...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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...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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...Exxon Mobil: Company Overview: Exxon Mobil Corporation is an American multinational Oil and gas corporation. It is one of the largest publically traded companies by market capitalization in the world with its operations spanning several continents. The Company was formed on November 30, 1999 by the merger of Exxon and Mobile (ExxonMobil, 2011). Exxon Mobil explores, produces and distributes natural gas and crude oil and also manufactures and distributes petroleum products. It also produces and sells petrochemicals such as polyethylene, aromatics, olefins, polypropylene plastics and other products. It has interests in thirty seven refineries world wide. It also markets its products through more than thirty two thousand retail stations worldwide (ExxonMobil, 2011). Types of market and legal systems that exist in countries that Exxon Mobil operates: Exxon Mobil has operations spanning several countries in the United States, Europe, Australia/Oceania, Asia, Africa, and Canada/South America. Market systems that exist in these countries range according to various policies that regulate the market place operations. In countries such as the US, Australia, Canada, countries in South America, Western Europe and some parts of Africa and Asia, the kind of market systems that exist are basically mixed market economy systems. In these systems, a bigger part of the market is controlled by the prices, demand and supply of commodities with few government regulations. In other regions...
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...Risk Associated in the business in the business diversification activity 1. Creation of a new or common corporate culture between Exxon and Mobil 2. Retention of key employees with the right knowledge and expertise 3. Meeting regulatory and anti-trust requirements to prevent dissolution and maintain competitiveness Merger Risks Unfortunately, any merger between two established companies creates challenges that must be overcome in order to achieve the projected benefits. These include creating a new/common culture as opposed to the distinct cultures of the independent companies, meeting regulatory and antitrust requirements to assure the continued functioning of a competitive marketplace, and retention of key personnel to reap the benefits of their knowledge and expertise. The companies have significantly different corporate cultures. Exxon is a conservative company with a strong ethic of following the rules handed down from above, while Mobil is more liberal and expects individuals to think for themselves and develop their own solutions to the problems that arise. On the regulatory front, as the top two U.S. oil companies, there are many markets throughout the United States where Exxon and Mobil dominate the sale of gasoline, either through directly-owned filling stations or through franchisees. It is highly probable that regulators will require divestiture of some filling stations and release of some franchisees from their contracts in order to maintain...
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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 is the largest U.S. Company in the world and it participates in three very profitable industries: Mining/Crude-Oil industry, Petroleum Refining, and Chemicals. Exxon Mobil is a multinational oil and gas corporation. They have evolved over the past 125 years as a regional marketer of kerosene in the U.S. to the largest publicly traded petroleum and petrochemical enterprise in the world. Today Exxon Mobil operates in most of the world's countries and is best known by their familiar brand names: Exxon, Esso and Mobil. They make the products that drive modern transportation, power cities, lubricate industry and provide petrochemical building blocks that lead to thousands of consumer goods. Exxon Mobil was founded by John Rockefeller and his associates in 1870 originally named standard oil company. By 1882 Standard Oil Company was renamed Standard Oil Company of New Jersey (Jersey Standard) and the Standard Oil Company of New York (Socony). Standard Oil broke up into 34 unrelated companies after a U.S. Supreme Court ruling, including Jersey Standard, Socony, and Vacuum Oil. After 100 years in business the company went through yet another name change to Mobil Oil Corporation. In 1972 Jersey Standard becomes Exxon Corporation. In November 30, 1999, Exxon and Mobil join together to become Exxon Mobil Corporation. The merger increased their ability to be a more effective global competitor in the volatile economy and in an industry that is very competitive. In 2005 both Exxon...
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...ExxonMobil Case Study ExxonMobil Corporation, the parent of Esso, Mobil and ExxonMobil companies, offers a wide range of products and services. The corporation provides a full product cycle, starting with geological exploration of John D. Rockefeller and ending with delivering oil-related products to corporate and individual consumers. The three principal markets Exxon Mobil Corporation serves are fuels, lubricants and specialties, and petrochemicals. With regard to the corporation’s fuel products and services, it delivers them using the business-to-business model across three key segments, Industrial and Wholesale, Aviation, and Marine. Exxon’s main business is discovering, producing, and selling oil and natural gas all over the world. By association with the Standard Oil Trust, in 1890 Congress passed the Sherman Antitrust Act to outlaw its monopoly. This Act allowed Exxon to merge in 1972 with Mobil to form Exxon Mobil. The story of ExxonMobil illustrates the importance of interactions between one large cooperation, governments, and society. Exxon Mobil as a current cooperation has transcended from a miniature pawn in Rockefeller’s industry into one of the top suppliers in the worlds industry of oil. Although Rockefeller’s influence is buried in the passage of time, ExxonMobil’s actions remain consistent with his nature except for his philanthropy. The emphasis on cost control, efficiency, centralized organization, and suppression of competitors still occurs but to a certain...
