18 Jan Prior to completing this assignment, review your prior research and course submissions related to the company you selected fo
Prior to completing this assignment, review your prior research and course submissions related to the company you selected for research in Week 2’s Environmental Scanning interactive assignment. Ensure that you have incorporated the feedback you received from your previous submissions. In your Final Project this week, you will pull the various elements you’ve created together to aid your creation of a Strategic Plan. From the perspective of an executive with the firm, your supervisor has tasked you with creating a strategic plan to grow the business over the next three years using this Strategic Plan Template
. Continue to access the Mergent Ashford University Library online database which offers company financials, descriptions, history, property, subsidiaries, officers, and directors and the Business Insights database. (View the Mergent tipsheet and Business Insights tipsheet Tips document for suggested methods of searching Ashford University Library databases generally as well as specific advice for searching these two databases).
Your strategic plan must be future-oriented and must
- Describe the company, the company’s history and its 4Ps (Product, Price, Place, and Promotion).
- Examine the company’s mission statement and assess its impact on the organization’s activities.
- Explain the current situation of the organization in the market (industry, market, and general environment analysis).
- Add your SWOT analysis (strengths, weaknesses, opportunities, and threats) of your chosen company here. Evaluate areas that offer opportunities for
- Choose three or four areas from your SWOT analysis and assess why the areas you have chosen are essential to your strategic plan
- Summarize the results of your Environmental Scan and Porter’s 5 Forces.
- Evaluate the degree to which they aid in conceptualizing the company’s competitive position in its marketplace.
- Assess the company’s international performance in light of Cultural Barriers, Monetary Exchange Rates, and Political Instability.
- Assess the financial performance and condition of the
- Operational budget: Research and assess the company’s operational budget.
- Assess the performance in terms of key performance indicators.
- In your analysis, be sure to include profitability ratios relevant to your analysis.
- Debt to Equity ratio
- Debt to Assets ratio
- Based on the data, evaluate the overall current financial condition of the company.
- Support your analysis by referring to the company data
- Create a three year end trend analysis
- Assess how your Operational Budget analysis affects your three-year strategic plan.
- Recommend an organizational structure in terms of the organizational design as defined in Abraham (2012) section 2.6.
- Assess the impact of the strategic plan on the organizational culture.
- Strategic Goals: Create measurable core strategic goals for each of the three to four areas addressed from the SWOT analysis, addressing any contingencies associated with the strategies you are recommending and prioritizing them according to ease of achievement and time to completion.
- Recommend marketing positions and opportunities for growth in your strategic plan
- Add specific language to the strategic plan that addresses the company’s Corporate Social Responsibility
- Explain your plan to measure the success of your strategic
- Submit the Strategic Plan to the instructor.
The Final Paper
- Must be 10 double-spaced pages in length (excluding title and reference pages), and formatted according to APA style (Links to an external site.)Links to an external site. as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site..
- Must include a title page with the following:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- Must begin with an introductory paragraph that has a succinct thesis statement.
- Must address the topic of the paper with critical thought.
- Must end with a conclusion that reaffirms your thesis.
- Must use at least five scholarly and/or credible resources (including a minimum of three from the Ashford University Library) other than the textbook. Use the Scholarly, Peer Reviewed, and Other Credible Sources (Links to an external site.)Links to an external site.document for guidance.
- Must document all sources in APA style (Links to an external site.)Links to an external site. as outlined in the Ashford Writing Center (Links to an external site.)Links to an external site..
- Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
Note : My chosen company Topic is ExxonMobil which i have used in my week assignment. i am also attaching some document which will be helpful to complete the assignment
Running Head: PORSCHE GROUP FINANCIAL AND SWOT REPORT 1
Running Head: PORSCHE GROUP FINANCIAL AND SWOT REPORT 7
Porsche Group Financial and SWOT Analysis
Vishal Kumar Upadhyay
BUS402: Strategic Management and Business Policy
Instructor: Earl Levith
November 5th, 2018
Financial Overview and SWOT Analysis of the Porsche SE Group
HISTORY
As stated in the introduction, Dr. Ferdinand Porsche founded Porsche as an automobile design and engineering company in Germany in 1930 (History of Porsche – Funding Universe, nd.). Dr. Porsche’s reputation for innovative car designs did not go unnoticed, attracting the attention of Adolf Hitler. The collaboration between Porsche and Hitler resulted in the 1939 production of the Type 60 KdF-Wagen (Price, 2006). Porsche, who designed this car, preferred to call it the Volkswagen, or “people’s car (Price, 2006). The German people, however, referred to the car as the Beetle, the iconic name that the car is known as to this day (Price, 2006). While the early history of the company may be controversial, Porsche moved on to start manufacturing by 1948 its own “expensive, handmade, high performance sports car” (History of Porsche – Funding Universe, nd.). Using the design of the Volkswagen Beetle as a platform, Porsche started production of a handmade lightweight sports car, making five cars a month (History of Porsche – Funding Universe, nd.).
