Organizational Selection
Exxon Mobil is an international oil and gas company headquartered in Texas, United States (Exxon Mobil, n.d.). It operates in more than 200 countries, employs more than 74,000 individuals, and has a market capitalization of more than $200 billion (Exxon Mobil, n.d.). Given its size and global presence, choosing a CEO with experience leading a big organization with a diverse workforce and operations in various areas is essential. The new CEO should also have an in-depth knowledge of the energy sector and be capable of predicting and responding to the industry’s changes and challenges.
History and Background
The company’s rich history has enabled it to become a successful organization. Exxon Mobil’s history and background can be traced back to 1870 when John D. Rockefeller founded Standard Oil Company (Exxon Mobil, n.d.). In the early 1900s, Standard Oil Company was one of the world’s largest and most powerful corporations, controlling over 90 percent of the oil refining industry in the United States (Exxon Mobil, n.d.). In 1911, however, the United States Supreme Court ruled that Standard Oil Company had violated antitrust laws and instructed the company to be split into smaller entities (Exxon Mobil, n.d.). This resulted in the formation of many businesses, including Exxon and Mobil. Exxon was founded in 1882 under Standard Oil Company of New Jersey and operated in over 100 countries (Exxon Mobil, n.d.). Mobil was founded in 1911 under Standard Oil Company of New York (Exxon Mobil, n.d.). Generally, the company has a strong presence in the United States and international markets.
Situational Analysis
Growing international demand for energy, exploration of fresh markets, and investment in renewable energy technology present the corporation with the potential to expand its operations. Yet, the global oil and gas market is highly competitive, and ExxonMobil’s company is threatened by the shift toward cleaner energy sources (Hastings & Williams, 2019). To remain competitive, the business can harness its robust research and development capacity, invest in renewable energy technology, and enhance its environmental performance.
Products and Services
Exxon Mobil supplies oil and gas to all the continents worldwide, possessing a global presence. The company operates at every oil and gas value chain stage, from drilling and extraction to refining and marketing. Exxon Mobil uncovers for and generates crude oil and natural gas upstream (Hastings & Williams, 2019). In the downstream segment, Exxon Mobil refines crude oil into various oil products, including gasoline, diesel, jet fuel, and lubricants.
Management and Leadership Structure
Exxon Mobil’s management structure is highly centralized, with the CEO reporting to the board of directors. The organization’s long history of promoting from within focuses on technical expertise and innovation. The chief executive officer is responsible for the company’s overall direction and management, while the board of directors offers oversight and guidance on sound decisions (Hastings & Williams, 2019). Exxon Mobil’s executive positions include the president, senior vice presidents, and executive vice presidents, who are accountable for various business units and functions.
Business Culture
Exxon Mobil possesses a distinct and robust business culture taught in its operations. Its staffing and instruction practices reflect the company’s strong emphasis on technical knowledge and innovation (Bouri et al., 2022). Exxon Mobil places a high value on its employees and provides extensive development and training programs to ensure they possess the skills and knowledge required to succeed. The company also prioritizes operational excellence, environmental stewardship, and safety.
Mission
Exxon Mobil’s mission statement is to provide dependable and affordable energy to meet the world’s rising demand while minimizing its environmental impact. The company realizes energy is a critical foundation for economic growth and human advancement. It seeks to meet the world’s energy requirements while addressing the challenge of climate change. Exxon Mobil is committed to ethical and practical processes that reduce its environmental impact to achieve its mission (Bouri et al., 2022). The company invests in R&D to create new technologies and solutions, enabling it to generate and distribute energy more efficiently, reduce pollution, and conserve natural resources.
Current Challenges
Exxon Mobil faces several obstacles that will demand the attention of the new CEO. First, it was confronted with a decline in oil demand due to the COVID-19 pandemic, which reduced travel and economic activity (Bouri et al., 2022). Second, it encountered pressure from investors, regulators, and the general public to reduce its carbon footprint (Bouri et al., 2022). The company has been criticized for failing to address climate change and funding campaigns denying its existence (Bouri et al., 2022). Finally, competition from renewable energy sources such as solar and wind have threatened the conventional oil and gas industry (Bouri et al., 2022). These challenges are critical, especially during the transfer of leadership from one CEO to another.
Impact of CEO Resignation
Exxon Mobil’s CEO’s resignation will majorly affect the company. The CEO has been the company’s public face and key to developing its strategy and vision for the past twelve years. Second, the departing CEO has established solid connections with essential stakeholders such as regulators, investors, distributors, and customers (Ma et al., 2019). These relationships have been established over time through communicating effectively, collaboration, and dedication to generating value for all stakeholders. Exxon Mobil’s outgoing CEO has demonstrated a strong safety culture, environmental responsibility, and operational excellence.
References
Bouri, E., Iqbal, N., & Klein, T. (2022). Climate policy uncertainty and the price dynamics of green and brown energy stocks.Finance Research Letters, 47(7), 102740. Web.
Exxon Mobil. (n.d.). About us. Exxon Mobil. Web.
Hastings, J. S., & Williams, M. A. (2019). Market Share Liability: Lessons from New Hampshire v. Exxon Mobil. J. Envtl. L. & Litig., 34(6), 219. Web.
Ma, Y. R., Zhang, D., Ji, Q., & Pan, J. (2019). Spillovers between oil and stock returns in the US energy sector: does idiosyncratic information matter?. Energy Economics, 81(4), 536-544. Web.