ExxonMobil, like any large multinational corporation, faces a variety of strategic and operational

challenges. Some of the major challenges that the company faces today include:

Energy Transition: The world is shifting towards renewable energy sources and away from fossil
fuels, which has put pressure on ExxonMobil to reduce its carbon footprint and invest in cleaner
energy sources.

Regulatory Compliance: ExxonMobil operates in many countries and is subject to a complex

regulatory environment, which makes it challenging to comply with local laws and regulations.

Geopolitical Risks: ExxonMobil operates in regions that are politically unstable, which can create
risks for its operations and supply chains. This includes risks related to nationalization, expropriation,
and conflict.

Market Volatility: ExxonMobil's business is influenced by global economic conditions and

fluctuations in oil and gas prices, which can impact its financial performance.

Technology Disruption: The industry is being disrupted by new technologies, such as electric
vehicles, which could reduce demand for oil and gas products.

Talent Acquisition and Retention: The company must compete for talent in a global market, and
attracting and retaining the best employees is critical to its success.

To address these challenges, ExxonMobil is focusing on increasing efficiency, reducing costs, and
investing in new technologies and cleaner energy sources. The company is also working to diversify
its business and expand into new markets to reduce its reliance on oil and gas.

Oil and Natural Gas Corporation (ONGC) is one of India's largest oil and gas exploration and
production companies. Some of the major strategic and operational challenges that ONGC faces
today include:
Declining Production: ONGC's oil and gas production has been declining in recent years, which has
impacted its revenue and profitability. The company needs to increase its exploration and
production activities to sustain its growth and meet domestic demand.

Technological Obsolescence: ONGC is facing competition from private players who are using
advanced technology to explore and produce oil and gas more efficiently. To stay competitive, ONGC
needs to invest in new technology and innovation.

Regulatory Environment: ONGC operates in a heavily regulated industry, and compliance with
government regulations and policies is crucial to its success. Changes in government policies and
regulations can impact the company's operations and financial performance.

Environmental Challenges: The oil and gas industry is increasingly under scrutiny for its
environmental impact. ONGC needs to adopt environmentally sustainable practices and reduce its
carbon footprint to meet the global standards of ESG (Environmental, Social, and Governance)
performance.

Human Resources Management: ONGC operates in a highly specialized industry, and attracting and
retaining skilled professionals is critical to its success. The company needs to focus on attracting and
retaining top talent to maintain its competitive advantage.

Exploration Risks: Exploration and production activities in the oil and gas industry carry significant
risks, including the possibility of dry wells or accidents. ONGC needs to manage these risks to ensure
the safety of its employees and the environment.

To address these challenges, ONGC is focusing on increasing its production, exploring new
technologies, and investing in renewable energy sources. The company is also working to improve its
operational efficiency, reduce costs, and enhance its ESG performance.

what are the reason for these challenges ?

The challenges faced by ExxonMobil and ONGC are influenced by a variety of factors, including:
Changing Market Dynamics: The oil and gas industry is highly volatile, and fluctuations in global
demand and supply can impact the profitability of companies in the industry. The shift towards
renewable energy sources and increasing focus on ESG performance are also changing the market
dynamics.

Technological Disruption: The rapid pace of technological change is disrupting the oil and gas
industry. New technologies such as electric vehicles, hydraulic fracturing, and horizontal drilling are
changing the way the industry operates.

Regulatory Environment: The oil and gas industry is subject to a complex regulatory environment,
with different regulations and policies in different regions. Changes in government policies and
regulations can have a significant impact on the operations and financial performance of companies
in the industry.

Environmental Concerns: The oil and gas industry is one of the largest contributors to greenhouse
gas emissions, which has put pressure on companies to reduce their carbon footprint and adopt
environmentally sustainable practices.

Geopolitical Risks: The oil and gas industry operates in regions that are politically unstable, which
can create risks for operations and supply chains. Nationalization, expropriation, and conflicts can
disrupt the industry and impact the profitability of companies.

Human Capital: The oil and gas industry is highly specialized, and attracting and retaining skilled
professionals is critical to the success of companies in the industry. The availability of talent and
skills is also impacted by broader social, economic, and demographic trends.

Your recommendations separately for the 2 companies to counter the major strategic challenges.
Explain your rationale for your recommendations.

