Thesis: Exxon Mobile

Pages: 20 (5126 words)  ·  Style: Harvard  ·  Bibliography Sources: 10  ·  Level: College Senior  ·  Topic: Business  ·  Buy for $19.77

Exxon Mobil was founded 125 years ago. Today it is the largest publicly traded international oil and gas company in the world. Over the next decade ExxonMobil Endeavors to remain the industry leader by developing alternative sources of energy that are affordable and of the best quality. The company also desires to reorganize its business strategy to meet the needs of 21st century consumers. The mission of the company is to provide the Global Community with the energy needed to power their daily lives. Overall, the company has solid leadership and management However, the company has to be sure not to become overconfident and by doing so fail to prepare for the future. At the current time oil reserves have decreased while at the same time there is a greater concern for the environment. This increased concern for the environment has led to the development of hybrid vehicles, solar energy, wind energy, and alternative fuels. This means that in the years to come there will be a decrease in the demand for oil (this decrease in demand is already evident). A decrease in demand results in a decrease in costs and this will ultimately effect ExxonMobil's profit margins. In the future there must be more research conducted on the reluctance of traditional company's to develop new models.

Table of Contents

Chapter I Introduction

Aim

Method

Outcome

Analysis

Chapter II Literature Review

The Oil Industry

ExxonMobil Merger

Troubles for ExxonMobil

Chapter III Strategic Plan

Company Background

Analysis and methodology

Mission and Vision Statements

Quality and management initiatives

Organizational behavior

Leadership and Management

Organizational Structure

Grouping and Teamwork

Organizational culture

Information Systems

HRM issues

Resourcing and legal issues

Skills, training and development

Coaching and mentoring

Performance and Motivation

SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats

Future directions

Change management plan;

Organizational Development

Success Factors

Recommendations

Chapter IV Conclusions and Future Research

Chapter I

Introduction

The oil industry is amongst the most profitable in the world. Although this industry is profitable recent economic hardships and future changes in the way people will consume oil, means that there will be many changes in the oil industry in the years to come. There are several companies that compose this industry, Exxon Mobil is one of them. ExxonMobil is one of the largest company's in the entire world. The discussion to follow will explore several aspects of ExxonMobil's business strategy. The research will be used to develop a strategic plan for ExxonMobil.

Aim

The purpose of this discourse is to provide an overview of the current and future business trends as it pertains to Exxon Mobile. The Strategic plan will outline some of the issues that ExxonMobil will need to face over the next five years if it is to continue its success for years to come.

Method

The research will involve the use of the library, the JSTOR and EBSCO Host databases and the official website of ExxonMobil. The information will be compiled and analyzed in a manner that assist the researcher in coming to succinct conclusions about the current state of the company and what can be done to improve the condition of the company.

Outcome

The outcome of this strategic plan should demonstrate that ExxonMobil is an extremely strong and profitable company. However, there are some changes that need to take place to propel the company even further. These changes will assist the company in adjusting to the different climate emerging in the oil industry.

Chapter 2 Literature review

The oil industry

According to Weston (2002) there are many global changes that the oil industry is confronting. These changes include globalization, technology, entrepreneurial developments and industry changes. The author also explains that the iol industry also has some unique characteristics, For instance, the global oil market is responsible for the 53% of volume traded internationally. In addition the oil industry is responsible for 10% of world trade which is greater than any other type of commodity. The author explains that "While the oil market is world in scope, oil varies in quality and the requirements for pipelines and other specialized distribution and marketing facilities cause geographic market segmentation (Weston, 2002)."

One major issue effecting the oil industry is climate change. Many oil companies including ExxonMobil have been vehemently opposed to emissions standards because they threaten to reduce the profitability of oil companies (Skjaerseth, 2003). This si a serious problem in the industry that must change in the near future.

Exxon Mobil Merger

In 1999 Exxon under went a drastic change when it merged with Mobile. Weston (2002) reports that

The motivations for the Exxon-Mobil merger, completed on 11/30/99, reflect the industry forces described earlier. By combining complementary assets, Exxon-

Mobil would have a stronger presence in the regions of the world with the highest potential for future oil and gas discoveries. The combined company would also be in a stronger position to invest in programs involving large outlays with high prospective risks and returns (Weston 2002) .

Indeed, the merger of Exxon with Mobil was a pivotal development for the companies. By combining the resources of the two companies. Although the companies were once competitors they understood that by combining the companies would result in higher profitability and better outcomes.

Troubles for Exxon

Like other companies in this economy Exxon Mobile is confronting some difficult issues. Levine (2009) reports that even though Exxon Mobil has expanded rapidly, enjoying a $45 billion profit in 2008 -- the largest profit from a single company in history, there are some serious problems facing the corporation. Namely, dropping oil prices threaten to greatly diminish the profitability of the company in 2009. Levine (2009) also states that even though the company is sure to experience smaller profit margins in 2009, a decrease in profits may provide the business with a substantial opportunity. This opportunity is present because Exxon has so much cash and shares that may permit the company to purchase rivals. The author further explains that even there is a global recession ExxonMobil has been able to maintain a decent stock price (15% compare to 22% for competition). The article also explains that if any company can weather the current economic storm it is ExxonMobil. Even though the company is strong, there are some problems that appear to be approaching, particularly as it pertains to oil reserves and production. The article reports despite its seeming invincibility, Exxon is surprisingly vulnerable. Interviews with industry analysts, consultants, and current and former employees cast doubt on its strategy and growth prospects. Most immediately, Exxon's oil reserves and production are shrinking, and it is relying on less valuable natural gas to replenish them. Worse, it is getting much of that gas from a single country--Qatar -- that could change the terms of their deal at any moment (Levine, 2009).

The author further states that the company has failed to change its business plan to better position the company to overcome the changes that are on the horizon. The author points out that the company has been hesitant to take risk which has caused it to reject certain exploration projects. These exploration projects could have increased the company's oil reserves and as such production (Levine, 2009). The author even refers to ExxonMobil as prideful and arrogant in some of it business dealings. The pridefulness and arrogance is apparent in that the company spent many years rejecting the idea of alternative energy. As such it is behind the bandwagon on these alternative energies at a time when such alternatives are not only popular but also necessary (Levine, 2009). The article also reports that the company has strained relations with many foreign governments. These problems have caused ExxonMobil a great deal of business in recent year s (Levine, 2009).

The author further posits that all big oil companies are confronting the problem of size. Because ExxonMobil is the largest company in the industry, the problems they face are even more incredible (Levine, 2009). The author explains that because ExxonMobil is such a large company that it is difficult to put mechanisms in place to expand the company further (Levine, 2009). The author points out that since Exxon merged with Mobil a decade ago its oil reserves have remained at the same level but production has fallen (Levine, 2009). With this understood even if the company is able to purchase one of its competitors it will still not have the ability to expand independently (Levine, 2009).

Chapter III

Strategic Plan

Company Background

ExxonMobil was founded 125 years ago. Today it is one of the largest corporations in the world. In fact it is the largest publicly traded international oil and gas company in the world. The company supplies energy throughout the world. This energy is necessary for the growth and sustenance of living standards and economies throughout the globe. At the current time ExxonMobil has a presence in most countries through brands such as Esso, Exxon, and Mobil. The company is responsible for producing products that allow various types of transportation to operate. ExxonMobil's products also… [END OF PREVIEW]

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