Strategic Management of Exxon Mobil

Running head: STRATEGIC MANAGEMENT OF EXXON MOBIL
STRATEGIC MANAGEMENT OF EXXON MOBIL
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT OF EXXON MOBIL
Table of Contents
Part 1 - Summary of the presentation of the company....................................................................2
History of the company...............................................................................................................2
Important successes and failures of the company........................................................................3
Main businesses...........................................................................................................................3
Culture of the company...............................................................................................................4
Part 2................................................................................................................................................5
Current strategy of the company..................................................................................................5
Part 3 – Internal analysis..................................................................................................................7
PROFIT framework analysis of Exxon Mobil.............................................................................7
Value chain analysis of Exxon Mobil........................................................................................12
Part 4 – External analysis..............................................................................................................16
PESTEL analysis of Exxon Mobil.............................................................................................16
Porter’s five forces analysis of Exxon Mobil............................................................................21
Part 5..............................................................................................................................................22
Interim Conclusion....................................................................................................................22
Part 6 – Portfolio analysis..............................................................................................................23
BCG matrix analysis of Exxon Mobil.......................................................................................23
Part 7..............................................................................................................................................25
Interim conclusion for portfolio analysis...................................................................................25
Part 8..............................................................................................................................................26
Recommendations......................................................................................................................26
References......................................................................................................................................27

2STRATEGIC MANAGEMENT OF EXXON MOBIL
Part 1 - Summary of the presentation of the company
History of the company
Exxon Mobil is a multinational oil and gas based organization of American origin that is
mainly based Texas and focusses on chemical production, oil and gas. Exxon Mobil has also
gained ninth position in the Forbes Global 2000 list in the year 2016. Exxon Mobil is considered
to be one of the biggest oil and gas based organizations in the world. The daily production of
Exxon Mobil as of the year 2007 has been around 3.921 Million BOE (barrels of oil equivalent).
Exxon Mobil has gained the position of the biggest oil company in the world with respect to
revenues (Corporate.exxonmobil.com 2020). Exxon Mobil has been able to provide around 3%
of the overall production of oil in the world. The reserves that have been formed by Exxon Mobil
were around 20 Billion BOE within the year 2016. The company is also the largest refiner of oil
in the world and has been successful in gaining the title that was mainly associated with Standard
Oil from the year 1870 (Corporate.exxonmobil.com 2020).
Exxon Mobil had faced vast levels of criticism for the slow response that had been
provided by the organization with respect to cleanup efforts that were made after the year 1989.
The Exxon Valdez oil spill in Alaska had been considered to be one of the worst cases of oil spill
that have taken place in the recent times. Exxon Mobil also has a history related to the lobbying
for climate change based and global warming based issues that are a part of the environment.
The organization has also been targeted for the improper dealing of different human rights
related issues. The influence that Exxon Mobil has on the American foreign policy and the future
of nations is considered to be a major part of the issues that are being faced by Exxon Mobil
(Corporate.exxonmobil.com 2020).
Exxon and Mobil were the descendants of the major oil based organization named
Standard Oil that had been established in the year 1882. Exxon Mobil had been established in the
year 1998 based on an agreement of 73.7 Million US Dollars. This was also considered to be one
of the biggest mergers that had taken place that year and had further led to the growth of the
organizations in a huge manner (Corporate.exxonmobil.com 2020). The report will be built on
the detailed examination of internal and external environment of a major part of the business of
Exxon Mobil. The chemical division has been taken into consideration for the study. The
effectiveness of different business units will be analyzed with the help of BCG matrix.

3STRATEGIC MANAGEMENT OF EXXON MOBIL
Important successes and failures of the company
Exxon has been able to gain major levels of success and growth in the operations that
have been developed in various parts of the world. However, the organization has also faced
many different failures that had led to losses of millions of Dollars. The success that has been
gained by the organization was mainly based on the enhancement of oil and gas operations. The
growth of product portfolio is considered to be a key aspect that had supported in increasing the
revenues and profitability of Exxon Mobil in the oil and gas industry. Exxon oil and gas services
are also considered to be a main aspect related to the achievement that has been gained by the
organization in the last few years. Different services of Exxon Mobil had to be discontinued due
to the lack of proper sales and effective customer base as well. The major failed services of
Exxon Mobil include the plastic bag production, local foods production (Ahmad et al. 2017).
Figure 1 – Growth of Exxon Mobil
Source - (Corporate.exxonmobil.com 2020)
Main businesses
The different business units or services that are a part of the operations of Exxon Mobil
mainly include Exxon, Mobil Esso and Exxon Mobil Chemical. The business units of Exxon
Mobil together are able to offer effective levels of contribution to the growth that has been

