name of organization: exxonmobil merger of two companies, standard oil company of new jersey (exxon)...
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Name of organization: ExxonMobilMerger of two companies, Standard Oil Company of New Jersey (Exxon) and Standard Oil Company of New York.
SubsidiariesMajor: Imperial Oil Ltd and SeaRiver MaritimeOthers: Esso, Esso Australia, XTO Energy,
Aera Energy, Superior Oil Co., Vacuum
Oil Co., and Mobil Producing Nigeria.
Historical PerspectiveEstablished 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).
Scope of business and current productsThe company is in the Oil and gas industry. Its major products are Fuels, Lubricants and Chemicals.
Scope of market distributionThe company is global because it is found in 40 countries in 5 continents(Paul & Phillip, 2010).
Leadership StyleGenerally, 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).
CharismaticCharismatic 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 approachesThe future of the firs is also affected by the methods and styles of leadership applied today.
Strengths• Strategic locations (across the globe)• Financial stability
Weaknesses• Dependence on long-term focus• Limited variety of products
Opportunities• Using technology to improve operations• Setting up new branches in new areas
Threats• Competition from alternative sources of
energy• Hostility in some countries
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)
Primary target marketIts 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).
Secondary target marketThis 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.
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.
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.