The competitive and strategy employed by ExxonMobil

Through its shares in the market cap

The corporation ranks as one of the biggest players in the petroleum and petrochemical sector. It takes a lot of corporate governance methods to become one of the most powerful businesses in the world managing the energy sector, despite the fact that some people see it as a huge success.

Additionally, having competent management that involves a lot of strategic management is essential for remaining relevant and maintaining a high level of competitive advantage. The corporation still ranks among the businesses with great financial muscle today, over 135 years later, and serves billions of clients globally. The impact of globalization and technology on the performance of the company, as well as a variety of methods for monitoring performance, firm’s performance, various models of measuring returns, the effectiveness of the vision and mission statements, and the management of the stakeholders in the company. The objective is to indicate how the strategies improve the relationship of the company with the market hence its strong profitability profile.

Globalization and Technology

The first impact is that ExxonMobil enjoys the presence in some countries around the world where it controls most of the oil explorations and the refinery processes. The globalization processes, therefore, contributes significantly to a large number of operations hence having a big database of customers. The success of the process is through entry into the new markets using two strategies. Firstly, it is through the acquisition and mergers with small enterprises in the oil industry that have the market presence. The strategy gives the company an advantage to advance its interests and that of the stakeholders, including the need to support communities especially in developing nations (Lawlor, 2007). In this regard, the company has been able to provide their services through their financial muscle competitively even in the low pricing volatility in the sector. The second way is through using their capital investments in regions which do not have the financial capacity to conduct explorations (Lawlor, 2007). The experience and availability of money make the company has created some refineries in West Africa and some Asian countries where it controls the majority of the sales of the oil products as well as its operational services.

Regarding technology

The company plays a leading research in the oil sector with the current perspective on controlling emissions as a contribution to the climate change. As a result, the company comes aboard in other countries as a technological expert not only in research but also its innovations and expertise in the exploration and productions services which many oil-rich countries lack (Lawlor, 2007). In the end, the company enjoys a lot of support while it makes its profits from the proceeds of its activities. Therefore, the result of both globalization and technology as a leading factor puts the company in a good position as a market leader through the capacity to expand their operations. Thus, this situation increases their profit margins as well as the impact on the growth rate in the industry. The fact that through the expansion it controls most of the businesses in the industry makes ExxonMobil have the competitive advantage in the market.

Application of the Industrial Model and the Resource-Based Model

The model includes a perspective of basic conditions for supply and demand, the structure of the industry, behavior of a firm, and how it influences its performance. The objective is an analysis of the behavior of the firms and how it regulates the pricing strategy to achieve performance (Sturgeon, 2002). Also, it includes the regulations from the government as well as the nature of competition in the market. In this regard, ExxonMobil uses technological advancements min the petroleum and petrochemical industry to produce a high-quality product. The company also has access to most of the oils reserves around the world which make among the powerful public corporations. The conduct towards a corporate citizen approach makes it have a competitive advantage over other competitions and also be able to determine the pricing in the market (Sturgeon, 2002).

On the other hand, the resource-based model for above-average returns involves the assumptions that each company has its capabilities and the resources to drive its strategies (Robinson, 2008). In this regard, the company’s initiative of social responsibility, mergers, and acquisitions, as well as expansion into new markets, is as a result of its vast resources in regards to the refineries and petroleum plants, finances and the ability to command the industry due to its market share control.

Assessment of the Vision and Mission Statement on Overall Success

ExxonMobil’s vision addresses three critical parts which contribute to some of the key pillars of the success of the enterprise. The first part involves the commitment to being the leader in the industry all over the world. The second part involves the financial and operational results superiority with ethical standard compliance. The third part involves the commitment to the stakeholders. In this regard, the three aspects give a great foundation to direct the company’s activities and strategies towards achieving the objectives wholly. The processes of rising the ladder to be a global leader in the petroleum industry by the company take a lot of time and even more hard work to maintain the current state (ExxonMobil, 2016).

