Exxon Mobil- Corporate Strategic Analysis

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External Intelligence based Strategic Analysis

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Andy Gbefo, Dipesh Bhatt, Alice Gignac, and Anuj Shrestha

November 8, 2012

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Table of Contents

1. Introduction………………………………………………………….. 3

2. Executive Summary…………………………………………………. 4

3. Strategic Segmentation……………………………………………… 6

4. Methodology…………………………………………………………. 7

5. Future Turbulence…………………………………………………... 11

6. ExxonMobil Assessment…………………………………………….. 17

7. Bibliography………………………………………………………… 34

___________________________________________________________________Introduction

H. Igor Ansoff, also known as “Father of Strategic Management,” propounded a model of Strategic Management, which is a profit enhancing model that predicts the future environment turbulence of companies and helps measure the company’s own strategic model. The Ansoff model of corporate strategy is predictive and mathematical which provides a clear understanding of the coming future and chaos associated with it. This model of strategy has been used for analysis of more than 1,100 companies with accurate results.

This research project is an intelligence based analysis of Exxon Mobil Corporation, conducted by a group of Masters of Business Administration (MBA) students at Dallas Baptist University, for their capstone project as part of the Strategic Management Decisions, taught by Dr. Jim Underwood.

The group has tried to measure the nature of future environment turbulence of the Exxon Mobil based on the analysis of its competitors and the industry as a whole and assessed the internal state of the company. Ansoff promulgates that the level aggressiveness of the company’s responsiveness towards the future environment turbulence determines the level of profitability and efficiency in the company.

The research group members:

• Alice Gignac Sommerville & Associates, P.C.

• Anuj Shrestha full time student

• Andy Gbefo full time student

• Dipesh Bhatt full time student

____________________________________________________________Executive Summary

This project was conducted to analyze Exxon Mobil. All research was obtained from public resources for the purposes of the ethical standards proposed by Dr. Jim Underwood.

Conclusions

The research led the team to come to the following conclusions, that ExxonMobil is at the top of the industry and that is not an accident. The corporation has 2 marginal gaps and 1 serious gap that were identified in the analysis, but the overall performance of the company is aligned with the norm of the market or at the level above. The marginal gap from the product portfolio can be explained by the nature of the market. The company has little need to constantly diversify its products because oil is a natural commodity that people will always be in need of, therefore the effort of research is put in making the current products more efficient and effective. The second marginal gap is from the management. The market would expect an empowering leadership style to be in most companies today, but ExxonMobil takes a different approach of empowering the people, but at the same time expecting results. The management’s attitude towards risk also plays a role in the marginal gap, which falls a little below the market line. The 1 serious gap that was identified is from the organizational structure, which is divisional, yet keeps traditional hierarchy. The focus of power is definitely by the senior executive and the board of directors, which turns some people off, but ExxonMobil believes is best for their company. ExxonMobil may look rigid to some people on the outside, but research shows that there is a reason for everything the company puts into place. Let history and current rankings show that ExxonMobil can continue moving in the same path, because they are aware...
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