Strategic Plan Prior to completing this assignment, review your prior research and course submissions related to the company you selected (ExxonMobil) for research in Week 2s Environmental S

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Mission Statement

Kevin Sessions

The University of Arizona Global Campus

Eric Smithson

BUS 402: Strategic Management & Business Policy

February 13, 2023

Mission Statement

ExxonMobil Mission Statement

The mission statement of ExxonMobil provides the company with an overarching vision of the purpose and goals of the company. It states that the company is "committed to being the world's premier petroleum and petrochemical company" and that it works to "improve standards of living" by providing "energy that is reliable, efficient, and affordable." This statement serves as a guide for the company's activities and strategies. For instance, ExxonMobil has developed various strategies to become more efficient and reliable in its energy production and distribution (Mirzayev,2022). It includes investing in new technologies, improving safety protocols, and increasing the company's production capacity. These strategies align with the mission statement's goal of providing reliable, efficient, affordable energy. ExxonMobil also works to improve living standards worldwide by investing in communities and engaging in philanthropic activities. It includes providing grants to organizations that help promote education, health, and economic growth. These activities are guided by the mission statement's goal of improving living standards.

ExxonMobil's mission statement is to be the world's premier company in the petroleum and petrochemical industry. The company focuses on operating responsibly to achieve its premier global status. This mission statement addresses the four questions in the Hull article by effectively summarizing the company's core values. These values focus on providing reliable energy sources while also considering the environmental and social impacts of the company's operations. The statement emphasizes economic growth, a critical factor driving the company's success. The statement also recognizes the importance of social development and environmental considerations, indicating a commitment to responsible practices that benefit both people and the planet. The mission statement reflects ExxonMobil's commitment to innovation and sustainability (Singh & Misra,2022). By focusing on responsibly delivering energy, the company is signaling its dedication to developing new technologies and practices that are more efficient and sustainable than those used in the past. This commitment is evidenced by the company's commitment to investing in renewable energy sources and actively participating in research on new energy sources.

ExxonMobil receives a 4-star rating based on its mission statement. Their mission statement emphasizes their commitment to safely and responsibly providing energy to the world safely and responsibly. They have a strong focus on innovation and sustainability, demonstrating their commitment to reducing emissions and increasing the use of renewable energy. They also emphasize their commitment to their customers and shareholders, ensuring their operations align with their values and beliefs. Overall, ExxonMobil's strong mission statement reflects its dedication to providing energy while respecting the environment and its stakeholders, which justifies a 4-star rating.

References

Mirzayev, N. (2022). Corporate Social Responsibility In The Oil And Gas Industry.  Network Intelligence Studies, (20), pp. 101–109.

https://seaopenresearch.eu/Journals/articles/NIS_20_2.pdf

Singh, K., & Misra, M. (2022). The evolving path of CSR: toward business and society relationship.  Journal of Economic and Administrative Sciences,  38(2), 304-332.

https://www.emerald.com/insight/content/doi/10.1108/JEAS-04-2020-0052/full/html

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ExxonMobil SWOT Analysis

Kevin Sessions

University Of Arizona Global Campus

Eric Smithson

BUS 402 Strategic Management & Business Policy

February 7, 2023

ExxonMobil SWOT Analysis

Company's s History

ExxonMobil is an American multinational oil and gas corporation. It was established in 1999 through the merger of Exxon and Mobil. The company is in over 75 countries and is engaged in the exploration, production, transportation, and marketing of oil, natural gas, and petrochemicals. ExxonMobil's primary products include gasoline, diesel, jet fuel, natural gas, lubricants, asphalts, and petrochemicals. It also produces and markets specialty products such as waxes, lubricants, and other chemicals. The company has also seen a shift in its focus from oil and gas to petrochemicals, investing heavily in the sector and expanding its product offerings (Li et al.,2022). ExxonMobil has a long history of innovation and has been at the forefront of technological advancements in the energy industry. The company has invested heavily in developing renewable energy sources, such as wind and solar, and has also explored using hydrogen as a fuel source. Furthermore, ExxonMobil has been a leader in developing advanced technologies, such as its proprietary XH2 technology, which enables hydrogen production from natural gas.

ExxonMobil's competitors include Chevron, BP, Royal Dutch Shell, Total SA, and ConocoPhillips. These companies are all involved in exploring, producing, refining, and marketing oil and gas products. They compete directly with ExxonMobil to produce and sell oil, natural gas, and petrochemicals. ExxonMobil competes with other major players in the petrochemical and chemical sectors, such as Dow Chemical, BASF, and DuPont.

