Strategic Management of Exxon Mobil: PESTEL Factors and Porter's Five

This report provides a strategic management analysis of Exxon Mobil, focusing on the PESTEL framework to assess the company's external environment. The analysis identifies and describes three key PESTEL factors: political, social, and technological, evaluating their positive or negative impacts on the company. The report then correlates each factor with Porter's Five Forces model, examining their influence on competitive dynamics. The factors are ranked by their potential impact, and the rationale behind the ranking is explained. Finally, the report explores future strategic options for Exxon Mobil to mitigate risks associated with the identified factors, supported by in-text citations and a comprehensive reference list. The report highlights the significance of political stability, technological advancements, and societal considerations in shaping Exxon Mobil's business strategies and its ability to navigate the complexities of the global oil and gas industry.

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
Memorandum
March 8, 2018
To: Dr. Mark Robinson
From:
Three factors of PESTEL and their evaluation
Exxon Mobil is the largest international oil and gas companies in America and this is the
world 10th largest company as per the revenue (Corporate.exxonmobil.com, 2018). In case of
public trade companies, Exxon Mobil is considered as the seventh largest traded company as
well. In this memorandum, the global external factors of the company are highlighted and
opportunities due to these factors are also provided. The selected three factors from PESTEL are
Political, Social and Technological.
Systematic political influence is necessary for expanding new territories in business.
Government decision and political stability are needed for the company to sustain their business
in this land. The extraction rate oil and substantial government help is also needed for
maintaining the revenue percentage (Mbat, Ibok & Daniel, 2013). In recent times the USA has
the most patent options of oil and gas deliverance. Intellectual property protection is the most
influential factor that comes in that situation and legal framework is also important in that case.
Oil and Gas Industry of US has some pricing regulation and that regulation is fixed in some
cases for all the companies (MacKay & Munro, 2012). But in case of market expansion, the way
of resources and the trade regulating basic materials are coming from the different sources. The
political has changed the scenario of the global market as 70% of price fall has started from mid-

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2014. One-third of Saudi productions are imposing their mark in oil production and the scenario
has changed and oil production ratio also changes by the interference of USA. The factor is
considered as the positive factor for the company as government initiation has changed the
business scenario form 2008 and it has been running since then.
Social impact in Oil and Gas industry is highlighting the environmental and social
dimension of gas and oil exploration projects. Through the International Petroleum Industry
Environmental Conservation Association the rates of production will increase as the support
from the social subordinates are there. There are developing methods and that industry practice
cases, in that case, the demographic and skill level of population is important as well
(Schlichting, 2013). The education and the culture of the people are important in that section and
most of the cases entrepreneurial spirit and the border is the most important factor that
showcases in the society as the encouragement and attitudes are the most significant aspects of
social factor (Brown & Duguid, 2017). Social factors are not creating any problem for business
enhancement and thus it will be considered as the positive aspect as well.
Technology is one of the factors that changed the whole scenario of Oil and Gas
production in worldwide. The USA has used all sort of modern and innovative technologies to
enhance their state. There are some automation processes that can transform the oil and gas
production rate in a high manner (Leu, Wu & Lin, 2012). Electric machinery, innovative
technologies like pipe sectioning, extraction force catalyst all these are used in the USA to make
more enhancements in their developing business of Oil and Gas production (Frynas & Mellahi,
2015). Earlier Middle East countries have the supreme possession of the oil extraction and make
profitable business along with other nations. Technologies are offering for oil mines are superior

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in nature and product extracted from these technologies are impactful and significant for the
national economic development.
Correlate these chosen factors with Porter’s Five Models
In case of a Political factor, USA market has gain optimum enhancement comparing to
other countries. In this process, the correlating factor in porter five forces analysis will be
considered with the threat of the new entrance. This factor is related to the new market entry in
the international market as the US has entered in the market and Middle East countries are
lagging down (Colvin, 2015). The zone of the political support and help from the industries
related issue most of the profitable issues are coming towards the nation’s economic
development and that is the reason; the threat of substitute’s nation in form of USA is also
applicable.
The social factor is dealing with the analysis of the mental representation of economic
development and people reaction in those cases and determination of environmental changes due
to this reason the concern factor. Relating to porter five forces analysis, bargaining of buyers is
applicable for the people acquire the kind of products (Lee et al., 2012). The authentic
atmosphere is delivered in all the time with the correct form of the environment in all the cases
and the USA has that opportunity to stable the business factor in a balanced form so that no such
obstacles will come in front of successful implementation.
The last factor is technological as this is the most modern and innovative form of
business judgment. Comparing from other Middle East countries, profitability has been earned
by the USA in a radical manner. Now, they have such technological set up that Middle East

