Strategic Management of ExxonMobil

Strategic Management of ExxonMobil Strategic Management Abstract Proper business modelling requires in depth analysis of the business conditions that affect the performance of the business enterprise. This analysis must be objective and very informing in terms of highlighting the prospects of business growth and forecasting the position of the business by using the current growth opportunities and strengths too. A growth oriented business franchise must take into account the four facets involved in the SWOT criteria, critically analyse them and establish a framework for propagating growth through the inferences of SWOT criterion. ExxonMobil, being a multinational oil company with immense business interests has plenty of business variables that directly stand on its way to greater growth. Conversely, the business has humongous opportunities and cardinal pillars on which it stands to inspire its growth in the industry. This report is tasked with the examination of these key factors and opportunities of growth and offer the recommendations to capitalize on these factors in order of importance. In contrast, the report shall examine the threats and weaknesses of these variables with a view of turning them into opportunities for the business. Introduction The growth of a Company depends on its successfule formulation and implemtation of strategy. Formulation of strategy cmusttake heed of the envinromental forces impacting on he organisation. This paper analyses ExxonMobil Oil Company position in its operatig markets and through a careful analysis of Strenght, Weaknesses pportunities and threats. The comapnuy operates in the oil sector and as such the company’s strategy has a long term focus, heavy fixed costs, low margins and huge economies of scale. The company has experienced consistent grwth in sales and profitability. The present strategy is based on cutting edge research and development to develop upstream units coupled with an efficient system of distribution structured to reduce costs. The companyalso emphasises on superior customer service to maintain customer loyalty. Competition in the oil sector is ntense and as such firms rely on customer loyaty to bind customers to their products. Griven that the company operates in an iduusry where several players sell perfectly substitutable products, each of the players invests in quality and customer service to driv profitability (Andersen 2009). The industry is characterised by huge fixed costs and thin operating margins. Thus, firms have to sel excessive quantities of poduce to break even. Profitabiliy therefore relies on economies of scale. Besides, environmental concersn have a huge impact on the firm’s profitability. Mistakes in production can result in huge oil spills and resultant fins bythe authorities. Extreme violations of the operationsl codes can result in denial of operating licence. ExxonMobil Company operational analysis ExxonMobil has two main operating segments namely upstream and downstream. Upstream operation include all activities involved in exploration, driigng and pumpting fossil fuels from beneath to the surface for onward processing. Downsteam operatios involve the processing distribution and marketing of hydrcarbons. The company was formed in 1999 and hasrealised consistent growth in sales and profitability to become on e of the largest producers in the word. The compsny now handleds 3% of global energy output. The company is aslo the second largest (by market capitalisation) listed firm in in the US (Vassilou,2009). The company has capacity to produce 6.5 million barrels of crude daily, a relativey huge amount relative to the other players in the industry. The ccompany has operations in more than 100 countries under its various brands and has 37 refineries (Exxon, 2007). The firm’s annual growth in capacity stands at 17% and has enough resources to invest in efficient production (E xxon, 2009). Organization structure of the company ExxonMobil has a strict staffing policy throughout its operational divisions. The firm has a favoured brand name that allows it to attract talented employees. This offers the comaony an edge against the competition (Exxon Company 2007). The firm’s is to hire highly motivated and skilledstaff to drive its strategy (Exxon Company 2009). Berberoglu (2008) explains that ExxonMobil has an organisation structure s that is fashioned along the concept of autonomous gobal operaitons. The company has eleven (11) separate divisions each operating globally. These divisions are organied in a manner that they offer the much needed synergy in the business. The global merger of the former 2 energy giants Exxon and Mobil offers the