Financial Performance and Condition of ExxonMobil

ExxonMobil has adopted several strategic initiatives to drive long-term growth. It has focused on cost reduction, efficiency improvement, capital discipline, and portfolio optimization. The company has also been investing in technology to enhance its operations and increase its competitive advantage. ExxonMobil has also been focusing on transitioning to a lower-carbon future. It has set a goal of reducing greenhouse gas emissions by 15% absolute by 2025 and has invested over $10 billion in low-carbon technology since 2000.

ExxonMobil's financial performance for the past few years has been steady, with the company consistently outperforming the industry regarding revenue, earnings, and cash flow. However, the company's financial performance in 2020 was primarily influenced by the impact of the coronavirus pandemic. The company's revenue decreased significantly due to oil prices and decreased demand. In 2020, ExxonMobil's total revenue was $181.5 billion, a decrease compared to the previous year's revenue of $ 264.9 billion.

Since then, the company's financial performance has been increasing due to the decline in Covid 19 and increased demand for its products. The company reported a substantial total revenue in 2021 and 2022, amounting to $ 285.6 billion and $ 413.6 billion, respectively.

In 2022, ExxonMobil reported a net income of $55.7 billion, an increase from a net profit of $20.59 billion in 2021. Higher crude oil prices, increased production, and improved refining margins drove this. ExxonMobil has a strong balance sheet, with assets of over $338.9 billion and liabilities of just over $163.2 billion as of the end of 2022. The high total assets position of ExxonMobil reduces the risk and increases the competitiveness of the company.

ExxonMobil SWOT Analysis

The SWOT analysis is a strategic planning technique used to identify an organization or business venture's strengths, weaknesses, opportunities, and threats. It is an acronym for Strengths, Weaknesses, Opportunities, and Threats. It is an effective tool for assessing an organization's current position and potential future performance (David et al.,2019). The SWOT analysis is vital to the organization because it provides a comprehensive overview of its current position and potential future performance. It helps the organization to identify its strengths, weaknesses, opportunities, and threats and develop strategies for capitalizing on its strengths and opportunities while minimizing its weaknesses and threats. The four core areas in the SWOT analysis of ExxonMobil are provided in the following template.

SWOT Analysis

Strengths

Diversification strategy: The company’s success is primarily due to its diversification strategy. ExxonMobil has diversified its operations into a wide range of sectors, including upstream, midstream, and downstream activities, petrochemicals, and chemicals. By diversifying its operations, ExxonMobil can reduce its risk by spreading it out over multiple businesses, which can be especially beneficial in volatile markets. Diversification has also allowed ExxonMobil to expand its presence across the globe. ExxonMobil has expanded its presence into more than 150 countries by diversifying its operations and expanding into new markets. It has allowed the company to benefit from economies of scale and gain access to new customers, suppliers, and resources.

Vertical Integration: ExxonMobil is a multinational oil and gas company with significant growth through strategic integration. The company utilizes vertical integration to control production from start to finish (Varga et al.,2021). This approach allows ExxonMobil to maximize efficiency and reduce costs by controlling each supply chain step. It also gives the company control over the quality of its products and increased access to capital. ExxonMobil has long used vertical integration to increase its oil exploration and production activities. The company has acquired and developed oil fields, pipelines, and other upstream facilities worldwide, allowing it to develop and refine oil globally.

Research and development: ExxonMobil is a global leader in research and development (R&D) investments, having invested billions of dollars in developing new products, technologies, and processes (Varga et al.,2021). This investment has enabled ExxonMobil to be at the forefront of new energy solutions, resulting in a vast portfolio of products and services. With an increased sustainability campaign, the company has been researching how to reduce its carbon footprint.

Weaknesses

Ethical and human rights issues: ExxonMobil has been involved in several lawsuits that claim the company knowingly perpetuated human rights violations, such as brutality, murder, and rape, through fraudulent employee transactions. These lawsuits have further harmed the firm and created a public image that ExxonMobil is not socially responsible and does not care about the human rights of its workforce.

Environmental and social concerns: ExxonMobil has a long history of environmental and social concerns related to its operations. One of the primary environmental concerns is the company's History of oil spills, which have polluted water and soil and threatened fragile ecosystems and wildlife. These spills have caused significant damage to marine life, shorelines, and fishing industries in areas where ExxonMobil operates (Rajaraman,2022). The company was criticized for using hydraulic fracturing, which involves injecting large amounts of water, sand, and chemicals into the ground to access oil and gas reserves. This process has been linked to increased seismic activity and air and water pollution.

