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Strategic Management at ExxonMobil

Info: 1703 words (7 pages) Essay
Published: 27th May 2021 in Management

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Introduction

ExxonMobil is an energy and chemical company founded in the United States of America. Since its foundation, it has remarkably operated in oil and gas production both locally and internationally. ExxonMobil’s long history of a disciplined approach to investment, technological leadership and operational excellence positions us well to lead the industry in safely developing the most challenging projects (Business Divisions, n.d.). Being a product of numerous energy and petroleum firms, it focuses on discovering, producing, and selling of natural products. For instance, oil refining and gas production, support services, exploration, maritime transportation, petrochemicals products, and distribution. As a result, it has favorably competed with other firms thereby being one of the top oil and gas production firms worldwide. In the study, the task surrounds the management strategies of Exxon Mobil Company that facilitate its successful performance in the business world. 

Exxon Mobil Company, Critical Success Factors

As stated by Almalky, Ikeda & Umemoto (2019), critical business factor (CSF) is a corporate-level strategy formulated for effective business overall operations. Being a well-calculated goal, it defines an association’s operational success as it is directly connected to the business strategies. CSFs practices include strategic concentration on leadership and management skills, organizational planning, employees learning, and development. It also involves consumer relations and satisfaction, product sales and feedbacks, firm manufacturing processes, assets, and equipment. Conferring to the Exxon Mobil Company, it has been stated that the company’s strategic goal is to concentrate production of more beneficial upstream and valuable downstream to enhance stability and economic gas supply (Mirabi, Akbariyeh, & Tahmasebifard, 2015). Exxon Mobil Company exercises fair pricing of its products to ensure consumers value superiority convincing. Defining profits generated through the implementation of a sophisticated financial control manager. In the Exxon Company, top management tracks key financial data from their accountants to define organizational cash flow. 

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 The firm similarly ensures that choices are made available to its consumers by giving varieties of products with flexible pricing. To engage both forward and backward integration, it provides customers with options to settle on their informed choice when purchasing items (Parnell, 2017). Instilling the rightful behavior through rewarding firm employees, therefore, making them understand how their performance influences the financial outcome. As a result, they are rewarded according to the money generated in the long run. Historically, ExxonMobil is derived from the combination of two different Companies that is Exxon and Mobil. This has enabled suitable competition  and an competitive advantage with other related industries in the manufacturing and marketing process. To gain a competitive advantage is a constant game changer for a business (Da-yuan & Liu, 2014).

   How Economic Forces Affect the Industry

Despite effective corporations and strategic management in Exxon Company, the firm exhibits economic forces influencing business sustainability. The firm experiences price fluctuation of the products which affects general economic growth, and maintaining reserves. Other factors such as technology, government influence; international transactions, product supply and demand, expectation, and speculation are some of the main problems encountered. Governmental influence on institutional operations is a major impact on firm management. For instance, Exxon faces pressure to reduce cost streamline operations (Marinova, Larimo, & Nummela, 2017). This brings various changes in top officials which affects the functioning system. Technological changes and upkeep for extraction techniques is also a problem of concern. The firm is employing new technologies in the extraction of crude oil and natural gas to access oil-rich zones. For instance, ExxonMobil Company implements seismic waves and geophysicists can scan used under the water mass. Likewise, economic growth can be practically controlled by governments by lowering interest rates. It can also increase or decrease tax on the business activities thereby affecting general operations leading to economic disasters. Currency flow and financial transactions experienced by the business while exploring international marketing. A sustaining fall in general price level or even a deflation indicate a rise in the purchasing power of the domestic currency (On variations in currency value, 1999). The company has also engaged in forwarding integration by procuring its consumers thus expanding downstream. It has equally managed to secure its sellers which is improving upstream product expansion. The institution also improves the quality of its goods and service to enhance product differentiation therefore affecting of demand. As a result, customers are most attracted by the items from ExxonMobil leading to its general growth. Market churn is greatly achieved because of brand loyalty and reliability (Delmas, & Lyon, 2018). 

