Mobil USM&R

1. In 1992, USM&R had reported an operating loss from its refining and marketing
operations.
2. Relationship with customer was adversarial and people were working to enhance their
own results.
3. McCool decided to reorganize 17 Natural Business Units and 14 Service Companies.
4. Cost is to be controlled but more important is to understand customer better, top three
segments which comprise of 59% of total gasoline buyers, which are Road Warriors,
True Blues & Generation F3.
5. Upgrading all service stations and redesigning the C-stores.
6. The new strategy is to offer fast friendly & safe service to the three targeted customer
segments.
7. The previous approach was that for a short term profits that when volumes decline,
marketing people achieve targets by changing prices, this is not linked with
organization’s mission and strategy.
7.1. Align the organization to Balance Score Card Strategy
7.2. Translate this to operational teams by strategy maps and balance scorecard
7.3. Mobilize change executive leadership
7.4. Making it a everybody’s job by linking it with compensations
8. Through Balance Scorecard identifying perspectives: financial, customer, internal
business process and learning & growth. Where identification of two broad customer
categories the extensive network of dealer who purchased gasoline and petroleum
products from Mobil and other was customers who purchased Mobil produces from
independent dealer.
9. The goal was to increase the profit of dealers and marketers of Mobil products, as
measured by Total Gross Profit of dealers and the monthly gross margin from
Alternative Profit Centers – convenience stores and service bays.