Study On Exxon Mobil Corporation Management Essay

Study On Exxon Mobil Corporation Management Essay Exxon Mobil Corporation is a multinational oil and gas company that is based in America. Its a descendant at of the Rockefellers standard oil company and it was formed in 1999 from the merger of the Exxon and Mobil companies. Its headquartered in Irving, Texas. The company is one of the worlds largest publicly traded companies and has been ranked the number one or number two for the last five years. By the end of the year 2007 the companys reserves stood at 72 million oil equivalent barrels while its production rates were expected to last for more than 14 years. The company has 37 oil refineries in more than 21 countries constituting a combined daily refinery of approximately 66.3 million barrels. Exxon Mobil is recognized as the worlds largest refineries and this title has been associated with the former standard oil since the in corporation in the 1870s. In addition to that the company is largest of the six recognized oil super majors. Exxon Mobil owns hundreds of other similar subsidiaries including the imperial oil limited in Canada and the sea river maritime which is a petroleum shipping company. Functionally the company is organized into several global operating categories including the upstream, down stream, chemical Exxon Mobil global services company, XTO and finally the imperial oil Core Business Exxon Mobil petroleum industry continue to operate as a major brand name of the Exxon Mobil and most of its products features the Mobils symbol of winged red rose, the Pegasus companys brand name since it got affiliated with the Magnolia petroleum company in 1930s. The company Mobil brands include the Mobil service station and fuel (diesel, gasoline, kerosene, heating oil, marine and aviation divisions. The Mobils brand covers a wider range of lubricants which include industrial, commercial aviation as well as marine. Another brand of the company is the Mobil 1 which is a brand Exxon Mobil which was introduced in 1974 and is includes, oil filters, multi-grade motor oils, transmission fluid, synthetic grease and finally the gear lubricants. In addition to that Mobil delvac is a brand consisting of range of heavy duty lubricants that include drive train lubricants, engine oils and greases. Some of the Exxon Mobil businesses that generate most of its revenue are the upstream division basically dealing with oil exploration, oil extraction, shipping as well as wholesale of its operations and headquartered in Houston Texas. The business operation dominates the companys cash flow and accounts for a whooping seventy percent of the total revenue. The upstream business division includes the Exxon Mobil exploration company, Development Company, Production Company, gas and power, marketing company, research marketing and finally the upstream ventures. Exxon Mobil has been successful for decades after the merger and this is attributed to its strategic plane to immensely reduce its costs which worked quite well making it one of the worlds leaders in business enterprises. Thee company has realised a continued growth and success in its operations partly because of its two century experiences in the industry and party to increased efficiency in all of its operations in more than 200 countries globally. Success of Exxon Mobil has been witnessed from the year 2007 which the company recorded an income of 40.62 billion dollars or revenue and this increase is mainly attributed to the escalating oil prices while at same time decreased actual oil equivalent by 1% mainly due to expropriation. In the year 2008 Exxon Mobil; recoded profits of $45.22 billion therefore becoming one of the profitable company of the year and fortune magazine ranks it the second of the 500 companies. Its profits in the year 2008 increased by 11.4 percent over the previous year 2007 making able to pull $443 billion in revenues. As of the year 2010 Exxon Mobil the company had already occupied five slots of the possible ten slots on the largest corporate annual earning. In addition to that it claimed eight slots of ten slots for the largest corporate quarterly earnings of all time. Corporate responsibility When it comes to issues regarding corporate responsibility Exxon Mobil oil industry has been a main contributor as it regards to environmental causes. For instance in the year 2007 the company donated more than $6.6 million to be utilized in social groups as well as the environmental management and conservation. The company has in the recent past come under heavily critism especial regarding its contribution to global warming and its has been often attacked by environmental lobby groups like the Greenpeace and other institutional investor who disagree with the companys attention on the issues of global warming. The company has been ranked by the political research institute as the sixth among other cooperation who emit air pollutants in United States and such tanking was based on quantity as well as the toxicity of such emission. In the year 2005 Exxon Mobil was found to have committed less than one percent of its profits in project targeted towards research for alternative sources o f energy a value which is less as compared to other leading oil companies in the world (Larson Wiggins, 1959). Crisis management Many companies have in one way or the other faced crises beyond their control but few fall under the corporate irresponsibility and Exxon Mobil has not in the recent past been spared either. In 1989 one of the companys Exxon Valdez oil tankers ran aground and spilled oil on the Prince William Sound and in short time it had spilled significant amounts of oil and is cause was blamed on intoxicated crew staff members. In reaction to that the company was blamed for being slow in curbing the crises and accused of refusing to communicate openly and effectively. In addition to that the showed no effective strategic measure in case of worst scenarios like the oil spill. The disaster led to massive oils spill resulting to greater environmental consequences. Mechanisms of the company in handling of the disaster were a failure mainly because of disastrous communications, poorer leadership after the events and ineffective systems in place to deal with such crises. Such dater led to damaged