ExxonMobil Market Industry - Essay Example

ExxonMobil Market Industry ExxonMobil has been founded by John D. Rockefeller. He is also renowned for building up the empire of Standard Oil. The current Chairman and CEO of ExxonMobil is Rex W. Tillerson. Its headquarters is located in Irving, Texas, United States of America. The products which come under its realms are fuels, lubricants and petrochemicals. ExxonMobil is a multinational American enterprise and it is to the credit of this corporation that it is hailed as the largest publicly traded and integrated petroleum and natural gas organization that the world has seen in the current times. The merger of Exxon and Mobile happened in the year 1999 and ever since the two have gone on strong as it has become the largest corporation of the world in terms of market capitalization, figures standing at $517.92 billion in the year 2007. Also ExxonMobil is one of the largest oil supermajors in the world, which stand at six currently. ExxonMobil’s daily production of 6.5 BOE (barrels of oil equivalent) is a true measure of its economic prosperity and it is because of such figures that ExxonMobil is regarded as first globally when the talk goes out loud concerning the oil and gas reserves among the corporate oil producers. A negative aspect of ExxonMobil is the fact that much criticism has been raised in the relevant quarters owing to its business practices and tarnished environmental record. The competition that ExxonMobil has to face on a consistent basis is manifold. It has to compete in a head on manner with the petroleum companies of the world as well as the governments of powerful nations since it is on the latter’s approval that ExxonMobil could gain its share of voice within the industry. For that ExxonMobil does all it could in the name of building its image and such measures directly come under the public relations cadre. The different operating divisions of ExxonMobil are thus competing in an aggressive fashion with the varied units and divisions of the oil and gas companies globally. The different global operating divisions thus compete not only in terms of attaining strategic business for their segregated units but also the much needed revenue which keeps ExxonMobil in business at the end of the day. The upstream operating divisions of ExxonMobil include its exploration company, the development company, the production unit, the gas and power marketing company and lastly the ExxonMobil Upstream research company. On the other hand, the downstream operating divisions comprise of the ExxonMobil refining and supply company, the fuels marketing unit, lubricants and specialties division and the research and engineering company. The chemical division is situated in Houston, Texas. The strategic direction of ExxonMobil has been tilted due to its different policies and undertakings which it has adopted with the passage of time. Even outside organizations like GreenPeace have raised hue and cry in the wake of the changing global warming regimes. The investors have, in addition been unhappy with the steps that have been taken in the area of meeting the global warming threats, raised on the part of the different institutions and organizations towards the top management echelons of ExxonMobil and which seem to have created no stir within the relevant ranks. Perhaps now is the time that ExxonMobil steps up its vision and gears itself with meeting the demands and expectations of the people on a constant basis before the pressure is increased to far-reaching levels within the future. It could do itself a favor by tightening up its media policy and bolstering the public relations division so that a consistent interaction with the communities is maintained, no matter how difficult or tough the circumstances turn out to be at the end. With changing decades starting from the year 1980, one can see that the energy demand growth for ExxonMobil has increased in four different energy types, namely coal, gas, oil and miscellaneous. These have been sorted according to the MBDOE levels and the graph has increased with each passing decade. Also there are predictions in line with the coming two decades, up till the year 2030. When the industry outlook is glanced upon altogether, one finds that the MBDOE levels have also increased from 1980 onwards up till the forecasted year 2030. This industry outlook includes the world oil and gas demand in a period of 50 years, starting from 1980 till the forecasted year of 2030. The existing industry production includes the production fields’ decline which has been 4 to 6 percent per year. The MBDOE levels up till the year 2030 includes the required new production regimes. The factors that have played a significant part in the funding regimes include the market information, the technical definition and implied meaning and lastly the execution assumptions which visualize what is in store with regards to the business of ExxonMobil as an aggressive player within the oil and gas industry. These factors are a sample basis of the major industry projects which are being undertaken in the same industry. Since the workforce demographics within the petroleum sectors have changed with the passage of time, one can expect that the same has been the case equally within North Asia and North America. The key to success for ExxonMobil in the long run includes a host of different factors. These are the safety leadership regimes, the concept selection for getting the right people who will take the correct steps in the wake of the changing market regimes and industry norms, the technological infrastructure which must be upgraded at all possible times and under every changing setting that comes into place as far as governments are concerned. Apart from these, execution planning is a very quintessential step which has changed the face of the industry with the changing times since planning out with the future in mind is always the right way as to going about doing things in oil and gas quarters all over the world. Also contracting strategy by ExxonMobil would help facilitate the organization in achieving its short term and long term energy-related goals and objectives. Another key towards attaining success lies in the fact that project management teams must be formed up in a quick way which can help achieve the desired goals on the part of the ExxonMobil team as well as give the top management at the helm of affairs within ExxonMobil some food for thought as per the workings of the project management teams and the endeavors that they undertake every now and then. Their tasks should be analyzed in a competitive spirit where both the strengths and weaknesses could be gauged as well as a line could be drawn for properly understanding the relevant opportunities and threats which lie in the way of achieving the desired success. The last discipline that could be had by the ExxonMobil team is to have a fair understanding of change management regimes and how the same could work to the best advantage of the oil and gas industry as a whole and ExxonMobil in particular. This will pave the way for future endeavors that are undertaken in similar fields as well as outline the best practices for other divisions and units of ExxonMobil to come in the future. Businesses which stagnate over a period of time and do not change because of one pressure or the other usually die out quickly. The ones that have existed thus far have relied a great deal on the phenomenon attached with change and consistent upgrading of the needs as put forward by the business and its norms. The change aspect needs to be embedded in a clear and concise manner within the realms of ExxonMobil so as to extract the best possible results, both in the short term as well as in the long run. Managing change within ExxonMobil is one of the most significant aspects that come under its sound functioning regime. Only the companies which are able to come to terms with the new norms and practices are the ones that succeed not only in the short term but also in the longer scheme of things. This means that ExxonMobil has to devise certain ways and means through which it can manage change, measure it and effectively counter the problems that come in its way all this while. The learning process, meanwhile on the part of ExxonMobil is immense since it finds out the exact mechanisms and procedures through which change is going to affect the employees’ and stakeholders’ relationship with ExxonMobil’s central essence, which is the top management, making all the decisions that would eventually benefit ExxonMobil in the long run. Thus the strategy which ExxonMobil could adopt at the present stage is to be clear about its concepts and to apply the same in the line of competition coming from different angles, quarters and units so to speak. If only such an attitude is adopted in the first place, then one can expect changes to happen and that too quick and for the betterment of ExxonMobil’s strategic tilt. All said and done, there are a lot of lessons for the taking on the part of ExxonMobil and much more improvements are envisaged from the hierarchies present within the realms of this oil and gas giant. References Albers, Mark W. (1996). ExxonMobil Thriving: Today and Tomorrow. Engineering Construction Contracting Conference Livesey, Sharon M. (2002). Global Warming Wars: Rhetorical and Discourse Analytic Approaches to ExxonMobils Corporate Public Discourse. The Journal of Business Communication, Vol. 39 Mayer, Donald O. (2002). Corporate Governance in the Cause of Peace: An Environmental Perspective. Vanderbilt Journal of Transnational Law, Vol. 35 Ziegler, Mary E. (2006). Understanding and Protecting Natural Resources. Duke Environmental Law & Policy Forum, Vol. 17 Author Unknown. (2007). ExxonMobil. URL: http://www.exxonmobil.com Word Count: 1,543 Read More