ExxonMobil Business Strategy Analysis

Running head: STRATEGIC MANAGEMENT
ExxonMobil Business Strategy Analysis
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Word Count: 3000

1STRATEGIC MANAGEMENT
Table of Contents
1.0 Overview....................................................................................................................................2
1.1 ExxonMobil Organization structure..........................................................................................3
2.0 Strategy Analysis.......................................................................................................................3
2.1 Innovations Strategy..................................................................................................................4
2.2 Supply chain management.........................................................................................................5
2.3 The Financial Strength and Refinery Capacity..........................................................................6
2.4 Vertical Integration of Business................................................................................................9
2.5 Cost Efficiency and Increase of Profits...................................................................................10
2.6 Segmentation Strategy.............................................................................................................10
2.7 Merger and Acquisition...........................................................................................................11
2.8 Strong Brand Image.................................................................................................................11
3.0 Recommendation.....................................................................................................................12
4.0 Conclusion...............................................................................................................................12
5.0 References................................................................................................................................14
Appendices....................................................................................................................................16

2STRATEGIC MANAGEMENT
1.0 Overview
The organization is based in America and was established in 1870. It’s headquarter is
situated in Irving, Texas. The company explores and produces crude oil as well as natural gas.
The operation of the company is spread in various nations across the globe. It explores oil and
natural gas in six continents. In order to penetrate the global business arena, the organization has
segmented its operation into Chemical segments, Downstream and Upstream which make up the
ten companies that are separate from each other. Additionally, the organization manufactures
petroleum products, market petrochemicals and various products including the generation of
electricity. It also undertakes transportation and selling of crude oil, natural gas, and petroleum
products. The company has over 80,000 employees.
The organization has transformed itself from trading kerosene in America to trading
petrol and petrochemicals on a global manner. It is among the largest and is one of the top
companies in the petroleum and petrochemical sector globally. The products that they create are
the driving forces in the present transportation systems, power towns, they provide lubricants to
the industry and offer petrochemical which are the building blocks many of the consumer goods.
To deliver petrochemical products, the organization employs innovation and technology with the
aim of meeting the globe’s growing demand. They have strong human resource, technical
expertise, strong financial capabilities and a wide reach the present the company with a strong
competitive advantage. This thus allows the company to get exposed to opportunities. Moreover,
the organization has an extensive research programs that support the operation as well as
allowing continuous improvement in all the business lines as well as exploiting new as emerging
energy resources and technologies.
This report will deal with the organizational structure along with the different strategies
that has been taken up by ExxonMobil so that they can be advantageous in the market. It will
provide a brief description of the organization along with the strategies that have been taken up
by them to provide new innovations in the market. The financial strength of the company has
also been analyzed so that it can help in understanding the resources that are available to them in
making the changes in the present market. The report also contains the segmentation strategy,
which has allowed the company in segmenting its important customers in different categories
according to their needs and preferences.

3STRATEGIC MANAGEMENT
1.1 ExxonMobil Organization structure
The organization employs a mixed structure (hybrid) which is a combination of
horizontal and vertical structure (see appendix 2). It is aligned in a vertical manner so that
reporting goes to the top management of the organization in which every business unit have to
report to the top management. In the horizontal structure, the organization irrespective of the
separate units has to interrelate with one another for the sake of combining every section’s effort
in order to achieve the company’s overall objectives. The structure is erected on the concept of
11 separate global businesses. These are designed in a hybrid structure so that the organization
gets to compete in the competitive market very well and favorably. Houston is the headquartered
of are five upstream companies - Upstream Research, Exploration, Gas Marketing, Production
and Development and also chemical company, coal and minerals company while the other
business units are based in Fairfax, Virginia. The management of the company comprises of the
president and four senior vice presidents. The board is made up of the board of directors that
comprises 13 non-employee directors as well as six employee directors (Exxonmobil 2018).
2.0 Strategy Analysis
The analysis of the strategies is important, as it helps in understanding the competitive
advantage of the company in the market. This is due to the fact that the company will be able to
understand the various factors that will help them in gaining a better profit in the market. The
company has been analyzed with the help of SWOT analysis that is the strengths, weaknesses,
opportunities and threats have been analyzed. The use of this analysis will help in understanding
the internal environment of the organization. It will also help in providing a better knowledge
regarding the use of the various strategies within the organization so that the level of production
can be increased. The financial position of the company will also act as a strategical tool for the
company, as it will help in understanding the amount that is being spent on the different
resources. The spending of the resources will help the company in understanding the major needs
so that the production can be increased as well. It also helps in understanding the different point
of views of the stakeholders regarding the management of the company. The VRIO analysis of
the company has helped in understanding the supply chain of the company where the value of the
supply chain has been mentioned. In other words, a better value of the company helps in
providing the supplies in an efficient manner. This analysis has also helped in understanding the