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...Chairman and CEO of ExxonMobil stated in 2012s summary annual report “unrelenting focus on creating long-term value is the commitment we make to all who place their trust in ExxonMobil by investing in our stock… our unique competitive advantages and steadfast commitment to ethical behavior, safe operations, and good corporate citizenship enable us to deliver long-term value to our shareholders while helping to supply the world’s growing demand for energy” (pg. 5). Exxon continues to deliver “superior results” to its shareholders. As I looked over Exxon’s summary annual report for 2011 and 2012, it was clear that the majority of the oil company’s assets were tangible. According to Investopia.com (2014) tangible assets are “assets that have a physical form…they include both fixed assets, such as machinery, buildings and land, and current assets, such as inventory.” Both the 2011 and 2012 summary annual reports have the majority of its tangible assets in its property, plant and equipment portion of the balance sheet. Exxon Mobil Corp.'s current, quick, and cash ratios improved from 2011 to 2012. The company’s Net Income was $41,060, 000 (2011) to $44,880, 000 (2012), which is a positive move and an increase of $3,820,000 or a little of 9%. Cash flows for the same period moved negatively, about $11,305,000 or a little over 65%. The cash flow statement is broken down into three different categories, such as, operating activities, investing activities, and financing activities. Operating...
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...Exxon Mobil is an oil and gas company that was founded in 1999; a merger of Exxon and Mobil. It is a Descendant of John D Rockefeller’s Standard Oil Company (Exxon Mobil). Exxon is a US based company with its head quarters located in Irving Texas, even though it is considered an international corporation. Exxon Mobil is considered the world’s largest publicly traded international oil and gas company, and has even been ranked as the number one traded company in the world. Currently Exxon is traded on the New York Stock Exchange, is a Dow Jones Industrial Average Component as well as a S&P 500 Component (Exxon Mobil). When it comes to oil, Exxon Mobil does it all. With 102,700 employees, Exxon has broken its operations into two main categories Upstream and Downstream (Yahoo Finance). Exxon does partake in other types of operations such as it operates coal mines and has its own IT, real estate, help center, as well as an engineering and chemical research and development department which fall under the umbrella of Exxon Mobil Corp (Exxon Mobil). Exxon’s two main divisions are incredibly important in keeping its industry advantage, where the Upstream sector is responsible for the exploration of new resources in an efficient and economical manner. The Upstream sector also extracts resources and then deals with the wholesale and distribution of the minerals. The Down Stream operations include refining the mineral and managing retail operations and marketing. Due to Exxon’s vast...
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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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...Intro Exxon Mobil is one of the most successful businesses in the history of the United States. Though it did not start as Exxon, but evolved through splitting and joining of oil companies, it has always been a strong competitor in the field of oil sales. Exxon is now one of the top companies in the world, and has its eye on growth. According to Fortune 500 Exxon is the second largest company in the world, and though it is not the number one largest, it is the most profitable. In 2011 Exxon’s profits topped $30 billion, a whopping 58% jump. Background In 1870 a man named John D. Rockefeller founded a company called Standard Oil Company and by 1878 it controlled 95% of the US refining capacity. By 1911 the Supreme Court of the United States[->0] ruled that Standard Oil must be dissolved and split into 34 different companies. Two of these companies were Jersey Standard[->1], which eventually became Exxon, and Socony[->2] which eventually became Mobil. [5] Both companies grew significantly over the next few decades. In 1931, Socony merged with Vacuum Oil Co.[->3], an industry pioneer dating back to 1866. In 1966, Socony-Vacuum changed its name to ‘Mobil Oil Corporation’. A decade later, the newly incorporated Mobil Corporation absorbed Mobil Oil as a wholly owned subsidiary[->4]. Jersey Standard, led by Walter C. Teagle[->5], became the largest oil producer in the world. Jersey Standard changed its name to Exxon Corporation in 1972 and established Exxon as a trademark throughout...
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...S&P 500 Exxon Mobil’s (XOM) stock prices seem to follow the same trend line as the market. When market prices are high, Exxon’s stock prices are equally high, and when the market declines, so do the prices of Exxon stock. For the most part, Exxon’s stock follows the market trend. The difference between the market and Exxon’s prices seems to be that Exxon’s prices typically fall below the market trend line. Although Exxon’s prices range lower than the S&P over the six months studied from May 5, 2010 to November 5, 2010, Exxon’s stock prices clearly show a correlation to the market prices. With this correlation, Exxon’s prices ebb and flow with the market, but Exxon’s prices in the short-run versus longer periods of time seem to move up and down more vigorously where as the market remains more consistent on a short-term basis. See attached chart. Exxon Mobil is one company who over the past few years despite the recession has been able to post record profits. But, increasing sales and profitability is not always that easy. Despite having gross profits no less than $124,000,000 in 2009, Exxon actually shrank in 2009 versus 2007 and 2008. Exxon’s gross profit went from $171,000,000 in 2007 and ballooned to $188,000,000 in 2008 showing a growth change of +9.8%. While from 2008 to 2009, Exxon’s gross profits went from $188,000,000 to $124,000,000 shrinking nearly -34% from the previous year. While both 2007 and 2008 Exxon had a net income over $40,000,000, in 2009 Exxon couldn’t...
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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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...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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...Research N BECG 045 ot The Exxon Valdez Oil Spill D o This case was written by Jaya D. Sangtani, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2005, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- electronic or mechanical, without permission. To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org BECG/045 THE EXXON VALDEZ OIL SPILL “ExxonMobil’s tactics are well-known, and this is a classic case of deny, dupe, and delay. Just as it denies the science on climate change, it denies that oil from the spill is causing damage in the Prince William Sound. And on both issues it is running campaigns to dupe the public into thinking it is an environmentally and socially responsible corporation.”1 - Anita Goldsmith, Greenpeace International Campaigner. “Exxon would meet its obligations to all those who have suffered damage from the spill.”2 op INTRODUCTION Lawrence Rawls, Chairman, Exxon. y - ot C On March...
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