Exxon Mobil Corporation

January 9, 2018

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Exxon Mobil Corporation is the U.S. and the world’s largest oil company. In addition, Exxon Mobil Corporation is one of the largest companies in the world by market capitalization. Shares of Exxon Mobil Corporation are included in the calculation of the Dow Jones. Exxon Mobil Corporation is the successor of the notorious John Rockefeller’s Standard Oil. To date, Exxon Mobil Corporation operates in more than 100 countries around the world, including Russia.

Corporation “Exxon Mobil” is the largest supplier of basic components and lubricants and leader in sales of finished lubricants and petroleum products for special purposes, and the company has a strong position among the largest and fastest growing in terms of petrochemical companies in the world market. This company is engaged in the exploration, production and sale of oil, natural gas and petroleum products. The company “Exxon Mobil Chemical”, being one of the global leaders of the industry, introduces its own unique technologies for the production of important and useful petrochemical products. Company is also using innovation and modern technology to meet the world’s growing energy needs.

Exxon Mobil has its own modern super-tankers and drilling rigs, production and research base. It allows Exxon Mobil to control the quality of products from the well to the canister. ExxonMobil works closely with the world’s car manufacturers, machinery, shipbuilding companies and manufacturers of production lines. This allows to be a superior producer and to meet the requirements of industries and continuously improving development in the production of lubricants. To date, ExxonMobil has the largest table of tolerances from automakers. Over its 130 history ExxonMobil and Mobil lubricants have become the equivalent of quality, reliability and stable operation.

The company ExxonMobil was formed through the merger of oil giants Exxon and America Mobil in 1999. However, this incident was preceded by a scandal associated with the corporation Standard Oil. Publication of the report exposing “The History of the Standard Oil Company” in 1911 forced the U.S. Supreme Court to divide the empire of John D. Rockefeller in 34 independent companies. Two of the 34 companies were Jersey Standard, in the future, Exxon, and Socony, in the future Mobil (Weston, 2002).

In the following years the parallel development of both companies was held. For the first time their paths crossed in 1933. Then Jersey Standard and Socony-Vacuum formed by the merger of Socony a pioneer of the American oil industry Vacuum Oil Co have joined forces in the Asia-Pacific region. They have created a joint venture called Stanvac with equal shares of ownership (50/50). Stanvac engaged in oil and gas extraction and production of oil products in more than 50 countries from East-Africa to New Zealand until 1962, until it was closed down.

In 1955, Socony-Vacuum renamed Socony Mobil Oil Co., and in 1976 became Mobil Corporation. Jersey Standard keeps up with his longtime partner and rival, and in 1972 changed its name to Exxon Corporation. 1989 was marked by yet another scandal that broke because of the massive oil spill (Berger, Melvin, & Mirocha, 1994). The tanker Exxon Valdez ran into a barrier reef in Alaska, resulting in about 11 million gallons of oil spilled into the ocean. Later, the U.S. Congress adopted the so-called Oil Pollution Act, under which the company Exxon had to pay a fine of $ 5 billion. Later, in 2008, Exxon lawyers could appeal the document and reduce the amount of up to 507.5 million dollars (Hale, 2007).

In 1998, year of the signing of the agreement is unique to America worth 73.7 billion dollars a merger of the former Rockefeller Standard Oil Company, and the formation of the world’s largest corporations Exxon Mobil. By the end of 2005, the oil giant’s profits reached $ 36 billion (42% more than the previous year) due to a significant rise in prices for oil.

One of the recent acquisitions of Exxon Mobil was XTO Energy, a company that produces alternative energy sources. In August 2012, ExxonMobil is the most expensive and the largest company in the world.

ExxonMobil Corporation has developed the mission statement, which will give company the view where and how company is going. Therefore, company’s mission statement sounds like “Exxon Mobile is aimed to be the world’s best petroleum and petrochemical company”. Therefore, our company in continuous perspective is achieving the highest financial and operations results at the same time conducting the best business standards. These best practices are fundamental for our commitments to those with whom company interacts”.

“ExxonMobil” has significant underlying assets, which are characterized by geographic diversity and stability in different economic conditions. The organization has subsoil on which it conducts exploration and production in 36 countries and is developing oil fields in 24 countries. In 2007, the organization has commenced production on seven major projects. “ExxonMobil” sells natural gas to energy companies, industrial companies and distributors in the markets of almost all developed and developing countries. In 2007 the total volume of oil production and gas sales amounted to an average of 4.2 million barrels of oil equivalent per day (Kepos, 2007).

