with mitigation measures.

When leading an organization, the most appropriate leadership is the one that evaluates the potential and magnitude of risks and comes up with ways to control them using the available resources. After planning, it is always vital to assess the resources needed to respond to threats and for operational management. Texaco leadership hasn't been a failure in this part; it has put in place the different resources necessary to steer the organization forward irrespective of the challenges it encounters on separate occasions.

Models and Theories Used

After its survival in the lawsuit, something is evident about Texaco leadership: it is efficient in crisis management. In connection, it is capable of transforming a scenario from a breakdown to the extent of making it a feat that others can copy. This way, behavioral theories of behavior can apply very well: they teach that what a leader does is the most defining factor towards success. In connection, the most visible model is the transformational approach. The main reason behind this conjecture is the fact that Texaco leaders were capable of making over from a crisis to establish a competitive company that can effectively handle business pressures.

Preparedness Planning and Development Phases

One of the essential inclusions in Texaco's way of handling things is a preparedness phase. Even if it doesn't encompass a period that would reach an abrupt end some day, its day to day possibility of emergencies emerging requires such a strategy. In spite of that, the program needs some elements to ensure it responds to issues holistically. Among many factors, it is vital to have a participatory approach. The inference, here, is that every intervention should help the stakeholders to become stronger to handle emergencies ("Reasons to Prepare," n.d.).

When it comes to planning, Texaco has been embracing participation in the planning process; its objective is to help prevention of crisis. Today and in the past, the most practical approach has been the "all hazards" way since it is difficult to determine when a risk will affect business. For the same reason, risk mitigation and prevention strategies have been a crucial part of the development phases. At this point, the implementation of the plans that Texaco apply needs to consider the resources and time available as well as the magnitude of the issue. As a result, risk assessment should always be part of Texaco's planning procedures.

In summation, the way a business enterprise handles its risks and management issues is a crucial driver towards success. A closer look of Texaco's approach of the matters depicts the need for awareness of how to solve management problems. Far from that, the case study illustrates that organizational leadership is a crucial factor that determines the shape and stability of a company. Above all, crisis management techniques are highly essential for entrepreneurs; without them, it is impossible to survive in the ever competitive market where rivals are doing everything to see a company failing.


Cantoria, C.S. (2011, Jan 29). Great Real-Life Examples of Successful Crisis Management, Bright Hub PM, Retrieved from:

FEMA. (n.d.). Preparedness Planning for Your Business. Retrieved from (n.d.). Business.

James, E. H., & Wooten, L. P. (2011). Crisis management: Informing a new leadership research agenda. Annals, 5(1), 455-493.

Patel, S. (2012). Delayed Justice: A Case Study of Texaco and the Republic of Ecuador's Operations, Harms, and Possible Redress in the Ecuadorian Amazon. Tulane Environmental Law Journal, 71-110.

Reasons to Prepare. (n.d.). Retrieved from

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