  Technological Forces Affects on the Industry

According to Bondia, Ghosh & Kanjilal, (2016), technological factors affecting ExxonMobil Company of energy and petroleum products include automation. This comprises of implementation of artificial intelligence to improve operational performance as well as detecting inefficiencies and possible leakages on the transporting barrels. This improves institutional operations more efficient and profitable as they prevent losses that could arise. Technological modifications have similarly led to the introduction of extraction techniques that enables easy accessibility and extraction of crude oil and natural gas to access oil-rich zones. The transformation of technology has enabled the firm to employ cloud computing to boost the mass storage of data and other vital information (Kang, de Gracia, & Ratti, 2017). This has enhanced faster analysis and interpretation of data through automation, reducing operational cost and reducing risk occurrence. Currently, the firms top management has induced numerous strategies at the competitive and functional stages, for instance, advancing both consumers and producers satisfaction. It has also opted to subject consumers to options by manufacturing varieties and providing varieties of oil and gas products. Even though the oil recovery globally retails at 35%, ExxonMobil through practicing the formulated ideas as well as focusing on the advancing technology is determined to 70% rate boost (Kang, de Gracia, & Ratti, 2017).

Conclusion

ExxonMobil Company's successful managerial skills have largely contributed to remarkable performance in the entire globe. Being ranked overall in an oil production firm arguably is not an easy path. It has also managed to retain its consumers due to loyalty, quality, and brand maintenance. As Proverbs 21:21 says, whoever pursues righteousness and kindness will find life, righteousness, and honor. This has also been achieved by proper working staff that is goal-oriented. Bearable corporate-level strategy communicated effectively improving overall business operations. Being a well-calculated goal, it defines an association’s operational success as it is directly connected to the business strategies. CSFs practices include strategic concentration on leadership and management skills, organizational planning, employees learning, and development. It also involves consumer relations and satisfaction, product sales and feedbacks, firm manufacturing processes, assets, and equipment. As a result, ExxonMobil Company has favorably competed with other firms thereby being named one of the top oil and gas production companies worldwide. It is due to the articulated management strategies of the company that has successfully enhanced business performance worldwide.

References

  • Almalky, N., Ikeda, M., & Umemoto, K. (2019). Knowledge Management in Human Resource in Oil Companies from Technologies Perspectives a Literature Review. International Journal of Engineering & Technology8(1.10), 136-143.
  • Bondia, R., Ghosh, S., & Kanjilal, K. (2016). International crude oil prices and the stock prices of clean energy and technology companies: Evidence from non-linear cointegration tests with unknown structural breaks
  • Business divisions. (n.d.). Retrieved from https://corporate.exxonmobil.com/Company/Who-we-are/Business-divisions#upstream.
  • Delmas, M., & Lyon, T. (2018). When corporations take credit for green deeds their lobbying may tell another story. The Conversation, July17.
  • Da-yuan Li, Juan Liu, (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China, Journal of Business Research, Volume 67, Issue 1,Pages 2793-2799, https://doi.org/10.1016/j.jbusres.2012.08.007.
  • Parnell, A. J. (2017), Strategic Management: Theory and Practice, 5th Edition, Academic Media Solutions.
  • Kang, W., de Gracia, F. P., & Ratti, R. A. (2017). Oil price shocks, policy uncertainty, and stock returns of oil and gas corporations. Journal of International Money and Finance70, 344-359.
  • Marinova, S., Larimo, J., & Nummela, N. (Eds.). (2017). Value Creation in International Business. Palgrave Macmillan.
  • Mirabi, V., Akbariyeh, H., & Tahmasebifard, H. (2015). A study of factors affecting on customers purchase intention. Journal of Multidisciplinary Engineering Science and
  • On variations in currency value. (1999). (). Hong Kong: University of Hong Kong. Retrieved from ProQuest Central Retrieved from http://eres.regent.edu:2048/login?url=https://search-proquest-com.ezproxy.regent.edu/docview/211231679?accountid=13479 Technology (JMEST), 2(1)..

 

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