company expanded reach in markets, global playing field in terms of resources and a harmonised pool of human resources with differtnt abilities and orientation to drive the mered entity’s strategy. Following the merger, the firms combined upstream companies were moved to Houston where a significant amount of the company’s upstream businesses are located. These includes functions such as esearch and development, exploration drilling and production. Downstream operations weremoved to Virginia including such functions as marketing, engineering research, production of lubricants etc (McLeish 2008). Methodology This paper builds a case of trategic orientation of the company based on the findings of the SWOT matrix. The paper utilises interpretative analysis to determine the firm’s competitive strengths and weaknesses as well as its weakmesses and strengths. The following is the firm’s Swot matrix. SWOT Analysis Strengths Private ownership Being a private company, ExxonMobil the government has minimal governeent control. It is therefore driven by the key aims of profits as opposed to state’s social interests. It therefore suffers form minimal state interference experienced by the National Oil Companies. NOCs suffer from extreme redtape and subversion of profitable causes in the interests of state (Omeje 2008). Leadership in environmental conservation The company has minimal violations of environemental code of condust as laid down by the varous environmental agencies in its various operating markets. However, concerns over global warming have resulted in the increased scrutiny of its producton oerations especially deep sea drilling and emissions. This presents the company with no immediate operatonal problems. Strong research and development team The company has a strong asset base. This is crcuail in the industry owing to the high fixed operational costs experienced in the sector. The company reinvest an average of 16% of its revenue in its opreations to boost capacity its capacity for research and development and output. Thefirm has the capacity to acquire promising business operational units to grow its business. Competitive labor force Human resource offers firms the most potent form of competitive advantage. The company attracts huge talent of labour force due to its sting brand and reputation as a good employer. This offers the company ability to execute its strategy. Weaknesses Litigation The company’s 1989 Alaska oil spill and its sponsorship of research pubications hurt the firm’s image and resulted in numerous law suits and other contingent liabilities that could cost the firm billions in claims. The company’s sales experienced a dip following concerns of irresponsibility. The oil spill also pushed the firms operational costsup by 11%. This led to the company’s adoption of new, more expensive technologies to gaud against such violations (Porter 2008). These measures continue to ngatively impact the firms profitability. Rising production costs Following the firm has aging oil wells and its new oil finds are deeper and moer expensive to drill (ExxonMobil, 2009). This means that the per unit production costcontinues to rise over even as other costs such asmarketing and distribution rise (Vassiliou 2009). While rising nergy prices have largely compensated for the rising production costs,increased regulatory costs and taxes have offset such gains. High fixed costs The iniial cost of production is very high. Exploration, drilling and maintenance of oil wells makes firm’s incur excessive costs. The company has to recoup the high costs by operating in large scale. The firm cannot sell at high prices due to competition and thherfore it has to rely on economies of scale to driv its profitability. High fixed costs mean that the company experincesa disproportionate fall in profits if sales decline (Porter 2011). Limited human resource pool Despite the firm’s prefeed position as an employer, there is a shortage ofquaified talent in selected areas that are critical to firm’s productivity. Most of the firm’s new hires require excessive training to orient the to the training environement (Mondy, Noe Gowan 2005). Opportunities Tax breaks Energy companies earn tax breaks from the government. Being a private listed company, ExxonMobil qualifies for annual tax breaks and subsideies by the federal government (Pennell et al. 2008). Strategic organizational growth through mergers and acquisition The company has a comprehensive strategy of buying promising business ventures. These venetures not only have the potential to add value but also enable it capture key markets and customer groups. The company has a high capital base and other resources that enable can enable