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ExxonMobil is the worlds largest publicly traded integrated petroleum and natural gas company.

Strengths o A long established name that has been in existence for over one hundred years. This gives the customers a sense of security when dealing with the organization. o The organization has diversified into many different areas of the energy industry and has a strong brands under its main umbrella group. o The organization in the past has been able to survive without much damage to its reputation even after the Exxon Valdez oil spill. This is partly due to a few reasons, the good corporate citizenship of the organization, the correct and appropriate crisis management and crisis communication management strategy. o Cont.

o The organization has been innovative in the past and

continues to be very innovative currently too by spending a lot on research and development to come up with more efficient and effective ways to manage the energy resources and reduce the negative impact to the environment. o The organization has a global presence and thus has access to a wider customer base and a larger market than other energy companies. o The organization has a very strong presence in both India and China, the emerging markets that have been known to increase their energy demands exponentially thus the organization has been profiting from this at a higher rate than most other organizations.

o The organization has been accused of not doing

enough to go green and conserve the environment, rather that it is polluting and destroying the environment. o There has been much negative publicity generated from the Exxon Valdez spill and also the human rights or rather the employee rights records of the organization has been under a cloud, which is a significant weakness of the organization. o Inappropriate handling of the environmental interest groups is a very big weakness of the organization and can be detrimental to it in the future.

Further the organization has been known for exorbitant profits in the last few years as energy prices were increasing, which gave it quite a lot of negative publicity that the organization did not handle very well and has cost it the good will of its consumers, who consider the organization to be becoming rich at the expense of the poor consumer.

o The biggest opportunities that are available to the

organization currently is the increased demand of energy by developing economies in the South Asian and South East Asian regions likes Malaysia, Indonesia, Korea and Vietnam.
o The

Company can donate to Social and environmental groups to show their interest in environmental issues.

o The emerging economies of China and India that

have been the biggest demanders of energy in the past few years are being hit by the recession in the developed economies and thus have reduced their rates of energy consumption that has caused the organization to loose out on projected levels of profit.
o The increased attention to the conservation of the

environment has resulted in the reduction of the use of energy and energy savings and in the future this will only increase thus reducing the profitability of the organization.

Environmental obstacle is reduced its image ExxonMobil was embroiled in a mega oil bribery scandal Some conflict-ridden oil-rich countries may interrupt the flow of the oil supply Enviable financial position has created another problem

Assume for a moment that you are the Rex Tillerson, CEO/ Chairman heir apparent. Discuss some corporate strategy initiatives you would take with regard to ExxonMobil and the international community

o Is the set of business, markets or industries in which

an organization compete ad the distribution of resources among their entities o categories: Concentration Vertical Integration Concentric Diversification Conglomerate Diversification

Concentration strategy o Which is focuses on single business competing in a single industry. o ExxonMobil focus on create energy from oil and natural gas ad sales to worldwide o Conduct business in 200 countries and territories

Products and services


o Fuels (petrol, diesel fuel, LPG, heating oils and kerosene)
o Chemicals (manufacturer and global marketer of petrochemicals

such as olefins, aromatics, fluids, synthetic rubber, polyethylene, polypropylene, oriented polypropylene packaging films, plasticizers, synthetic lubricant basestocks, additives for fuels and lubricants, zeolite catalysts and other o Marine (provide marine fuel ) o Lubricants & specialties (offer a full range of mineral and synthetic lubricants, basestocks and specialty products such as waxes, process oils and white oils o Aviation (supply of aviation fuel in the world)

1. Concentric Diversification. Develop new energy supplies in anticipation of growing demand by using a new technologies. For example; Solar energy. Due to a few brand cars produce hybrid car such as Toyata Prius. -Its more environmental friendly and reduce air pollution. And it will enhance Exxonmobil image to public.

Exxon expects that electricity demand will make natural gas the fastest-growing major energy source, with oil and natural gas expected to meet 60% of energy needs over the next three decades.

Develop new energy technologies to expand supply of traditional fuels and advance new energy source. Strategy to meet international community o improving safety, o reducing environmental impacts of energy production, o enable access to new sources of energy supply.

Develop an innovative system o ExxonMobil has joined with three other major oil and gas companies to develop an innovative system and have committed to a total initial investment of $1 billion on this project. Chevron, ConocoPhillips and Shell, o This new innovative system is to be mobilized within 24 hours of an incident, designed to capture up to 100,000 barrels of oil a day from a well blowout in waters as deep as 10,000 feet. The four member companies important project.