Therefore, the target consumers of the company are energy companies, industrial companies and distributors of oil products. One of the target consumers of the company is Mercedes-Benz producer. ExxonMobil strengthens the relationship with Mercedes-Benz, offering oil for factory-fill and service vehicles Mercedes-Benz Sprinter. ExxonMobil continues to strengthen its cooperation with Mercedes-Benz. Now Mobil oil used for factory-fill all the new vans Mercedes-Benz Sprinter, equipped with diesel engines and oil Mobil Delvac 1 LE 5W-30 is officially recommended Mercedes-Benz for their maintenance.

The choice in favor of Mobil lubricants was due to their excellent low temperature characteristics provide effective protection during cold starts, even in the harshest winter conditions. The decision was influenced by key factors such as special low-ash composition of these products, providing protection of exhaust gas systems, and the ability of the oils to increase service intervals and improve fuel efficiency.

Continuous improvement and increase of productivity and small engines heavy commercial vehicles to meet ever-increasing demands for increased power and efficiency of the engine, as well as strict international legal requirements and environmental commitments are at the heart of research and development for commercial vehicles Mercedes-Benz and the evolution of lubricant technology Commercial Vehicle ExxonMobil. These are the main advantages that persuade customers of ExxonMobil to use its products.

ExxonMobil invests heavily in the acquisition of new data, conducting fundamental research to identify new opportunities increment of reserves. The combination of technical knowledge and experience of world-class with an extensive global database gives our company a significant competitive advantage in identifying, evaluating, reviewing and using all the advanced features.

Corporation “ExxonMobil” has consistently demonstrated the ability to provide maximum return on mining projects through the use of structured investment strategies and best practices in the implementation of projects. With increasing size and complexity of oil and gas projects, the implementation of new sources of energy as scheduled and within planned costs is becoming increasingly difficult.

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To maximize the commercial production of hydrocarbons corporation ExxonMobil uses the most cost-effective technologies and management work is undertaken. A diverse and robust asset base corporation “ExxonMobil” includes mature fields and fields that are in the early stages of operation.

Through the implementation of a comprehensive strategic analysis of the external and internal environment of the ExxonMobil Corporation in the context of globalization of world energy, there are economic, technical, technological, political and social aspects of the conditions of the operation and future development of the company. This method allowed developing products with complex options strategies, adequately considering the opportunities and leveling threats (Bensoussan & Craig, 2008).

Strength of the company is what it has succeeded in or any features, which provide additional competitive advantage for the company. The strongest advantage (strength) of ExxonMobil Corporation can be seen in its leading market position. Company performs with a significant part of the world energy supply system. As the company is obtaining the leading positions in oil and gas production, this advantage makes company to be one of the strongest companies in the market. This gives company leading position and leader in the market that permits company to set the market barriers and take monopolistic position.

The fact that ExxonMobil is the leader in the market gives company a range of advantages that involve: corporation can set prices above the competition; can influence the price of goods in the entire market; if the company decides to lower prices, the competitors will also have to cut prices to avoid losing sales and with increasing prices leading competitors also tighten up their prices; due to market leadership in sales volume is higher than that of competitors, and therefore, the production cost of one unit of output is lower in ExxonMobil than that of competitive firms; being a leader in one niche market ExxonMobile has opportunity to acquire leadership faster in another niche; product market leader is better known, so new buyers will have more confidence in the leader than to the rest of the market participants; employees have a sense of pride at the fact that the company, where they work – the leader of the market, so they are more loyal to their company, therefore, the researched company has more loyal employees than its competitors and as a result it can be confident that employees will support its changes.

The next strength that the company has is a substantial amount of inferred resources. As a result ExxonMobil has significant foreign exchange earnings from operations. A long established name of the company has built a strong, leading and confident brand. ExxonMobil has been developed its performance in different business areas of petroleum and energy industry and has developed lots of products with strong names under the main company’s name ExxonMobile. All brands of the company are easily associated with the chief company’s brand that gives additional guarantees to the customers of the ExxonMobil. This gives clients of the company the sense of security, while performing with the enterprise.

