The paper "Managing for Competitive Advantage: Exxonmobil" is a perfect example of a business case study. The management of internal activities at a firm or organization has become part and parcel of the modern executive’ s responsibilities on top of the fact that he should respond to the external challenges posed by suppliers, competitors, and scarce resources, political, social and technological issues among other market demands. To deal effectively with issues that affect an organization, the management must employ certain management processes that optimally capture its competitive advantages and prepare the firm to deal with unexpected internal and external demands.
Strategy formulation and implementation have become key aspects in helping organizations to deal with the expected and unexpected demands that they must address. Strategy formulation and implementation help firms to make a set of decisions that direct the organization towards achieving its objectives. This paper discusses strategy implementation aspects at ExxonMobil, identifies its current issues (about the company and its strategy), and critically evaluates its performance in terms of strategy formulation and implementation including effects on the overall financial performance, productivity and competitive position. Company ProfileExxon Mobil Corp also referred to as ExxonMobil, is a multinational oil and gas corporation that has its head office in Irving, Texas, United States of America.
It was born out of John D. Rockefeller’ s Standard Oil Company and came into existence on November 30, 1999. The company was formed as a merger between Exxon and Mobil (formerly Standard Oil of New Jersey and New York) to form one ExxonMobil. The formation of the companies was a result of the 1970s Arab oil crisis that made its parent companies escalate exploration and development activities in Africa, the Gulf of Mexico, Africa and the North Sea.
By the time Exxon and Mobil signed a merger agreement, the parent companies had already established roots in important locations and developed an asset base that was used as a major competing tool. The merger brought together assets to the tune of $87 billion and marked the largest merger ever heard in history. The existing Exxon shareholders own 70 percent of the new company compared to 30 percent owned by existing Mobil shareholders.
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