14capstone Project Part 4exxon Mobil Ranks Number Three On The Fortune ✓ Solved
Capstone Project Part 4 Exxon Mobil ranks number three on the Fortune 500 list. Exxon Mobil company is an American multinational oil and gas organization that is headquartered in Irving, Texas. The corporation was established on November 30, 1999, and it came about as a result of the merger between Exxon that was initially, Standard Oil Company of New Jersey, and Mobil which was initially the Standard Oil of New York (Exxon Mobil Corporation Home Page, 2020). This company supply to several brands for their customers which include Mobil, ExxonMobil chemicals, Esso, and Exxon. The company has been one of the world's most successful corporations and it is considered the world's largest company in terms of the amount of revenue that the organization generates.
Since the year 1996 to 2017, the company has been positioned between the 1st and 6th ranking when it comes to publicly traded companies in terms of market capitalization. Additionally, still, on the performance of the company, the company was ranked 9th in the Forbes Global 2000 list in 2016 and also in the Fortune 500 list of 2017, the company was ranked as 2nd largest corporation by the amount of revenue generated (Revenue of ExxonMobil 2019 | Statista, 2020). Most of the shares in this organization are held by institutions. Country of choice China is a country that has the most lucrative market that the organization can make entry into. The country is home to one of the largest populations in the world and this population has been increasing steadily over the years meaning that the country's demand for energy is also rising (Population, total - China | Data, 2020).
Since the company deals in the supply of gas and oil, it is most likely to enjoy and increase in the amount of revenue that it generates due to the large customer base. Although a lot of countries are going green and embracing activities and energy sources that are friendly to the environment, the company still has an opportunity to tap into this large market because it will take time for the entire country to stop using gas and oil as their main source of energy for both domestic and commercial operations. By making an entry into this new market, the country will enjoy some benefits, for example, the company will have access to a wider market meaning that by growing its market size, it will eventually increase its revenue and performance all over the world.
Mode of Entry The most effective and efficient entry mode that the company can implement is the franchising mode and the main reason behind this selection is that the company will not face a lot of challenges when making entry into the new market. While there are some disadvantages that the company may suffer by using this technique there are various core benefits that make this mode stand out from the rest. By franchising, the company will use a local company meaning that it will face little resistance from the market and also from its competitors (Five Modes of Entry Into Foreign Markets, 2020). Additionally, through franchising, ExxonMobil will be able to lower its financial risks since the risks and uncertainties that come with the entry endeavor will be shared with the franchisee.
Expansion for any company is a fundamental activity that, if implemented appropriately, would result in more revenues as well as a better reputation of an organization both in its home country as well as the overseas company. Exxon Mobil, thus expansion to China is cutting edge milestone that will aid the company in expanding its bounders and market sales and consequently push the vision of the company to a higher and better position. Cultural differences Being an American based Multinational oil and gas organization there will be some form of difficulty, especially considering that China and American have very distinct differences in respect to their cultures. The method of conducting business is also different in China as compared to America.
Being the largest country globally in terms of population and its rapidly growing market, the republic of China is a wealth of prospects for savvy business owners, especially those seeking expansion such as Exxon Mobil. The country has elaborated and strict control by the government, which may seem difficult for organizations. However, the country is best for any expansion organization. Additionally, the focus has been shifted to consumption and innovation by the Chinese government as a way of moving from investment-based growth. This indicates that people's massive existence is an excellent avenue of creating a pool of consumers for foreign products and services, which is an important aspect that can enable an organization to thrive.
When it comes to cultural differences, a domestic company seems to do better in China. Such companies have a considerable impact and control; of the market, especially with how seamlessly the customers integrate with Chinese Culture. For foreign companies it would not be easy to penetrate the Chinese market. However, when the necessary research and adjustments of the products and marketing are made, there is an excellent chance of success for the foreign companies (John, 2017). Furthermore, the act of gift-giving characterizes Chinese Culture.
Receiving and giving gifts, according to the Chinese, is an essential act of strengthening their relationships. They also follow a specific gifting etiquette; thus, it's vital to follow their way to avoid being misunderstood. Greeting is another characteristic of the Culture in China as a sign of respect. For instance, a business card should be received with both hands and placed in a jacket rather than the trouser this is considered ethical, unlike in the US (John, 2017). Hierarchy is another critical integral part of the business community in China.
Leaders and managers are well distinguished as compared to America. Additionally, such individuals expect obedience without question. This means that in China, any humiliation or challenge to leaders and managers is taken seriously; thus, unlike in America, wherein a meeting, any member can interrupt their boss while doing their presentation through asking of equerries or suggestion, in China, this is regarded as disrespectful. These are some of the culture and cultural differences that Exxon Mobil managers and individuals responsible for expansion will encounter. Distribution methods Regarding how strong and elaborate the Culture is in China, the best distribution method is via Franchising.