it undertake mergers and acquisitions without having to extert unnecessary pressure on existing business. Improvements in drilling technology to lower costs and conserve environment The company has the capability to ensure environmental safety through safer, more technologically advanced operations. The company has necessary technology to find oil in previously impossible conditions and bring it to the surface at significantly lower cost. Newer innovations like shale gas drilling Shale Gas drilling (called fracking) promises to transform the fortunes of the company. Shaleis cheaper and easier to explore than conventional fossil fuels. Access to talent pool The company enjoys goodwill among proffessionals due to its preferred emplotyer status. Besides, the company has operations spanning various markets makimg the company access variously talented and diverse talent groups. Threats Difficult regulatory frameworks The firm’s main operating units face different and challenging legal, political and regulatory frameworks in their various operating units. Changes in business regualtions can severely disrupt the form’s output. Concerns of global warming Global concerns of a warming planet put the continued reliance on fossil fuels in doubt in the long term. The company’s investment in other renewable energy sources that pose no threat to the envieoentmen are yet to bear fruits. Restrictive labour laws in key markets and assertive labour unions Labor laws in is key perating markets are extremely restrictive. Besides, employees have protective labor unions that make it hard to implement policies. Ucertain political climate Changes in political leadership can have maret impact on the firm’s operations. For instance, a change of fgovernement in the US can result in denial of licences to drill in offshore areas where the company pderives significant oil deposits. (Reinecke Strobenreuther 2008; Mondi Gowan, 2005; Powel, 2013). Increased costs of Global warming The firm’s costs of operation are likely to rise as the effect of global warming take their toll. This will be more pronounced especially in the low-lying areas where the firms drilling operations are more exposed to extreme weather (Environment, 2012; Coll 2012; Vernon, 2012; Prahalad Hamel 2010; Smith 2012). Technological know how The energy industry depends heavily on technological advancements to drive production and efficiency (Powel, 2013). There is a real possibility that competing firms can strike low cost deposits and sell at a lower price effectively driving the firm from its market leadership position. See the statistical comparison below (Detsche Bank and Wood Mackenzie) Justification for SWOT analysis SWOT analysis helps indicate the firm’s state of operation. Once a firm identifies tee variables under SWOT, the next step is to take advantage of its strengths to overcome its weaknesses and to take advantage of opportunities. This positions the firm at a point of competitive advantage. Shortfalls of the SWOT analysis SWOT analysis does not prioritize the competing opportunities making it hard to pick the most appropriate (Ringland, 2014). This makes it ineffective for analysis. In addition to lack of prioritization, SWOT does not offer solutions or alternatives to the firm’s weaknesses and threats. The general rule of thumb is to use the company’s strength to counter threats and exploit opportunities. However, without prioritization, it is difficult to know the threats to tackle or opportunities to exploit first. Recommendations Establish operations in emerging markets to drive growth and profitability as well as spreading risks (McDonald Meldrum 2013). Invest in green energy to guard against losses from environmental (Vernon, 2012).disasters (Madrigal, 2011). Invest in staff training to boost performance Invest in research and development to drive down operation costs and raise efficiency Conclusion The company should use its strengths identified in the SWOT analysis to overcome its weaknesses and take advantage of its opportunities. It should spread its risks by establishing more operations in emerging markets. Besides, the company should invest in green energy to guard against losses from environmental disasters. Lastly, the company should invest in staff training to boost performance as well as in research and development to drive down operation costs and raise efficiency (Everard Burrow, 2010). References Andersen, B 2009, Business process improvement toolbox, ASQ Quality Press, Milwaukee. Berberoglu, B 2008, Turmoil in the Middle East imperialism, war, and political instability, State University of New York Press, Albany, NY. Coll, S 2012, Private Empire: ExxonMobil and American Power, Penguin