...EXXON MOBIL: ENERGY GIANT CASE STUDY: EXXON MOBIL Amie Bratcher Columbia College Business 510 Professor Manzoor Chowdhury, Ph.D December 2013 Executive Summary ExxonMobil is an American multinational oil and gas corporation that is headquartered in Irving, Texas. On November 30, 1999, Exxon and Mobil merged to become ExxonMobil. ExxonMobil is the largest publicly traded petroleum and petrochemical enterprise in the world (www.exxonmobil.com). The main activities of ExxonMobil are exploration, production, transportation and sale of crude oil and natural gas as well as the manufacture, transportation and sale of petroleum products (www.corporatewatch.org). This analysis will discuss the history of ExxonMobil. The analysis will identify the market structure and production decisions of the company. It will attempt to determine consumer demand. Through the findings of consumer demand the analysis will also attempt to determine the behavior and pricing strategies of ExxonMobil. It will also provide an explanation of management decisions. And, an explanation of management approaches to opportunities along with threats from macroeconomic expectations and implications. The analysis will also identify ExxonMobil’s competitors. Some common examples of competition are; Royal Dutch Shell, BP, and Chevron. The analysis will further discuss how the decisions of each individual company may affect similar companies in the industry. HISTORY ExxonMobil is the biggest...
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...Royal Dutch Shell Exxon Mobil Team #1: EXECUTIVE SUMMARY Exxon Mobil Corporation (ExxonMobil) is an oil and gas company. It is the world’s largest integrated oil company. The company carries out the exploration and production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum products. ExxonMobil also has interests in petrochemicals and electricity generation facilities. The company operates through three reportable business segments, namely, Upstream, Downstream and Chemical. It offers products and services under various brands such as Exxon, Esso and Mobil. ExxonMobil has presence in Americas, Europe, Asia-Pacific, Australia and Africa. ExxonMobil is headquartered in Texas, the US. Royal Dutch Shell Plc commonly known as Shell is an independent company with its registered office located in London, UK and headquartered in The Hague, Netherlands operating in the oil and gas industry globally. It is the second largest oil company in the world. The operations of the company are divided into three main segments including: Downstream, Upstream and Projects and Technology. The Upstream segment combines activities involved in the search for and recovery, liquefaction and transportation of oils and natural gas and wind energy. The Downstream segment is engaged in the activities of manufacturing, distributing and marketing of chemicals and oil products. Finally, the Projects and Technology segment includes all the...
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...Mergers and Acquisition: Exxon Mobil Merger Introduction Industry mergers or business combinations are a phenomenon that has been commonplace for quite some time now. They basically involve two or more organizations coming together to form a large corporate under which they operate. The new organization which may have a combination of the names of the merging components or a totally new name operates as a new entity. The new rule under which the new entity operates depends in the agreement on the terms of the merger. As stated in our advanced accounting text, the history of mergers can be traced back to the 1895 to 1905 period in the US when the small companies with small market shares combined forces to form larger entities that dominated the target markets. In this way their collective value accounted for 20% of the total GDP (Cartwright & Schoenberg, 2006, p 3). Since then mergers have remained a popular way of market consolidation and strengthening of the capital base of the various firms involved. The rise of globalization in the 1990s further increased the market for international mergers with firms located in different countries and continents coming together. These mergers have resulted in huge conglomerates across borders with multibillion dollar financial bases and thousands of international shareholders. This paper sets to discuss Exxon Mobil merger with special emphasis on...
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...Exxon Mobil New Mexico Highland University Abstract Exxon Mobil participates in exploration, production, refining and marketing of oil and natural gases. The business by Exxon Mobil has a tremendous impact on the macro- environment. There are factors of macro-environment that affects by Exxon Mobil? The factors are socio-cultural, ethics and corporate social responsibility, political and legal, technology and economic. Exxon has an extraordinary and complex SWOT analysis. The SWOT analysis identifies the strengths, weakness, opportunities and threats of the company. ExxonMobil has grown since being in business for over 125 years. The company has great employee benefits and training, contributions to the economy and technology advances that can increase food shelf life. With all the safety precautions taken there are still conflicts that arise. The information gathered about Exxon will enlighten the public’s awareness and knowledge of the company. Company Overview Exxon Mobil has been around for more than 125 years (ExxonMobil 1). John D. Rockefeller had established The Standard Oil Corporation in 1870 (ExxonMobil 1). In 1879 The Standard Oil Corporation bought three- quarter interest in the Vacuum Oil Company for $200,000 as a lubricant pioneer (ExxonMobil 1). The Supreme Court divided Standard Oil into 34 unrelated companies, including Jersey Standard, Socony, and Vacuum Oil in 1911 (ExxonMobil 1). From 1919 to 2011 Exxon has created a number of inventions likes rubbing...