As mentioned earlier, local and domestic companies thrive well in the Chinese company; thus, Exxon Mobile company should partner with domestic companies through Franchising, where it will be able to take advantage of the roots the company has to penetrate the Chinese Market. Additionally, the company should employ locals who will be better positioned to communicate with fellow locals with ease, which will mitigate the language barrier issues. The use of locals will also help the company managers get insights on the Culture and its differences in the overseas company, which will help them interact and penetrate the market in general. Internal and External Environmental Factors The internal and external environmental factors of an organization should be a focal point of interest by the management.
One of the external factors that are likely to be experienced by Exxon Mobil is the economy. The economy of a country where the expansion is taking place should be doing good to support the business's weight. The economy helps in spotting all threats and opportunities in the market. Employees and managers are one of the internal environmental factors that affect the Exxon Mobile general welfare of the organization. The employees' must be experts in their jobs to put out good standard work (Al-Mascati & Al-Badi, 2016).
The way employees communicate and handle each other is vital because a serene environment is always peaceful for working. Strengths Exxon Mobil is a superpower international exporting oil and gas company; some strengths are associated with it. They have a successful track record of frequently developing new products in the market. It is called product innovation. It puts them at a higher link reducing competition from other companies.
They are financially stable and have a reliable stream of cash flow that allows them to be diverse and pave their way into popular and international markets. It has also made them have the opportunity to use the best technology, making their products of high graded quality. Their suppliers are hardworking and reliable, which makes them have a strong distribution network. Exxon Mobil has traversed its way to every sector of the better population, causing them to accumulate a lot of money. They manage to reach all their potential markets without much struggle because of reliable partners (Kassem, Khoiry & Hamzah, 2019).
Exxon Mobil has a strong dealer community, and many people have been employed to advertise and showcase their products, thus promoting the company. It has made people gain trust with it making it a brand super seller. Problem Analysis, Recommendation and Implementation Costs The oil giant company Exxon Mobil might incur a problem of running out of stock. It is essential to consider that they are expanding the business and all the needs have to be satisfied. They should be able to feed the market population.
Running out of stock can be a tremendous cumbersome. The economy of the company will also be affected if this happens. The recommendations and implementation costs to expand the business should be met. For quality assurance and improvement, all the basic concepts and prepositions should be completed. There should be strategies that have to be followed so that everything can work out correctly (Adiprasetyo, Irnad & Nusril, 2019).
The objectives and goals for expanding the business will be met if there are proper recommendations and implementation of costs. Submission Requirements Exxon Mobil submission requirements will help to know all the necessary things that are needed. Opening a bank account for the company will be required so that there can be zero confusion when it comes to accounting money. Hiring employees and managers who act as a source of labor will be relevant for Exxon Mobil Company. Obtaining licenses and permits from legal government offices is essential.
Managing and operating a business will need approval from the government so that they can tell you the requirements that are expected by the law. Setting up a working record-keeping system so that all activities that shall be taking place in the organization can be recorded and preserved for future references (Tang, Leiliabadi & Olugu, 2017). An accounting system will also be needed to ensure that all the money that flows in and out of the organization is accounted for. Obtaining a Federal Employer Identification Number is also important to show the ownership of the business. References Adiprasetyo, T., Irnad, I., & Nusril, N. (2019).
Using the structural equation modeling approach to determine the factors affecting the adoption of the Indonesian sustainable palm oil production system by smallholder farmers. Advances in Environmental Sciences, 11(1), 31-40. Al-Mascati, H., & Al-Badi, A. H. (2016, March). Critical success factors affecting the adoption of cloud computing in oil and gas industry in Oman.
In 2016 3rd MEC International Conference on Big Data and Smart City (ICBDSC) (pp. 1-7). IEEE. Exxon Mobil Corporation Home Page. (2020). Retrieved 24 August 2020, from Five Modes of Entry Into Foreign Markets. (2020).
Retrieved 24 August 2020, from John Galvin. (2017, October 19). The challenges and benefits of expanding a business to China . LinkedIn. Retrieved September 8, 2020, from Kaplan. (2019, March 22). Six challenges of doing business in China and how to overcome them .
Kaplan Financial Education. Retrieved September 8, 2020, from Kassem, M. A., Khoiry, M. A., & Hamzah, N. (2019). Using probability impact matrix (PIM) in analyzing risk factors affecting the success of oil and gas construction projects in Yemen.
International Journal of Energy Sector Management. Katie Reynolds (2020, March 9). How cultural differences impact international business in the 2017 Hult blog . Hult Blog. Retrieved September 8, 2020, from Population, total - China | Data. (2020).