group US, New York. Environment 2011, United Nations, New York. Everard, K Burrow, J 2010, Business principles management, South-Western Pub, Cincinnati. Exxon Company 2007, U.S.A.s Energy outlook, 1977-1990, Exxon Corp, Houston. Exxon Company 2009, U.S.A.s energy outlook, 1980-2000, Exxon Corp, Houston. Madrigal, A 2011, Powering the dream: the history and promise of green technology, DA Capo Press, Cambridge, MA. McDonald, M Meldrum, M 2013, The complete marketer 60 essential concepts for marketing excellence, Kogan Page, London. McLeish, E 2008, Energy crisis, Stargazer Books, Mankato, Minn. Mondy, R, Noe, M Gowan, M 2005, Human resource management, Pearson Prentice Hall, Upper Saddle River, NJ. Omeje, K 2008, High Stakes and Stakeholders: Oil Conflict and security in the World, Ashgate Publishing, Burlington. Pennell, N, Lavery, G Fowler, R 2010, The Low-Carbon World Is Already Here Five Imperatives for Succeeding in an Era of Carbon Constraints. Booz and Company, New York. Porter, M 2011, ‘From competitive advantage to corporate strategy’ Harvard Business Review, vol. 65, no. 3, pp. 43–59. Porter, M 2008,‘The Five Competitive Forces That Shape Strategy’,Harvard business Review, Vol.5, no.2, pp. 23- 37. Powell, T 2013, ‘How much does industry matter?An alternative empirical test’, Strategic Management Journal, Vol. 17, no. 4, pp. 323–334. Prahalad, C Hamel, G 2010, ‘The core competence of the corporation’, Harvard Business Review, Vol. 68, no. 3, pp. 79–91. Reinecke, N, Sohn, M Strobenreuther, H 2008, Sustainability: The carbon imperative, Chartered Institute of Purchasing and Supply, New York. Ringland, G 2014, Scenario Planning: Managing for the Future. John Wiley Sons, Hoboken, NJ. Sampson, A 2009, The seven sisters: the great oil companies and the world they shaped, Viking Press, New York. Smith, T 2012, Renewable energy resources, Weigl Publishers, Mankato, MN. Vassiliou, M 2009, Historical Dictionary of the Petroleum Industry, Scarecrow Press, Lanham, MD. Vernon, R 2012, The Oil crisis, Norton, New York.

Opposing Gender Views in Emerson’s Give All to Love and Browning’s Sonn

Opposing Gender Views in Emerson’s Give All to Love and Browning’s Sonnet 43  Ã‚        Ã‚   The concept of love has long been the preferred topic of conversation among prominent male poets. Towards the closing of the sixteenth century, however, the emerging of the female poet took place. With the introduction of Queen Elizabeth, an initial path was now cleared for future women poets to share their views on the acclaimed topic of love. Due to this clashing of ideas, the conflicting views of two exceedingly different sexes could manifest itself. Who better to discuss the topic of love then Elizabeth Barrett Browning, who expresses her ideas with intelligence comparable to the best male poets, and Emerson, world renowned for his poignant opinions? In accordance with the long history of conflict between males and females, both Emerson’s "Give All to Love" and Browning’s "Sonnet 43" convey the pleasure love brings, but while Emerson’s poem urges the retention of individualism in a relationship, Browning pleads for a complete surrender to love. Ralph Waldo Emerson has a strong history of aggressive, "masculine" behavior. "We hear his grand, assuring words, feel his powerful charm†¦he is impenetrable" (Whicher 39). Emerson felt that it was necessary to retain his self-dependence at all times, never swaying from his personal choices. "He taught self-reliance and felt self distrust, worshipped reality and knew illusion, proclaimed freedom and submitted to fate" (Whicher 40). Although Emerson’s confidence in his self may have reflected some sort of macho-ism or frigidness, this attitude is simply Emerson demonstrating his cool and relaxed charma: "Emerson is teaching his tested secret of insulation from calamity: ‘Live in the soul’" (Whic... ...iscarded on a whim. Rather, it is something that will accompany you far beyond your years on this earth and through all of time. It is truly a gift and should not be treated in any other regards.    Works Cited Magill, Frank. "Biography of Elizabeth Barrett Browning." Critical Survey of Poetry 1 (1992): 394-396. Mermin, Dorthy. "Sonnets from the Portuguese." World Literature Criticism 1 (1992): 360-365. Patmore, Coventry. "Mrs. Browning’s Poems." North British Review 26 (1857): 446-447. Perry, Bliss. "Emerson Today." Princeton University Press (1931): 84-86. Radley, Virginia. "Elizabeth Barrett Browning." Exploring Poetry-Gale Research (1972): pg. #5. Whicher, Stephan E. "Emerson’s Tragic Sense." Emerson, a Collection of Critical Essays (1962): 39-45. Yannella, David. "Artful Thunder." Poetry Criticisms 18 (1982): 69-96.      