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...STOCK ANALYSIS REPORT - Exxon Mobil Corporation (XOM) –August 15th , 2011 [pic] Industry: Oil and Gas Operations Sector: Energy Recommendation: SELL Price: $74.29 (as of August 15th 2011, 4:00pm ET) Intrinsic Value: $52.10 or 42.6% overvalued Fundamentals Grade: A Investment Style: Large Cap Blend CORPORATE INFORMATION [pic] Location: 5959 Las Colinas Boulevard Irving, TX 75039 Phone: 972-4441000 Fax: 972-4441348 Web Site: http://www.exxonmobil.com/ Employees: 83,000 Exchange: NYSE BUSINESS SUMMARY Exxon Mobil Corporation (Exxon Mobil) through its divisions and affiliates is engaged in exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. • ExxonMobil is the largest integrated oil company, with operations in over 200 countries. This globally diversified enterprise produces superior returns in its business segments when compared to other major oil and gas companies. • Exxon has a strong balance sheet with a cash position of approximately $13B and 0.07 Debt-to equity. Exxon has the liquidity and credit to invest in high return projects around the world. • Prices for oil and gas are expected to rise in the foreseeable future. Emerging market growth and increasing need for energy will place upward pressure on prices. Exxon will benefit as the world’s largest oil and gas company (by reserves, excluding national oil companies)...
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...Exxon Mobil Corporation Introduction Exxon Mobil Corporation is a multinational oil and gas company that is based inAmerica. It’s a descendant at of the Rockefellers standard oil company and it was formed in1999 from the merger of the Exxon and Mobil companies. It’s headquartered in Irving, Texas.The company is one of the world’s largest publicly traded companies and has been ranked thenumber one or number two for the last five years. By the end of the year 2007 the company’sreserves stood at 72 million oil equivalent barrels while its production rates were expected to lastfor more than 14 years (Hrebiniak & William, 1984). The company has 37 oil refineries in more than 21 countries constituting a combineddaily refinery of approximately 66.3 million barrels. Exxon Mobil is recognized as the world’slargest refineries and this title has been associated with the former standard oil since the incorporation in the 1870s. In addition to that the company is largest of the six recognized oil supermajors. Exxon Mobil owns hundreds of other similar subsidiaries including the imperial oillimited in Canada and the sea river maritime which is a petroleum shipping company.Functionally the company is organized into several global operating categories including the 2. 2upstream, down stream, chemical Exxon Mobil global services company, XTO and finally theimperial oil (Neil,1974). Many organizations experiences a lot of stresses as well as difficulty when it comes tocoping with change and lack...
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...On Sunday, March 29th 2013 an ExxonMobil pipeline that was carrying crude oil burst leaving the backyards of homes destroyed, and causing the residents to evacuate; thousands of barrels of heavy crude oil flowed from the pipeline and vandalized the town (CNN.com). Occurring mainly in Mayflower, Arkansas and on March 31, people living in the homes were forced to leave due to the unhealthy living conditions that the pipeline created. (CNN.com) The residents of this town filed a class-action lawsuit against ExxonMobil because of this incident. This residential area is seeking more than $5 million in damages. There were 22 homes that had to be evacuated, and the pipelines rupture spread as far as 18 miles in this town. An Exxon spokesperson said the current estimate is 5,000 barrels of Wabasca heavy crude — or 210,000 gallons — spilled from the breach (Arktimes). Due to the obstruction the town had to endure when they were suddenly flooded by crude oil, “a growing international debate over corporate influence” according to the Arktimes (Koon and Peacock, 2013). A video of a resident in the area was posted on YouTube later that day. You can clearly see the large amount of oil gushing from the lawns of these people’s homes. One of the most grotesque features of this 30-second video clip is the description of the smells the man has to endure while driving through his once neatly kept neighborhood. Imagine having that happen in a surrounding town and having to deal with the destruction...