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counties haven’t (Coll, 2012). The changes have brought in by technologies and innovations are
impeccable and created opportunities for the nation to build an establishment over there.
Order of Greatest to Least potential impact
The Political factor is the most important factor in case of oil and gas management. This
factor is responsible for all the profit that Exxon Mobil has gained in the USA and the amount of
support provided by the government as well. This is unconditionally the greatest factor.
After that, technological influence is the most effective one that provides all the
innovation in this industry and offers better products to enhance the business market. The drastic
change in 2014 has come just because of the influence of technology thus this factor is
considered as the second factor of this potential form.
The third and least factor of this chart is the social perspective. This is the possible
momentum that may or may not be relevant in all the time (Frynas & Mellahi, 2015). In some
diverse condition also, there are some opportunities to grow the business and that is the reason
most of the social an environmental thinking is generated with the growing way.
The Future strategic option of the company
There are some strategic steps that Exxon Mobil has taken to develop their industry and
provide modern transport facilities for the suppliers, build power cities, provide petrochemical
building blocks and lead thousand good customers. The company has some new releases and that
is the reason dividend information is highlighting the factor as well. The invested amount is high
and all the external factors are supporting the fact as well. Political factor provides better chances

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for the business expansion. In case of big projects of oil extraction, the company will lengthen
their projective ability with the cost-cutting approach.
The recovering process in technology is not needed for the USA, as the country have full
of upstream technological appliance that profited in an efficient manner (Mbat, Ibok & Daniel,
2013). Exxon Mobil has improved their net income as well and that will outcome as the revenue.
In case of global warming issues, some scientific burning cases are highlighted but in case
climate controversy the best of mitigation has been delivered by the company as well
(Corporate.exxonmobil.com, 2018). Social amendments and people behavior towards the change
in economic development is the concern formulation for the company and this is the reason
Exxon Mobil evolve their productive nature and become considered as one of the leading oil
companies. Tax is the legalize factor for the country and that will provide enough influence to
the nation’s economy.

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References
Brown, J. S., & Duguid, P. (2017). The Social Life of Information: Updated, with a New
Preface. Harvard Business Review Press.
Coll, S. (2012). Private empire: ExxonMobil and American power. Penguin.
Colvin, G. (2015). Every aspect of your business is about to change. Fortune.
Corporate.exxonmobil.com (2018) Exxon Mobil Corporation retrieved from:
http://corporate.exxonmobil.com/en [Accessed on 6th March, 2018]
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press,
USA.
Lee, S. U., Jung, K., Park, G. W., Seo, C., Hong, Y. K., Hong, W. H., & Chang, H. N. (2012).
Bioprocessing aspects of fuels and chemicals from biomass. Korean Journal of
Chemical Engineering, 29(7), 831-850.
Leu, H. J., Wu, C. C., & Lin, C. Y. (2012). Technology exploration and forecasting of biofuels
and biohydrogen energy from patent analysis. International Journal of Hydrogen
Energy, 37(20), 15719-15725.
MacKay, B., & Munro, I. (2012). Information warfare and new organizational landscapes: An
inquiry into the ExxonMobil–Greenpeace dispute over climate change. Organization
Studies, 33(11), 1507-1536.

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Mbat, D., Ibok, E., & Daniel, E. (2013). Exxon-Mobil and Corporate Social Responsibility in
Akwa Ibom State, Nigeria: Past and Present. Public Policy and Administration
Research, 3(3), 21-29.
Schlichting, I. (2013). Strategic framing of climate change by industry actors: A meta-
analysis. Environmental Communication: A Journal of Nature and Culture, 7(4), 493-
511.