StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Exxon Moblie Company Performance - Essay Example

Cite this document
Summary
The essay "Exxon Moblie Company Performance" focuses on the critical analysis of the major issues on the performance of Exxon Moblie company. ExxonMobil or Exxon Mobil Corporation is a United States international gas and oil company. It was formed by Standard Oil Company in 1999…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.4% of users find it useful
Exxon Moblie Company Performance
Read Text Preview

Extract of sample "Exxon Moblie Company Performance"

 Exxon Mobil Company ExxonMobil or Exxon Mobil Corporation is a United s international gas and oil company. This company was formed from Standard Oil Company in 1999 as a result of unification between Exxon and Mobil. Exxon Mobil Corporation is also associated with Imperial Oil, which is located in Canada. The headquarters of Exxon Mobil Corporation is in Irving, Texas. Moreover, Exxon Mobil Corporation is among the largest publicly traded corporation by market capitalization and the globe’s leading corporation by returns. The Forbes Global 2000 record in 2012 ranks Exxon Mobil Corporation as the number one corporation. The company had stored over 72 billion equivalent of oil barrels by the end of 2007. The company also has 37 oil refineries in 21 different nations. This makes Exxon Mobil Corporation the world’s leading refiner (Vassiliou 54). This paper will look at the Exxon Mobil Corporation. Exxon Mobil Corporation is the leading of the largest oil producers in the world. The company boasts of an everyday oil production of 3.921 million barrels of equivalent. This was almost 3% of the globes oil production, in 2008. Nonetheless, when Exxon Mobil Corporation is categorized by gas and oil assets, it is placed 14th in the globe. The Daily Telegraph wrote an article in 2012. This article asserts that Exxon Mobil Corporation has become one of the most despised companies in the world, with the ability to influence the fate of many countries and American foreign law. In addition, Exxon Mobil Corporation drills oil in areas leased to them by countries controlled by dictators, for example, Equatorial Guinea and Chad. The company also has little regard for the environment. The company’s chief executive, Lee Raymond, until 2005, opposed the administration’s interference at any stage and was cynical about global warming and climate change (Vassiliou 57). The corporation was condemned for its sluggish reaction to handling the Alaska oil spill. The headquarters of Exxon Mobil Corporation is in Texas, Irvin. The corporation sells products all over the globe under the trade names of Esso, Mobil, and Exxon. In addition, the company owns a number of businesses, for example, SeaRiver Maritime, an oil shipping corporation, and Imperial Oil Limited, located in Canada. It owns 69.6% of the Imperial Oil Limited. The upstream division of Exxon Mobil Corporation leads the corporation’s cash flow. It contributes almost 70% of returns. The Exxon Mobil Corporation’s corporate citizen report in 2006 indicated the company offers 82,000 employment opportunities all over the world (Vassiliou 62). The report also asserts that 27,000 workers are located in the company’s Houston upstream headquarters and almost 4,000 workers are in the company’s Fairfax downstream headquarters. Exxon Mobil Corporation is structured functionally into several functioning sections. These sections are subdivided into three groupings. Nonetheless, Exxon Mobil Corporation has a number of supplementary sections, for example, Coal and Minerals, which are separated from the main divisions. The upstream division is located in Houston, Texas. It is concerned with wholesale operations, shipping, oil exploration, and extraction. The downstream division is located in Fairfax, Virginia and is concerned with retail operations, refining, and marketing (Vassiliou 64). Also, the downstream division comprises SeaRiver Maritime, International Marine Transportation, ExxonMobil Refining and Supply Company, and Engineering Company ExxonMobil Research, and ExxonMobil Fuels, Lubricants and Specialties Marketing Company. In addition, the chemical division is found in Texas. Exxon Corporation’s chief executive officer had a meeting with Mobil Corporation’s chief executive officer in 1998. Both these chief executive officers had initial talks of the probability of a merger between the two corporations. Later on, management proceeded with negotiations and gave the board the results of the discussions. In 1998, the chief executive officers continued with the negotiations while taking into consideration the new pricing benchmarks arising from the negotiations between Amoco Corporation and the British Petroleum Company. In September of the same year, Goldman Sachs gave the board