Strategic Management of Exxon Mobil

Running head: STRATEGIC MANAGEMENT OF EXXON MOBIL
STRATEGIC MANAGEMENT OF EXXON MOBIL
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STRATEGIC MANAGEMENT OF EXXON MOBIL1
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

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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.

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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

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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.

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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).

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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.

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 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