...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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...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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...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 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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...| | 10 | References | | 11 | Appendix | | Executive Summary The Exxon-Mobil merger of 1998 makes for an interesting Mergers & acquisitions discussion as one of the largest mergers in the history of Oil and Gas industry. The merger took place as the industry was undergoing a phase of rapid consolidation. Operational efficiency, oil reserves in emerging economies, constantly dipping oil prices and challenges in downstream operations were the defining factors of the landscape and drivers behind the merger. The success of the merger lies in the significant synergies derived , whether it be complementary asset locations, different competencies and stronghold over different geographical locations. The near term operating synergy was a whopping $2.8 billion. Risks however existed in terms of meeting anti-trust and regulatory concerns, retention of personnel and cultural differences. Exxon-Mobil post the merger would gain an exorbitant market share in key locations which would have a bearing on fair competition. This led to FTC handing out strict compliance requirements. However, with intense efforts by the leadership at these two companies, the merger has gone down in history as one of the very successful ones. Exxon capitalized on the marketing expertise of Mobil while continuing its core competency in exploration. The valuation multiples indicated that the price paid for Mobil was much below its intrinsic valuation, though it had been acquired at a premium. The...
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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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...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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...EXXON MOBIL Financial Analysis JUNE 2015 Prepared by: Maria Karpowicz-Wójcik Monika Tyburska Executive Summary This report was commissioned to analyze financial statements for years 2010- 2014 of Exxon Mobil. It presents overall review of this company’s history and business, as well as its strategies and mission. Additionally, this report presents an impact of Exxon Mobil on social and natural environment. Moreover it describes how the company communicates social and environmental issues. In analytical part of the report, we examined income statement and balance sheet for the above mentioned years. We looked for trends and presented them in form of graphs. Furthermore, this report shows calculations of financial ratios such as: • Profitability ratios • Liquidity ratios • Solvency ratios It presents trends over time and our comments. Exxon Mobil – the story of success Exxon Mobil Corporation is a motor fuel brand. The history of the company begun in 1870, when John D. Rockefeller and his partners established Standard Oil Company. This company was very successful for thirty years and by the year 1878, it was controlling 95% of US the oil industry. Because of the public protest that took place in 1911, the Supreme Court of the United States decided to divide one big company into 34 small companies. Two of these companies finally became...
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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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...Management Planning MGT 330r6 May 2011 Management Planning Introduction Rockefeller and his associates founded Standard Oil Company in Ohio in the 1850’s. They purchased a three-quarter interest in Vacuum Oil Company, this was purchased in 1879. In 1966 Standard Oil changes its name to Mobil after Standard Oil celebrates 100 years being in business. In 1972 Jersey Standard changes its name to Exxon Corporation with the approval from Jersey Standard shareholders during a special meeting. In 1997 Mobil introduces speedpass an electronic system which activates the pumps and charges credit cards. In November 1999 Exxon and Mobil join to form Exxon Mobil Corporation. This merger is to enhance their ability to be more effective global competitors. Ethic, Legal and Social Responsibility The ethical responsibility at Exxon Mobil is to comply with all governmental laws, rules and regulations. The corporation has chosen to have the highest integrity. Exxon Mobil expects compliance with its standard of integrity throughout the corporation and they will not tolerate any employees who achieve results cost in violation of law or who deal unconscientiously. Exxon Mobil Corporation has been conducting business in a manner that would be compatible for our environment and economic needs, which they operate to protect the communities in the safety, security, and health. The commitment they have for the community has been documented in the safety, security, health, environmental and...
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...Is LIFO Fair? Scott Olson/Getty Images Exxon Mobil Corporation, like many U.S. companies, uses LIFO to value its inventory for financial reporting and tax purposes. In one recent year, this resulted in a cost of goods sold figure that was $5.6 billion higher than under FIFO. By increasing cost of goods sold, Exxon Mobil reduces net income, which reduces taxes. Critics say that LIFO provides an unfair “tax dodge.” As Congress looks for more sources of tax revenue, some lawmakers favor the elimination of LIFO. Supporters of LIFO argue that the method is conceptually sound because it matches current costs with current revenues. In addition, they point out that this matching provides protection against inflation. International accounting standards do not allow the use of LIFO. Because of this, the net income of foreign oil companies such as BP and Royal Dutch Shell are not directly comparable to U.S. companies, which makes analysis difficult. What are the arguments for and against the use of LIFO? Answer: Proponents of LIFO argue that it is conceptually superior because it matches the most recent cost with the most recent selling price. Critics contend that it artificially understates the company's net income and consequently reduces tax payments. Also, because most foreign companies are not allowed to use LIFO, its use by U.S. companies reduces the ability of investors to compare results across companies. Source: David Reilly, “Big Oil's Accounting...
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...for more oil to deliver and continue to invest and research in renewable energy. From a company perspective, what if people stop using oil and find a better alternative that is cheaper, cleaner and more environmentally friendly? If this were to occur, oil companies can be in serious trouble. If they were to go bankrupt, tens of thousands of jobs could be lost which would be horrific for the economy. Gas is polluting the environment; therefore, oil companies need to promote an alternative source of energy. It is essentially a business decision that should be made because oil won’t last a lifetime. Moreover, Exxon Mobil is one of the largest publicly traded companies. They are the largest producer and distributor of oil. With the amount of income that they earn, they should have no problem paying for the research and investment in renewals. In 2008, Exxon Mobil did not want to invest and research in renewable energy until they were profitable without the financial support. Approximately 27.4% of shareholders wanted to significantly increase the investment in renewable energy. They demanded change. The overriding public demand in 2008 wanted Exxon to invest in renewals. A meeting took place in 2008 regarding a dispute over renewable energy. 5) Climate change has been a controversial issue on the rise for the past decade and is one of the many challenges that the world is currently facing. Automobiles are a major contributor of Carbon dioxide...
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