Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Thank you for your attention!!!

Climate Survey 1993

Early 1990's

  • internal reporting requirements
  • administrative processes
  • top-down policies

To make the most of its existing assets and focus more intensively on customers

McCool initiated major studies of business processes and organizational effectivness

  • flat demand for gasoline and other petroleum
  • increased competition
  • limited capital to invest in a highly capital-intense business

"...You didn't need an MBA to know we were in trouble"

Reorganization of USM&R, 1994

  • Exploration & Producing (the "upstream" business)
  • Marketing & Refining (the "downstream" business)
  • Chemical
  • Mining & Minerals
  • Real Estate

sales and distribution units

integrated refining, sales and distribution units

  • 17 Natural Business Units
  • 14 Service Companies

specialized products and proces units

Mobil Corporation

Fairfax, Virginia

Reasons for Reorganization

Harvard Business School

Goals of Reorganization

  • operates more than 100 countries
  • 18,9% increase in revenue
  • 2,8% return-on-capital-employed, 1995
  • 19,1% average annual return to shareholders

Mobil USM&R(A): Linking the Balanced Scorecard

  • exceed index S&P500 more than 2% points
  • "get staff costs under control"
  • "learn to focus on the customer"
  • "get everyone in the organization thinking"
  • USM&R decided to focus on 59% of gasoline buyers (first three segments)
  • upgrade all service stations
  • redesign and reorient Mobil's C-stores
  • newly developed strategy on customer segmentation

- Road Warriors (16%)

- True Blues (16%)

- Generation F3 (27%)

- Homebodies (21%)

- Price Shoppers (20%)

USM&R Balanced Scorecard

Results

  • USM&R's income per barrel = $1.02
  • Global operating return from refining, marketing and transportation operation = 10.1% per dollar

McCool concluded:

"In 3 to 4 years, we have come... to a company that ranks #1 in its peer group, and generates hundereds of millions of dollars of positive cash flow"

Learn more about creating dynamic, engaging presentations with Prezi