of Mobil its evaluations based on the different probable proposals, including a likely union with Exxon (Vassiliou 67). During this period, the partners assessed the probable comparative ownership scales and advanced the negotiations to comprise issues, for example, the inclusion of present Mobil directors among the board members of the joint corporation. Later on, both Exxon and Mobil traded due diligence request records and their advisors and representatives took part in a number of meetings, telephone calls, and video conferences to conduct reciprocal financial, legal, accounting, and business due diligence. In November 12, the companies entered a reciprocal confidentiality agreement. The two companies, Exxon and Mobil released a combined statement substantiating that the two corporations were in negotiations of a probable business merger. The discussions continued between outside counsel and Exxon and Mobil representatives so as to deal with open concerns (Vassiliou 68). The two chief executives of Exxon and Mobil Corporation reached an agreement in principle on the evening of November 30. This agreement was to be approved by their respective boards on the basis of the exchange ratio and the outcomes of the stock option agreement. Exxon and Mobil Corporations signed a deal and a strategy of merger after the getting approval from both their boards. In May 1999, stakeholders of the two corporations also approved the merger. After the merger, Mobil became a constituent of Exxon. The result of the merger was a change of name to Exxon Mobil Corporation. The drive for the merger between Exxon and Mobil highlight the forces of industry. Corporations need an assured presence in areas with tremendous prospective for gas and oil discoveries and stout status to facilitate sizeable investments (Vassiliou 71). The advantages of the union between Exxon and Mobil corporations were placed into two instances: capital productivity improvements and near term operating synergies. Capital productivity improvements illustrate how management asserts the newly formed company could utilize capital extra profitable than when the two companies are functioning on their own. The improvements were attained because of sharing of best management activities, cost savings, and efficiencies of scale. In addition, the assets and businesses of both Exxon and Mobil were largely matching in vital areas. For example, in the area of production and exploration, the strengths of the two respective companies in North America, West Africa, South America, Caspian region, and Russia assembled well, with less minimum overlap. Near-term operating synergies indicated the new company would attain $2.8 billion pre-tax earnings from operating synergies. Operating synergies entail increase in efficiency, sales and production, combining complementary operations, and decrease in cost of units (Vassiliou 73). The management of ExxonMobil Corporation anticipated attaining the total gains after three years of the merger. In addition, there were also technology synergies. In upstream, both Exxon and Mobil possessed proprietary technologies in different areas, for example, high strength steel, deep water arctic operations, LNG, gas to liquid processing, and heavy oil. The two companies proprietary technology centered on chemical catalysts and refining in the downstream. The lube base stock production of Exxon matched adequately with leadership in lubes marketing of Mobil (Vassiliou 74). Nonetheless, similar to other oil corporations, ExxonMobil is finding it challenging to get fresh sources of gas and oil. ExxonMobil Corporation has been making its contributions to issues of environmental concern. In 2007, ExxonMobil Corporation contributed $6.6 million to social and environmental organizations (Vassiliou 80). In contrast, the company’s environmental reputation has been a cause of concern especially among outside organizations, for example, Greenpeace, an environmental lobby group. Moreover, a number of institutional shareholders have opposed ExxonMobil Corporation’s position on climate change and global warming. ExxonMobil Corporation is undertaking an internal research concerning probable incorporation of resources at the north of Houston. Also, in 2010, the corporation asserted that its headquarters will remain in Texas, Irvin and will not be moved to Houston. Work Cited Vassiliou, M. Historical Dictionary of the Petroleum Industry. Maryland: Scarecrow Press, 2009. Print. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/business/1463699-exxon-moblie-company
(Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 Words)
Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/business/1463699-exxon-moblie-company.
“Exxon Moblie Company Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1463699-exxon-moblie-company.
  • Cited: 0 times