4STRATEGIC MANAGEMENT OF EXXON MOBIL
depicted by the organization in the last few years. The organization has aimed at targeting
different types of customers in order to fulfil their needs and demands with the help of services
that are offered by the business units (Alhosani et al. 2019).
Figure 2 – Business units of Exxon Mobil
Source - (Alhosani et al. 2019)
Culture of the company
Exxon Mobil has been able to develop an organizational culture that mainly helps the
business to respond to different demands of oil and gas industry. The corporate or organizational
culture of Exxon Mobil is able to set the values and traditions that are have the ability to
influence the behavior of employees. The culture of the organization pushes employees so that
they can aim at going beyond the traditional limits in order to form the bright ideas and solutions.
Exxon Mobil is considered to be one of the biggest oil organizations and the firm continuously
seeks fresh talent for the purpose of improving the services that are offered to the consumers.

5STRATEGIC MANAGEMENT OF EXXON MOBIL
The culture of Exxon Mobil is able to push the employees so that they can take risks and also
explore new ideas (Baldini et al. 2018). The major characteristics that are a part of the
organizational culture mainly include boldness, customer-centricity and peculiarity.
Boldness is considered to be a major aspect of the character that is portrayed by the
employees of Exxon Mobil. The company has pioneered in the sales of a wide range of products
that are able to fulfil the needs of consumers in various parts of the world. The customer centric
nature of operations that have been developed by Exxon Mobil is considered to be a crucial
aspect that is able to influence the culture of the company. Peculiarity is also a major part of the
culture that has been formed by Exxon Mobil and has also helped the company to challenge the
conventions. Exxon Mobil has always motivated the employees in order to think in an
unconventional manner to conduct the business operations and communicating with the
customers as well (Barros, Hernangómez and Martin-Cruz 2016).
Part 2
Current strategy of the company
Corporate strategy of Exxon Mobil – The generic corporate strategy that has been
applied by Exxon Mobil is mainly termed as concentric diversification and focus on operational
excellence. The company mainly aims at leveraging the technological capabilities for ensuring
the business success and implementing the cost leadership strategy as well. Exxon Mobil has
also offered maximum value to the customers at lowest prices and has fulfilled their energy
based needs. The strategy has been able to enhance the growth levels of Exxon Mobil in the oil
and gas industry and has increased its customer base in different countries. The strategy that has
been developed and implemented by Exxon Mobil is mainly based on the sources of competitive
advantage of the company (Berkowitz, Bucheli and Dumez 2017). The company mainly focusses
on technology and further actualizing the benefits of the internal resources that have been gained
by Exxon Mobil. The cost leadership has been formed by Exxon Mobil with some amounts of
product differentiation that is related to the business model of the organization. The current
strategy of Exxon Mobil is formed with respect to the convenience aspect according to which the
customers can acquire the desired products that can fulfil their needs. The company is also
planning to enhance the customer relationships with the changes that have been made in the
operations (Birkey et al. 2016).

6STRATEGIC MANAGEMENT OF EXXON MOBIL
Business strategy of Exxon Mobil – The business strategy of Exxon Mobil is mainly
focused on the investments that are made in technologies, improving the oil and gas services.
Exxon Mobil aims at entering the niche segments with the help of its products that has led to
diversification of business operations. The senior leadership of Exxon Mobil also engages in
gaining the maximum levels of benefits from different components that are a part of the
ecosystem of the organization. The aggressive expansion that has been depicted by Exxon Mobil
is based on the services and products that are provided to the customers (Bogers et al. 2019). The
customers are placed at the center of the business strategy implemented by Exxon Mobil. This
has provided the company with the position of one of the biggest oil companies in comparison to
its competitors in the industry. Customer services have been able to provide long term benefits to
Exxon Mobil and have helped the company to improve its position in the oil and gas industry.
Exxon Mobil has developed its business operations in a successful manner with the help of the
maximum levels of contribution that has been provided by the human resources. The work
process in Exxon Mobil has provided major challenges to the employees with respect to the
levels of support that they provide to the customers in order to retain their loyalty (Daspit et al.
2017).
The strategy that has been applied by Exxon Mobil in order to gain success in the oil and
gas industry is based on various factors that include the following,
 The focus of Exxon Mobil is mainly based on the long term processes instead of
the short term activities.
 Exxon Mobil mainly aims at building its strategy based on the things that do not
tend to change.
 Exxon Mobil has always seen opportunities in the operations instead of failures.
The opportunities have been used by Exxon Mobil in order to improve the
services that are offered to the customers in various parts of the world (Demir,
Wennberg and McKelvie 2017).
 The values that have been formed by Exxon Mobil are considered to be strong in
nature and the culture of the organization is also able to support the growth of the
firm and the employees.

