Transcript COMPANY ANALYSIS - Homework Market

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Name of organization: ExxonMobil
Merger of two companies, Standard Oil
Company of New Jersey (Exxon) and Standard
Oil Company of New York.
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Subsidiaries
Major: Imperial Oil Ltd and SeaRiver Maritime
Others: Esso, Esso Australia, XTO Energy,
Aera Energy, Superior Oil Co., Vacuum
Oil Co., and Mobil Producing Nigeria.
Historical Perspective
Established in 1999 after reunion of Exxon
and Mobil after signing a contract worth
$73.7 billion.
 Standard Oil of New Jersey and
Standard Oil of New York had initially
been separated by the
government(Denny Thomas, 19
November, 2013).
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Scope of business and current products
The company is in the Oil and gas
industry. Its major products are Fuels,
Lubricants and Chemicals.
 Scope of market distribution
The company is global because it is
found in 40 countries in 5 continents(Paul
& Phillip, 2010).
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Leadership Style
Generally, management applies
situational leadership style. There is no
standard approach to all problems.
 Leaders make use of strategies that are
relevant to prevailing conditions. The
problem in the prevailing situation
determines the approach to used by the
leaders and managers(Martindale,
2012).
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Charismatic
Charismatic leadership dominates in
ExxonMobil. Leaders influence
employees by using their personality.
Through the characters of the leaders,
employees are influenced to work hard
and reach the goals and objectives of
the organization(Christopher, 2005).
Management/Leadership issues that
may affect future of organization
 Commitment
The commitment of leaders and
dedication to duty affects future of firm.
 Strategies and approaches
The future of the firs is also affected by
the methods and styles of leadership
applied today.
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Strengths
Strategic locations (across the globe)
Financial stability
Weaknesses
• Dependence on long-term focus
• Limited variety of products
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Opportunities
Using technology to improve operations
Setting up new branches in new areas
Threats
• Competition from alternative sources of
energy
• Hostility in some countries
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Possible future scenarios
Increased competition: This is due to the
expected new entrants in the industry.
Increase in demand: More consumption
is expected; this will lead to more
demand.
Stiffer government regulations: This will be
a strategy of controlling the number of
entrants in the industry(Hill, 2001)
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Primary target market
Its directly connected to the
manufacturer. The market obtains
products from the manufacture without
intermediaries. For ExxonMobil, these
markets are the dealers in the petroleum
industry and include; Shell, Mobil, Esso,
and Exxon(Kotler, & Keller, 2012).
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Secondary target market
This market provides additional sales but
is relatively smaller as compared to the
primary target market. It purchases in
small quantities but the concentration
index is high. This market is made of the
final consumers of the oil and gas
products; mainly households and
commercial industries.
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Leadership and management
Uniformity in leadership style, will improve
efficiency and effectiveness.
Products, place, price, and promotion
The market should be studied so that
rational decisions are made concerning
the 4ps of marketing.
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Christopher, A. (2005). Max Webber’s Charisma. Journal of
Classical Sociology 5(2):189-204
Denny, T. (19 November, 2013). Exxon to sell Hong Kong
power operations for $3.4 billion. Reuters
Hill, T. (2001). SWOT Analysis: It’s time for a Product Recall.
Long Range Planning 35 (1): 50-54
Kotler, P. & Keller, L. (2012). Marketing Management 14th
(ed). Upper Saddle River, New Jersey: Pearson Education
Limited
Martindale, N. (2012). Leadership Styles: How to handle the
different personas. Strategic Communication Management
15 (8): 32-35
Paul, W. & Phillip, E. (2010). Marketing Metrics: The Definitive
Guide to Measuring Marketing Performance. Upper Saddle
River, New Jersey: Pearson Education Inc.