...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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...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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...Financial Ratios Dora Massey ACC205 Principals of Accounting 1 Instructor Brandy Havens October 6, 2014 In the world of business things can go right or wrong, there are many factors involved. Investors try to analyze a company by looking at and comparing different ratios. Ratios are divisible into categories such as liquidity measure, turnover and profitability. The quick and current ratios are monitored by investors to check the liquidity of a company. While knowing about a business is important, ratios are way to monitor and manage a business. The company that I chose to analyze is Exxon Mobile. This company produces oil and is the worlds largest publicly traded international oil and gas company. Exxon mobile applies science and innovation to find safer and cleaner ways to deliver energy. Their guiding principals are to achieve superior financial and operating results and have high ethical standards. This company incurred more than $1.40 in taxes for every dollar of net earnings. Although they are below the average of 8.6 cents per dollar of sales for all manufactures. In 2012 they had 26 billion to shareholders. According to George S. Ford the profit margin of major oil companies are...
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...Business Analysis 11 By Gloria Rodriguez MTG/521 December 5, 2011 Analyzing a business environment like Chevron’s is important, so that investors can determine if Chevron is a company one can invest in. Researching a company’s business environment is helpful to further secure business decisions. Careful consideration must be taken, and a closer review of historical financial statements is suggested to determine the company’s financial health. One way to determine a company’s health is by reviewing a company’s business environment, analyzing a company’s income statement, balance sheet, and statement of cash flows. Chevron is known to be one of the top profitable Fortune 500 Company. A recent SWOT analysis was completed determining Chevron as good company to invest in. Although, Chevrons SWOT was determined successful the mutual fund manager has to determine if the company is also successful in his or her their finances. There are five areas in a company’s business environment. The five areas of a business environment are economic, technical, competitive, social, and global business. Nickels, McHugh, and McHugh (2010) “Business environment consists of the surrounding factors that either help or hinder the development of businesses.” Businesses surrounded by a stable business environment can function successfully. Businesses that focus on their business environment closely can to make changes accordingly. Nickels, McHugh, and McHugh (2010) “Businesses normally can’t control;...
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...Analysis of Chevron Introduction Chevron Corporation is a multinational energy company that is based in the United States. It is the second largest U.S oil company after Exxon Mobil Corporation, and is also the fourth largest oil company in the world. Chevrons mission statement is “At the heart of The Chevron Way is our vision… to be the global energy company most admired for its people, partnership and performance.” Chevron was first founded in 1876 as Pacific Coast Oil Company in California. At that time oil started to gain a market and have a higher value. Pacific expanded dramatically after the discovery of oil in Saudi Arabia. Twenty years later, the company merged with Iowa Standard, forming Standard Oil California (Socal) as the new company. Socal successfully gained a market in the United States and Asia. In the 1970’s, the rise of the Organization of Petroleum Exporting Countries (OPEC) cast Socal out of the Middle East region, which caused a great loss to the company. In 1984 Socal purchased Gulf Corporation for $13.2 million, which, at the time, was the largest oil producer and distributer in the Middle East. Acquiring Gulf Corporation doubled Socal’s oil and gas reserves. As a result it generated great profit to the company by the late 1990’s because of the increase of gasoline prices. Socal also changed its name to Chevron during that period of time. Chevron grew and expanded because of the amount of subsidies and mergers that it gained from every region they operated...
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...Exxon Mobil External Analysis By: Travis Smith, James McKiernan, Tom Johnson, and Peter Ackley Analysis of the industry This industry is controlled by several large corporations, and many smaller organizations. It is difficult to enter into this market because of the high entry barriers. There are many small exploration companies that contract out to the big players of this industry such as ExxonMobil and the members of the strategic group. Some small exploration companies are Continental Energy Corporation, Atlantic Petroleum, and Anadarko Petroleum Corporation. Anadarko Petroleum Corporation works hand in hand with Beyond Petroleum, and was indirectly involved with the oil spill in the Gulf of Mexico. The members of Exxon’s strategic group consist of Beyond Petroleum, Conoco Phillips, and Chevron. These members are a part of the strategic group because they explore, produce, refine and market oil and gas. A reason why we didn’t pick Royal Dutch Shell is because we found that they have a joint venture with Exxon Mobil. With the recent hunches of more regulation in the oil industry, these corporations are investing in natural gas companies. In order for these companies to remain competitive they need to always be innovative and creative. This is another reason why we picked these three members as a part of the strategic group. Conoco Phillips is the smallest one in the strategic group bringing in only $16.99 million in net income at the end of 2008 (ConocoPhillips, 2008)...
