Running Head: EXXON MOBIL CORPORATION 1

EXXON MOBIL CORPORATION

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EXXON MOBIL CORPORATION

Introduction

Executive summary:

Energy-related industries have been experiencing changes recently, which forced many

companies to make efforts to ensure that the products that meet their consumer's demand and

interests. The information aim of the consumers within these energy industries, that has been

coupled with increased awareness of the effects of the individuals imprint to the surrounding has

prompted increased calls to this energy-related companies to effectively revise their strategies

related to their production for the purpose of meeting the demands of environmental sustainability

(Albert, J.R. 2016). In the light of the above factors, several energy-related companies have in the

forefront for the past years because of their manufacturing as well as their management strategies.

The aim of this paper is to analyze the sale presentation strategies of the products of ExxonMobil

Corporation, one of the leading natural oil producing company in the world and it is geographically

placed in the United States. In order to produce a professional proposal, my discussion will mainly

have centred on the company, with an inclusion of its historical background together with its

overview in the first section. In the second section, I will analyze the Exxon’s products as well as

its services together with the operations of the company (Albert, J.R. 2016). In the third section of

my paper, I will analyze the mission statement, vision, as well as the values and cultures of the

corporation (Meidel Jr, R.W. et al. 2015). Lastly, I will have to analyze the strengths, weaknesses,

its opportunities, the competition that the company tends to encounter, its leadership and

management activities, the company’s financial health without forgetting its overall strategy in the

last section.
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Overview of the company

ExxonMobil is an international oil as well as a gas company that is registered under name

Exxon Mobil Corporation and its headquarters are located in Texas. It is believed to be one of the

largest oil manufacturing companies in the world at about 3 % of the total world production and

in terms of sales revenue. In addition, it tends to stem from the merger between Mobil that is

strategically placed in New York and Exxon, which was earlier New Jersey oil manufacturing

company. This corporate is believed to manufacture an average of 3.8 million oil barrels daily.

ExxonMobil is believed not to be state-owned. On the account of the structure of governance, the

objective of the company’s management is always to increase the rate of a wealth of its shareholder

(Minta, M. 2018). Therefore, as a result, it has been in limelight as one of controversial energy

producing companies most probably in regards to extraction methods of natural gas as well as the

impacts of the oil spills on the surrounding in which the efforts of the company did not work and

meet and expectations of the society. However, in recent years Exxon has realized the same public

affected was their consumers, the company greatly adhered to environmental sustainability calls

of the society thereafter enabling it to create more public relations as well as corporate

responsibility strategies.

History of the company

In the year 1870, John Rockefeller together with his partners formed oil company known

as Standard Oil Company of Ohio. In the year 1882, this company affiliated with Standard Oil

Company from New Jersey and another one from New York. In 1973, the companies started to

enlarge and expanded their exploration to different parts of the world. Mobil and Exxon in 1998

entered into an agreement that was believed to be worth 73 billion US dollars in an attempt to form

one of the largest non-government owned industry under the trade name ExxonMobil Corporation
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(Meidel Jr, R.W. et al. 2015). In the year 1992, ExxonMobil Company began to sell off its copper

as well as coal mining interests and in turn, they interested in shale gas development as well as its

production. In 2014, their exploration was thereby approved even though it relinquished the lease

for exploration in the year 2015 due to the calls that were against the process of rock fracturing

that used by the company in their process of extracting natural gas.

ExxonMobil Corporation products

ExxonMobil Company is majorly focused on the sector of energy mainly interested on the

development as well as manufacturing fossil fuel. Its products are mainly natural gas and oil. Even

though the company in recent years it has focused on other products like copper and coal, they

later abandoned these products due to their concentrations on oil and natural gas which are

marketable and profitable (Silber, J.R. 2017). Their market operations are mainly based the United

States although they exported some of their products to other parts of the world. However, there

have been calls against the procedures that are applied by the company to extract natural gas. The

company has gone further to improve its efficiency by finding other means of extracting and

producing natural gas and oil both within as well as outside US, Africa and the Middle East which

is believed to be its biggest targets without negatively affecting the public around them (Meidel

Jr, R.W. et al. 2015)..