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...The focus that Exxon Mobil is putting on the supply and demand of Energy FIN/370 April 29, 2014 D'Andre Wright The focus that Exxon Mobil is putting on the supply and demand of Energy How the initiative affects costs and revenues of the supply chain. Now, the response occurs when the financial side of the “supply and demand and how products are manufactured and sold along with what the government takes in taxes” (Cohen, 2012, para. 2). For example, which was created by The United States Energy Information Administration’s; which gave the rundown of the projected to be an average cost “of a gallon of gas in December 2011, which was $3.27” (Cohen, 2012, para. 2). However, let’s look at the price of the unprocessed substances that are used to make the gasoline result, which partakes a crucial influence of the definitive gas cost (Cohen, 2012). Now, the unprocessed substance for gasoline is crude oil (Cohen, 2012). Nevertheless, the rate “of crude oil is set by global markets, where buyers and sellers consistently react to supply and demand factors” (Cohen, 2012, para.3). Now, this is when several individuals become chaotic. However, needless-to-say that many people thinks that the oil businesses, are manufacturing the whole entire oil; which “goes to their own refineries, and, therefore, can control gas prices by controlling the supply chain” (Cohen, 2012, para. 7). So, sorry to say ladies, and a gentleman that is not true. On-the-other-hand, for example, “The United...
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...How Exxon Mobil would manage its FDI in an emerging market Investment decisions by firms are subject to rigorous planning and coordination and when they cater to the firms’ interests in expanding its business beyond the borders of its home country, the parameters for analysis change. The company has to think beyond its own domestic construct and towards a more broad-based approach. Multinationals have to consider a completely new array of factors which range across the home country, the foreign country and even the distance in between. In today’s world of interconnectedness, FDI has been facilitated through the use of modern technology and the transferability of technology across boundaries. The global trading environment allows for investment flows across countries. While countries may be wary of imports, FDI is always welcomed as it leads to job creation within an economy and a boost to GDP. The FDI decision would itself be one needing intense planning, strategizing and thorough analysis. The factors which determine investment decisions by large firms vary across countries and it is up to the firms to determine whether the costs incurred by the variances among these parameters would be worth the price of admission. The cost benefit analysis has to be thorough given that the company is exploring new markets which could be considered a whole new world within the context of the company. Stepping out of the bounds of its own industrial and economical context and towards a global...
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...ExxonMobil MGT/521 Management Profesor Clance Doelling, MBA, BSME May 28, 2012 Introduction ExxonMobil is recognized as one of the world’s prominent oil and gas companies. They control market products and facilities nationwide. ExxonMobil is involved in marketing, gas, and oil exploration, transportation and production in approximately 200 countries. They manufacture aromatics, petrochemicals, polyethylene, olefins, and polypropylene plastics (ExxonMobil, 2012). ExxonMobil provides services and products under brands names Mobil, Esso, and Exxon. ExxonMobil is recognized as one of six of the largest oil refineries in the world. They own subsidiaries, such as the imperial oil limited in Canada and the sea river maritime a petroleum shipping company. The company is divided into different operating categories, such as upstream, downstream, and chemical. ExxonMobil has been successful because of their adaptation to change, its diversity, and desire to eliminate barriers. To remain successful in every aspect of the oil industry they must be at the leading edge of the competition. For this to be possible ExxonMobil must require the corporations operational, financial, human, and technological resources be evaluated frequently and used wisely. ExxonMobil makes every effort to improve productivity through learning, implementing best practices, sharing, and improving efficiency. ExxonMobil also strives to achieve superior operating and financial results as they adhere...
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...A Financial Ratio Quarterly Trend Analysis of: Exxon Mobil Corporation Stock Symbol: XOM Listed on New York Stock Exchange Prepared for: Dr. Edward Lawrence Department of Finance and Real Estate Florida International University In partial fulfillment of the requirements of Course: FIN 6406 By: Nicole Suarez Panther ID # 1101809 1.0 Introduction ExxonMobil Corporation and its affiliated companies operate in the United States and most other countries. Headquartered in Irvine, TX, ExxonMobil was formed following the merger of Mobil and Exxon. It is the world’s largest publicly traded international Oil and Gas Company. They hold an industry-leading inventory of global oil and gas resources. They are the world’s largest refiner and marketer of petroleum products, and their chemical company ranks among the world’s largest. They are also a technology company, applying science and innovation to find better, safer and cleaner ways to deliver the energy the world needs. The company has more than 82,000 employees across the world. ExxonMobil’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol “XOM.” This report provides a quarterly trend analysis for ExxonMobil for fiscal year 2011. Financial information was obtained from the company’s website by examining the 10-Q SEC filings for Quarters 1 through 3 and the 10-K SEC filing for Quarter 4. Additional financial information was also found on Yahoo! Finance, MSN...
