Exxon Mobil

Exxon Mobil
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Exxon Mobil
It is based in Houston, Texas in the United States with operational plants in over 100 countries. Records indicate that it is the biggest oil company in the world. The corporation has numerous divisions and affiliations such as Esso, ExxonMobil, Exxon and Mobil. Exxon Mobil affiliated companies produce and distribute products globally (Coll 2012). It helps in the operational process of petroleum products, its distribution and sales of oil related products in and out of the United States. In 2012, Exxon Mobil recorded the second highest annual profit in U.S history with the net income totaling to $44.8billion which was a 9.3% rise from 2011 (In Forbes 1917).  In 2012, it was ranked 2nd in the Fortune 500 list of energy companies because of its steady operational and profit margins despite the economic recession in the previous year Exxon Mobil`s success is based on the company`s culture in terms of artifacts, shared values and assumptions. These cultural aspects have led to the mutual growth of organizational cultures and company performance among employees.

Exxon Mobil`s Organizational Culture.
A company`s organizational culture consists of shared values, assumptions and the relation between shared values and assumptions results to artifacts (Hellriegel& Slocum 2009). The company has grown over the years with excellent track record since its inception in 1911 when it changed its brand name from Standard Oil Trust to Exxon and Mobil. In 1999, Exxon and Mobil merged to form Exxon Mobil which was estimated to cost about $76.6 billion in merging both companies. The secret behind the company`s success is its management`s relentless commitment to risk management and operational excellence which is vital to any successful business. The CEO and Chairman of Exxon Mobil, Mr. Rex Tillerson states,
“Risk management is a business imperative and ExxonMobil hs developed a robust risk management approach based upon decades of experience and continuous improvement. This approach is supported by well-developed and clearly defined policies and procedures to ensure that we have a structured, globally consistent system with the high standards in place.”
The managing board has always had an eye for taking risks either financial or operational risks. In the previous the company has suffered losses but dedication and strong will among the managers has uplifted the corporation to what it is today. After the company was established, they spend almost 20 years in building the company infrastructures like pipelines, refining plants, research institutions and production branches all over the United States. The corporations` determination in yielding excellent financial and operational results in the past few years. Most corporate decisions of Exxon Mobil regarding investments has contributed to the expansion of the company to build more manufacturing plants in more African countries like Gabon, Senegal, Ivory Coast and Cameroon. The reason why the company is cushioned against economic recession is simply because of its high quality communication channels and exquisite investment opportunities which give Exxon Mobil the upper hand when it comes to occupying the market space (Black, 2003). The company`s focus on operational excellence based on safety performance and environmental management has contributed to its success in various production, operational and financial systems. In 2012, the company attained almost $45billion in earnings which was in excess by 25% and a financial flow from asset sales of approximately $64billion (Rosenthal, 2013). In the same year the company invested about $40billion in capital expenditures which was broken down to $3billion in acquisitions and a total shareholder distributions were more than $33billion. The CEO states,
“All the above results reflect the hard work, diligence and dedication of the almost 77,000 men and women, who work on ExxonMobil`s behalf the world over. We know from experience that the pathway to maximize the positive outcomes for our customers, stakeholders and investors is to effectively manage the risk inherent in our business.”
The Culture and Company Performance.
Exxon Mobil`s performance has been impacted by the culture of the organization based on shared values and assumptions. The main reason for the exceptional performance of the company is because of their zero tolerance to policy compromise (Amason 2011). It has a board size of between 10 and 19 members, directors are chosen through shareholders selections and the company has a strict retirement age of 70 years to directors (Robbi...