Shareholders - We are committed to enhancing the long-term value of the investment dollars entrusted to us by our shareholders. By running the business profitably and responsibly, we expect our shareholders to be rewarded with superior returns. This commitment drives the management of our Corporation. Customers - Success depends on our ability to consistently satisfy ever changing customer preferences. We commit to be innovative and responsive, while offering high quality products and services at competitive prices. Employees - The exceptional quality of our workforce provides a valuable competitive edge. To build on this advantage, we will strive to hire and retain the most qualified people available and to maximize their opportunities for success through training and development. We are committed to maintaining a safe work environment enriched by diversity and characterized by open communication, trust, and fair treatment. Communities - We commit to be a good corporate citizen in all the places we operate worldwide. We will maintain high ethical standards, obey all applicable laws, rules, and regulations, and respect local and national cultures. Above all other objectives, we are dedicated to running safe and environmentally responsible operations

Define

Corporate Responsibility. How well do you think ExxonMobil has met its corporate responsibilities?

Corporate Social Responsibility (CSR) is the obligation towards society assumed by business which reflects the social imperatives and the social consequences of business success. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good. It can be divided into: 1. Economic responsibilities; Produce goods or services that society wants at a price perpetuates the business and satisfies its obligation to investor. Eg produce oil for society. 2.Legal responsibilities; obey local, state, federal and relevant international laws. Eg. Standard of business conduct, Labor practices policy.

3. Ethical responsibilities: meet other societal expectation, not written as law.Eg. Discontinue practice that violate animal. 4. Philantropic responsibilities; additional behaviors and activities that society finds desirable and that the values of the business support. Eg. Donation of cash or goods to tsunami and earthquake victims.

Eventhough many problems raise on Exxonmobil CSR such as 1989 Exxon Valdez Debacle, their embroiled in mega oil bribery scandal and also US reluctances on Kyoto Protocol, Exxonmobil still spend a huge of money for society. On 2004, they spent USD106.5million for donation of cash, goods and services worldwide. The amount was increase to USD14.1billion on 2009. Its about 4.5% from their total revenue (USD310B). The purpose of CSR is to balance the economic growth, social development and environmental protection. Established a report on their CSR - 2009 Corporate Citizenship Report.

Their CSR focus on education, public health, environment, public policy and human rights. 1. Education
o ExxonMobil Malaysia provided Scholarships and best student

awards for deserving students from secondary and primary schools in Negeri Sembilan under the ExxonMobil Education and Scholarship Fund. o Funding of educational programmes to promote English and science education, improve computer literacy among youth from the rural areas, and sports awards to recognise outstanding young athletes. o ExxonMobils new community investment program, the Educating Women and Girls Initiative, was launched in July 2005. They awarded grants for women and girls in the developing world, investing more than $3 million in 2005.

ExxonMobil is a strong supporter of the Roll Back Malaria, global partnership founded by the WHO, the United Nations Development Programme (UNDP), the United Nations Children's Fund (UNICEF) and the World Bank with the goal of halving the world's malaria burden by 2010. Over the last five years, ExxonMobil has contributed almost RM500,000 for healthcare programs and equipment for hospitals and clinics in Terengganu, Malaysia. School-in-hospital program for chronically ill children requiring long term hospitalization and treatment.

In 2006, ExxonMobil funded an energy efficiency project managed by the Centre for Environment, Technology & Development, Malaysia (CETDEM). Called "Working with the Community on Energy Efficiency at the Household Level in Petaling Jaya" (WCPJ), it will help to promote awareness on efficient energy usage in urban households and the potential benefits that can be achieved. ExxonMobil also developed and implemented Environmental Business Planning (EBP) as part of the annual business planning cycle. Sponsor environmental workshop for school teacher who are the advisor of Schools Nature Clubs.

Rollout of the Framework on Security and Human Rights to the remainder of ExxonMobil operated affiliates that conducted throughout 2006.

5.

Public policy.
and regulation stated inside their Standard of Business Conduct, Labor Practice Policy and any other relevant policy.

o ExxonMobil will ensure that they had follows all rules

Are

there any other strategies ExxonMobil can implement to help improve its image and performance?

Using materiality analysis to identify social and environmental challenges and opportunities that are important to external audiences, and to prioritize them in business strategies.

Develop cost-effective technologies to increase future energy supplies, and improve energy efciency.

Seeking ways to reduce greenhouse gas (GHG) emissions

Continue to improve security measures to further enhance the protection of people and assets. Emphasize hazard recognition and reduce risk tolerance in our workforce through behavior-based safety tools Encourage its customers to purchase goods from its convenience stores apart from filling gasoline in the ExxonMobil gas station. The company should provide convenient and fast service, hygiene restrooms and friendly employees to its customers.

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