AbstractLocation, location, location – this seems to be one of the oldest cliché concerning items from retail to widgets. Having the right products in the right place, the right form of outlet, eager customers and you have the profits just rolling in. This is true even in the petroleum sector. Having the right road, great traffic flow and a well-positioned location and Bingo!-Profits just rolling in. This paper is about number one of the world’s multinational oil companies, Exxon Mobil Corporation.
Strategic Planning: ExxonMobilIntroductionLocation, location, location – this seems to be one of the oldest cliché concerning items from retail to widgets. Having the right products in the right place, the right form of outlet, eager customers and you have the profits just rolling in. This is true even in the petroleum sector. Having the right road, great traffic flow and a well-positioned location and Bingo!-Profits just rolling in. This paper is about number one of the world’s multinational oil companies, Exxon Mobil Corporation. Exxon Mobil Corporation, an American multinational oil and gas corporation is a direct descendant of the original Standard Oil Company formed on 30 November 1999 and is headquartered in Irving, Texas, and is affiliated with Imperial Oil out of Canada (Exxon). Strategies:
According to their strategic planning website, ExxonMobil is managed to enhance long-term shareholder value. Following will be the strategic planning utilized by ExxonMobil to meet both shareholder and customer expectations. Maintaining a leadership position in core businesses—Exxon Mobile strives on being at the top of the most efficient list of competitors in every aspect of their business.
They have developed the technique of capturing quality investment opportunities while still maintaining a selective and disciplined approach (ExxonMobil Strategic Planning, 2000). They are capable of maintaining high superiority in their portfolio of dynamic assets, while developing and engaging the best technology. Exxon Mobile also has ensured that they have inoffensive, safe and environmentally sound operations while continually striving to improve on their already high quality working force which is located in a high-performance world-wide climate across the organization.
They must maintain that they have a strong financial position and must also ensure that their financial resources are otherwise employed wisely. Investment Discipline—in today’s world, Exxon Mobil has taken their high investment standards and their adherence to essential fundamental strategies to produce greater long-term returns. In addition, they take their long term outlook results and transfer them into a stable investment portfolio throughout the business world, yet avoiding the difficulties and inefficiencies that are connected with varying yearly changes in customers spending levels.
Potential investments are tested by Exxon Mobil over various ranges of financial scenarios and select only those projects that have the capability of providing a robust return. In return, the long term results and stable investment portfolio(s) allow them the opportunity of pursuing attractive and lucrative options during the time when other corporations are not able to pursue these same options, and this opportunity thus improves the quality of their earnings over time (ExxonMobil Strategic Planning, 2000). Financial Position—Exxon Mobil has one of the strongest financial capacities of any corporation in the world.
Their AAA credit rating, which has been sustained by their company for 81 years, provides ready access to large quantities of capital at very attractive rates (ExxonMobil Strategic Planning, 2000). It is this strong financial positioning and subsequent proven record of sensible business management that make Exxon Mobil a much welcome partner for any major petroleum or petrochemical project. Asset Management—Exxon Mobil utilizes a well-ordered reviewing process to ensure that all of their resources are actually a contributing factor to the corporation’s strategic and financial objective.
The management then focuses on the improvement of performance in their existing assets by utilization of cost reduction and enhancing productivity. As the global business climate changes, some of their assets become candidates for high-grading (the practice of selecting only the most healthy or valuable individuals in harvesting a natural resource), or divestment (to deprive or dispossess especially of property, authority, or title) (ExxonMobil Strategic Planning, 2000).
The ones that are scheduled for divestment would be those assets that are no longer considered strategic, or those that would actually be considered more worthy to others. Conclusion—once again, if you have the right location, the right product, the right outlet, great customers you will have the profits just rolling in. Thus, you have Exxon Mobil.
ExxonMobil. (2011). In Wikipedia, The Free Encyclopedia. Retrieved 01:11, 26 June, 2011, from: http://en.wikipedia.org/w/index.php?title=ExxonMobil&oldid=430517881
ExxonMobil. Retrieved 26 June 2011 from: http://www.exxonmobil.com/Corporate/
Exxonmobil strategic planning – enhances long-term shareholder value. (2000). APS Review Oil Market Trends, Retrieved from http://www.allbusiness.com/mining/oil-gas-extraction-crude-petroleum-natural/643522-1.html