FIN 370 Week 3 Strategic Inititative Paper Final Draft

Topics: Supply chain, Supply chain management, ExxonMobil Pages: 6 (1174 words) Published: February 20, 2015

Strategic Initiative Paper
Connie Addison, Christine Crocker Kimberly Guy, Felicia Lombard, and Shavelle Woods FIN 370
January 26, 2015
Shamelda Pete
Strategic Initiative Paper
ExxonMobil is identified as one of the world’s leading oil and gas businesses. It manages market commodities and means countrywide. ExxonMobil is entail in “marketing, gas, and oil exploration, transportation and production in roughly 200 nations” (ExxonMobil, 2015). This company furnishes assistance and products under label names such as “Mobil, Esso, and Exxon. ExxonMobil is known as one of the biggest oil industrial installation where a substance is refined in the nation” (ExxonMobil, 2015). This essay discusses ExxonMobil’s strategic initiative from the 2013 Summary Annual Report. The following details the company’s initiative, financial planning surrounding that initiative, the effect of cost and revenues on the supply chain, as well as the ethical concerns associated with this idea. Strategic Initiative

ExxonMobil is a vertically integrated oil and gas company that’s mission is to “find safe, efficient, and responsible ways to bring affordable energy to the dynamic global markets. This success will be “built on long-term planning, disciplined investment, new leading-edge technologies, unmatched risks management and operational excellence” (ExxonMobil, 2014, p. 1). In the 2013 annual report, ExxonMobil outlined a strategic initiative of new leading-edge technologies such as “collaborating with XTO, who has a strong acreage position and operational expertise, to increase its Brakken recovery, enhance drilling, completion (the process of making an oil well ready for production), and operational excellence, in tight rock formation in the United States”. This collaboration gives Exxon “numerous opportunities to test its new technologies as well as implement its proven technologies for immediate benefits, such as the XFrac” (ExxonMobil, 2014, p. 19). The XFrac technology was designed to set a new industry standard for hydraulic fracturing completion. The current standard requires placing dozens of plugs in the well to achieve the most effective completion. The downside to the plugs is that they have to be drilled out and removed before the well can be produced. These steps are time consuming and expensive. The XFrac will remove the need for these plugs, making it more cost efficient to complete the well than compare to the current industry standards. Ideally, this new technology will increase Exxon’s ability to produce more oil-equivalent barrels per day by 45 percent, meaning a higher return on shareholder equity and profitability (ExxonMobil, 2014, p. 19). Financial Planning

Financial planning ensures that any great company operates successfully. ExxonMobil has put different measures in place for the financial means of the business by expanding across the country to increase product sales. Exxon has made it a point to focus more on expanding and creating jobs across the country. According to the 2013 summary annual report, “We look for opportunities to create jobs, build local supplier capacity, and make strategic community investments that will generate sustainable economic growth. This is good for communities and good for our business (2013).” ExxonMobil performed extremely well in 2013 with earnings of 32.6 billion, despite the conditions of the industry during that time. ExxonMobil takes advantage of every opportunity to financially plan for the future of the company. Exxon is preparing the business for future growth by investing in new technologies in which, currently, the company is considering new technology such as new ways to extract oil from the Bakken formation. Measures such as trading energy and the expansion of liquid and natural gas are also being put in place as ExxonMobil continues to grow. This company is continually brining innovative ideas to the table to ensure the financial growth of the company....

References: ExxonMobil. (2003-2015). About Us. Retrieved from us/history/overview
ExxonMobil. (2003-2015). Risk Factors. Retrieved from
ExxonMobil. (2014). Summary Annual Report 2013. Retrieved from,-99,640
Titman, S., Keown, A. J. & Martin, J. D. (2011). Financial management: Principles and application (11th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall. Retrieve from the University of Phoenix eBook Collection database.
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