By 1956, Porsche had produced its 10,000 car (History of Porsche – Funding Universe, nd.). As the Porsche Company entered the 1960’s, it developed its most iconic and popular sports car, the 911. Introduced in 1964, the 911 was a two-seat sports car that had a rear mounted air-cooled flat engine, and featured a “low waistline and expanded glass areas [that] gave the new design a more elegant look” (History of Porsche – Funding Universe, nd.). The decades of the 1970’s and 1980’s saw the export market grow for Porsche, with Japan and the United States being major customers. In fact, 70% of the vehicles manufactured in 1981 at the Stuttgart plant were exported, with the United States accounting for almost 40% of Porsche’s total sales (History of Porsche – Funding Universe, nd.) By the 1990’s the export market for Porsche had collapsed, with over 30,000 sports cars sold in the United States in 1986, dropping to only 4,133 sports cars sold by 1992 (History of Porsche – Funding Universe, nd.). Porsche reacted to this by hiring a new CEO in 1992 who was charged with reducing costs and increasing efficiency (History of Porsche – Funding Universe, nd.). This had the desired outcome, with care sales rebounding in the United States rebounding to over 18,000 in 1998 (History of Porsche – Funding Universe, nd.). In 2005, Porsche expanded its footprint by merging with Volkswagen, in an effort to leverage Volkswagen’s resources in the joint development of new technologies (Ewing, 2005).
FINANCIALS
Since merging with Volkswagen in 2005, the Porsche Group seems to be on sound financial footing. One method to determine the financial health of a company is by using financial ratios, which pinpoints “ratios of key financial statement accounts that are helpful in identifying financial performance that merits further analysis” (Hickman, Byrd & McPherson, 2013). One area to look out when using financial ratios is liquidity. In regards to the Porsche Group’s liquidity, the current ratio and quick ratio will be examined. The current ratio is a measure of short-term debt paying capacity (Hickman, Byrd & McPherson, 2013). The formula for current ratio is the company’s current assets divided by current liabilities. With this rate, the higher the number the better. For the Porsche Group, the rate as of December 2013 was 6.48 (Mergent Online, 2013). In comparison, Ford Motors current ratio was only .60 during the same time frame (Mergent Online, 2013). The quick ratio formula, which measures short-term liquidity, is current assets minus inventory divided by current liabilities (Hickman, Byrd & McPherson, 2013). The quick ratio as of December 2013 for the Porsche Group was 6.48 (Mergent Online, 2013). Once again, in comparison, Ford Motors quick ratio was .49 during this time frame (Mergent Online, 2013). Another area of financial health to look at is long term debt. As of December 2013, the Porsche Group had no long term debt (Mergent Online, 2013). Using Ford in comparison again, 54.32% of its invested capital was long term debt (Mergent Online, 2013). Working capital is another area that indicates financial health. To determine working capital, the current liabilities are subtracted from the current assets (Hickman, Byrd & McPherson, 2013). The ratio for this measure is current assets / current liabilities, with a rate over 1 being considered positive (Hickman, Byrd & McPherson, 2013). Using this formula, Porsche has a working capital rate of 6.81 as of December 2013 (Mergent Online, 2013). Ford’s rate for the same time frame was .59 (Mergent Online, 2013). While not all financial indicators were looked at, the ones that were showed the Porsche Group to be sound financially at this point, especially when compared to the Ford Motor Company.
SWOT ANALYSIS
STRENGTHS
Engineering and Design – Porsche is renowned for its engineering and design in the automotive industry. Under the Porsche Engineering Group (PEG), the company has shared its research and development (R&D) capabilities with outside companies (Henderson & Reavis, 2009). Since merging with Volkswagen, Porsche now has the ability “draw on Volkswagen's resources as they jointly develop new technology, such as gasoline-electric hybrid technology” (Ewing, 2005). Financials – Porsche continues to be sound financially. This is illustrated by the fact that Porsche leads the industry on profit per unit basis. Porsche’s average revenue per car was $91,974 in 2007 (Henderson & Reavis, 2009). Also in 2007, the companies income “income topped $9.4 billion on revenue of $10 billion” (Henderson & Reavis, 2009).