Legal battles and controversies: ExxonMobil has also faced numerous legal and regulatory challenges related to its operations, particularly in areas where it operates in developing countries. For example, the company has been accused of unsafe operating and polluting local environments in Nigeria, Indonesia, and Equatorial Guinea (Rajaraman,2022). These legal battles and controversies have had a significant impact on the operations of ExxonMobil. The company has had to pay billions of dollars in damages and fines, significantly impacting its bottom line. In addition, the legal and regulatory challenges have made it more difficult for the company to operate in certain areas and have created a cloud of uncertainty over how the company will be able to operate in the future.

Opportunities

Global expansion: ExxonMobil has numerous opportunities to increase its market share, expand its operations, and grow its profits. Through global expansion, ExxonMobil can access new markets, increase production, and exploit different resources. By entering new markets, ExxonMobil can increase its customer base and sales while introducing its products and services to a new customer base (Kim & Kim, 2020). Additionally, ExxonMobil can reduce transportation, storage, and production costs by expanding operations to new countries and regions. It can lead to increased efficiency and increased profits. For instance, the company has expanded its operations at Guyana second offshore.

Demand for green energy: ExxonMobil has been actively exploring and investing in solutions to capitalize on the increasing demand for green energy. Through its operations, ExxonMobil could develop renewable energy sources such as wind and solar, bringing new energy sources to the market. It will allow ExxonMobil to diversify its energy portfolio and provide clean energy to its customers. ExxonMobil has also committed to reducing its greenhouse gas emissions by 15% by 2025 (Supran et al.,2023). It will help the company reduce its carbon footprint and reliance on fossil fuels.

Sustainability: One of the main opportunities that ExxonMobil can take advantage of when it comes to sustainable development is increased efficiency. The company can reduce energy and water consumption and waste production by focusing on sustainability. It helps reduce their operations' environmental impact and saves money on energy and water bills. In addition, ExxonMobil can also use renewable energy sources to power its operations, which can lead to cost savings.

Threats

Covid-19 pandemic: ExxonMobil, as an oil and gas company, is facing multiple operational threats from the Covid-19 pandemic. More significantly, the drop in global oil and gas demand due to the Covid 19 pandemic has had an immediate and drastic impact on ExxonMobil’s oil and gas prices, which have dropped significantly in many markets. In addition, the pandemic caused a decrease in ExxonMobil’s exports, as travel restrictions and border closures made it more difficult for the company to move its products to international markets.

Political tension: The political tension between Russia and Ukraine has significantly impacted ExxonMobil's operations. The company's prominent presence in the region is in the Black Sea, where it has operated for decades, producing oil and gas from shallow and deep-water offshore fields. However, the conflict between the countries has caused several issues for ExxonMobil. First, the conflict has created significant delays in developing new oil and gas projects, as both sides are unwilling to cooperate in granting permissions and access. It has caused significant delays to ExxonMobil's production plans, resulting in reduced profits and revenues.

Increased demand for eco-friendly fuel: ExxonMobil's operations would be significantly affected by increased demand for eco-friendly fuel. The company would need to invest in research and development of new technologies to make their existing fuel sources more environmentally friendly. It would involve significant capital investment and a shift in operations to focus on green fuel production. The company would also need to invest in infrastructure and equipment to produce and distribute eco-friendly fuel.

Conclusion

The SWOT analysis of ExxonMobil demonstrates that despite the challenges, the company has remained competitive in the industry by leveraging its strengths of diversification and vertical integration to reduce the threats and increase growth.

References

David, F. R., Creek, S. A., & David, F. R. (2019). What is the key to effective SWOT analysis, including AQCD factors? SAM Advanced Management Journal,  84(1), 25–3.

https://search.proquest.com/openview/4c789215c77a8b288b1288e6a92710c5/1?pq-origsite=gscholar&cbl=40946

Kim, J., & Kim, J. (2020). A Review on the Operation Plan and Future Strategy of an Oil Major: Lessons from ExxonMobil’s.  Journal of the Korean Society of Mineral and Energy Resources Engineers,  57(3), 286-294.

https://www.jksmer.or.kr/articles/article/dBaW/

Li, M., Trencher, G., & Asuka, J. (2022). The clean energy claims of BP, Chevron, ExxonMobil, and Shell: A mismatch between discourse, actions, and investments. PloS one,  17(2), e0263596.

https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0263596&ref=refind

Rajaraman, S. (2022). The Legal and Social Challenges Involved in the Expansion of Multinational Operations: A Case Study of ExxonMobil Indonesia.