Sure, here are my recommendations for each company to address their major strategic challenges:

For ExxonMobil:

Diversify the Business: ExxonMobil should explore diversifying its business beyond oil and gas to
reduce its reliance on the industry. Investing in renewable energy sources, such as wind and solar
power, can help the company stay competitive in a rapidly changing market.
Embrace Technology: ExxonMobil should invest in advanced technologies to improve efficiency and
reduce costs. Technologies such as artificial intelligence, automation, and robotics can help the
company improve its operations and decision-making processes.

Improve ESG Performance: ExxonMobil should focus on improving its ESG performance to meet the
increasing demand for environmentally sustainable practices. The company can adopt renewable
energy sources, reduce its carbon footprint, and implement best practices for environmental and
social responsibility.

Focus on Talent Management: ExxonMobil should attract and retain top talent by offering
competitive compensation packages and creating a culture of innovation and learning. This can help
the company stay ahead of the curve in a rapidly changing industry.

For ONGC:

Increase Exploration and Production: ONGC should focus on increasing its exploration and
production activities to meet domestic demand and improve its revenue and profitability. The
company can explore new oil and gas fields and invest in advanced technologies to improve its
efficiency.

Embrace Advanced Technologies: ONGC should invest in advanced technologies, such as artificial
intelligence and data analytics, to improve its exploration and production activities. These
technologies can help the company optimize its operations and improve decision-making processes.

Enhance ESG Performance: ONGC should adopt environmentally sustainable practices to improve its
ESG performance. The company can reduce its carbon footprint, invest in renewable energy sources,
and implement best practices for environmental and social responsibility.

Develop Talent Pipeline: ONGC should focus on developing a talent pipeline by investing in training
and development programs for its employees. This can help the company attract and retain top
talent, which is critical to its success in a highly specialized industry.

Rationale for my recommendations:

My recommendations for both ExxonMobil and ONGC focus on addressing the major strategic
challenges they face. For ExxonMobil, diversification beyond oil and gas and embracing technology
and ESG practices can help the company stay competitive and relevant in a rapidly changing market.
For ONGC, increasing exploration and production, embracing advanced technologies, and enhancing
ESG performance can help the company improve its revenue and profitability and attract and retain
top talent. The focus on talent management is critical for both companies, given the highly
specialized nature of the industry and the need to stay ahead of the curve in a rapidly changing
landscape.

Your learnings from this Group Project.

Through this project, I've learned about the challenges that companies in the oil and gas industry
face, including changing market dynamics, technological disruption, environmental concerns, and
geopolitical risks. I have also learned about the different strategies that companies can adopt to
counter these challenges, such as investing in renewable energy, enhancing operational efficiency,
adopting sustainable practices, and forming partnerships.

I've also learned the importance of adapting to changing market conditions and being proactive in
addressing challenges. Companies that are able to anticipate and respond to these challenges are
more likely to succeed in the long term.

Overall, this project has highlighted the need for companies to be agile and flexible in responding to
changing market conditions and challenges, and to adopt sustainable practices and innovative
strategies to stay ahead of the competition.

Corporate Strategies today of the 2 companies. • Choice of Countries and SBUs by the 2 companies.
• Which of the SBUs do not add corporate value? Why? The strategic actions you would suggest.
Why?

Here are the corporate strategies of the two companies, their choice of countries and SBUs, and my
recommendations for addressing non-value-adding SBUs:

Corporate Strategies:
ExxonMobil: ExxonMobil's corporate strategy is focused on growth through exploration, production,
refining, and marketing of oil and gas products. The company aims to maximize shareholder value
through operational excellence and financial discipline.

ONGC: ONGC's corporate strategy is focused on maximizing its hydrocarbon reserves and
production, and expanding into international markets through partnerships and acquisitions. The
company aims to maintain its position as a leading national oil company and enhance its global
presence.

Choice of Countries and SBUs:

ExxonMobil: ExxonMobil operates in over 40 countries, with a significant presence in North America,
Asia, and Europe. The company has several strategic business units (SBUs), including upstream
exploration and production, downstream refining and marketing, chemicals, and lubricants.

ONGC: ONGC operates in several countries, with a focus on India and South Asia. The company has
several SBUs, including exploration and production, refining, marketing, and petrochemicals.

Non-Value Adding SBUs:

In my opinion, it is difficult to say which SBUs do not add corporate value, as each SBU has its own
unique contribution to the overall corporate strategy. However, if any SBU is not performing up to
expectations or is not aligned with the overall corporate strategy, it may not be adding value.

