Globalisation and International Business Strategies: A Case Study of Exxon Mobil Corporation

This presentation examines the impact of globalisation on Exxon Mobil Corporation and the use of international business strategies. It includes an analysis of PESTLE factors, entry mode strategies, and recommendations for success. The presentation is relevant to the subject of International Business and Globalisation.

International Business and
Globalisation

Table of content
Background of the chosen company
Globalisation
Importance of globalisation
Impact of globalization
Concepts, analytical tools and theories of international business
Analysis of PESTLE for Exxon Mobil Corporation
International business strategies
Recommendations
Conclusion
References

Introduction
 Strategies in a business environment play a vital role in
enhancing the operational path of a business firm with
respect to attaining desired goals and objectives.
 This guides effective efforts being produced in the
corporate firm which also guides completion of
operational objectives maintaining sustainability.
 The provided presentation will explore operational
aspects of a MNC i.e., Exxon Mobile. The stated
company is an American multinational gas and oil
corporation which is being headquartered in Irving,
Texas. For the provided PPT, the concept of a growing
global economy will be taken into consideration.

Background of chosen company
 Exxon Mobil Corporation is the largest direct descendent
of John D. Rockefeller’s Standard Oil. The company was
founded in 1999 and currently works under the
management of Darren Woods as the CEO.
 The respective company was reported at the world’s
largest companies by revenue and from 1996- 2017
varied from the first to sixth-largest publicly traded
company by market capitalization.
 In the current business scenario, the respective company
is approaching its innovative goals by expanding its
business operations in various international regions.

Globalisation
 The term globalisation refers to growing
interdependence in respect to the world’s culture,
economies and population.
 Under the term, a business firm was granted
permission to operate in a variety of regions in
accordance to gain better opportunities and earn
decent margins on profits.
 This can be in regards to cheap labour availability or
appropriate environment of production activities.

Importance of globalisation
Globalisation is a term that signifies a better course of action in terms of promoting cost-effective
approaches when engaged in a variety of business tasks.
 Proper use of resources: Through the initiative of globalisation, various companies were being
able to perform business operations by ensuring proper usage of resources.
 Technology: From globalisation, managers at the respective firm were being able to perform
respective business operations through the use of innovative technologies.
 Spreading of risk of losses: Through globalisation effective terms can be derived on the basis of
which coordinative efforts of a business firm can be promoted.

Impact of globalization
With the introduction of globalisation policy under various regions of the world, there were some
significant impacts that were caused to respective economies. Such impacts were both positive as well
as negative.
Positive impacts of globalisation
 Sustainable development: Through the process of globalisation coordinative actions of a business
firm can be produced with respect to guide the sustainable development of an economy.
 CSR: By taking guidance of globalisation technique managers of the corporate firm will be able to
perform its effective corporate social responsibilities.
Negative impacts of globalisation
 Loss of culture: One of the negative impacts caused by globalisation could be the loss of culture.
 Negative impact on the environment: Through globalisation, potential negative impacts on the
environment of the business can be caused.

Concepts, analytical tools and theories f
international business
 The term international business can be defined as
any business which crosses the national borders of
a country for operating its business activities.
 It guides the coordinative approaches of its
stakeholder when being engaged in business
operations across the globe.
 In context to operational working at Exxon Mobil
Corporation managers of the firm take use of
various international business theories as well as
strategies.

Analysis of PESTLE
 Political: In the context of Exxon Mobil Corporation, managers of the firm need to take into
consideration various political laws.
 Economic: Factors such as recession, inflation, trade tariffs, rising price and foreign exchange rate
affect the demand of products or services in the relative business environment.
 Social: Under this completion of social objectives of the business firm can be initiated.
 Technology: For this technology factors in a respective regional economy can be taken into
consideration.
 Legal: Legal laws are part of this element such as consumer protection act, company operation
policies, etc.
 Environmental: In this factor key considerations to effective environmental objectives of the
corporate firm are being taken into consideration.

International business theories
 Exxon Mobil Corporation takes into consideration considerations of Mecantilism theory.
 Mercantilism is an economic theory that advocates government regulation of international trade to
generate wealth and strengthen national power.
 Merchants and the government work together to reduce the trade deficit and create a
surplus. Mercantilism a form of economic nationalism funds corporate, military, and national
growth. It advocates trade policies that protect domestic industries.

International business strategies
Using an international strategy means focusing on exporting products and services to foreign markets,
or conversely, importing goods and resources from other countries for domestic use.
 Exporting: Under this strategy operations of a business, firm are directed towards expanding in
international economies through exporting relevant products and services.
 Licensing: For this market entry technique business gains ability to target country to use the
respective property.

Entry mode strategy into international
business
Entry mode strategy into international business
Exporting:
 In the context of Exxon Mobil Corporation exporting products and services would prove to be an
effective measure for which productive outcomes can be produced.
Licensing:
 This is an effective measure for which business with very less investment and can provide a high
return on investment.

Recommendations
 Market research: Managers of the respective company are highly recommended to perform
frequent market research. Being under the concept market researches will allow business firm to
acquire decent knowledge about its regional market.
 Strong logistic operations: Respective managers of the business firm are recommended to develop
strong hold on effective logistic operations. This will deliver effective basis for which products and
services of a business firm are reached to its customers. It will ensure better customer relations.

Conclusion
 From the analysis of the above report document, it can be concluded that globalisation proved to
be an important concept for which the business economy can expand its workings.
 In the provided report document, key considerations to international business theories was being
highlighted.
 Lastly, through taking into consideration key entry mode strategy into international business
productive basis can be formulated in accordance to providing relevant entry measures for a MNC.

References
 Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
 Zajda, J.I. and Majhanovich, S. eds., 2021. Globalisation, cultural identity and nation-building:
The changing paradigms. Dordrecht: Springer.
 Leal, P.H., Marques, A.C. and Shahbaz, M., 2021. The role of globalisation, de jure and de facto,
on environmental performance: evidence from developing and developed countries. Environment,
Development and Sustainability, 23(5), pp.7412-7431.

Thank-You