7STRATEGIC MANAGEMENT OF EXXON MOBIL
 The major levels of importance are provided by Exxon Mobil to the customers
and their levels of satisfaction instead of the operations of the competitors.
 The diverse product range that has been offered by Exxon Mobil to the consumers
and the effective services have been able to support the processes and growth of
the firm in the retail industry. The company has also been successful in gaining
excellence in the market with the help of effective levels of services (Durand,
Grant and Madsen 2017).
 The efficient services that have been depicted by Exxon Mobil are able to
enhance the customer satisfaction levels and their loyalty towards the firm as
well.
 The competitive prices have been offered by Exxon Mobil to the customers in
order to gain excellence in the services that are offered to them.
 Exxon Mobil provides training to the employees with the aim of improving the
services offered to customers and improving their experience as well. The
company is also able to understand the customers with the support provided by
the trained employees (El-Sherik 2017).
Part 3 – Internal analysis
PROFIT framework analysis of Exxon Mobil Chemicals
The PROFIT framework can be applied for the purpose of understanding the profit
equation, costs and revenues in order to understand the current and the historical performance
based figures. The decline in profitability levels can result from the units sold, rising costs and
falling price per unit.
1. PROFIT – The profit of an organization like Exxon Mobil Chemical is depicted by
revenues minus cost. The business performance based numbers of Exxon Mobil Chemical can be
compared to that of the competition in order to understand the problem that is faced by the
organization. The profits gained by Exxon Mobil in the last few years are high and this has been
able to support the growth of the firm (Ethiraj, Gambardella and Helfat 2018).
2. REVENUE – The revenues are gained by Exxon Mobil from different sources that
include the chemical based business operations of the firm. The huge customer base of Exxon
Mobil Chemical has been able to play a crucial part in improvement of revenues of the

8STRATEGIC MANAGEMENT OF EXXON MOBIL
organization. The decline in revenues can be based on the reduction of prices and the reduction
in the units that are sold as well.
1. Segment – The total revenues that are depicted in the financial reports of Exxon
Mobil can hide the important details. The segments and units that are sold by the
organization can be analyzed with respect to different aspects that include
product, product line, distribution channel, region, customer type and the industry
vertical (Frynas and Mellahi 2015).
2. Examine – The revenues gained by Exxon Mobil in the last few years can be
compared with the current revenues in order to understand major source of the
issue.
3. Diagnose – The reason behind the lack of revenues can be diagnosed in this step
with respect to the competition that is faced by Exxon Mobil from a low cost
based competitor like Walmart.
4. Respond – Exxon Mobil will need to develop the pricing policies in such a way
that will help the company to provide response to the lack of revenues and profit
margins (Gharpurea et al. 2018).
2.1 Falling Prices
The diagnosis of falling prices is mainly based on the methods by which the
business situation can be analyzed. Exxon Mobil will consider the competition that is a
part of the oil and gas industry along with the choice of customers. The competitive
dynamics of oil and gas industry will have a major impact on Exxon Mobil. The issues
that are taken into consideration for analysis of falling prices include market power,
competitor pricing, product differentiation, price discrimination and price sensitivity of
customers (Hanson et al. 2016).
3. COSTS
The rising costs are considered to be a major driver of decline in levels of profitability.
The costs based on distribution of the products and promotional activities of Exxon Mobil have
started increasing in the last few years. This has further led to decline in profits and market share
of Exxon Mobil in the oil and gas industry. The company will thereby be able to decide the

9STRATEGIC MANAGEMENT OF EXXON MOBIL
future strategies in order to maintain the revenues. The resources of the company will also be
used in an effective manner for the purpose of enhancing the revenues in the oil and gas industry
(Hanson et al. 2016).
4. PROFITABILITY FRAMEWORK
The profitability framework is taken into consideration for the purpose of understanding
the operations of Exxon Mobil in the retail industry. The profit levels that have been gained by
Exxon Mobil will have an influence on the growth opportunities that have been depicted by the
firm (Hill, Jones and Schilling 2014).
Figure 3 – PROFIT framework
Source - (Hill, Jones and Schilling 2014)
The PROFIT framework can be mapped with strengths and weaknesses of Exxon
Mobil Chemicals in the following manner,
Strengths Weaknesses

10STRATEGIC MANAGEMENT OF EXXON MOBIL
Physical resources  The physical
resources of Exxon
Mobil and Chemical
are considered to be
its major resources
that mainly include
the reserves of oil-
equivalent barrels.
Reputational resources  Exxon Mobil has
gained a major brand
reputation in the
industry that has been
able to support the
growth of its
Chemical division.
 The brand value of
Exxon Chemical is a
huge strength of the
organization in the
highly competitive
industry.
Organizational resources  Exxon Mobil has been
able to add around 1.3
Billion oil-equivalent
barrels in the year
2018 through the
positive exploration
and strategic
acquisitions as well.
 The diversity and size
of the global resource

