As mentioned earlier even though Exxon Mobil is successful at integrating small companies it has its share of failure to merge firms that have different work culture. This goes hand in hand with the environmental requirements against global warming and oil spillages that ExxonMobil must address. Exxon Mobil leads the petrochemical industry with interests in 49 wholly-owned and joint-venture facilities around the world. Some of the main client countries would be Middle East, India and China. This lack of choice can give a new competitor a foothold in the market. They distribute their petroleum products and petrochemicals globally via their infrastructure, The diversity of Exxon is demonstrated by their involvement in the generation of electrical power.
The company owns 37 oil refineries in 21 countries. Exxon produces, transports, and sells crude oil and natural gas throughout the world. Alternate Fuel sources Strengths 1. Secondly the supply of new products is not regular thus leading to high and low swings in the sales number over period of time. The profile helps you formulate strategies that augment your business by enabling you to understand your partners, customers and competitors better. Find ways of remedying the weaknesses to turn them into strengths. High risks of law suits and penalties in case of oil spills and environmental damage 1.
Mergers And Acquisitions Volume And Value Trend 2010 - 2014 Figure No. It is a major manufacturer and marketer of commodity petrochemicals including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. As more knowledge is gained about drilling in the Arctic, Exxon will soon be able to start drilling safely. The fact that ExxonMobil are vertically integration ensures that they are in control of the whole process from raw materials to final production. In the upstream segment, the company is expanding its portfolio through global exploration, development, production and marketing. The company is governed by these regulations which could impose new liabilities on the company.
Even though ExxonMobil is spending above the industry average on Research and Development, it has not been able to compete with the leading players in the industry in terms of innovation. In 2007, refinery throughput averaged 5. These investments in China would enable the company to export refined products or establish fresh refining capacity and take advantage of the increasing demand for refined products in the country. The company has put over a billion dollars for the past five years towards research on new products and techniques to bring new revenue to the company. Advanced molecule management technology optimize the value of every hydrocarbon molecule, while minimizing energy use. Revenues generated in fiscal year 2002; Principal business offered including the worldwide exploration and sale of crude oil, natural gas and petroleum products. Stay up to date on the major developments affecting the company.
On the other hand, there are legal issues following business misconducts of ExxonMobil such as environmental damages and oil spills. There appears to be a rising tide of nationalism around the world. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. This event and other oil spills have caused oil companies including Exxon to take extra measures to avoid spills in the first place, and to respond to spills quicker.
The company is engaged in exploration and production, refining, and marketing of oil and natural gas. In recent times, the company has also captured new high-quality off shore blocks in Australia, Equatorial Guinea, and Suriname. This is partly due to a few reasons, the good corporate citizenship of the organization, the correct and appropriate crisis management and crisis communication management strategy. Exxon Mobil Corporation Exxon Mobil is engaged in exploration and production of crude oil and natural gas, manufacture of petroleum products, and transportation and sale of crude oil, natural gas, and petroleum products with a global presence. Even the smallest accidents can lead to major environmental damage that can ultimately lead to negative public perception of Exxon and a loss in profits. Low import duties, there is threat of imports from Middle East and the Asia Pacific region.
The company operates in more than 200 countries under the names Exxon Mobil, Exxon, Esso, and Mobil. Performance Chart 2010 - 2014 Figure No. In the downstream segment, products are marketed to customers through retail and three B2B segments: Industrial and wholesale, Aviation and Marine. Steady financial performance enables the company to manage its operations well and also increases the financial flexibility of the company. The company has exploration interests in China.
They make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. ExxonMobil has to build internal feedback mechanism directly from sales team on ground to counter these challenges. With rising awareness of the damage to the environment caused by industry, especially regarding global warming, regulatory standards have been continuously tightened in recent years. China, despite substantial additions to refining capacity over the next three decades, is expected to remain a net importer of refined products in 2030. Another of the issues noted at the ExxonMobil organizational structure is that there is lack of diversity in the managerial positions. By 2013, ExxonMobil's reserves were 25. Strengths include a diversified geographic revenue stream and strong market position.
Their flexibility to take advantage of opportunities, access capital to finance projects at favorable rates, and deliver on commitments is unmatched. Exxon Mobil is committed to address the challenges of a sustainable development. Further, ExxonMobil also strategizes on identifying and capturing the high quality resources as well as exercising a disciplined approach to investing and managing cost mostly through developing high impact technologies. Top Deals 2010 - 2014 Table 17. Claims - Damages, fines, or penalties in substantial amounts or remediation of environmental contamination.