The next advantage that the company has obtained during its long history of performance is associated with the strong corporate culture that ExxonMobil has developed. The company has outlived after the range of scandals that company has faced. Exxon Valdez oil spill accident has hardly damaged company’s reputation, however, management of the company used this situation not as the chance to fail but as a chance to improve its corporate citizenship, set effective and efficient crisis management and developed effective communication management strategy.

Another strength that ExxonMobil has is associated with the strong position of the research and development department of the company. The company is one of the most innovative ones among the competitors in the definite market sector. As a result, company has developed new economized and effective ways to manage energy resources, to develop new products and improve the existed ones. Innovation researches of the company are focused not only in the ways to reduce costs and increase effectiveness of company’s financial coefficients but also concentrated on the reduction of negative impact of the company’s performance on the environment and human wellbeing.

Presence of ExxonMobil Corporation in the India and Chinese markets gives company the ability to grow with the industries of developing countries simultaneously. This gives company the advantage in the Asian market performance.

Weaknesses of the enterprise is the lack of something important for the operation of the business or that the company is not yet possible in comparison with other companies and puts it at a disadvantage. Comparing with the advantages of ExxonMobil, it also has a range of disadvantages. The first range of the weaknesses that ExxonMobil has is connected with its leading market position, which involves such facts that the leader must continually allocate funds for advertising and marketing to maintain its brand; the leader should spend more and increase the cost of innovative technologies; ExxonMobil should be speed in its decision-making.

One of the company’s weaknesses is that is connected with the need to set more “go green” strategies and concepts, which are connected with the increasing expenditures to decrease polluting and destroying the environment. A significant weakness of ExxonMobil Corporation emerged with the accident of the Exxon Valdez spill. This is the reason why the company has obtained negative publicity and under the cloud obtained the human rights and employee rights records of the company.

In the future, the poor handling of the environmental and “green” groups can start to be big weakness of the ExxonMobil Corporation. Another weakness of the company is also connected with the negative publicity that the company experienced to face in last periods. This fact is connected with the increase of company’s profits because of increasing oil, petroleum and energy prices. This has created the negative publications in the media as people think that company profiteers on the “poor customers”.

The next, however, one of the most important weaknesses that the company has is connected with the qualitative deterioration of raw materials. This is the common and logical process, however, ExxonMobil should always take in mind this fact that influence the quality of the products that company produces. High degree of depreciation of fixed assets is the next weakness that the company faces. All the facilities of the company are costly and the quick need of new ones increase the company’s expenditures.

Market opportunity describes favorable circumstances that the company can use as the ability to increase its advantages. It should be noted that the possibilities in terms of SWOT-analysis are not all of the opportunities that exist in the market but only those, who could use the company.

The need for reliable and affordable energy is ever present in all countries of the world. Satisfying this need requires the ability to see into the future, long-term planning followed by huge investments and years of work on the construction of infrastructure for the production and delivery of energy in all regions. It also requires understanding and managing emerging in our ever-changing world, the risk of technical, financial, geopolitical and environmental issues. “The Outlook for Energy” is one of the most important instruments that the Corporation “ExxonMobil” haas the ability to provide the necessary amount of energy for the further progress of human society.

ExxonMobile has the biggest opportunity that is connected with the increase demand of company’s products in the South Asian and South East Asian regions, as Malaysia, Indonesia, Korea and Vietnam. Also, company has a range of opportunities such as more efficient usage of raw materials and energy resources in the traditional production regions. search, exploration and development of mineral deposits on the shelf in the Arctic, the Far East and the South Seas, increasing the depth of processing of hydrocarbons; development of new scientific, technical and technological methods for prospecting and exploration of oil, use of new technologies that improve the efficiency of exploration and in the implementation of international corporate governance principles.

Market-based threats are events, the occurrence of which could have an adverse effect on the company. The main threats of the company are connected with the development of alternative energy sources and fuels. the reorientation of European partners on other sources of energy and other suppliers, the problems that are connected with changes in the ecological situation, the threat of energy security due to increased production and reduced proved reserves of oil and energy, volatile solvent demand related sectors of the national economy, the high probability of accidents and man-made disasters due to high depreciation of fixed assets, lack of control over the management of natural resources and licensing fields.

The main threat of the company is connected with the increase of attention to the environmental issues. This has affected the reduction of energy usage and increase of energy savings. In future the increase of reducing methods of energy usage will be met. As a result, company has a threat to face the problems with the decrease of demand to its products.

