Exxon Mobil Was Founded 125 Thesis
- Length: 20 pages
- Sources: 10
- Subject: Business
- Type: Thesis
- Paper: #62837878
Excerpt from Thesis :
Additionally the company is increasingly concerned with meeting the energy needs of people and organizations throughout the world ("Company Profile"). To this end Exxon Mobil is committed to "exploration and production of crude oil and natural gas; the manufacture of petroleum products; and the transportation and sale of crude oil, natural gas, and petroleum products ("Company Profile")." In addition Exxon Mobile is a primary producer and marketer of both commodity and specialty petrochemicals. The company is also involved in the ownership and management of electric power generation facilities. The company is also involved in several areas of research that allow the company to support operations, experience constant improvement ("Company Profile"). The company has four distinct business spheres through which it operates. The sphere are referred to as upstream, downstream, chemical and technology.
The Upstream business sect refers to Exxon Mobil's asset base ("Company Profile"). This base is significant, involves several geographic locations and is economically healthy within the context of different business environments. In addition the upstream business sector is responsible for the production and exploration property that exist in 36 nations ("Company Profile"). During 2007 seven large upstream projects began. Additionally the company is committed to the sell of natural gas in the majority of developing nation. This natural gas is utilized by industry, power companies and distributors ("Company Profile").
The Downstream sector of Exxon Mobil Concerns its self with handling the company's network of manufacturing plants, distribution access points and transportation systems ("Company Profile"). This network is essential to Exxon because it affords customers throughout the globe access to lubricants, clean fuels and other valuable products ("Company Profile"). This sector of ExxonMobil governs the interests of nearly 40 refineries throughout the world. It also markets the company's products to over 30,000 gas stations ("Company Profile"). Additionally about 1 million customers are served through various business segments including Aviation, Marine and Industrial and Wholesale ("Company Profile").
Exxon Mobil's third business sector is Chemical. The company is the leading enterprise in the petrochemical industry ("Company Profile"). The company has interest in 49 solely owned and joint-venture facilities ("Company Profile"). In addition the company has
"strong positions in many of the largest-volume and highest-growth petrochemicals in the global economy. The company is one of the largest producers of olefins, the basic petrochemical building block. We are also one of the largest producers of polyolefins, which include polyethylene, the largest-volume plastic, and polypropylene, one of the fastest-growing polymers. More than 90% of chemical capacity is employed in businesses where we rank first or second in worldwide market position ("Company Profile")."
The final business sector is technology. This sector is needed because there are many oil and gas resources that are only found in remote places around the world. This remoteness necessitates the need for technologies that assist the company in gathering these resources in the most precise way imaginable. To meet the technological needs of the company there has been an investment of nearly $4 billion towards development of technological systems. The development of new technologies are important because they allow for fast deployment of value capture. The success of ExxonMobil can be attributed to the manner in which it has dedicated resources to the creation and implementation of new technological systems into its business model.
Analysis and methodology
The analysis of the Strategic Plan is based on information about ExxonMobil available through the official website of the company. This data includes information about the organizational structure of the company. The (Situation, Target, Path) STP method will be utilized in the development of this strategic plan. During the situation phase of the process the current information about the company will be gathered and analyzed ("What is the STP"). During the target phase goals and objectives for the future are defined ("What is the STP"). Finally during the path stage, a map is presented as pertains to the attainment of future organizational goals ("What is the STP").
Vision and mission statement of the company
Vision Statement: Over the next decade ExxonMobil Endeavors to remain the industry leader by developing alternative sources of energy that are affordable and of the best quality. The company also desires to reorganize its business strategy to Mission Statement: To provide the Global Community with the energy needed to power their daily lives.
Quality and management initiatives
Over the next 5 years ExxonMobil must make a concerted effort to improve the quality of its products. Namely the company must be proactive in formulating ways to create fuel products that are more efficient as it pertains to protecting the environment and decreasing the amount of pollution caused by fuel products.
Along with quality initiatives, management initiatives must also be taken. Although Exxon Mobil is a well managed company, there must be a greater emphasis placed on preparing the company for the future. ExxonMobil cannot continue to rely upon past strategies of the 20th century in the 21st century because the context of business has changed drastically. With this understood, management must lead the company in formulating new and aggressive policies geared toward the development, manufacture and sell of alternative forms of energy. Managing this aspect of Exxon Mobile seems to be the most urgent concern of the company.
Leadership and Management
Leadership and management are always concerns that a company has. For ExxonMobil Leadership and Management have thus far been quite sufficient. However, room always exist for improvement. One of the areas of improvement should be repairing relationships with foreign leaders so that Exxon Mobile has the capacity to expand further. Repairing such relationships are necessary because ExxonMobil may need access to the resources that exist within some of these countries as it pertains to oil reserves.
In addition management and leadership must look to the future as it pertains to alternative energy. Over the next five years, leadership must begin to stir the company in a new direction so that it can remain relevant in a changing world.
At the current time ExxonMobil has a functionally-based organizational structure. That is, the business-line companies are expected to direct a "focused portfolio of operations everywhere that ExxonMobil operates throughout the world ("ExxonMobil Global Capabilities…")." There is a president in charge of each division who has the authority to run the business independently of the other company businesses. As it relates more specifically to the structure it is composed of 10 primary companies that are responsible for managing various ExxonMobil businesses ("ExxonMobil Global Capabilities…"). In addition ExxonMobil Global Services (a separate company) is responsible for supplying centralized support via information services, procurement, and facilities ("ExxonMobil Global Capabilities…").
The current structure allows the company to administer priorities based on what is needed in certain areas of the globe. This gives the company the benefit of leveraging the transfer of technology throughout its various facilities around the world ("ExxonMobil Global Capabilities…"). It also allows the company to move its workforce from one place to another with ease. The chart below provides an example of ExxonMobil's global structure (taken from, "ExxonMobil Global Capabilities…").
Grouping and teamwork
At the current time ExxonMobil has employees representing different functions of the company grouped together. That is marketing employees are in one department while IT professionals are in another department. Generally these departments work independently of one another in some instances and collectively in other instances. The types of teams that are formulated is dependent upon the breadth and scope of the project. For example a project involving the implementation of a new computer network may only be composed of IT professionals. However, a project involving a broader scope may need a team of employees form different departments. In either case teamwork is important to developing synergy and finding the best ways to complete projects. Teamwork allows the company to complete projects in a timely manner and in a way that is beneficial to customers.
In the future a much more collaborative approach may have to take root. Collaboration will be more necessary because of the monumental challenges that the oil industry will face in the near future as it relates to dwindling reserves and consumers turning away from the use of fossil fuels. Working together teams can solve some extremely complex problems and assist ExxonMobil in maintaining its current status.
The organizational culture at ExxonMobil is rather traditional. The company was founded 125 years ago, so many of the traditional aspects of organizational culture still exist within the company. However, there is a move toward more 21st century ideologies about organizational structure. Policies such as flexible work schedules and having the ability to telecommute are just an example of the company's changing tide. In the future it may be advantageous of the company to forge a culture tat is more conducive to the lifestyles of younger workers.
As was mentioned previously in this discussion ExxonMobil leads the industry in technological advancements. The company has pioneered various ways to make the extraction…