Atlantic Computer: a Bundle of Pricing Options

[Case Write-Up #5, 2011-11-14] Case 6. Atlantic Computer Group 11 2010123281 Lim, Min A 2010123380 Lee, Yoon Ji 2010101026 Na, Hyeon Jung 2010123031 Park, Jae Eon ?. Executive Summary At the present, with the growth of the Internet, the basic server market is growing rapidly and the Atlantic computer, which is aimed at producing the high performance server, is ready to sell the basic server. It launches the Tronn loaded with PESA. PESA, the software increases the speed of file sharing and web servers, two of the most used application for the consumers, so it should be sold with the Tronn, the hardware.At first year, if we assume that the firm will be able to sell all of the Tronn servers it can produce, Atlantic’s resulting share of the basic server segment will be 4%. We suggest that possibility as our goal to pursue. But the basic market is already full with the competitor, Ontario with the Zink and the company has a tendency to stick to the traditional marketing approach. T o overcome these impediments, we suggest to set the price based on the calculation of cost-based pricing and to abandon the original direct marketing methods and accept the indirect ways like online-marketing and the advertisement through diverse media. . Problem Analysis (Goal & Impediments) Goal As new-comer of the basic server market, Atlantic’s computer begins from the scratch. If Atlantic’s computer can sell all of its product, the Tronn, it can occupy 4% in basic server market. But the thing is, it is a ground stone to enlarge the market share in the long run, so it would better not to harm the revenue to reach that figure. The targeted consumers is people who have demand for basic server, especially who are interested in one application, especially either of file sharing and web servers, and who seeks the way to inimize the initial purchase costs and subsequent possession costs. Impediments We have two main impediments for our goal, strong competitor and Atlanti c computer’s traditional marketing strategy. Our strong competitor, Ontario, has already half of the market share in basic server segment. Also their product Zink has similar spec with Tronn. So we have to compete with Zink in price or innovative supply chain strategy. It is hard to appeal to consumers that we have not technological superiority but fall behind Zink in market share very much. Another main impediment is Atlantic Computer’s existing traditional marketing strategy.Atlantic Computer already won success in high performance segment, so many people in the company tend to think that it’s just right to apply existing marketing strategy to basic segment. Atlantic’s computer is interested in making intimate relationship with customers and maintaining its post-sales assistance service level in high performance segment. But situation in basic segment and high performance segment is different, we have to apply different marketing strategy each other. As mentioned above, there is specific situation where Zink and Tronn is very similar in technological aspect.Therefore, there should be some unique marketing strategy in basic segment. ?. Solution Analysis Solution To boost market share in basic segment, Atlantic Company should develop proper the pricing strategy. The company should consider four strategies: status-quo pricing, competition-based pricing, cost-based pricing and value-based pricing. ? Status-quo pricing cost of Server only and PESA for free Price of one Tronn Server = $2000 2 Tronn Servers + PESA software free = 2*2000 = $4000 Total Price of 2 Atlantic Bundles to Daytradejournal. com = $4000 Price of 1 Atlantic Bundle = $2000 ? Competition-based pricingPricing the Tronn servers based on price of competitor server (Zink by Ontario) and PESA for free. Since 2 Tronn Server with PESA software is equivalent to 4 Zink servers Price of one Zink Server = $1700 / 2 Tronn Servers + PESA software free=4*1700= $6800 Total Price of 2 Atlantic Bundles = $6800 Price of 1 Atlantic Bundle = $3400 ? Cost-based pricing (figure1, figure2) Cost incurred in PESA software development = $2000000 / Cost of Tronn Server = $1538 Price of 1 Atlantic Bundle = $ 2245 ?Value-based Pricing (figure3) Considering 4 Zink server is equivalent to 2 Tronn server and 2 PESA software. Price of 1 Atlantic Bundle = $ 4200Above diagram, we can know that fourth pricing strategy get high profit, but price is also high. If price is too high, customers are reluctant to buy Atlantic Bundle, and this harms the market share. So, the company should avoid to select Value-based pricing and Competition-based pricing. Status-quo pricing could be