11STRATEGIC MANAGEMENT OF EXXON MOBIL
base of Exxon Mobil
has been able to
support the growth of
the Chemical division.
Financial resources  Exxon Mobil and
Chemicals has been
able to develop its
financial resources
with the increase in
revenues gained in
different countries.
 The decline in profits
in the Chemical
business has however
been a major
weakness of the firm.
Human resources and
capabilities
 Employee wellbeing
is considered to be the
foundation of the
effective processes of
a company. The
human resources of
Exxon Chemical have
proved to be a major
strength of the
company.
 The change
management
initiatives that are
implemented by
Exxon Chemical are
also supported by the
employees.
 Expertise of the
employees have
enhanced the growth

12STRATEGIC MANAGEMENT OF EXXON MOBIL
of Exxon Chemical in
the industry.
Technological resources
and capabilities
 Exxon Mobil and
Chemical has made
huge levels of
investments in the
development of
technologies.
 The company has also
invested in
fundamental science
and research in order
to develop its
products.
Value chain analysis of Exxon Mobil Chemicals
Value chain analysis is considered to be a framework that helps in proper analysis of the
business activities that further lead to the development of competitive advantage and value to the
business organization. The oil and gas business segment of Exxon Mobil has been able to
support the organization to gain an effective place in the industry. The effectiveness of value
chain of Exxon Mobil with respect to this segment can be examined with the implementation of
this framework (Hitt, Ireland and Hoskisson 2016).
Exxon Mobil Primary Activities
Exxon Mobil Inbound logistics
Exxon Mobil Chemical has not formed long term based arrangements or contracts with
the vendors in order to enable the availability of payment based terms, merchandise and the
extension of different credit limits as well. Exxon Mobil Chemical has faced major challenges in
the different product development based phases. The company focusses on diverse factors of
transformation from the raw materials to development of finished products as a part of the
inbound logistics. The oil and gas business that has been developed by Exxon Mobil Chemical is

13STRATEGIC MANAGEMENT OF EXXON MOBIL
supported by the sellers and the inventory levels that are a part of the fulfillment centers
(Hubbard, Rice and Galvin 2014). The responsibility based on customer services, logistics and
the returns of products have been fulfilled by Exxon Mobil Chemical in order to sustain the
growth of the company. The implementation of the logistics services of Exxon Mobil Chemical
is a choice that is provided to the sellers. The logistics is mainly used by Exxon Mobil Chemical
in order to provide faster delivery to the customers and gaining competitive advantage in the
industry as well (Lasserre 2017).
Exxon Mobil Operations
The operations of Exxon Mobil Chemical have been organized into three different
segments that include machining, packing, assembling and testing as well. The process of
equipment repair and maintenance activities can also fall under this category. This includes both
the manufacturing and the service based operations as well. The competitive success of Exxon
Mobil Chemical is also guaranteed with the help of improvement of productivity of the
organization (Meyer, Neck and Meeks 2017).
Exxon Mobil Outbound Logistics
The delivery of products to the customers are considered to be an important part of the
outbound logistics of Exxon Mobil Chemical. The intermediaries that are a part of the process
are managed with the help of the outbound logistics based activities of the organization. The
optimal costs and the processes of product delivery are also managed in an efficient manner by
outbound logistics of the organization. Exxon Mobil Chemical can further aim at analyzing and
optimizing the outbound logistics in order to explore the competitive benefit based sources
(López-Gamero and Molina-Azorín 2016).
The outbound activities are also managed by Exxon Mobil Chemical in a timely manner
as the processes of product delivery and optimal costs are able to offer minimum levels of
negative effect on quality. Exxon Mobil Chemical has offered major levels of importance to the
outbound logistics in order to improve the delivery processes and maintaining the customer
services as well. The reduction of time required for providing delivery to the customers has been
able to enhance the growth levels of Exxon Mobil Chemical in the oil and gas industry.
Exxon Mobil Marketing and Sales

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The global marketing based expenses that have been made by Exxon Mobil Chemical on
an annual basis have increased in a steady way in the past of seven years. The company aims at
developing the brand equity with the development of promotional activities in an effective
manner. Exxon Mobil will also be able to stand out from the competitors with the support that is
provided by its brand value in the industry. The marketing message of Exxon Mobil Chemical
mainly conveys the message based on offering a wide range of products that have the ability to
fulfil the demands and needs of customers (Michael, Storey and Thomas 2017). The proper
delivery of products and the services along with faster delivery speeds have been able to support
the growth levels of the company in the oil and gas based industry. The components that are a
part of the marketing mix of Exxon Mobil Chemical including advertising, print and media, sales
promotion, experiences and events, direct marketing and public relations. The marketing
messages are provided by Exxon Mobil Chemical to the target customer segments with the help
of its effective marketing mix (Meyer, Neck and Meeks 2017).
Exxon Mobil Service
The exceptional levels of customer services that are offered by Exxon Mobil Chemical
are considered to be an effective source of value creation for the pre-sale and post-sale services.
The post-sale services are considered to be highly important by the customers based on the
loyalty levels that are maintained in the industry. The positive e-WOM or Word of Mouth is the
most important aspect related to the ways by which loyalty is increased by Exxon Mobil
Chemical. The issues that are faced by customers of Exxon Mobil Chemical are mainly solved
with the help of customer service executives of the organizations (Michael, Storey and Thomas
2017).
Secondary activities
Firm infrastructure
The infrastructure that has been developed by Exxon Mobil Chemical is mainly based on
the range of different activities that include handling of legal matters, quality management,
strategic management and planning. The effective management of infrastructure has been able to
play a major role in optimizing the value chain of Exxon Mobil Chemical in the retail industry.
The competitive position of Exxon Mobil Chemical in the market is mainly maintained with

