How gas and oil regulations affect the business of Exxon

Exxon divided into different sections like finance, chemical, upstream, corporate and downstream. Upstream section explore and produce natural gas and crude oil. Downstream manufacture and sells petroleum products. The chemical department manufactures and markets petrochemicals. The company operates in the United States, Europe, Australia, Canada, Africa and Asia. Third most competitive company is Valero Energy Corporation owning a market capitalization of 29. 4 billion. It has a company share volume of 7million with over $130 billion in revenue. Exxon opportunity is an establishment of the global brand with a proven successful business model. The Company team up with best in business consumer research, exceptional products, and innovative programs offers to attract clients and add bottom-line value. Embracing government payment transparency regulations that require discloser of competitively sensitive commercial information which could cause violet non-discloser laws.

Government actions to cancel contracts, re-denominate the official currency renounce or default obligation. Security concerns and government sponsorship of alternative energy. Organization and Teams Exxon organizational structure based on the concept of autonomous global operations. The company contains eleven different divisions operating globally. The oil spill pushed the company’s operational cost up by 12%. It made company adapt to new and more expensive technologies to gaud against such violence. The measures continue to negatively impact the profitability of Exxon Mobil. The second situation is rising production costs: following the firm’s aging oil well and its new oil finds deeper and more expensive to drill. It means continuous rise in unit production cost, marketing and distributions. The uncertain political climate: changes in political leadership can have a market impact on the operation of the firm.

For example, change in US government which deny the firm’s licenses to drill in offshore areas where the company derives significant oil deposits. Technological changes: Exxon depends heavily on technological advancements to drive production and efficiency. There is the possibility of competitive strikes low-cost deposit and sell at lower price effectively driving the firm from its market leadership position. These actions majorly represent threats to the company. For instance, Exxon Mobil energy saving plastics are making vehicles lighter and improved tire inner help reduce tire weight and keep them inflated longer which is significant to fuel economy. Exxon Mobil also developed lower viscosity lubricants such as Mobil One Advanced Fuel Economy by 2% compared to motor oils most companies use. Exxon Mobil is also improving vehicle battery technologies.

The firm unveiled new separator filmsNaN in 2007, developed by their chemical industry for lithium-ion batteries. The film has to enhance energy efficiency and affordability of next-generation hybrid electric vehicles. Communication Exxon mobile has an active communication strategy to deal with the problem arises. As a result, change and innovation strategies. The firm has responded on establishing high standards of operation through its operational integrity management system which provide a framework to ensure its operation safe and according to rule. Previously, persistent injuries and illness show ineffectiveness and safety strategies (ExxonMobil 2017). The firm reduces these by the corporate-wide loss of time incident rate by setting priorities, measuring progress and holding people accountable. Exxon Mobil maintains the activities both by regulatory and dictates managerial choice is making people to posse a context of understanding and expectations in which events both good and evil and assessed.

Arkansas spill was terrible news for Exxon Mobil and stakeholders but somewhat informed them something that they were not anticipating. Reputation values were affirmed and managing it illustrates that preparing crisis requires better visibility into risk and more significant attention to mitigation strategies. The reputation crises are opened windows for new development to technology and adherence to regulations and court litigations. Response Exxon Mobil adheres to all applicable laws and regulations as a minimum standard and while required to do. Innovation and continuous change in technology are essential in the current energy industry like Exxon. The technology has created new opportunities covering the delivery of cost solution developments which is vital for business dynamic and competitive environment. Technological innovation is essential in improving perfections.

Operating one global functional organization is one of most significant challenge which today's Exxon faces with common standard process and culture of one corporation generate substantial competitive advantage and finding new ways to increase cooperation and working one big global functional organization is an essential factor to consider when making change and innovation strategy. The extraordinary performance of Exxon will always depend on the performance of people working in it. Strong Financial Resources: the second quarter of 2017 financial reports indicates an increase of $1. 7 billion in profit as a result of stronger upstream and downstream and lower corporate charges. RECOMMENDATIONS • Participative leadership – using a democratic leadership style that involves and engages team members • Effective decision-making – using a blend of rational and intuitive decision-making methods, depending on that nature of the decision task • Open and transparent communication – ensuring that the team mutually constructs shared meaning, using effective communication methods and channels • Valued diversity – valuing a variety of experience and background in organization, contributing to a diversity of viewpoints, leading to better decision making and solutions • Mutual trust – trusting in other team members and trusting in the team as an entity • Managing conflict – dealing with conflict openly and transparently and not allowing grudges to build up and destroy team morale • Clear goals – goals that are developed using SMART criteria; also each target must have personal meaning and resonance for each team member, building commitment and engagement • Defined roles and responsibilities – each team member understands what they must do (and what they must not do) to demonstrate their commitment to the team and to support team success • Coordinative relationship – the bonds between the team members allow them to coordinate their work to achieve both efficiency and effectiveness seamlessly • Positive atmosphere – an overall team culture that is open, transparent, positive, future-focused and able to deliver success • Establish operations in emerging markets to drive growth and profitability as well as spreading risks.