Quality – J.D Power and Associates rated Porsche the top brand in “Initial Quality Study” (based on fewest problems per 100 vehicles) for 2006-2008 (Henderson & Reavis, 2009). Porsche spends 12% of revenue on R&D, while the rest of industry only averages about 5% on R&D (Henderson & Reavis, 2009).
WEAKNESSES
Porsche’s merging with Volkswagen could possibly dilute the Porsche brand. Customers have concerns over outsourcing assembly and engineering to Volkswagen facilities. Collaboration on the Porsche Cayenne and Volkswagen Touareg has highlighted these concerns. While the Volkswagen portion of the company has an abundant production of vehicles, the Porsche brand could suffer because of the limited amount of vehicles produced, along with the price sensitivity of the high performance sports car market. Another weakness is the fact that Porsche vehicles use premium gas only.
OPPORTUNITIES
While collaboration with Volkswagen on the Touareg was listed as a weakness, the Porsche Cayenne has been a success. Porsche can make inroads into the SUV market if it can leverage the success of the Cayenne into both larger and smaller vehicles. Porsche can also capitalize on the hybrid technology of Volkswagen by introducing this technology into the sports car platform. This will, in turn, have the effect of positioning Porsche as an environmentally friendly company.
THREATS
The external threats to the Porsche Group will continue to be governmental policies, competitors, the economy, and natural disasters. Internally, the company has to guard against brand deterioration. In other words, a Porsche must remain a Porsche, and a Volkswagen must remain a Volkswagen. While collaboration between the brands can be beneficial, too much cross-pollination will dilute the characteristics that make each brand unique.
RECOMMENDATIONS
In the mid-1980s through the mid-1990s, the Porsche Company was about to go through bankruptcy (Henderson & Reavis, 2009). A new CEO took over and turned the company around, emphasizing lean manufacturing and building new core competencies (Henderson & Reavis, 2009). As this turnaround has shown, the way forward for Porsche is to focus on Total Quality Management, lean manufacturing, and staying true to the brand. By concentrating on the core competencies and values of the Porsche brand, the company can stay viable well into the future. In turn, the Porsche Group must let Volkswagen and its brands continue to define their own identity. Maintaining brand identity, while continuing to synergize on processes and technology, will be a challenge for Porsche.
References :
Ewing, J. (2005). Porsche's Risky Ride with VW. Businessweek Online. Retrieved on September 29, 2014 from http://web.b.ebscohost.com.proxy-library.ashford.edu/ehost/ detail/detail?vid=10&sid=73bd0608-929a-45ce-bd81-8c848a12ae10%40sessionmgr 198&hid=126&bdata=JkF1dGhUeXBlPWlwLGNwaWQmY3VzdGlkPXM4ODU2ODk3 JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=18460466
Henderson, R., & Reavis, C. (2009). What’s Driving Porsche? Retrieved on September 28, 2014 from https://mitsloan.mit.edu/LearningEdge/CaseDocs/08-075- What%27s%20Driving%20Porsche.Henderson.pdf
Hickman, K. A., Byrd, W. J., & McPherson, M. (2013). Essentials of Finance. San Diego: Bridgepoint Education, Inc. Retrieved on September 28, 2014 from https://content.ashford.edu/books/AUBUS401.13.1/
History of Porsche AG – FundingUniverse, (n.d.). Retrieved on September 28, 2014 from http://www.fundinguniverse.com/company-histories/porsche-ag-history/
Mergent Online, (2013). Ford Motor Co. Financial Highlights as of 12/31/2013. Retrieved on September 29, 2013 from http://www.mergentonline.com.proxy-library.ashford.edu/ companydetail.php?pagetype=highlights&compnumber=3424
Mergent Online, (2013). Porsche Automobile Holding SE. Financial Highlights as of 12/31/2013. Retrieved on September 29, 2013 from http://www.mergentonline.com. proxy-library.ashford.edu/companydetail.php?pagetype=highlights&compnumber=32767
Price, R. (2006). The Beetle in Battle. World War II [serial online]. May 2006; 21(2):58-64. Retrieved on September 28, 2014 from http://web.b.ebscohost.com.proxy- library.ashford.edu/ehost/pdfviewer/pdfviewer?sid=73bd0608-929a-45ce-bd81- 8c848a12ae10%40sessionmgr198&vid=6&hid=126
,
Running head: THREE YEAR STRATEGIC PLAN 1
THREE YEAR STRATEGIC PLAN 3
Three Year Strategic Plan
Name
Course Name
Instructor’s Name
Date
Hint: In this template, you will find purple and orange “hint” boxes designed to help you with the project. Please delete all hints before finalizing your strategic plan.
Three Year Strategic Plan
Hint: Keep bold headings in the template. Delete text in the boxes and replace with your own content. The boxes will expand as you type if you need more space.