15STRATEGIC MANAGEMENT OF EXXON MOBIL
proper control that the organization has on the infrastructure activities (Morschett, Schramm-
Klein and Zentes 2015).
Human resource management
Human resource management can be analyzed by Exxon Mobil Chemical with the proper
evaluation of the various aspects that include recruitment, selection, rewarding, training and the
management of performance. The reduction of competitive pressure is also possible with the
improvement of commitment, motivation levels and the skills of the employees as well. The
organization is highly dependent on the human resources or employees for the purpose of
providing best levels of services to the customers (Pisano 2017).
Technology development
The value chain activities that are performed by Exxon Mobil Chemical in the era of
technological advancement are highly dependent on the technological support. The proper
integration of technology within the processes of production, marketing and distribution is
considered to be a major aspect that can support the operations of Exxon Mobil Chemical. The
major examples of technology development process that is implemented by Exxon Mobil
Chemical mainly include technology-supported customer service, automation software, data
analytics, product design based research (Sakas, Vlachos and Nasiopoulos 2014).
Procurement
Procurement is an important part of the value chain that mainly denotes different
processes which are involved in the purchasing of inputs. The inputs mainly range from
machinery, equipment, supplies, raw material and machinery. Exxon Mobil Chemical needs to
consider the procurement activities in order to optimize the operational, inbound and outbound
value chain. The significance of identified value chain activities can enhance the levels of cost
efficiency that are related to the proper operations of Exxon Mobil Chemical in the retail
industry (Simon, Fischbach and Schoder 2014).
The analysis of the value chain activities of Exxon Mobil Chemical with the help of
Porter’s value chain framework has been able to offer a detailed picture of the importance of
formation of an efficient value chain of the organization. Different areas in which value can be

16STRATEGIC MANAGEMENT OF EXXON MOBIL
added by the organization have been identified in a detailed way with the help of this framework.
The competitive benefit that has been gained by Exxon Mobil Chemical in the industry is also
based on the value chain of the organization and different activities that are a part of the value
chain as well (Sakas, Vlachos and Nasiopoulos 2014).
Figure 4 – Porter’s value chain analysis framework
Source - (Sakas, Vlachos and Nasiopoulos 2014)
Part 4 – External analysis
PESTEL analysis of Exxon Mobil Chemical
The performance that has been depicted by Exxon Mobil Chemical in the retail industry
can be analyzed with the proper implementation of PESTEL analysis framework. The macro
environment based factors that have an influence on the performance levels of Exxon Mobil
Chemical can also be discussed with the help of this framework. The external factors mainly
include political factors, economic aspects, social factors, technological factors, environmental
factors and legal factors. The factors have the ability to shape conditions that are a part of the
business environment and profitability that can be maintained in the industry as well. The
competition that is being faced by Exxon Mobil Chemical in the oil and gas industry from

17STRATEGIC MANAGEMENT OF EXXON MOBIL
organizations like Chevron Corporation can also be addressed by understanding the macro
environment based factors (Skjærseth and Skodvin 2018).
Political factors – Exxon Mobil Chemical aims at maintaining its operations in the oil
and gas industry along with the political influences. The activities of the government and support
provided to the company can have an influence on the profitability of Exxon Mobil Chemical.
The political or external factors are considered to be important for proper development of Exxon
Mobil Chemical in oil and gas based industry. The political stability in developed countries like
the US has been able to support the growth of Exxon Mobil Chemical. The diversification of
business operations of Exxon Mobil Chemical is also supported in a huge way by the political
stability and support that is provided by the government (Simon, Fischbach and Schoder 2014).
The rise in levels of competition is able to threaten the operations of Exxon Mobil Chemical and
is considered to be quite relevant in different markets. The support that government of different
countries provide to fulfill the energy needs of people can influence the profit margins of the
firm. Threat – Lack of proper stability in political conditions of developing countries provides a
threat to growth of Exxon Mobil Chemical.
Economic factors – The economic situation of different countries can also have an
impact on the chemical products based operations that are performed by Exxon Mobil Chemical.
Economic stability of developed countries can enhance the success of Exxon Mobil Chemical.
On the other hand, the lack of economic stability in countries like India and China can have a
negative impact on the growth opportunities that are offered to Exxon Mobil Chemical. The
economic recession that had taken place in China is considered to be a major spect that has
influenced profit margins gained by Exxon Mobil Chemical (Steinbach et al. 2017). The
capitalist structures of the economies of the United Kingdom have been revered that further
impacts the profit margins of Exxon Mobil Chemical in a negative manner. Government
intervention and the Basic Materials within the free market can have an influence on the
revenues of Exxon Mobil Chemical. Threat – The structure of the economies of different
countries can have an impact on the sales of Exxon Mobil Chemical in the oil and gas industry
(Simon, Fischbach and Schoder 2014).
Social factors – Social conditions are considered to be major determinants of operations
of Exxon Mobil Chemical. Sociocultural trends related to performance of Exxon Mobil

