The defiant one (Exxon Mobil)

Citation

Colvin, G. (2007), "The defiant one (Exxon Mobil)", Strategic Direction, Vol. 23 No. 9. https://doi.org/10.1108/sd.2007.05623iad.007

The defiant one (Exxon Mobil)

The defiant one (Exxon Mobil)

Colvin G. Fortune, April 2007, Vol. 155 No. 7, Start page: 68, No. of pages: 5

Purpose – To discuss the strategy and culture of Exxon Mobil. Design/methodology/approach – Notes that Exxon’s profits in 2006 exceeded the combined GDP of Yemen and Bahrain. Argues that Exxon Mobil’s performance is far superior to that of its major competitors in terms of market value added, holding more capital and earning a higher return on that capital. Notes however that it has also experienced public relations difficulties and considerable hostility in recent times. Points out that Exxon has declined to join the rest of the oil industry in investing in alternatives to petroleum such as biofuels, wind and solar power. States that the company takes the view that oil, gas and coal will remain the world’s dominant energy sources for decades to come. Reflects on concerns put forward by the company’s critics, noting that whilst chief executive Rex Tillerson has acknowledged the issue of global warming, Exxon remains out of line with the rest of the industry on environmental issues. Comments that the company has drawn little attention to its emission reductions, or to its provision of $100 million in funding over ten years for Stanford’s Global Climate and Energy Project, which conducts research into alternative fuels. Suggests that this attitude is a reflection of the company’s culture and single-minded focus on profit generation, although some critics regard it as a sign of arrogance and uncontrolled power. Originality/value – An overview of Exxon Mobil, the corporation ranked number two in the 2007 Fortune 500 list of American companies.ISSN: 0738-5587Reference: 36AL087

Keywords: Corporate culture, Corporate strategy, Energy industry, Exxon Mobil, Financial performance, Management attitudes