Executive Summary
Company History
|
In this space describe the company’s history. Include the 4Ps (Product, Price, Place, and Promotion. |
Mission Statement
|
In this space, share the mission statement of the company and assess its impact. |
Situational Analysis
Current Situation
|
In this space, explain the current situation of the organization (industry, market, and general environment analysis). |
Hint: For help, see the SWOT Analysis Guide.
SWOT Analysis
|
In this space, assess the SWOT analysis (strengths, weaknesses, opportunities, and threats) of the chosen company highlighting opportunities for change and address contingencies. |
Environmental Scan and Porter’s 5 Forces
|
In this space, summarize the results of your Environmental Scan and Porter’s 5 Forces, evaluating the degree to which they aid in conceptualizing the company’s competitive position in its marketplace. |
International Performance
|
In this space, assess the company’s international performance in light of cultural barriers, monetary exchange rates, and political instability. |
Operational Planning
Financial Performance
|
In this space, analyze the financial performance and condition of the organization. |
Operational Budget and Assessment
|
In this space, discuss the Operational Budget and Assessment using key ratios and performance indicators. |
Strategic Goals: Core Strategies and Tactics
Strategic Goals
|
In this space, share measurable core strategic goals for each of the three to four areas identified from the SWOT analysis, including contingencies. |
Prioritized Core Strategies
|
In this space, prioritize the core strategies, estimating the ease of achievement and time to completion. |
Recommended Organizational Structure
|
In this space, recommend an organizational structure assessing the impact of the strategic plan on organizational culture. |
Recommended Marketing Positions
|
In this space, recommend marketing positions and opportunities for growth. |
Measuring Success
|
In this space, explain plans to measure the success of the strategic plan. |
Hint: Before finalizing your document, be sure to carefully proofread. For help, see these Proofreading Tips.
,
2017
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2017
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to Commission File Number 1-2256
EXXON MOBIL CORPORATION (Exact name of registrant as specified in its charter)
NEW JERSEY 13-5409005 (State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
5959 LAS COLINAS BOULEVARD, IRVING, TEXAS 75039-2298 (Address of principal executive offices) (Zip Code)
(972) 940-6000 (Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange
on Which Registered
Common Stock, without par value (4,237,462,159 shares outstanding at January 31, 2018) New York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10- K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes No The aggregate market value of the voting stock held by non-affiliates of the registrant on June 30, 2017, the last business day of the registrant’s
most recently completed second fiscal quarter, based on the closing price on that date of $80.73 on the New York Stock Exchange composite tape, was in excess of $342 billion.
Documents Incorporated by Reference: Proxy Statement for the 2018 Annual Meeting of Shareholders (Part III)
[THIS PAGE INTENTIONALLY LEFT BLANK]
EXXON MOBIL CORPORATION FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017
TABLE OF CONTENTS
PART I
Item 1. Business 1
Item 1A. Risk Factors 2
Item 1B. Unresolved Staff Comments 4
Item 2. Properties 5
Item 3. Legal Proceedings 26
Item 4. Mine Safety Disclosures 26
Executive Officers of the Registrant [pursuant to Instruction 3 to Regulation S-K, Item 401(b)] 27
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 30
Item 6. Selected Financial Data 30
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 30
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 31
Item 8. Financial Statements and Supplementary Data 31
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 31
Item 9A. Controls and Procedures 31
Item 9B. Other Information 31
PART III
Item 10. Directors, Executive Officers and Corporate Governance 32
Item 11. Executive Compensation 32
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 32
Item 13. Certain Relationships and Related Transactions, and Director Independence 33
Item 14. Principal Accounting Fees and Services 33
PART IV
Item 15. Exhibits, Financial Statement Schedules 33
Item 16. Form 10-K Summary 33 Financial Section 34
Index to Exhibits 120
Signatures 121
Exhibit 12 — Computation of Ratio of Earnings to Fixed Charges
Exhibit 18 — Preferability Letter
Exhibits 31 and 32 — Certifications
[THIS PAGE INTENTIONALLY LEFT BLANK]
1
PART I ITEM 1. BUSINESS
Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil operate or market products in the United States and most other countries of the world. Their principal business is energy, involving exploration for, and production of, crude oil and natural gas, manufacture of petroleum products and transportation and sale of crude oil, natural gas and petroleum products. ExxonMobil is a major manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a wide variety of specialty products. Affiliates of ExxonMobil conduct extensive research programs in support of these businesses.
Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso, Mobil or XTO. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso, Mobil and XTO, as well as terms like Corporation, Company, our, we and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates. The precise meaning depends on the context in question.