18STRATEGIC MANAGEMENT OF EXXON MOBIL
Chemical can lead to the leading position that is gained by the company in retail industry. The
services and technology goods that are provided by Exxon Mobil Chemical can influence the
operations and profit margins gained by the organization. The disparity that exists between poor
and rich in different countries can provide a major threat to Exxon Mobil Chemical. The levels
of disposable income of the consumers are considered to be key aspects that can have an impact
on the potential revenues of the firm (Trigeorgis and Reuer 2017). The increase in levels of
consumerism in the developing markets has supported the growth of Exxon Mobil Chemical.
Opportunity – The social aspects and increase in consumerism has enhanced the growth and
profits of Exxon Mobil Chemical and increased its customer base as well.
Technological factors – The increase in technology levels is considered to be a major
requirement for dealing with the complicated and globalized supply chains of Exxon Mobil
Chemical. The logistics services of Exxon Mobil Chemical have been supported by the
implementation of modern technologies. Research and development is also considered to be a
major part of technology implementation by Exxon Mobil Chemical (Steinbach et al. 2017). The
company aims at remaining innovative and maintain its competitive advantage with proper usage
of highest technology levels Opportunity – The opportunities that have been gained by Exxon
Mobil Chemical due to implementation of modern technologies has supported the research and
development and customer services of the organization (Trigeorgis and Reuer 2017).
Environmental factors – The increase in pressure that is provided by governments of
different countries is mainly based on the methods by which Exxon Mobil Chemical can reduce
the impact of its processes on the environment. The organization also aims at complying with the
regulations that are formed by the various governments. Major part of the business operations
relies on the delivery of products and logistics of the organization as well. The changes in
climatic conditions have increased pressure on the organization to reduce its environmental
footprint (Hays, McCawley and Shonkoff 2017). Threat – The lack of proper reporting of
environmental activities by Exxon Mobil Chemical is considered to be a major threat related to
the brand image formed by the organization.
Legal factors – The pressure provided on multinational corporations related to risks faced
by the clients have increased in the last few years. The clients of Exxon Mobil Chemical who are
politically sensitive in nature can have an influence on the profitability levels of the organization.

19STRATEGIC MANAGEMENT OF EXXON MOBIL
The Anti-trust law that has been implemented in Integrated Oil and Gas industry has an influence
on the brand image of Exxon Mobil Chemical in the oil and gas industry. The employment laws
also have to be taken into consideration by Exxon Mobil Chemical in order to maintain its
position in the oil and gas industry Threat – The legal issues that are faced by Exxon Mobil
Chemical in the United States have a negative impact on the processes of the organization
(Morschett, Schramm-Klein and Zentes 2015).
PESTEL factors can be mapped with opportunities and threats in the following
manner,
Opportunities Threats
Political factors  Unstable political
environment can
prove to be a threat to
Chemical business of
Exxon Mobil.
 Corruption in the
political environment
can influence the
operation of Exxon
Mobil’s Chemical
division in a negative
manner.
Economic factors  Economic situation of
different countries are
able to influence the
profitability of Exxon
Mobil Chemical.
 Government
intervention can affect
the procurement of
raw materials.

