By: Samuel Beatty

ExxonMobil and Strategic Management

y ExxonMobil finished second this past year on the Fortune 500 list, but had close to a 58 percent increase in profits. y They profited around 30 billion dollars this past year. y ExxonMobil is the leader in the petroleum industry due in part to their successful strategic management policies.

Mission Statement/Basic Strategies

y Exxon Mobil's corporate mission

statement is "ExxonMobil Corporation is committed to being the world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards. y ExxonMobil maintains a commitment to their shareholders, customer, employees, and communities. y One of their basic strategies is to "be at the leading edge of competition in every aspect of our business.

y That requires the Corporation's

resources financial, operational, technological, and human to be employed wisely and evaluated regularly." y ExxonMobil tries to maintain flexibility to adapt to change. y The nature of their business requires a focused and long term approach. y "We will consistently strive to improve efficiency and productivity through learning, sharing, and implementing best practices."

Competitive Advantage
y ExxonMobil also has many

competitive advantages in their industry. y One of them being the amount of research and development they do and the benefitting technological discoveries they get from doing this. y They also have a superior global network than all other petroleum companies in their industry. y These are just a few of ExxonMobil s competitive advantages.

Competitive Advantages
y ExxonMobil s competitive

advantages have helped them maintain the title as the leader in all industries that they participate in. is their commitment to technology.

y Another one of their key advantages y ExxonMobil maintains a strong

proprietary commitment to technology in all of their industries.

y Other advantages they have include

a global functioning organization, solid employees, financial strength, and an outstanding portfolio of opportunities to name a few.

ExxonMobil R&D
y ExxonMobil uses innovation and

technology to deliver energy and petrochemical products to meet the world s growing demand. y Their people, technical expertise, financial strength, and global reach provide a competitive advantage and ensure broad exposure to high-quality opportunities from conventional exploration to opportunities that require close integration across our businesses." y Their extensive research programs support operations, enable continuous improvement in each of their business lines, and explore new and emerging energy sources and technologies. y The Corporation comprises 10 separate companies, making up the Upstream, Downstream, and Chemical businesses.

Exploration and Resources

y ExxonMobil exploration is credited

with finding and adding new oil and gas resources to replace those that have been used and to enable production growth. y ExxonMobil has their industry's strongest exploration portfolio and has ongoing activities in more than 40 countries around the world. y "They have over 61 million undeveloped acres and an industry leading total resource base of 72 billion oil equivalent barrels." y ExxonMobil is also the largest non government marketer of equity natural gas.

ExxonMobil Success
y ExxonMobil has several key

success factors. y One of the main key success factors of ExxonMobil is their supreme management leadership and their ability to get projects going. y Another one of their key success factors is the extent of their resources and the balance of resources that they have. y They are located throughout the world and control a huge part of their market because of the key success factors that they are able to maintain.

Business Strategy
y The long term vision of

ExxonMobil is to "establish prominent position in the Japanese Oil Industry and within the Global ExxonMobil Group." y Their basic management philosophy is to ensure flawless operations, improve efficiency and profitability, and to increase shareholder's value. y ExxonMobil's profit margins have been off the charts the last several years and this is due to their strategic business strategies.

Vertical Integration
y ExxonMobil has done a very good

job of using vertical integration to achieve their company goals and to take control of each market niche in each respective industry.

y "Vertical Integration involves entry

into new markets and channels of distribution within the same industries."

y ExxonMobil is vertically integrated

in almost every aspect of oil, exploration, drilling, and petrochemical refining.

ExxonMobil: A Global Company

y ExxonMobil is located throughout the

world and has become the largest oil company in the world.

y They have successfully expanded to

countries all over the world which has allowed them to explore and become the leader in all of their industry's.

ExxonMobil is an international company that has become successful because of their expansion into the global market. lucrative profit returns, ExxonMobil knows no geographic limits.

y Because of international expansion and

ExxonMobil Alliances
y ExxonMobil is such a strong and powerful company that it is no surprise that they dominate their market with the largest of oil refineries. y However, ExxonMobil also makes lubricants and petroleum specialty products and is the world's number one supplier of lube basestocks.

ExxonMobil Alliances
y "ExxonMobil provides

lubrication solutions for automotive, commercial, industrial, marine and aviation customers in nearly 200 countries and territories. ExxonMobil's establishment of global alliances with automobile manufacturers, equipment builders, and industrial manufacturers such as GM, Toyota, and Daimler to name a few.

y " This has led to

Mergers and Acquisitions

y ExxonMobil has been involved in many acquisitions over the years. y They have bought a lot of smaller energy company's to help with their growth and success. y ExxonMobil has made 69 acquisitions while taking stake in 40 different companies.

Organizational Structure
y ExxonMobil is one of the world's largest if not the largest publicly traded international oil and gas company. y ExxonMobil holds an industry leading inventory of worldwide gas and oil resources. y They are the world's largest refiner and marketer of petroleum products.

Organizational Structure
y They also have a chemical

company that is among the globes largest.

y ExxonMobil is also a technology

company, applying science and innovation to find better, safer, and cleaner ways to deliver the energy the world needs.

y This is just the basis of what

ExxonMobil does and there are many different ways they implement their functional strategies.

Functional Structure

Risk Factors
Economic and Industry
y ExxonMobil has a number of

Political Factors
y Political instability or lack of

risk factors to consider as a company. y General economic growth rates and the occurrence of economic recessions, and the development of new supply sources. y These are just a few of the economic and industry factors that ExxonMobil has to consider.

well-established and reliable legal systems in areas where the corporation operates, y other political developments and laws and regulations, environmental regulations, restrictions on exploration, production, imports and exports, y price controls, war or other international conflicts, and civil unrest.

Corporate Governance
y y y y y

"Good governance is essential for creating an economic climate conducive to large-scale investments leading to the long-term viability of business and the economic development of the communities where we operate." ExxonMobil has a board of directors that sets up the guidelines and policies which the company adheres too. They have employee directors and non employee directors so as to try to prevent agency problems from occurring. They hold eight board meetings a year which they discuss how the company is doing and what the future plans of the company are. The directors are elected at the annual meeting of shareholders and are held responsible for their actions and the decisions they make such as the appointing of a new CEO.

Resources
y http://www.exxonmobil.com/Corporate/Newsroom/Publications/XOMGlo y y y y y y y y

balCap/page_4.html http://siteresources.worldbank.org/EXTGGFR/Resources/5780681268075357274/6844507-1268075388170/1000-1020_Cavazos.pdf http://www.exxonmobil.com/Corporate/Newsroom/Publications/XOMGlo balCap/page_2.html http://www.focusa.com/services/diverse.htm http://www.exxonmobil.com/Corporate/default.aspx http://www.exxonmobil.com/Corporate/Newsroom/Publications/XOMGlo balCap/page_5.html http://www.alacrastore.com/mergersacquisitions/Exxon_Mobil_Corporation-1005850 http://www.exxonmobil.com/Corporate/about_who.aspx http://www.exxonmobil.com/Corporate/investor_governance_guidelines.a spx