Retrieved 24 August 2020, from Revenue of ExxonMobil 2019 | Statista. (2020). Retrieved 24 August 2020, from Sherrards. (2017, June 21). Overcoming cultural barriers when working with Chinese businesses . Sherrards Solicitors. Retrieved September 8, 2020, from Tang, D.
K. H., Leiliabadi, F., & Olugu, E. U. (2017). Factors affecting safety of processes in the Malaysian oil and gas industry. Safety science, 92, 44-52.
Week 3 Lecture In Week 3, students will evaluate various job classifications as well as compare job descriptions versus job postings. Additionally, students will utilize job analysis data for the development of a job design. As we are learning, there are many variables that drive behaviors and outcomes within the organization. Knowledge and confidence are the Human Resource Manager’s best friends. Having the right material at the right time is the first step to success.
This week, students will review jobs and their classifications. You will find that much of your time will be dedicated to researching and locating the right tool for the task at hand. As you move through the weekly activities, you will discover that there may be more than one right answer. Selecting the best option and supporting your reasoning will be an ongoing responsibility during your role as the Human Resource Manager. The Job Description The job description is the foundation for establishing expectations and accountability for the employee.
It is the Human Resource Manager’s responsibility to determine the key ingredients of the job description, the order in which they should appear, and the format used to both describe the position and how to post the position. What does ‘the order they should appear’ mean? Well, each position has a purpose within the organization and each position has certain qualities that must be found in the applicant. When laying out the job description, are skills the most important aspect of the position or is education the most important area? The layout of the job description attracts the applicant to the position.
If education is the most important but not included until the very bottom of the description, the applicant may miss the education aspect of the position and apply for something they are not qualified to perform. Mader-Clark (2103) walks you through every element of the job description and provides sound reasoning and examples to help you develop an understanding as to the reason why structure is important. Discover, Dissect, and Diagnose: Anatomy of a Job Description The job description plays an important role for job evaluations and performance reviews, as well as in the success of the individual within the organization. All areas of the process rely on the proper analysis and construction of the job description.
There are times that the job description and the job posting are one in the same. However, there are some key differences between a job description and a job postings. There is a distinct difference between a job description and a job posting. The Human Resource Manager needs to review the template and explore the importance of various content needed to accomplish the intended task. As the Human Resource Manager, this task is a matter of research and decision-making.
This task defines the characteristics of the job description and how they apply to the development of a job posting. The HRM must determine the necessary contents of each to achieve the desired outcome. You will develop a comfort level with terminology and application. Help wanted advertisement reads: Help Wanted. Wanted for immediate employment: Graduate of a relevant course or technical competency, no experience required.
Meticulous, honest, loyal, punctual, dependable. Willing to pur in long hours, lacks interest in office politics or gossip. Duties include repetitive activities, detailed observation, and organization. Competitive salary with benefits package. Write to...
Retrieved from It is not enough to analyze and design a job, the position must be properly classified and meet all legal requirements. Misclassifications are problematic and costly for employers and employees. It is the responsibility of HR to evaluate the position and determine the appropriate classification for the job and the resulting compensation category. References
Paper for above instructions
Exxon Mobil's Market Expansion into China: A Comprehensive AnalysisIntroduction
Exxon Mobil Corporation stands as a behemoth within the oil and gas sector, consistently ranked within the top tiers of the Fortune 500 list. With its rich legacy dating back to the merger between Exxon and Mobil in 1999, the corporation has maintained its blue-chip status across various market capitalizations and revenues (Exxon Mobil Corporation, 2020). Given the vast potential of the Chinese market, characterized by a burgeoning population and increasing energy demands, this report delves into the strategic approach Exxon Mobil should take for its expansion into China.
Market Potential in China
China, as the most populous country globally, presents a unique opportunity for Exxon Mobil to upscale its revenues. As a developing nation, its energy requirements are projected to grow, making it a viable market for oil and gas consumption (Population, total - China, 2020). The shift towards cleaner energy is indeed ongoing; however, it is anticipated to take years, if not decades, for fossil fuels to phase out entirely. Thus, Exxon Mobil can leverage this opportune window to solidify its position within the country (Revenue of ExxonMobil 2019 | Statista, 2020).
Mode of Entry: Franchising
When entering a new market, selecting an appropriate entry mode is crucial. The franchising model emerges as a particularly effective means for Exxon Mobil’s market entry into China. This model allows Exxon to collaborate with local businesses familiar with the market dynamics, thus minimizing entry barriers (Five Modes of Entry Into Foreign Markets, 2020). Despite some inherent risks associated with franchising, such as loss of control over brand representation, the benefits can significantly outweigh them, especially when engaging in a culturally distinct environment like China.
Franchising reduces financial burdens, allowing Exxon Mobil to distribute costs and risks with local partners (Kaplan, 2019). This strategic partnership not only enhances market penetration but also bolsters brand visibility within communities especially when local firms already possess established networks.