reput ation and slipped from the largest oil company in the world to the third position (Exxon Corporation, 1982). In addition to that the company has also face several other crises including the Exxons Brooklyn oil spill and the increasing environmental concerns of the Sakhalin-I oil and gas project located in Russian far east which is operated by one the Exxon Mobil subsidiary, Exxon Neftegas Limited. Threats to environment includes the endearment of the critical populations of the already endangered western Gray whale which the scientist have blamed the company for failing to corporate with the scientific panel which certainly play critical role in impeding the cause of western whale conservation (Larson Popple, 1971). Exxon Mobil has also been accused for funding sceptic organizations of the anthropogenic global warming as well as organization critical of the Kyoto protocol which are very sceptical of the scientific opinion regarding the cause of global warming by burning of fuels. The company however has in the recent years reputed his former opinion regarding the effects of global warming and stated appreciation to the seriousness of the issues. The companys commitment was evident when it withdrew from funding of sceptic groups in the year 2007 as revealed by the Greenpeace. In addition to that Exxon Mobil CEO Tillerson in February 3rd 2007 also acknowledged the warming of the earth and the increasing levels of carbon dioxide. Contrary to the companys initial adamant response to research on alliterative fuels the year 2010 saw a ray of light on the issue when the company unveiled plans to invest funds amounting to $600 million in the next ten years in the production of bio fuels from algae and one year on reports from the company indicate that the project is successfully underway (McIntyre, 1998). Strategy Exxon Mobil industry has been focusing its strategic plans to reach the merging markets attributed to increasing energy demand in the world for instance in Indian and china. In addition to that the company has also been focusing in penetrating into the increased energy demands in developing economies like the ones in south eats Asia as well as south east Asian regions like Malaysia, Korea, Indonesia and Vietnam (Gibb, Knowlton, 1956). Core strengths Exxon Mobil has several core strengths which has enabled it reaming a successful leader in the oils and gas industry for quite consistently. One of its strengths is its established name which is attributed to its long existence in the industry for mote than a decade hence giving its customers a since of security when they are dealing with the organization. The fact that the company has diversified in to many countries globally coupled with strong brands under its main umbrella group in the oil industry is one of its core strength sin successful operation of its business activities. In addition to the company has a global presence which has enabled it to have a large customer base and larger market as compared to other companies in the oil and gas industry. Final core strength that Exxon Mobil company posses in the industry is its ability to extend to newer emerging markets like India and china as a result of exponentially increasing demand for energy thus the company has greatly prof ited from the higher rates as compared to other companies. Company innovativeness Exxon Mobil Company ha sin the recent past been very innovative especially on the side of allocating funds on research and development projects aimed at coming up with more effective as well as efficient ways of managing the energy resources as well as reducing the negative effects of its operations to the environment. The company has also been very innovative on formulation and implantation of its strategic plans especially those geared towards adoption of new technology as well as improving its corporate citizenship through appropriate crisis management as well as communication management strategies which have served to alleviate past negative public image (Hidy Muriel, 1955). Vision, Mission, Goals Exxon Mobil Corporation is very committed to becoming the worlds premier petroleum and petrochemical company hence its continuous objectives of achieving superior and operating results while at same time being able to adhere to the high ethical standards. The stated principles are used by the company to guide its relationships with its shareholders, customers, communities and employees (Bender Tammy, 1999) The company is focusing on delivering reliable supply of high quality lubricants and to provide technical application expertise to its customers around the globe. In addition to that the company ahs always been dedicated to delivering of outstanding products and services to its customers and it has been able to achieve that through excellent practices and procedure that have helped in protection of the companys quality and world class brands across all the lines of its businesses. Employee motivation Exxon Mobil motivates its LS representatives by engaging them in numerous industry activities that are related to product performance standards and testing thus motivating them to strive from an industry level playing field with products integrity principles that are always consistent with the companys standards. Another way in which the company has been able to motivate its employees is by hiring competent and experience employees especially those who help further the company commitment to technology leadership in the industry. Employees include vast array of technical degree holders in science, engineering as well as in mathematics. Finally the company motivate its employees by conducting training and development to maximize on their opportunities while at same time maintaining a safe work environment which is enriched with diversity characterized by open communication, fair treatment and trust. Employer desirability: Given an opportunity I will be more than willing to work in the Exxon Mobil Corporation because their work staffs is well experienced and skilled personnel who are highly motivated in what they do thus reduced level of tress at work place. In addition to that the company has employee motivating activities like training that enable each an employee to advance in his career while becoming satisfied at work place.