Operations of the company

The headquarters of Exxon Mobil Corporation is located in Irvin, Texas. Exxon Mobil

Company is, therefore, largest non-government owned in energy-producing industries in the

world. The company has operations globally that highly structured and designed in order to its

functionality more efficient and effective (Meidel Jr, R.W. et al. 2015)... The operations of the

company are designed in terms of various division: the upstream division that is basically located
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in Houston, Texas and responsible for dealing with exploration, extracting, shipping as well as

wholesaling. There is also a downstream division that is mainly aimed at marketing as well as

value addition of the products of oil like refinery and retail; the chemical division that is mainly

focused on producing chemicals that are a by-product of oil and natural that are the major products

of the company. Exxon Mobil Corporation has other small divisions that mostly dependent on

market and geographical demographics (Meidel Jr, R.W. et al. 2015). However, the above main

divisions play a fundamental role in enabling the company to be self-reliant from exploration to

retail as well as by-product processing that is aimed at retaining profits within the corporation as

well as enabling the company to enhance and achieve greater efficiency levels at very low costs.

Vision

The vision of Exxon Mobil Corporation is to lead in the world as the Petrochemical and

Petroleum Company. The company believes in achieving this through financial as well as

operational superiority and adhering to ethics of business. This tends to present a conflict,

especially where production of oil, the availability of methods of production may be detrimental

to the environment. Ethics of business on the other hands dictate that company should always

adhere to procedures of environmental conservation.

Mission Statement

The mission of Exxon Mobil Company portends the application of ethical as well as

efficient methods in the production of the products of the company. Therefore, the corporation has

the responsibility of finding strategies that may enable it to gain high financial as well as

operational performance as it is at the same time adhering to social responsibilities.

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Corporate values & culture

According to the principles of ExxonMobil Corporate, values, as well as the culture of the

company, tend to revolve around professionalism and quality (Meidel Jr, R.W. et al. 2015). The

corporate always endeavours in order to place within its ranks and individuals who can perform

exceptionally as they maintain high professional standards thus enabling the company to place the

right individuals for the jobs at the right position. In accordance with the objectives of the

company, the values and culture of Exxon tend to surround efficient energy production for the

purpose of producing financial as well as operational excellence. Recently researchers have

focused on studying the culture and development of the company for finding other alternatives to

minimize production costs while at the same time trying to provide efficient and effective sources

of energy. Furthermore, the company is also believed to play an important role in creating

awareness on wealth and wellness, diversity, safety, sustainability, integrity as well as ethics.

SWOT Analysis

ExxonMobil Company’s strength

The greatest strength of Exxon Mobil is its leadership position in the market. Its leadership

position has been maintained through strategies of the corporation to deal with and aim at its

financial and operational excellence. As a leader in the energy production market, Exxon has been

able to influence different political policies that in turn may influence the directions of the industry.

Furthermore, Exxon Mobil Company is very powerful in regards to a diversification of streams of

revenue. The company has based its major chains in the sector of energy and petrochemical

industry thus enabling it to acquire more revenues from different individual products especially

where one product may fail to perform well (Albert, J.R. 2016).
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Exxon Mobil Corporation’s weakness

The greatest weakness that has encompassed Exxon Mobil Company is the perception of

the public in relation to many controversial media coverages as well as legal battles. It is a fact the

modern market nowadays is information sensitive, especially when dealing with legal battles.

Therefore, this act may end up decreasing preference of the customer as well as moving the loyalty

of the customer to its competitors. Furthermore, the company’s dependence on fossil fuel as the

energy production source sometimes presents a weakness. It is understood that Exxon Mobil’s

strategies have highly been focused on fossil fuel presence. Nevertheless, due to the current state

of depletion of natural resources, this company may end up finding itself in a complex situation

due to its reliance on certain energy production source.

Exxon Mobil Corporation’s opportunities

There are several opportunities that are connected to the marketing strategies of the

company. One of the company’s opportunities is the globalization of the energy production

industries. This is opposed to the past when energy industries were only allowed to sell their

products to the local markets in regards to the products nature. Therefore, this, in turn, will enable

the company to better its relationships with countries around the world (Albert, J.R. 2016). In

addition, the company is taking advantage of the political relationships between Africa and

America to create more chance to extract natural gas and oil in African soil. Furthermore, research

from world scientists on other energy forms like hydrogen has provided with an opportunity for

ExxonMobil to minimize overreliance to oil fuels as well as the adaption of economic and

environmental fuels. This case will enable the company to diversify its product portfolio and its

revenue streams (Silber, J.R. 2017).