20STRATEGIC MANAGEMENT OF EXXON MOBIL
Social factors  Increase in
consumerism and
usage of the chemicals
is a growth
opportunity for Exxon
Chemicals.
 High disposable
income of consumers
can lead to growth of
Exxon Chemicals.
Technological factors  Increased use of
technology has a
positive influence on
the global supply
chain of Exxon
Chemicals.
 The training and
development of staff
is supported in s
positive manner by
the implementation of
modern technologies.
Environmental factors  The lack of proper
reporting of
environmental
activities can affect
the reputation of
Exxon Chemicals in a
negative manner.
Legal factors  The employment laws
can prove to be a

21STRATEGIC MANAGEMENT OF EXXON MOBIL
threat to the policies
that are implemented
by Exxon Chemical.
Porter’s five forces analysis of Exxon Mobil
Exxon Mobil has been leading the oil and gas based market due to proper integration of
business challenges within the strategy development process. The oil and gas industry
environment has to be examined in a detailed way with the proper implementation of Porter’s
five forces framework. Exxon Mobil will be able to maintain its position in the industry with the
support that is provided by the oil and gas based operations and sales. The competitiveness in oil
and gas based industry can be analyzed in a detailed way with the help of appropriate
formulation of the strategies (Wheelen et al. 2017).
Competitive rivalry – The levels of competition or competitive rivalry that is faced by
Exxon Mobil in the oil and gas industry can have an impact on the profit margins that are gained
on different products. The aggressive levels of competition that are provided by oil and gas based
organizations like Chevron Corporation are considered important for the appropriate processes of
Exxon Mobil. The low levels of switching costs have further been able to enhance the strength of
the force on profitability of Exxon Mobil (Wheelen et al. 2017). Competition is provided with
major priority by Exxon Mobil in order to sustain its place in the retail industry. Power - High
Bargaining power of the buyers – The mission statement and vision statement of Exxon
Mobil is able to highlight the customer centric nature of the oil and gas operations of the
company The external factors have the ability to support the increase of bargaining power of
Exxon Mobil in the industry. The customers of Exxon Mobil are able to access the high quality
based information based on services that are provided by the firm and products that are offered
as well. The availability of different substitutes in the industry have an impact on the increasing
bargaining power of the consumers (Xiong, Zhao and Fang 2016). The strength of bargaining
power of consumers is considered to be a vital aspect that influences business challenges. Power
- High
Bargaining power of the suppliers – The suppliers of Exxon Mobil are able to control
development of products and the materials that are required by the organization as well. The

22STRATEGIC MANAGEMENT OF EXXON MOBIL
population of suppliers of Exxon Mobil is considered to be low and this is considered to be a
strong force that affects the oil and gas operations. The moderate levels of forward integration in
Exxon Mobil is able to decrease the impact that suppliers have an effect on the organization. The
size of equipment manufacturers of Exxon Mobil is considered to be quite moderate and this is
able to reduce the impact that they have on the organization (Yakubu 2018). Power - Moderate
Threats provided by substitutes – Exxon Mobil has been facing key levels of competition
from the substitutes of the firm who operate in the retail industry. The switching costs that are
faced by the company are low and they can easily shift to other organizations for fulfilling their
needs. The similar needs of consumers are fulfilled by Chevron that is a major oil and gas
organization and a huge competitor of Exxon Mobil as well. The availability of substitutes in the
industry is also quite high and the profits gained by Exxon Mobil in the oil and gas industry. The
long term success has been ensured by Exxon Mobil in energy production environment with the
support that is provided by the strategies of the organization (Zhao et al. 2017). The low cost
based products that are provided by the substitutes of Exxon Mobil to the customers have been
able increase the influence that this force has on the organization. Power - Moderate
Threats provided by new entrants – The market share in online market that has been
gained by Exxon Mobil is reduced by the entry of new firms in the industry. The requirement of
huge amounts of capital is however considered to be a key aspect that has an influence on the
development if operations of new firms. The formation of an effective brand name is also
considered to be a vital aspect that is able to influence the ways by which Exxon Mobil has
gained success in the retail industry. The strength of the brand name of Exxon Mobil is a vital
aspect that can influence the threats that the organization faces from the new firms. The new
firms have to face the pressure of developing an effective brand name in the industry in order to
reduce the customer base of a major organization like Exxon Mobil (Sakas, Vlachos and
Nasiopoulos 2014). The performance of Exxon Mobil in the oil and gas industry will not be
influenced by the new firms due to the lack of effective brand value of the firm. Power –
Moderate

23STRATEGIC MANAGEMENT OF EXXON MOBIL
Part 5
Interim Conclusion
The internal and external analysis of Exxon Mobil has been able to depict that the
profitability and growth levels of the firm have been supported by the resources of the
organization. The value chain of Exxon Mobil has supported the development of delivery
process of the organization so that a dedicated consumer base can be maintained for a long time.
On other hand, the political and economic aspects of different countries have a negative
influence on the profit margins and smooth processes of Exxon Mobil as well. The different
forces that are a part of the retail industry have however supported the growth of Exxon Mobil.
The customers are thereby considered to be the most important aspect of the services that are
developed and provided by Exxon Mobil. The power and force of the customers have the most
significant impact on the growth levels of Exxon Mobil.
Part 6 – Portfolio analysis
BCG matrix analysis of Exxon Mobil
The BCG Matrix framework can be taken into consideration for the analysis of different
units that are a part of the processes of Exxon Mobil in the oil and gas industry. The strategic
business units will be identified with the help of the analysis that will further lead to detailed
description of the profitability levels of different units.
Stars – The financial services based strategic business unit can be considered to be a star
within the BCG matrix of Exxon Mobil. The business units has its operations within a market
that has been able to depict huge levels of potential in the last few years. Exxon Mobil has also
been able to earn huge amounts of revenues from the operations of the financial services based
unit. Financial services unit is considered to be the most beneficial part of the product portfolio
that is offered by Exxon Mobil to the customers. The potential of this business within the unit is
also considered to be quite high in comparison to the other units (Lasserre 2017). The product
development process has to be implemented by Exxon Mobil in this unit in order to improve the
revenues that are gained in the market. The oil and gas based strategic business unit of Exxon
Mobil is another major part of the revenues that have been gained by the organization in the
industry. The company can aim at improving the share that this business has been able to gain in