If any SBU is not adding value, the strategic actions that can be taken include:

Divestment: If an SBU is not aligned with the overall corporate strategy and is not performing well,
the company may consider divesting it to focus on more profitable and strategic SBUs.

Restructuring: The company may consider restructuring the SBU to improve its performance and
align it with the overall corporate strategy.

Innovation: The company may consider investing in innovation and research to transform the SBU
and make it more competitive in the market.
Partnership or Collaboration: The company may consider forming partnerships or collaborations
with other companies in the industry to improve the performance of the SBU.

Recommendations:

To improve the corporate value of the SBUs, the companies should focus on the following:

Adopt a more flexible and agile approach to business, allowing them to adapt quickly to changing
market conditions and challenges.

Invest in new technologies, including renewable energy sources, to diversify their business and
reduce their reliance on fossil fuels.

Focus on enhancing ESG performance and adopting environmentally sustainable practices.

Develop and maintain a skilled and motivated workforce, with competitive compensation packages,
career growth opportunities, and employee engagement programs.

Form strategic partnerships with other companies in the industry to share knowledge and resources
and enhance their innovation capabilities.

.
Here's the Company History & Company Background to date of ExxonMobil:

Year & Place of Establishment:

ExxonMobil was formed in 1999 through a merger of Exxon and Mobil, two of the world's largest oil
and gas companies. Exxon was founded in 1870 and was originally known as Standard Oil of New
Jersey, while Mobil was founded in 1911 as the Standard Oil Company of New York.

Initial Countries/Products & Current Market Shares:

ExxonMobil operates in more than 40 countries and produces and sells crude oil, natural gas,
petroleum products, chemicals, and lubricants. The company is one of the largest integrated oil and
gas companies in the world, with a market share of approximately 3.7%.

Major Customer Segments Served and Company Ownership Pattern:

ExxonMobil serves a wide range of customer segments, including individuals, commercial

businesses, and governments. The company is a publicly traded corporation, with shares listed on
the New York Stock Exchange.

Vision, Mission & Core Values Today:

ExxonMobil's vision statement is "To be the world's premier petroleum and petrochemical
company." The company's mission statement is "To provide superior returns to our shareholders by
developing high-value products and services for our customers, building a high-performance culture,
and engaging with our stakeholders in a safe and environmentally responsible manner."

The company's core values include integrity, safety, environmental stewardship, respect for people,
and operational excellence.

Major Milestones:

ExxonMobil has a long history of diversification, expansion, and acquisitions. Some of its major
milestones include:
In 1998, Exxon merged with Mobil to form ExxonMobil, creating one of the largest oil and gas
companies in the world.

In 2009, ExxonMobil acquired XTO Energy, a major producer of natural gas, in a deal worth $31
billion.

In 2010, ExxonMobil began production at the Kearl oil sands project in Canada, one of the largest oil
sands projects in the world.

In 2017, ExxonMobil announced plans to invest $20 billion over 10 years in new refining, chemical,
and liquefied natural gas projects in the United States.

In 2020, ExxonMobil announced plans to reduce its workforce by 15% in response to the COVID-19
pandemic and declining oil prices.

Relative Strengths & Weaknesses:

ExxonMobil's strengths include its large scale and scope of operations, its strong brand and
reputation, and its advanced technological capabilities. The company also has a strong financial
position and a diversified portfolio of businesses.

One of ExxonMobil's weaknesses is its heavy reliance on fossil fuels, which makes it vulnerable to
shifts in demand and price fluctuations. The company has also faced criticism for its environmental
record and its stance on climate change.

Valuable Resources, Capabilities & Distinctive Competencies:

ExxonMobil's valuable resources include its extensive oil and gas reserves, its advanced
technological capabilities, and its highly skilled workforce. The company's capabilities include
exploration and production, refining and marketing, chemicals, and lubricants.

One of ExxonMobil's distinctive competencies is its strong research and development capabilities,
which have enabled it to develop innovative technologies and products. The company also has a
strong track record of operational excellence and financial discipline.

Blue Ocean Strategies:

ExxonMobil has implemented several blue ocean strategies, including:

Investing in renewable energy and low-emissions technologies to reduce its environmental impact
and diversify its business.

Developing new partnerships and collaborations with other companies to share knowledge and
resources and enhance innovation capabilities.

Expanding into new markets, such as China and other emerging economies