https://scholarcommons.sc.edu/senior_theses/528/

Supran, G., Rahmstorf, S., & Oreskes, N. (2023). Assessing ExxonMobil’s global warming projections.  Science,  379(6628), eabk0063.

https://www.science.org/doi/abs/10.1126/science.abk0063

Varga, A. L., Chandler, M. R., Cotton, W. B., Jackson, E. A., Markwort, R. J., Perkey, R. A., … & Webb, S. I. (2021, August). Innovation and integration: exploration history, ExxonMobil, and the Guyana-Suriname basin. In  Offshore Technology Conference. OnePetro.

https://onepetro.org/OTCONF/proceedings-abstract/21OTC/1-21OTC/466595

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Week 2 Assignment SWOT Analysis

Student’s Name

Institution Affiliation

Professor’s Name

Course Code

Date

ExxonMobil SWOT Analysis

Company's s History

ExxonMobil is an American multinational oil and gas corporation. It was formed in 1999 through the merger of Exxon and Mobil. The company is in over 75 countries and is engaged in the exploration, production, transportation, and marketing of oil, natural gas, and petrochemicals. ExxonMobil's primary products include gasoline, diesel, jet fuel, natural gas, lubricants, asphalts, and petrochemicals. It also produces and markets various specialty products such as waxes, lubricants, and other chemicals. The company has also seen a shift in its focus from oil and gas to petrochemicals, investing heavily in the sector and expanding its product offerings (Li et al.,2022). ExxonMobil has a long history of innovation and has been at the forefront of technological advancements in the energy industry. The company has invested heavily in developing renewable energy sources, such as wind and solar, and has also explored using hydrogen as a fuel source. Furthermore, ExxonMobil has been a leader in developing advanced technologies, such as its proprietary XH2 technology, which enables hydrogen production from natural gas.

ExxonMobil's major competitors include Chevron, BP, Royal Dutch Shell, Total SA, and ConocoPhillips. These companies are all involved in the exploration, production, refining, and marketing of oil and gas products. They compete directly with ExxonMobil in producing and selling oil, natural gas, and petrochemicals. In the petrochemical and chemical sectors, ExxonMobil competes with other major players, such as Dow Chemical, BASF, and DuPont.

Financial Performance and Condition of ExxonMobil

ExxonMobil has adopted several strategic initiatives to drive long-term growth. It has focused on cost reduction and efficiency improvement, capital discipline, and portfolio optimization. The company has also been investing in technology to enhance its operations and increase its competitive advantage. ExxonMobil has also been focusing on transitioning to a lower-carbon future. It has set a goal of reducing greenhouse gas emissions by 15% absolute by 2025 and has invested over $10 billion in low-carbon technology since 2000.

ExxonMobil’s financial performance for the past few years has been steady, with the company consistently outperforming the industry in terms of revenue, earnings, and cash flow. However, the company’s financial performance in 2020 was largely influenced by the impact of the coronavirus pandemic. The company's total revenue decreased significantly due to oil prices and decreased demand. In 2020, ExxonMobil's total revenue was $181.5 billion, a decrease compared to the previous year's revenue of $ 264.9 billion.

Since then, the company's financial performance has been increasing due to the decline in Covid 19 and increased demand for its products. The company reported a huge total revenue in 2021 and 2022, amounting to $ 285.6 billion and $ 413.6 billion, respectively.

In 2022, ExxonMobil reported a net income of $55.7 billion, an increase from a net profit of $20.59 billion in 2021. Higher crude oil prices, increased production, and improved refining margins drove this. ExxonMobil has a strong balance sheet, with assets of over $338.9 billion and liabilities of just over $163.2 billion as of the end of 2022. The high total assets position of ExxonMobil reduces the risk and increases the competitiveness of the company.

ExxonMobil SWOT Analysis

The SWOT analysis is a strategic planning technique used to identify an organization or business venture's strengths, weaknesses, opportunities, and threats. It is an acronym for Strengths, Weaknesses, Opportunities, and Threats. It is an effective tool for assessing an organization's current position and potential future performance (David et al.,2019). The SWOT analysis is important to the organization because it provides a comprehensive overview of its current position and potential future performance. It helps the organization to identify its strengths, weaknesses, opportunities, and threats and develop strategies for capitalizing on its strengths and opportunities while minimizing its weaknesses and threats. The four core areas in the SWOT analysis of ExxonMobil are provided in the following template.

SWOT Analysis

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