an effective way for increasing market share because of its cheap price, but it will not give benefit in the long-run. Cost-based pricing is the best choice for Atlantic Company, because its moderate price makes company get high market share in the beginning and moderate profit for first year.There could be an argument that status-quo pricing is more appropriate way to reach our goal of reaching the 4% of the market share in basic server field. But as mentioned above our goal is a ground stone to grow in the long run, it is better to choose the price making more profit with similar figure market share basis. Moreover to boost market share in basic segment the company should use indirect mass marketing. In high performance server market, it was efficient to use expensive direct marketing to the giant and few consumers. But it is non-matching to basic segment where the company should put its great effort to lower the price.So the company should use the indirect and comparatively cheaper way to connect with the smaller and much consumers of the basic server market. The Atlantic’s computer can use online-marketing like its competitor, Ontario, or it can use mass market advertising through mass media. It could affect to more consumers easily. Although this method the product could affe ct each consumer less, the total quantity of influence on the targeted consumers should increase assuming the number of the customers in this market, figure 1 figure 2 figure 3

Evaluating Mr and Mrs Bennet as Parents Essay - 575 Words

Evaluating Mr and Mrs Bennet as Parents In the 21st century, the definition of a good parent remains clouded and vague. It is basically down to the judgement of the parent raising their children in a way that they view appropriate. The same goes for the 18th century and every other century before and beyond. Parenting styles can be influenced by societys expectations and ideas of what good parenting is. This goes for Mr and Mrs Bennet in Pride and Prejudice. Their relative roles can be contrasted as a mother who is blinded by appearance, regarding wealth and status highly and a father who looks beyond appearances to†¦show more content†¦Rather than interpreting her as a woman of mean understanding, little information and uncertain temper, we should perceive her as a prudent mother despite her sometimes irrational remarks. As we progress through every chapter, a clearer picture of Mr Bennet is drawn. We see him firmly attached to his books and readings, and more detached from his family. Even when Elizabethwarns him not to allow Lydia to go to Brighton, for her own safety, he barely acknowledges Elizabeths statement and proceeds in his own thoughts. It seems that Mr and Mrs Bennet are both two sides of the same coin; they both ignore the needs of their daughters. As we take a step back and look at the broader picture we realise that they actually complement each other in their different views. Mr Bennet being the intellectual and Mrs. Bennet being the practical woman. I believe both parents provide a diverse set of personalities, that all the daughters can take upon and learn from, when they are fully grown independent women. For instance the show of Elizabeths independent streak when she goes to visit her sister in Netherfield on foot, despite her mother telling her to go by horse No, indeed. I do not wish to avoid the walk. The distance is nothing I believe that deep down Mrs Bennet is not a bad woman or a bad mother. Her take on lifeShow MoreRelated Essay on Mr. and Mrs. Bennets Parenting in Pride and Prejudice1473 Words   |  6 PagesAnalysis of Mr. and Mrs. Bennets Parenting in Pride and Prejudice  Ã‚   The roles of Mr. and Mrs. Bennet in Jane Austen’s novel Pride and Prejudice are contrasted between a father who cares about what’s inside of people and a mother who only worries about vanity and appearance. Mr. and Mrs. Bennet’s parental guidance is unique to their personalities. Because of their two opposing personas, Mr. and Mrs. Bennet’s ideas of marriage are contradictory for their daughters; Mr. Bennet believes in aRead MoreBohlander/Snell-Managing Hr24425 Words   |  98 Pagesdirects a large number of youths into vocational training. The German system of apprenticeship training, one of the best in Europe, provides training for office and shop jobs under a three-way responsibility contract between the apprentice, his or her parents, and the organization. At the conclusion of their training, apprentices can work for any employer but generally receive seniority credit with the training firm if they remain in it. France has been able to draw on its â⠂¬Å"Grandes Ecoles† for centuries