The energy and petrochemical industries are highly competitive. There is competition within the industries and also with other industries in supplying the energy, fuel and chemical needs of both industrial and individual consumers. The Corporation competes with other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods of competition which are lawful and appropriate for such purposes.
Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the following: “Quarterly Information”, “Note 18: Disclosures about Segments and Related Information” and “Operating Information”. Information on oil and gas reserves is contained in the “Oil and Gas Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report.
ExxonMobil has a long-standing commitment to the development of proprietary technology. We have a wide array of research programs designed to meet the needs identified in each of our business segments. Information on Company-sponsored research and development spending is contained in “Note 3: Miscellaneous Financial Information” of the Financial Section of this report. ExxonMobil held over 12 thousand active patents worldwide at the end of 2017. For technology licensed to third parties, revenues totaled approximately $89 million in 2017. Although technology is an important contributor to the overall operations and results of our Company, the profitability of each business segment is not dependent on any individual patent, trade secret, trademark, license, franchise or concession.
The number of regular employees was 69.6 thousand, 71.1 thousand, and 73.5 thousand at years ended 2017, 2016 and 2015, respectively. Regular employees are defined as active executive, management, professional, technical and wage employees who work full time or part time for the Corporation and are covered by the Corporation’s benefit plans and programs. Regular employees do not include employees of the company-operated retail sites (CORS). The number of CORS employees was 1.6 thousand, 1.6 thousand, and 2.1 thousand at years ended 2017, 2016 and 2015, respectively.
Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels, as well as projects to monitor and reduce nitrogen oxide, sulfur oxide and greenhouse gas emissions, and expenditures for asset retirement obligations. Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2017 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $4.7 billion, of which $3.3 billion were included in expenses with the remainder in capital expenditures. The total cost for such activities is expected to increase to approximately $5 billion in 2018 and 2019. Capital expenditures are expected to account for approximately 30 percent of the total.
Information concerning the source and availability of raw materials used in the Corporation’s business, the extent of seasonality in the business, the possibility of renegotiation of profits or termination of contracts at the election of governments and risks attendant to foreign operations may be found in “Item 1A. Risk Factors” and “Item 2. Properties” in this report.
ExxonMobil maintains a website at exxonmobil.com. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act of 1934 are made available through our website as soon as reasonably practical after we electronically file or furnish the reports to the Securities and Exchange Commission (SEC). Also available on the Corporation’s website are the Company’s Corporate Governance Guidelines and Code of Ethics and Business Conduct, as well as the charters of the audit, compensation and nominating committees of the Board of Directors. Information on our website is not incorporated into this report.
2
ITEM 1A. RISK FACTORS ExxonMobil’s financial and operating results are subject to a variety of risks inherent in the global oil, gas, and petrochemical businesses. Many of these risk factors are not within the Company’s control and could adversely affect our business, our financial and operating results, or our financial condition. These risk factors include:
Supply and Demand
The oil, gas, and petrochemical businesses are fundamentally commodity businesses. This means ExxonMobil’s operations and earnings may be significantly affected by changes in oil, gas, and petrochemical prices and by changes in margins on refined products. Oil, gas, petrochemical, and product prices and margins in turn depend on local, regional, and global events or conditions that affect supply and demand for the relevant commodity. Any material decline in oil or natural gas prices could have a material adverse effect on certain of the Company’s operations, especially in the Upstream segment, financial condition, and proved reserves. On the other hand, a material increase in oil or natural gas prices could have a material adverse effect on certain of the Company’s operations, especially in the Downstream and Chemical segments.
Economic conditions. The demand for energy and petrochemicals is generally linked closely with broad-based economic activities and levels of prosperity. The occurrence of recessions or other periods of low or negative economic growth will typically have a direct adverse impact on our results. Other factors that affect general economic conditions in the world or in a major region, such as changes in population growth rates, periods of civil unrest, government austerity programs, or currency exchange rate fluctuations, can also impact the demand for energy and petrochemicals. Sovereign debt downgrades, defaults, inability to access debt markets due to credit or legal constraints, liquidity crises, the breakup or restructuring of fiscal, monetary, or political systems such as the European Union, and other events or conditions that impair the functioning of financial markets and institutions also pose risks to ExxonMobil, including risks to the safety of our financial assets and to the ability of our partners and customers to fulfill their commitments to ExxonMobil.
Other demand-related factors. Other factors that may affect the demand for oil, gas, and petrochemicals, and therefore impact our results, include technological improvements in energy efficiency; seasonal weather patterns, which affect the demand for energy associated with heating and cooling; increased competitiveness of alternative energy sources that have so far generally not been competiti
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.