Exxon Mobil Case Analysis

1470 Words3 Pages
bulb-icon

Recommended: Case study aabout social responsibility in business

ExxonMobil is a multinational oil and gas company with its headquarters offices in Irving, Texas. It was formed in 1999 through a definitive agreement between Exxon Corporation and Mobil Oil Corporation to merge and create a new company. In essence, the corporation produces, distributes and sells oil and natural gas across the world. The structure and culture help it survive the price burst which often occurs in the global oil market. Notably, among its largest competitors, ExxonMobil generates high revenue and produces large volumes of oil for every penny it spends. Besides, the company publicizes the highest price of natural gas and oil, both in absolute terms and for every employee it hires. Significantly, even in good years, the top managers …show more content…

Furthermore, the company 's global position is high (Schultz & Williamson, 2005). For example, currently, it has over 35000 service stations across the globe and operates about 35 refineries across 21 countries. Vertical Integration One of the ExxonMobil 's advantages is that it works in the entire operation of oil development from production, resource exploration, refining, and manufacturing of byproduct. The company has a vertical integration in the oil and natural gas industry including upstream and chemical operations division. Accordingly, this helps the company to diversify investments so as to get high revenue from various sections of the industry. Global Retail Operations As part of its vertical integration, ExxonMobil has many retail operations worldwide. Consequently, it can sell a large volume of products in growing and developed markets across continents, hence maintain high levels of profits. The institution has expanded its sales by venturing into new regions globally (Dravenstott & Chieffe, 2011). Moreover, with the growing economy and demand for energy, it has enhanced the efforts to ensure that the needs of the world are …show more content…

For this reason, ExxonMobil should monitor the changes in prices and the markets for its products to prevent loss of profits. Moreover, the demand for petrochemicals and energy has increased due to the expanding economies. It is critical for the institution to research and analyze the relevant opportunities which can enhance the improvement of business in different regions. On the other hand, the company is under obligations to meet its social responsibility of promoting climatic conservation mechanisms and manufacture environmentally friendly products. To achieve sustainability, it is critical to adhere to all the regulations set for the purpose of avoiding costly penalties and legal cases. Accordingly, an extensive study of all the external and internal factors influencing its performance is imperative to identify issues, strengths, weaknesses and opportunities. The management should ensure that all the legal uncertainties are eradicated to steer growth and expansion of the business. Besides, litigation and control of all the risks involved should remain an approach to achieve sustainability and increase the market opportunities

Show More
Related

  • US Needs to Have Energy Independence

    795 Words  | 2 Pages

    America is dependent on other nations for their ability to create energy. The United States is the world’s largest consumer of oil at 18.49 million barrels of oil per day. And it will continue to be that way for the foreseeable future considering the next largest customer of oil only consumes about 60% of what the U.S. does. This makes the U.S. vulnerable to any instability that may arise in the energy industry. In 2011, the world’s top three oil companies were Saudi Aramco (12%), National Iranian Oil Company (5%), and China National Petroleum Corp (4%). The risk associated with these countries being the top oil producers is twofold. One, they are located half way around the world making it an expensive to transport the product logistically to a desired destination. And two, the U.S. has weak, if not contentious,...

    Read More

  • SWOT Analysis of ConocoPhillips

    1563 Words  | 4 Pages

    One of the biggest strengths of ConocoPhillips is its huge size standing as second largest American oil company. With its operation expanded to more than 30 countries, the company owns about 10,000 outlets to distribute gasoline. This huge size financial size of the company also allows it to explore, extract, produce, refine, market and distribute at various sites thereby giving rise to the increasing income.

    Read More

  • Obstacles To Pollution Prevention

    709 Words  | 2 Pages

    The problem with pollution prevention is that it requires people to understand more than the intimate details of the production process; they must also understand the technical possibilities. Many corporations have environmental managers, which are generally responsible for helping corporations comply with the law. According to the case study, the work of environmental managers often expose them to many pollution prevention solutions, but they often have trouble getting access to production areas. Production often sees Environmental Managers as "the compliance police".