The company ExxonMobil produces oil in different regions of the world, including USA, Canada, Middle East, etc. ExxonMobil has interests in 45 refineries in 25 countries and a network of gas stations in more than 100 countries. Proved reserves that the company has are 22.4 billion barrels of oil equivalent.

Oil and gas production of the company in 2006 was 2.681 million barrels per day, which corresponds to 133.5 million tons of oil per year. Total amount of personnel of the company is 82 thousand. Revenue in 2008 was $ 477.4 billion (2007 – $ 404.6), operating profit – $ 84.1 billion ($ 71.9 billion), net profit – $ 45.2 billion ($ 40.6 billion). Revenue of Exxon Mobil in 2006 was $ 378.5 billion (2005 – $ 359 billion), net profit – $ 39.5 billion ($ 36.13 billion in 2005), this amount exceeds the annual state budget of most of the 184 countries of the world.

Accordingly to the previous date, it is necessary to set financial situation of the company in the end of 2011. So, revenue of ExxonMobile in 2011 was $ 486.429 billion, operating income reached $ 73.257 billion, net profit became $ 41.060 billion, assets of the company reached the sum of $ 349.000 billion and the capital of ExxonMobile became $ 154.396 billion.

The U.S. oil and gas company ExxonMobil, on the results of 2012, has increased hydrocarbon reserves of 1.8 billion barrels of oil equivalent. Thus, the company reserve replacement ratio was about 115%. By the end of 2012 proved reserves of 25.2 billion barrels of oil equivalent, of which 51% were liquid hydrocarbons and 49% – gas. Growth of liquid hydrocarbons on the results of last year amounted to 1.4 billion barrels of oil equivalent of gas – 400 million barrels of oil equivalent. Thus, for more than 19 years of reserve replacement ratio ExxonMobil exceeds 100%.

In January 2013, Apple ExxonMobil replaced with the first line of the most expensive companies. At the close of business capitalization Apple amounted to 413 billion dollars, while the capitalization of ExxonMobil has reached 418.2 billion dollars (Coll, 2012).

ExxonMobile Corporation has an effective and efficient perspective that gives the security to invest in company’s performance. The management of the company has developed specific strategy that shows where company is going, how it wants to reach its plans and with what time and resources it will obtain what the company wants. This information and company’s strategic vision make ExxonMobile to be attractive for the investments. Therefore, company is good enough to invest in it.

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“ExxonMobil” is a dynamic company and an excellent place to work. All of company’s employees are different exceptional abilities, endowed with independent thinking, the ability to show initiative and innovation. Protecting employees and the public from unacceptable risks in the works, thus, the management of the company raises the economic and social benefits for the countries and regions in which we operate. In the area of safe work, the fundamental principle is “No one should suffer.” This requires that all employees and contractors corporations feel their responsibility for the safe conduct of operations (Lee, 2008).

Currently in all divisions Corporation System Reliability Management Operations is the main tool to ensure safety of personnel and production processes, as well as health. According to the Service by Lloyd’s Register Quality Assurance (LRQA), CSRM satisfies all the requirements of the international standard “management system of health and safety” (OHSAS 18001:2007). Company is confident that a successful business needs a healthy staff. It is so serious about the health problems of employees, regardless of whether they are related to their work. In 2008 we developed a and implemented CSRM for office staff, which includes a single standard office ergonomics to assess the correctness of planning and office space, as well as the security controls the behavior of employees.

In a corporation, “ExxonMobil” is used orderly and systematic approach the planning of measures to ensure the smooth conduct of work and readiness to respond to emergencies. To create a quick and effective response to incidents in the course of work, company regularly checks the readiness of trained rescue teams at each site to respond by different scenarios. Among these scenarios – oil spills, fires, explosions, natural disasters and accidents that threaten the safety of people (Beech, 2007).

Standards and safety regulations are taken into account in the design, construction and commissioning of our facilities. To ensure compliance with relevant regulatory requirements at our facilities by program inspection and maintenance, regular inspection of equipment on which depends primarily on process reliability, as well as strict rules to ensure the safe conduct of operations.

Company also pays great attention to creating the greatest possible number of jobs for local people anywhere in the world, where we have to work. Vocational training is also carried out a prospective employee by appointment to various posts in the departments of the Corporation in various regions of the world. According to all the advantages set before, it is rather good to be the employee of the ExxonMobil.