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Transcript of Exxon Mobil
Erik Andersen Chapter 3:Organizing in a Changing Global Environment ABOUT EXXON MOBIL WHO IS EXXON ?
WHAT DOES EXXON DO? Taking on the World's Toughest Energy Problems QUESTIONS Exxon Mobil is the largest publicly traded international oil and gas company.
They hold an industry-leading inventory of global oil and gas resources.
They are the world's largest refiners and marketer of petroleum products and chemical company ranks among the world's largest. Exxon Mobil uses innovation and technology to deliver energy and petrochemical products to meet the world's growing demand.
The Exxon team provides a competitive advantage and ensure broad exposure to high-quality opportunities.
The Corporation comprises of 10 separate companies, making up the Upstream, Downstream, and chemical businesses. Agenda Environment
Set of pressures and forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources
Two Types of Environment
General Organizational Environment Forces from outside stakeholder groups that directly affect an organization’s ability to secure resources
Consumers, distributors, unions, competitors, suppliers, and government
All influence and pressure organizational strategies Specific Environment Distributers and Suppliers
Supply chain management
Joint ventures with Canada’s Imperial Oil, Dutch Infineum, California’s Aera Energy LLC, and Russia’s Rosneft
54 manufacturing sites spread across 6 continents
Consumers worldwide for refined fuels, lubricants and petrochemicals
Revenue over $453 billion in 2012 Opportunities Technological
New technological advances allow them to reach lower costs and become more efficient
Integrated corporation (sell to markets for oil, gas, gasoline, diesel, and petrochemicals) Opportunities Competitors
The new “Seven Sisters”
State-owned, control more than one-third of the world’s total oil and gas reserves
Baytown refinery covered by United Steelworkers
Must conform to foreign government regulations and laws
Foreign governments can give subsidies to local business and create artificially low prices Threats Environmental
6 major oil spills since 1989. Billions in damages
Ranked 6th among corporations emitting airborne pollutants in the US in 2005
“One of the planet’s most hated corporations”
“See-no-evil” policy, drills into terrains leased to them by dictatorships (Nigeria, Chad, Equatorial Guinea)
Demographic and Cultural
Some cultures look into more sustainable, cleaner sources of energy Threats Forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources
Demographic and cultural, international, political, environmental, economic, technological General Environment Ways They Reduce Uncertainty -Use Of Continuous Process Technology: Utilizing State Of The Art Technologies and Processes. Utilizing Current and Future Technologies In Their R&D
Synthetic motor oils
Lighter Advanced Plastics Vehicle Parts
Hydrogen fuel Technology. Research & Development Into: -$125M to (NMSI)
-$110M to Combat Malaria in Africa
-Location Specific investments Community and Development -Maintain Consistency
-Avoid break downs and Pitfalls which negatively effect Business and Profits
-Decrease the opportunity for competitors to jump in and take markets shares
-Increase the chances of gaining Market Shares by exploiting the failures of competitors Why Organizations Reduce Uncertainty Priscilla Ramandeep Matt Rocco Eric About Exxon Mobil
What they do?
Who they are? Forces in an Organization
Specific & General Environment
Opportunities & Threats Uncertainty in Exxon How does Exxon reduce Uncertainty? Resource Dependence Theory
Transaction Cost Operations Integrity Management system (OIMS) Focus On Safety & Environment Franchising s-A leader in deepwater well containment and a technology Outsourcing Managing Competitive Interdependencies
- Obtaining Drilling Rights To Oil Resources
-Sales of Refined Petroleum Products Reputation Argues that the goal of an organization is to minimize its dependence on other organizations for the supply of scarce resources in its environment.
The resources one organization needs are often in the hands of other organizations. In the case of Exxon Mobile these organizations are world governments whom own the land which contains the oil. Resource Dependence Theory Reduction of uncertainty
As a company grows the bureaucratic costs increase.
Joint ventures and strategic alliances help keep bureaucratic costs to a minimum. Transaction Costs and Inter-organizational Strategies Alliances
Merger between Exxon and Mobile allowed for lower operating costs.
Improved both Exxon and Mobiles position within the industry to better serve more customers. Resource Dependence Theory and Transaction Costs Resource Dependency Theory & Transaction Costs
Uncertainty in the Environment Depletion of resource
Limited amount of Fossil Fuels
Exxon Mobil and their effect on the environment
Competition in the environment
Consumer and Government
Change in customer buying