    Read More

  • Oil Case: Case Analysis Of The Pacific Oil Company

    1060 Words  | 3 Pages

    Pacific Oil Company The Pacific Oil Company is going through renegotiation. The company grew immensely early in its inception. The Pacific Oil Company is a “producer of industrial petrochemicals” (Lewicki, Saunders, & Barry, 2010). In 1979, the Pacific Oil Company established a contract with the Reliant Corporation. Pacific Oil Company purchased “vinyl chloride monomer” (VCM) from the Reliant Corporation.

    Read More

  • Exxon Mobil

    1324 Words  | 3 Pages

    Exxon Mobil's attempt to justify its profit margin by comparing the profit margins of the oil & natural gas industry to other industries can be compared to a magicians act on stage. It's a game of misdirection that the average citizen wouldn't think twice about. To get a true comparative measure of Exxon Mobil's profit margin you want to calculate Exxon Mobil's profit margin which I calculated to be 10 cents, and compare it to the profit margins of other firms in the same industry. Looking at the chart in Exhibit 2, the oil & natural gas industry has and average return on sales of 5.8 cents, which is 3.2 cents less than Exxon Mobil's true returns. If we put their true figures on this chart they would jump up to the likes of real estate industry, which earns on average 10.8 cents on the dollar. But even comparing Exxon Mobil to these different industries isn't very justifiable because different industries have different operating costs, so to get a better picture of how Exxon Mobil stacks to other firms or industries the ROE should be looked. The ROE shows how well the firms generate money with money that was brought in through equity. An ROE figure has different factors that would be accounted for such as how levered a firm is, how high operating costs are, and how efficient a firm is at generating money with its assets, combined giving you a more accurate picture of a firm's profitability.

    Read More

  • Case Analysis Of Bp Porter's Five Forces Oil Industry

    564 Words  | 2 Pages

    The threat of entrance into the oil and gas industry is Low due to the fact that there is high barrier of entrance into the industry. Most oil companies including Bp invest a huge capital during the initial set up of their business as it is needed to buy and build equipment for the oil refineries, these companies also inherited a lot of rules and regulations they have to abide by which limits where, when and how extraction is done,...

    Read More

  • Exxon Mobil

    1280 Words  | 3 Pages

    ExxonMobil is the largest publicly traded oil and gas producing company. ExxonMobil does business in 200 countries world-wide (1). Some countries are designated for exploring gas and petroleum, and some are designated for manufacturing chemicals, lubricants, and market fuels (1). ExxonMobil's world-class petroleum portfolio gives access to proven reserves of 21.9 billion oil-equivalent barrels of oil and gas, which is the highest in the industry (1). The company's discovered resources consist of 72 billion oil equivalent barrels of oil and gas. On average, each day, they produce 2.5 million barrels of oil and 10.5 billion cubic feet of gas (4). Their asset base, includes more than 60,000 production wells in 1,800 fields in 25 countries. With activities in some 40 countries, ExxonMobil's oil and gas fields extend from West Texas to West Africa and from Australia to Alaska (1). The company operates in deep seas, arctic ice and deserts in some of the world's most remote regions (1). ExxonMobil is the world's largest nongovernmental marketer of equity natural gas. The company has access to 56 trillion cubic feet of proven reserves and discovered resources of more than 185 trillion cubic feet. It has gas sales in 25 countries and across five continents (4).

