Business Comparison: Analyzing ExxonMobil and McDonald's Strategies

This case study provides a comparative analysis of ExxonMobil and McDonald's, two prominent multinational corporations operating in distinct industries. ExxonMobil, an American oil and gas giant formed from the merger of Exxon and Mobil, contrasts with McDonald's, an American fast-food chain. The analysis covers their backgrounds, objectives, revenues, organizational structures (decentralized vs. centralized), and subsidiaries. ExxonMobil's focus is on oil and gas products with a decentralized global structure, while McDonald's centers on consumable fast food with a more centralized brand approach. The study highlights key differences in their operations, financial performance, and overall business strategies.

ExxonMobil
Backgound
This is American multinational oil and Gas Corporation.
The company was founded in 1999 after the merger of
Exxon and Mobil. It directly descended from John D.
Rockefeller, the owner of Standard Oil Company. It is
the world’s 8th largest company by revenue and 5th
largest company by market capitalization. Its products
include
• Crude oil
• Oil products
• Natural gas
• petrochemicals

Objectives
• Objectives
• The company seeks to become the world’s premier petroleum and
petrochemical company globally. This is its main objective. In order
to achieve this, the company has set other specific objectives. For
instance
• • Have a high financial performance
• • Create a good corporate image by engaging in Corporate
Social responsibility projects
• • Have a high consideration of the environment by ensuring
that it minimizes pollution
• • Create a strong HR policy that seeks to recruit qualified
employees

Purpose
• The objectives of the company cannot be met not unless the company’s different departments
function dependently. The various functions of the company include
• • Human resource department
• It is comprised of over 83000 employees around the world that are highly qualified.
• • Production department
• This department is concerned with the conversion of raw materials into finished goods.
• • Purchase department
• This department is tasked with purchasing goods that are required by the production department
• • Marketing department
• The marketing department is tasked with linking the customers to the customers. It advertises the
company’s products and services
• • Research &Development department
• This department is tasked with designing and improving on the company’s products and services

Revunues
• Decrease US$268.88 billion [2] (2015)
• Operating income
• Decrease US$21.96 billion [ 2] (2015)
• Net income
• Decrease US$21.96 billion [2] (2015)
• Total assets Decrease US$349.49 billion [2] (2015)
• Total equity Decrease US$170.81 billion [ 2]
(2015)
• Number of employees 83,300 (2015)

Subsidiaries
• Aera Energy, Esso Australia,
• Exxon, Exxon Neftegas,
• Imperial Oil (69.6%), Syncrude (25%),
• Mobil Producing Nigeria,
• SeaRiver Maritime, Superior Oil Co.,
• Vacuum Oil Co., XTO Energy

McDonalds
• Background
• An American fast food chain restaurant that was founded in 1940.
• Founders were Richards and Maurice McDonalds
Products
• Hamburger
• Fries

Revenues
•
• Decrease US$ 25.413 billion (2015)[2]
• Operating income
•
• Decrease US$ 7.146 billion (2015)[2]
• Net income
•
• Decrease US$ 4.529 billion (2015)[2]
• Total assets
• Increase US$ 37.939 billion (2015)[2]
• Total equity
• Decrease US$ 7.088 billion (2015)[2]
• Number of employees
• 420,000 (2015)[2]

Purpose
• Maximizing shareholders equity
• Providing employment opportunities
• Contributing to the exchequer
• Becoming a company with gobal presence

ExxonMobil
• Structure
The company has a decentralized kind of
organization structure.
This is because it is a huge company with a
global presence and thus centralized kind of
decision making wont be efficient

Comparisons
ExxonMobil
• Has different subsidiaries
around the globe thus the
structure is decentrallised
• It is a public company
• Products include oil and gas
products
McDonalds
• Operates as a single brand
world wide thus the
structure is centralised
• It is a private company
• Deals in consumable fast
food products.