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...Introduction World Economic Forecast. According to the World Economic Forum 2014, leading financial experts told participant that that the global economy was cautiously optimistic. Even though the global economic activity has strengthened; and global growth is expected to be 3.7 percent in 2014 and 3.9 percent in 2015, old risks are still present and the coming years might bring volatility. Therefore how governments plan to recover from the economic meltdown might determine whether there will be inflation or deflation. In emerging economies exports are the main drivers of growth activity; demand of goods from the advanced economies will lead to growth although domestic conditions may also interfere with the growth. Although many emerging markets have started to benefit from increased external demand their domestic growth has been slower than expected, this has been attributed to political uncertainty, policies and bottlenecks, which has affected investments negatively. These countries include Brazil, Russia, Middle Eastern countries and North African Countries. (World Economic Outlook Update, January 2014) In the U.S, federal budget deficit has fallen and banks are recapitalizing and working off bad loans. There will be no additional fiscal austerity at the federal, state and local government level meaning that there will be no budget cuts, spending will likely remain the same or go up stimulating the economy, and accelerating GDP from an average of 2.2 in the last four years...
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... Steven Madden, Ltd. Exxon Mobil Johnson Controls, Inc. Canadian National Railway Company Microsoft Corporation Baidu, Inc. Telecomunicacoes de Sao Paulo SA, Inc. Kellogg Company Spreadtrum Technologies, Inc. Section 3. Security Transactions Section 4. Portfolio Breakdown Industry Diversification Portfolio Beta Section 5. Investment Results Portfolio Performance vs. Benchmark Indices Section 6. Summary Section 1. Objective and Strategy Introduction The JMYJ Equity Fund (the “Fund” or the “portfolio”) is an equity fund with an initial capitalization of $100,000. The Fund is managed by a group of four xxxxxx Graduate School of Business students. The Fund made its first investments on September 12, 2010. This report covers the period from September 12, 2010 until November 8, 2010. Throughout this report we refer to this period as the “investment period”. Investment Objective The Fund is allocated so that it may accomplish three objectives: growth of capital and the conservation both principal and current income. Investment Strategies The Fund invests primarily in common stocks. Selection of the Fund’s assets was based on a top-down investment approach. Based on our macro analysis, we decided to invest approximately 75% of the fund in equity...
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...The Hess Corporation is a leading pioneer in the energy industry sector, which conducts Marketing and Refining (M&R) as well as Exploration and Production (E&P) operations in 23 countries. They have a concentrated focus in the exploration, production, purchase, transportation, and sale of crude oil and natural gas as well as markets refined petroleum products, natural gas, and electricity. This company owns thousands of Hess gas stations, which include small convenience stores or Dunkin Donuts stores, throughout the East Coast of the United States to hundreds of thousands of acres of land in the North Dakota Bakken oil shale play. Internationally, Hess Corporation owns many other hundreds of thousands of acres in land where they conduct other exploration and production of crude oil and natural gas. Hess Corporation currently has a net income of $1.7 billion and transports more than 700,000 barrels of crude oil and other products daily via tankers, barges, pipelines, and production platform sales. However, there have been some important market changes and trends, which companies like Hess Corporation must pay close attention. Adapting to change is essential in the world of business. During today's economy and competitive environment, organizations can be certain of uncertainty. Change is occurring everywhere and is forcing business executives to review how the evaluate markets, technology, human resources, and competitiveness. For example, prior to the invention of the...
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...Financial analysis TOTAL : * Business : Total sale many products: Gas, oil, Liquefied natural gas, electricity, coal, GPL, Petcoke. Total operate in all sectors of the oil industry, its activities are divided in 4 sectors: * Upstream sector: Exploration-Production, Gas &Powder. * Refining chemistry: Refining-chemistry, Trading-Shipping. * Marketing & Services: Marketing & Services, News energies. * Investissements: Investissements achieve, Planned investissements. Outcomes by sector: - Upstream Sector: Refining chemistry: - Marketing & Services: The benefit from the financial statements of TOTAL SA, parent company, amounted to EUR 6,031 million in fiscal 2013 against 6 520 million for fiscal 2012. * Customers: Marketing & Services includes all commercial and supply the Group's customers in petroleum products and related services activities. Marketing & Services business Total develops, supplies and markets petroleum products and related services. It covers: - The commercial activities of stations (for light and heavy vehicles); - General trade of fuels, biofuels, domestic and heavy fuel oils, lubricants, LPG, bitumen, aviation fuels, special fuels and additives & special fluids. Moreover, Total has a network of international distribution. The distribution of Total fuels are more than 15,000 service stations and serves approximately 3 million of customers per day. Products of the...
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...parts on horse drawn wagons moving friction-free. One of the other companies, the Angelo-Persian Oil Company was formed in 1905. By 1908 they were producing gas products and in 1912 they discovered a way to double the output of gasoline produced from a barrel of oil. At the same time they were able to find a way to increase the octane level of the gasoline produced. Industry Analysis Today, British Petroleum is one of the largest energy companies in the world. They provide their customers with fuel for transportation, energy for heat and light, retail services and petrochemical products for everyday household use. British Petroleum is involved in exploring for oil and other natural resources that can be converted into power. British Petroleum is committed to finding fuel sources that reduce green house gases and reduces the carbon footprint. They hope to accomplish as they research and refine alternative fuel sources such as fossil fuels, solar power, wind power, hydrogen, and natural gas. Competition in the oil and energy industry is furious. British Petroleum competes with companies like Exxon-Mobil and Chevron in three major sectors; Energy and Utilities, Chemicals, and Retail. These major players have been able to keep the competition high by finding economies of scale in production, and finding more and more ways to automate the processes. The output in the industry is expected to grow at an annual compounded rate of 5-7 percent between 2007 and 2012. Domestic production...