CHECK THESE SAMPLES OF Exxon Moblie Company Performance

Industry Characteristics of Exxon Mobile

This company has three outstanding market brands that include Mobile SHC, mobile Devlag, and mobile 1 lubricant.... The company has a dense network of stations and distributor channels throughout the world where its products can be found.... The company also owns smaller subsidiaries such as Sea River Maritime and Imperial Oil Limited.... This research paper "Industry Characteristics of exxon Mobile" is about the biggest supermajor, that has large production operations reserves and diversity, possession of one of the largest E&P portfolios, and its technological superiority are some of the benefits attributed to its efficiency....
8 Pages (2000 words) Research Paper

Decision Making Process at Exxon Mobile Security

The paper "Decision Making Process at exxon Mobile Security" aims to present an important decision recently made at exxon Mobile Security.... This paper is written to present a significant decision-making scenario recently undertaken at exxon Mobile Security in my capacity as Shift Sergeant for the Security Department....
6 Pages (1500 words) Case Study

Stock Market Investing

However, even when looking for a company with “best results”, the business is still risky due to many different economic, political, geographical and other factors easy to miss.... Among three pairs of stocks, Coca Cola and Exxon Mobil seems most worth of investing Stocks investing: Coca Cola and Exxon Mobil Despite a stock price is a well-known index for a company, not the companies with highest stock prices are worth of investing in the first place.... However, even when looking for a company with “best results”, the business is still risky due to many different economic, political, geographical and other factors easy to miss....
2 Pages (500 words) Assignment

Exxon Mobile's Strategy Analysis

he success and outstanding performance of Exxon Mobil Corporation emerge from several strategies implemented by its management executives.... Just to name a few, the Corporation has a strategic management system that provides an elaborate framework for maintaining high standards and performance.... Exxon's approach to employment is not only a relevant model but also a productive model to the general performance of the organization.... DePamphilis (2013) explains that the company operates through; downstream,....
4 Pages (1000 words) Research Paper

Organizational Security Plan at Exxon Mobil Security

The author uses the concepts of organizational behavior and management are in designing an organizational security plan at exxon Mobil Security.... exxon undertakes training and development as a function of management that registers, traces and ensures individual progress through continued job proficiency, the career growth, and individual guidance.... The successful implementation of organizational strategy at exxon Mobil requires that executives shape to the peculiar needs of the strategy the formal structure of the organization, its informal relationships, and the processes of motivation and control which provide incentives and measure results....
10 Pages (2500 words) Term Paper

Analysis of Exxon Mobil Corporation

"Analysis of Exxon Mobil Corporation" paper focuses on the largest privately-owned energy supermajor and the world's 2nd-largest publically traded company by capitalization.... Standard Oil company continued its growth into a major player in the oil sector both within and without the US.... In 1931, the Standard Oil company of New York—a larger and more generalized oil company—and the Vacuum Oil company—a smaller, machine lubricant-centered producer—merged to form Mobil....
9 Pages (2250 words) Case Study

Exxon Mobile Financial Analysis

This company is a major lubricant and producer of other specialties.... This company is a major lubricant and producer of other specialties.... The company has a dense network of stations and distributor channels throughout the world where its products can be found.... The company also owns smaller subsidiaries such as Sea River Maritime and Imperial Oil Limited.... Many equipment and vehicle manufacturers trust exxon for delivery of technologically superior products....
8 Pages (2000 words)

Evaluation of a Business Code of Exxon Mobil

Indeed, the majority of companies, ranging from small to multinational ones, acknowledge the necessity to adhere to ethical guidelines in the course of performance.... The mission statement that is claimed by it focuses on two important aspects of its performance: becoming the premier petroleum company and maintaining high ethical standards while doing so.... The author of the "Evaluation of a Business Code of Exxon Mobil" paper analyzes the Code of Ethics and Business Conduct that was created by Exxon Mobil as well as examines the ethical system of this company and the way the Code of Ethics is used by the staff....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us