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ExxonMobil Company’s threat

Exxon Mobil Company faces one greatest threat that seems offers stiff challenges in the

field of marketing its products to consumers. The company faces due to new political atmospheres

as tensions have arisen between America and certain foreign political agencies. The company may

in future be in danger of losing on global expansion due to political assuaging between China,

America as well as Russia (Albert, J.R. 2016). It is well understood that Asian communities have

formed the majority of the oil fuels because of the phase of industrialization between the countries.

Environmental degradation policies may also pose a great to the company as the policies continue

to be stringent. Impacts of the above threats have forced the company to suspend its exploratory

research on natural gas due to the limitation of the policies that have been placed on the fracturing

of rocks.

Competition

Like any other international companies, Exxon Mobil Corporation faces stiff competition

at international level. Most of these competitors are government-owned companies. Exxon Mobil

company takes advantage of the government-owned companies since they are directly influenced

by opinions from public and policies (Albert, J.R. 2016). Therefore, Exxon Mobil may look for

routes o circumnavigating these policies for the aim of maximization of their shareholders’ wealth

which in turns leads to more control as it is against government-owned corporations. The following

are some of the major competitors of Exxon Mobil Corporation: Royal Dutch Shell, Total, British

Petroleum, ConocoPhillips, Chevron Corporation, as well as Saudi Oil Corporation.

Team management & leadership

Exxon Mobil Corporation’s management tends to be structured along a vertical

management pyramid. This is adhered to ensure there is more competent and experienced
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personnel that are at the policy as well as a capacity of strategy development of the company in

regards to its technical competencies and knowledge (Minta, M. 2018). Therefore, the company

will then be able to aim primarily at its research. In relation to leadership, the company tends to

utilize the motivational military structure in which incentives may be offered in relation to

employees’ efficiency in operational tasks performance as well as strict command chains. For a

complex as well as environmental changes, this mode of structure always enables the corporation

to focus on enhancement of efficiency as well as innovative methods of operation (Huntington, R.

et al. 2016).

The financial outlook for the company

Financial indicators of the corporation indicate a certain in the past five years. The sales of

the company have declined from $432 billion in the year 2010 to $233 billion in the year 2016.

The figures of net profit of the corporation haven’t been promising since there is percentage profit

drop from 16% in 2010 to 5.39% in 2016. This percentage decline has been noted by the

international industry as well as an impact of environmental awareness of global community and

the availability alternative fuel sources. Nevertheless, share prices of the company tend to maintain

its competitiveness that closes at $85 per share. Therefore, this is an indicator of confidence of

shareholders that may be as an impact of global energy viewpoint forecast that has placed

promising emphasis on the upcoming of sources of energies around the world (Minta, M. 2018).

Strategies

Exxon Mobil Corporation’s strategy is to maximize its efficiency for the purpose of

reducing its costs through employing technically very competent management individuals to lead

divisions of the research of the corporation. This strategy enables the company to aim at increasing

its efficiency as it is the primary way of maximizing its financial performance. This seems to be
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the very effective strategy, especially in the current energy market because of the availability of

information in the market, revenue increase through price increase will thus leading to customer

loss. In addition, Exxon Mobil Company tends to concentrate its efforts on the advertisement at

the segment of retail. This enables the company to build customer loyalty because these customers

are policymakers in the corporation that are supplied by the corporation (Kai, D.Y.S. et al. 2015).

Therefore, these policies implemented in relation to the suppliers will benefit the corporation.

Exxon Mobil Corporation has also focused on social corporate responsibilities in the conservation

of environment as well as better public relations strategy. This strategy has thereby enabled the

company to minimize bad publicity that may lead to a decline in customer loyalty.

Exxon Mobil 48-year stock price history

The history of everyday stock prices of the company since in 1970 have adjusted for splits

as well as divides. The latest closing Exxon Mobil price as of 03 April 2018 has been estimated as

72.02 (Minta, M. 2018).

A graph showing ExxonMobil 48 year stock price

history
8

7 7

6 6

5 5

2 2
1.5
1 1
0.8
0.3 0.5
0 0.2
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
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Conclusion

Finally, I can argue that Exxon Mobil has recently established itself as the global in a sector

of energy production as it is focused on its strengths and address its weaknesses to its customers

as it is building upon its opportunities as well as it is curbing its threats. The company in so doing,

it has been to achieve great financial fetes and becoming the preferred company for investors since

the financial outlook of the corporation portray the increased value of wealth (Minta, M. 2018). In

addition, the social and management strategies of the company have been effectively and

efficiently planned and then implemented for the aim achieving the vision and mission of the

corporation.
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