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...more responsible to some extent, it would be wrong to claim that they are more ethical and moral. This is evident from often present manipulation of CSR actions and the fact that a lot of CSR rhetoric is geared towards advertisement purposes. As some companies devote more resources to the external communication of CSR practices, this creates an image that they are more responsible. In order to get the insight into the real role of CSR in the industry, a critical analysis of the CSR strategy of Exxon is presented below. Exxon is a major global oil multinationals that have significant influence on the oil industry and is a trend and standard setter. The concept of CSR itself is divided into two main spheres – macro and micro. Former deals with more global topics, mainly the company’s stance over the issue of climate change. Later is focused more on social aspects of the CSR, such as community development, relations with the governments etc. Exxon-Mobil Company Overview Exxon-Mobil is one of the world's largest companies and is currently ranked no.2 in the Fortune 500 global companies. The sheer size of the...
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...The weights of debt was used was 51% whereas the weights of equity used was 49%. Comparing this to the market value the weight of debt being nearly 3% while equity overshadows at the 97%. Although the book and market weights differ substantially their WACC doesn’t vary much; the book value cost of capital being 3.8% and the market value being 4%.Should Exxon take on project A, with a NPV of over 182 million and an IRR of about 26%, we would agree to definitely accept. But , you really cant say that without doing sensitivity analysis. We choose to do the analysis on the cost of capital because that’s what I feel could fluctuate the most. Even at rates of 3% to 6%. The NPV didn’t move much which allows me to assume this is a pretty safe project for the company to take on. Rf page http://finance.yahoo.com/bonds/composite_bond_rates http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/ http://www.dividendgrowthinvestor.com/2011/06/exxon-mobil-xom-dividend-stock-analysis.html http://finance.yahoo.com/bonds/composite_bond_rates , AAA corporate yeild , 10 year Treasury Yeild and Treasury Yeild , Exxon Beta http://finance.yahoo.com/q?s=%5EGSPC S & P 500 Yeild http://quicktake.morningstar.com/StockNet/bonds.aspx?Symbol=XOM&Country=USA bond shares outstanding and price...
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...Relationship Between Exchange Rate and Stock Prices in India – An Empirical Analysis By Golaka C Nath* and G P Samanta** Abstract: The dynamic linkage between exchange rate and stock prices has been subjected to extensive research for over a decade and attracted considerable attention from researchers worldwide during the Asian crisis of 1997-98. The issue is also important from the viewpoint of recent large cross-boarder movement of funds. In India the issue is also gaining importance in the liberalization era. With this background, the present study examines the causal relationship between returns in stock market and forex market in India. Using daily data from March 1993 to December 2002, we found that causal link is generally absent though in recent years there has been strong causal influence from stock market return to forex market return. The results, however, are tentative and we need further in-depth research to identify the causes and consequences of the findings. January 2003 * Manager, NSEIL, Bandra-Complex, Bandra (East), Mumbai – 400 051 ** Assistant Adviser, RBI, DESACS, C-8, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 051 The views expressed in the paper are those of the authours’ and not necessarily of the organizations they belong to. 1 Introduction The Asian crisis of 1997-98 has made a strong pitch for dynamic linkage between stock prices and exchange rates. During the crisis period, the world has noticed that the emerging markets collapsed due...
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...ExxonMobil practices a number of cultures which can be described as: Learning on the job in an informal open-door culture Instead of sitting behind the office training room, ExxonMobil requires their new employees get straight down to work. Basing decisions on Facts & figures At ExxonMobil, everything they do needs to be quantified and nothing is done based on a hunch or feeling. International environment ExxonMobil is active all over the world and has countless international affiliates, where you could be assigned. Results Oriented At regular intervals, you will meet with your supervisor to discuss your responsibilities and your performance. Career development & Training Special attention goes to the development & training of their people. Being a team-player Staff have to learn with and from each other. There is no room here for mavericks. Taking initiative & rising to the challenge At ExxonMobil, it is a real career. They will provide the opportunities…it’s up to individuals to step up, take initiative & rise to the challenge! http://www.esso.be/Benelux-English/careers_experienced_fit_culture.aspx How does the management or organization chart of the company works? ExxonMobil change their policy and physical state of the organization according to the demand of the time from merger and adoption. There is well communication connection across the organizations (http://www.ukessays.co.uk/essays/management/the-exxonmobil-corporation...
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