    Read More

  • The Impact and Influence of OPEC on Global Trade

    908 Words  | 2 Pages

    The formation of OPEC in the 1960’s was motivated by complex, inter-dependent factors including the end of British colonization, the surge in the demand for oil based energy, and a desire for the member nations to benefit from – and control - the market price of “the most valuable commodity in the history of the world” (Myers & Lyford, N.D., p. 1): crude oil. Today, OPEC purports to have three primary objectives:

    Read More

  • A Critique of OPEC, The Website

    1784 Words  | 4 Pages

    OPEC’s mission is defined in a formal organizational statute that identifies its role “to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry” (Our Mission). The OPEC website (OPEC.org) is designed to provide information to the general public about the function of the organization, the benefits that the organization provides, and the milestones that have been achieved. Through highlighted material and carefully selected topics on their website, the OPEC organization strives to convey an appearance of being a supportive and unbiased charitable organization focused on improving the global economy through supply and demand principles. The OPEC website contains a wealth of resources that help to explain the current state of oil production and how it affects the global economy, but it does not elaborate on potential downfalls of price-fixing and the impact that oil “cartelization” has historically caused to the world economy. The OPEC organization has long been criticized for the influence it holds over the global oil market....

    Read More

  • Saudi Aramco Argument Essay

    1122 Words  | 3 Pages

    Saudi Aramco is the largest producer of crude oil in the world. They account for the majority of the world’s crude oil and natural gas exports. The company is great. They treat their employees well and they look out for the environment. The company’s home office is located in Dhahran, Saudi Arabia and employees millions of people. The company is valued at ten trillion dollars and that amount climbs daily. The company has the world’s largest crude oil reserve that has an estimated two hundred and sixty billion barrels. Saudi Aramco produces more than twelve million barrels of crude oil a day. This is more than any other oil company on the globe. Though they produce large amounts of crude oil, the company is looking for other ways to be more sustainable.

    Read More

  • BP And SHELL Case Study

    1046 Words  | 3 Pages

    BP said, “Not only contribute to oil,” and the former chief executive officer of Shell Companies said “really different from competitors”. This essay will compare BP and SHELL with two criteria in the usage of water and air pollution.

    Read More

  • Exxon Case Study

    1238 Words  | 3 Pages

    Exxon’s change management model is a disciplined management framework known as the Operations Integrity Management System (OIMS) (Exxon Mobil, n.d., para. 2). With OIMS, Exxon describes their commitments to safety, security, health, environment, and product safety (Exxon Mobil, n.d., para. 2). Specifically, OIMS includes eleven elements across Exxon Mobil, which considers design, construction, and operations in each element (Exxon Mobil, n.d., para. 3). The management team at Exxon integrates change management within their organization by upholding the OIMS framework, to address and mitigate their industry’s intrinsic risks (Exxon Mobil, n.d., para.

    Read More

  • Characteristics Of The Petroleum Industry

    762 Words  | 2 Pages

    Since the industry is all about dealing with various hydrocarbon products, “hydrocarbon industry” is another name for the industry. Upstream: This sector deals with the first step of the process: getting oil and gas out of the ground. Companies involved in upstream operations search for underground or underwater oil fields, drill exploratory wells and oversee operations to redirect crude oil to the surface. Crude oil from the field reservoir usually has gas, water, and sediment in it. At the other extreme, gas condensate is colorless and will completely evaporate if left uncontained. The specific characteristics of each crude reflects its unique blend of sizes and types of hydrocarbon molecules, with thousands of different compounds in the mixture. This extreme variability is why the material was named “crude”. It is indeed a crude material, being messy, unstable and dangerous to handle essentially unstable in its initial form. Midstream: The midstream sector involves the transportation (by pipeline, rail, oil tanker or truck), storage, and wholesale marketing of crude or refined petroleum

    Read More

  • Global Energy Demand

    2104 Words  | 5 Pages

    Tillerson, Rex. "Meeting Global Energy Supply and Demand Challenges." Exxon Mobil Corporation. 1 July 2008. Web. 10 Mar. 2010 .

    Read More

  • Exploring Shell's Global Operations and Corporate Social Responsibility

    1351 Words  | 3 Pages

    Shell is a company who deals in energy & petroleum products since many years ago and they are operating in all over the world. They have a strategy to serve all over the world with their energy and petroleum products their target is to achieve high profit and maximum profits from all over the world with the help of their international programs to achieve sustainable growth and to facilitates the shareholders with maximum profits and competitive advantage as well.

    Read More

More about Exxon Mobil Case Analysis

Open Document