24STRATEGIC MANAGEMENT OF EXXON MOBIL
the market. The untapped markets can also be targeted by Exxon Mobil with the help of this
business unit (El-Sherik 2017).
Cash Cows – The supplier management based strategic business unit can be considered
to be a cash cow within the BCG matrix of Exxon Mobil. The business unit has been in
operations for more than twenty years and has been able to offer high levels of revenues to the
organization. The market share of Exxon Mobil has also become high with the support that is
provided by the operations of this business unit. However, the overall market of the business unit
has started declining as the suppliers have outsourced different activities (Ethiraj, Gambardella
and Helfat 2018). The organization thereby needs to stop making further investments in this
business unit in the future. The international food based strategic business unit of Exxon Mobil is
also considered to be a cash cow for the organization as it has a high market share of around 30%
within this category. The changes in the trends have however been able to influence the market
share that has been gained by this business unit (López-Gamero and Molina-Azorín 2016).
Question Marks – The local foods based strategic business unit of Exxon Mobil is
considered to be a Question Mark for the organization. The trends in the market have been able
to depict the interest that people have towards the consumption of local foods and this has
enhanced the levels of growth. The strategy that can be recommended to Exxon Mobil is mainly
based on the increase in investments that are made by the firm in this business unit
(Corporate.exxonmobil.com 2020).
Dogs – The plastic bags based strategic business unit of Exxon Mobil is a dog in the
BCG matrix of the organization. This business unit has been facing major levels of losses in the
last five years. The company has been operating in a particular market segment that has faced
major decline due to the environmental concerns. The market is however is expected to grow in
the future and this can provide major levels of profit and revenues to the firm as well. The
artificially flavored products based strategic business unit is also a cow in the BCG matrix of
Exxon Mobil (Gharpurea et al. 2018).
The strategic business units that have been identified in BCG matrix analysis of Exxon
Mobil have the potential for changing in the future. The dog can change to become a cash cow in
the future that will be able to enhance the revenues that are gained by the organization in the
future.

25STRATEGIC MANAGEMENT OF EXXON MOBIL
Figure 5 – BCG matrix of Exxon Mobil
Source - (Gharpurea et al. 2018)
Part 7
Interim conclusion for portfolio analysis
The portfolio analysis can be concluded by stating that Exxon Mobil will be able to
maintain its position in the oil and gas industry with the help that is provided by different
business units of the organization. The cash cow of Exxon Mobil has enhanced the profitability
of the firm and the Star of the organization Exxon Mobil financial services has been successful in
increasing the growth as well. On the other hand, Exxon Mobil plastic bags is considered to be a
Dog among the business units that has not been able to provide profitability to the firm. The

26STRATEGIC MANAGEMENT OF EXXON MOBIL
Whole Foods Market on the other hand is considered to be a Question Mark that has proved to be
a failure with respect to the profits that have been gained by the organization.
Part 8
Recommendations
The key recommendations that can be provided to Exxon Mobil in order to enhance its
place in the retail industry are as follows,
 Exxon Mobil needs to increase its penetration in the developing markets in order
to increase the profits that have been gained by the company in the industry.
 Exxon Mobil will aim at enhancing its presence in order to compete with the oil
and gas organizations like Valero Energy, BP and Chevron Corporation.
 The partnerships and acquisitions have to be increased by Exxon Mobil in order
to increase the opportunities of growth of the firm in the developing markets in
various parts of the world.
 The brand image that has been gained by Exxon Mobil can be used in order to
enhance the profitability levels in the retail industry. The organization will use the
brand name in order to penetrate the developing countries.
 The aggressive levels of competition that are faced by Exxon Mobil can be
reduced with the help of enhancing the product portfolio that is offered to the
customers.
 Exxon Mobil needs to provide more importance to the financial services and
chemical division of the organization in order to increase the number of
consumers and further to increase the revenues that have been developed in the
retail industry.

27STRATEGIC MANAGEMENT OF EXXON MOBIL
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