Cultural Differences and Challenges
A significant hurdle for Exxon Mobil’s expansion will be navigating the cultural landscape of China. Its business etiquette and practices differ markedly from the Americanized approach. The prominence of hierarchy, relationship-building through gift-giving, and the manner of communication all underscore the necessity for cultural intelligence (John, 2017). Exxon Mobil will need to invest in training programs for its management to appreciate and engage with these cultural nuances properly.
Moreover, it is essential to foster local partnerships, not only through franchising but also by employing local talent. Local hiring can help bridge cultural and communication gaps that may arise in presentations or negotiations. This can pave the way for better market reception and, ultimately, a successful integration into the business ecosystem (Sherrards, 2017).
Distribution Methods
Within the context of its distribution strategy, Exxon Mobil is advised to adopt franchising as the principal method. Domestic companies already operating in China have the cultural prowess to navigate consumer preferences effectively. By collaborating with these entities, Exxon can utilize their existing customer base and distribution channels to enhance its market reach (Tang, Leiliabadi & Olugu, 2017).
Furthermore, leveraging technology for efficient supply chain management could be essential. Building an efficient logistics operation is critical to ensure product availability, considering the potential demand surges in such a sprawling market.
Internal and External Environmental Factors
Both internal and external environmental factors will significantly influence the success of Exxon Mobil’s market entry strategy. Externally, monitoring economic factors such as inflation rates, government policies on foreign businesses, and fluctuating market demands will be crucial in strategic planning (Al-Mascati & Al-Badi, 2016). Internally, ensuring that employees are well-trained and equipped with the necessary skills to operate in a foreign market establishes a foundation for success.
Strengths and Opportunities
Exxon Mobil possesses notable strengths that can be utilized for its expansion into China. Their history of product innovation and technology adoption will provide a competitive edge in delivering high-quality energy products and services (Kassem, Khoiry & Hamzah, 2019). The brand's established recognition and reliability can facilitate trust, especially in a risk-averse market.
Conversely, the gradual transition towards renewables presents Exxon Mobil with an opportunity to invest in sustainable technologies and green oil derivatives, enabling them to align with future market trends while maintaining their profitability in oil and gas (Katie Reynolds, 2020).
Problem Analysis and Recommendations
As Exxon Mobil positions itself for expansion, it could face significant challenges, including stock management and market saturation. Running out of stock due to the rapidly increasing demand could hinder the brand’s reputation and economic sustainability. It is imperative to develop a robust inventory management system to ensure smooth operations (Adiprasetyo, Irnad & Nusril, 2019).
Additionally, achieving successful implementation of the expansion plan requires establishing clear objectives, budgeting accurately, and ensuring compliance with local regulations. There will also be a need to invest in community engagement strategies to help build rapport and overcome skepticism typically reserved for foreign companies (Kaplan, 2019).
Conclusion
The strategic expansion of Exxon Mobil into the Chinese market presents promising opportunities for growth amidst notable challenges. By opting for franchising, respecting cultural distinctions, and leveraging strengths, the company can successfully forge a path in this rapidly evolving market. Continuous evaluation of both internal operations and external market dynamics will be crucial in establishing a successful and sustainable business in China.
References
1. Adiprasetyo, T., Irnad, I., & Nusril, N. (2019). Using the structural equation modeling approach to determine the factors affecting the adoption of the Indonesian sustainable palm oil production system by smallholder farmers. Advances in Environmental Sciences, 11(1), 31-40.
2. Al-Mascati, H., & Al-Badi, A. H. (2016). Critical success factors affecting the adoption of cloud computing in oil and gas industry in Oman. In 2016 3rd MEC International Conference on Big Data and Smart City (ICBDSC) (pp. 1-7). IEEE.
3. Exxon Mobil Corporation Home Page. (2020). Retrieved from https://corporate.exxonmobil.com
4. Five Modes of Entry Into Foreign Markets. (2020). Retrieved from https://www.businessnewsdaily.com
5. John, G. (2017). The challenges and benefits of expanding a business to China. LinkedIn. Retrieved from https://www.linkedin.com
6. Kassem, M. A., Khoiry, M. A., & Hamzah, N. (2019). Using probability impact matrix (PIM) in analyzing risk factors affecting the success of oil and gas construction projects in Yemen. International Journal of Energy Sector Management.
7. Katie Reynolds. (2020). How cultural differences impact international business. Hult Blog. Retrieved from https://www.hult.edu
8. Population, total - China. (2020). Retrieved from https://data.worldbank.org
9. Revenue of ExxonMobil 2019. (2020). Statista. Retrieved from https://www.statista.com
10. Tang, D. K. H., Leiliabadi, F., & Olugu, E. U. (2017). Factors affecting safety of processes in the Malaysian oil and gas industry. Safety Science, 92, 44-52.