Additionally, it enhances the strategy of reinvesting the capital in securities exchange can result in driving profitability and leadership through the assets and capital control of the market (ExxonMobil, 2016). In this regard, the financial results of the company continue to rank the company as the first in the industry regarding the gains and market share control. Lastly, the commitment to the stakeholders and individuals that the company interacts with makes it achieve customer loyalty which is key to its success (ExxonMobil, 2016). One of the achievements includes the approach towards ensuring community service through large contributions to states where the operations are present. Also, it contributes to growing the economies of member states as well as providing affordable energy services, which boost the pay incentive to both shareholders and the employees of the company.

Regarding the mission statements

There are two aspects which include the affordability of the products hence improving the living standards as well as the social and environmental responsibility. The company continues to provide cheap energy for the oil products through a pricing strategy while maintaining high quality (ExxonMobil, 2016). As a result, it attracts many customers who in turn contribute significantly to the overall profitability of the market as the best option. In the environmental sector, the company continues to include in its strategy the need to control the emissions of carbon gases which are a danger to the climate change and through regulating the safety of the environment, both in the working conditions and potential hazards around its refineries. As through social responsibility, the company commits a lot of millions each year which go to charitable activities and various forms of social support to the community around the establishment (ExxonMobil, 2016). As a result, most of the customers and host states can associate with the company which places it in a better position in the market.

Impact of Stakeholders on the Corporation’s Success

There are four categories of stakeholders in ExxonMobil who include the shareholders, clients, employees, and the communities (ExxonMobil, 2017). The interactions with the four groups help to shape the stability of the enterprise in the business environment and the effectiveness of its long-term strategic plans. On the other hand, each of the stakeholders also helps in a way to contribute to the overall success of the company in the oil industry (ExxonMobil, 2017).

The shareholders play a significant role in the contributions to capital availability through which the corporate governance creates more profits for the company. Also, they play a critical role in approvals of the major investments in new markets which increases the financial power of the company in the world. In regards to the customers, they are the basis of the profitability ad essence of existence of the company (ExxonMobil, 2017). Through the choice of buying the products of the company on a continuous basis makes the profits of the company to be stable. Also, their loyalty also contributes to generating a reliable database for business plans and further incentive to boost consumption. Besides, through the efforts of customer feedback process, they help the company to be both responsive and innovative in the market to keep up with the changing preferences of the clients.

The employees also enhance the company’s competence through high levels of skills and knowledge in the industry. In response to job satisfaction and equity of pay incentives, they can give their all for the success of the company through proper management of the resources and development of growth plans for the future stability of the company in the market (ExxonMobil, 2017). The last category is about the community which helps in the provision in the workforce for the organization, especially non-skilled labor and some of the specialized services. Also, through acceptance of the company, the community can facilitate the company in achieving its corporate social responsibility as well as the environmental care. The same can also attract more customers to the business which contributes to the success of the company through a preference for the products of ExxonMobil.

References

ExxonMobil. (2016). ExxonMobil 2016 Summary Annual Report. Retrieved 11 July 2017, from http://cdn.exxonmobil.com/~/media/global/files/summary-annual-report/2016_summary_annual_report.pdf

ExxonMobil. (2017). Learn about ExxonMobil’s guiding principles. ExxonMobil. Retrieved 11 July 2017, from http://corporate.exxonmobil.com/en/company/about-us/guiding-principles/our-guiding-principles

Lawlor, B. (2007). The Age of Globalization: Impact of Information Technology on Global Business Strategies. Digitalcommons.bryant.edu. Retrieved 11 July 2017, from http://digitalcommons.bryant.edu/cgi/viewcontent.cgi?article=1000&context=honors_cis

Robinson, S. (2008). Understanding the resource-based view: implications of methodological choice and a new creative context. Retrieved 11 July 2017, from https://eprints.qut.edu.au/16625/1/Susan_Maureen_Robinson_Thesis.pdf

Sturgeon, T. (2002). Modular production networks: a new American model of industrial organization. Industrial And Corporate Change, 11(3), 451-496. http://dx.doi.org/10.1093/icc/11.3.451