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...Why do organization bring in outside consultant to manage the organizational change process ? Change management is essential for organizational development in dynamic environment. Any change is likely to be resisted by the employees, if their confidence in the organizational system evaporate. The role of external change agent is to establish the faith and confidence of the employees on the organizational management system, as a first step. Effective change management depends on absorptive capacity of the organization and adaptive skill of the employees. The same may be assessed and suitable measures may be suggested by the external change agent. Further organizational architecture and agility are important factors in quick decision making and adaptation to change. The external change management agent may study and suggest the suitable measures for improvement. Introduction to change management Change is only permanent feature of our life. Life of individuals and organizations are evolving ever since their creation. Modern companies are in a state of cultural change. From working more or less alone to solving specific tasks, we are now required to work in an interdependent way. Teamwork is vital. These changes require that we change what we expect from the co workers. We have to change the values we highly believe. Values like awareness, teamwork, tolerance, responsibility and information are paramount - just as flexibility and change readiness. Team work make in imperative...
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...eat turkey. This results in a spike in demand for turkeys in the weeks before Thanksgiving. Despite this, the price of frozen turkeys usually falls in the weeks leading up to Thanksgiving. Explain why using the economics of demand and supply. [3 points] Answer: The merchants predicted the increase in demand during thanksgiving and stock up more frozen turkey supplies beforehand. Therefore, the supply of frozen turkey increases far more than demand, leading to a surplus of frozen turkey. The surplus causes the fall in frozen turkey price in the weeks leading up to Thanksgiving. b) In contrast to frozen turkeys, the price of fresh free-range turkeys normally increases in the weeks leading up to Thanksgiving. Using demand and supply analysis, explain why this might be the case? [3 points] Answer: Unlike frozen turkey, the fresh free-range turkeys cannot be stock up too for long beforehand, otherwise, the quality will be lowered. Compared with the strike increase in demand, there are not enough supplies of fresh free-range turkey. Therefore, the shortage of fresh free-range turkeys leads to the increase in the price of fresh free-range turkey. c) The cross elasticity of demand between the price of fresh turkeys and demand for frozen Turkeys is 0.23. What does this figure tell you about the relationship between the two different types of turkey? [2 points] Answer: this figure shows these two demands are cross-inelastic. In other words, the change in price of fresh turkey...
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...AMAZON.COM: GLOBAL STRATEGIC ANALYSIS IN INTERNET AND ONLINE INDUSTRY: THE FUTURE OF ONLINE SHOPPING COMPETITION SYSTEMS. 5/6/2015 Group Global Strategic Analysis Project for MGMT 471 Role of the Global Corporation Executive Summary Amazon.com, Inc. is an American electronic commerce company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the United States.[12] Amazon.com started as an online bookstore, but soon diversified, selling DVDs, Blue-rays, CDs, video downloads/streaming, MP3 downloads/streaming, software, video games, electronics, apparel, furniture, food, toys and jewelry. The company also produces consumer electronics—notably, Amazon Kindle e-book readers, Fire tablets, Fire TV and Fire Phone — and is a major provider of cloud computing services. Amazon also sells certain low-end products like USB cables under its in-house brand Amazon Basics. Amazon has separate retail websites for United States, United Kingdom & Ireland, France, Canada, Germany, The Netherlands, Italy, Spain, Australia, Brazil, Japan, China, India and Mexico. Amazon also offers international shipping to certain other countries for some of its products.[13] In 2011, it had professed an intention to launch its websites in Poland[14] and Sweden.[15] Names of All Group Members Awes Alrefae 8993 Yaman Naqawa 8282 Ahmad Alazmi 11608 Mohammed Alghoul Amazon.com: Global Strategic Analysis in internet and online industry: The Future of online...
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...manufactures personal computers, related software and mobile communication devices. It designs Mac laptops and software such as OS X, iLife and iWork. Apple was a pioneer in digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with the iPhone. Apple has recently introduced its iPad which is drastically changing mobile media and computing devices. The company's products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, iTunes Store, and many other software services. It sells its products worldwide through its retail stores, online stores, direct sales force, and third-party cellular network carriers. Notable U.S. cellular companies that currently offer the iPhone are at&t, Verizon, and Sprint. The company also sells a variety of third-party Mac, iPhone, iPad and iPod compatible products. Which include application software, printers, storage devices, speakers, headphones, etc. In the previous months Apple’s stock price has increased over $200 per share. Many analysts claim that this spike is due to the high productivity and retained earnings that Apple disclosed in last quarter’s financial statements, as well as the company’s recent declaration that they will be paying dividends in the future. 2. Intrinsic Value Analysis: A. Multiple Analysis i. We used Google, HP, IBM, and Microsoft as Apple’s comparable companies to perform the multiple analysis. ii. We found the competitors average P/E, P/S...
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