Using the same publicly traded company you used in the Environmental Scanning Interactive Assignment (ExxonMobil), and the downloadable Operating Budget Template Download Oper
Using the same publicly traded company you used in the Environmental Scanning Interactive Assignment (ExxonMobil), and the downloadable Operating Budget Template Download Operating Budget Template, research the company online by accessing the Mergent University of Arizona Global Campus Library online database which offers company financials, descriptions, history, property, subsidiaries, officers and directors. Also, access the Business Insights: Global University of Arizona Global CampusLibrary online database which offers information on global companies, and industries. It includes SWOT reports, market share data, financial reports, case studies, business news, and company comparison charts. (View the Getting Started With MergentLinks to an external site. and Business Insights: GlobalLinks to an external site.documents for suggested methods of searching University of Arizona Global Campus Library databases generally as well as specific advice for searching these two databases). You can always conduct research using credible online sources of corporate financial information, just be sure that wherever you obtain financial information that you cite your source.
For this Interactive Assignment, you are going to look at the financial statements for the company you selected and, using the previous quarter’s financial data, interpret the data and propose a budget for the next Quarter based on your current and previous analysis of company performance. Complete the budget template using this Operating Budget Template Download Operating Budget Template:
- List your current sales, discounts and allowances, net sales, margins, operating costs, and earning before and after taxes.
- Choose a minimum of two financial ratios (below) and include in your analysis.
- Prepare the next quarter’s budget based on your interpretation of past data.
Include at least two of the following types of relevant financial ratios in your analysis. Review the online article Analyze Investments Quickly With RatiosLinks to an external site. (Elmerraji, 2017) and Chapter 5 in the Abraham’s textbook to help with this portion of the budget:
- Profitability Ratio
- Liquidity Ratio
- Solvency Ratio
- Valuation Ratio
- Leverage Ratio
(NOTE: Incorporate the feedback you receive from your instructor and peers and save your work. It will be part of your Strategic Plan Final Project for this course).
Initial Post: In your initial post, provide a brief description of your company and provide a summary of your Operating Budget along with a rationale that supports suggested budgetary changes. Attach your Operating Budget Template to your initial post for review by your instructor and your peers.
Company Name: Operating Budget Q1
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Budget Projection Next Q |
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Revenue |
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Sales Revenue |
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Interest Income |
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Investment Income |
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Other Income |
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TOTAL INCOME |
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Costs and Expenses |
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Advertising |
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Health Insurance |
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Installation/Repair of Equipment |
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Inventory Purchases |
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Salaries |
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Supplies |
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Insurance |
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Other Expenses |
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TOTAL EXPENSES |
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NET PROFIT/LOSS |
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Net Earnings Before Taxes ( Gain or Loss) |
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Income Tax Expense |
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Net Earnings After Taxes |
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Ratio Analysis ( Choose a minimum of two) |
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Profitability Ratio |
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Liquidity Ratio |
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Solvency Ratio |
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Valuation Ratio |
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Leverage Ratio |
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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.
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SWOT Analysis |
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Environment |
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Opportunity |
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EXXONMOBILE |
Strength |
i. Diversification of its products and services with a large market presence in more than 75 countries ii. Vertical integration strategy iii. Heavy investment in Research and Development |
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i) Global expansion ii) Sustainable development iii) Increasing demand for green energy |
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Threats |
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Weakness |
i. Ethical and human rights conflict ii. Environmental and social impacts concerns iii. Legal battles and controversies |
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i) Covid 19 pandemic ii) The political tension iii) Increased demand for eco-friendly fuel |
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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 i
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