exxonmobil research project

8/12/2019 ExxonMobil Research Project

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Case Study:

ExxonMobil

Background Research

Shey Grossen

Jared Houghton

Sara Michael

McKay Perry


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Introduction

ExxonMobil Corporation is one ofthe largest publicly traded companies inAmerica. Consecutively topping the chartsof the Forbes 500 list, ExxonMobil remainsnot only dominant in the oil industry, butalso a major contributor to the stability ofthe United States economy. Despite therecent recession, ExxonMobil, along withother major competitors in the oil industry,continued to see significant growth in pastyears.

In 2011, ExxonMobil saw anincrease of nearly 35 percent in profits,contributing to a net income of $41 billion.

Due to the companys substantialprofitability, ExxonMobils board voted toincrease the compensation of ChiefExecutive Officer Rex Tillerson by 17percent. Tillerson now earns approximately$25.2 million and is said to be the 16thhighest paid CEO in corporate America.

The increase in compensationsparked massive responses from the mediaand the public putting ExxonMobil in thepublic light, not because of its contributions

in aiding the recovery of the economy, butrather for accusations of greed and corporatecorruption. Though accustomed to badpress coverage, considering thecontroversial issues involved in oil drilling,ExxonMobil seeks to diffuse publiccriticism of executive compensation.

External Environment

The issue of CEO compensation

must be examined within a largerscope. ExxonMobils environment containssocial, economic, and politicalpressures. While functioning in thisenvironment, ExxonMobil is forced to dealwith perception. The perceptions ofExxonMobil stem from events and issuesthat involve bank bailouts, family financial

insecurity, and environmental problems suchas the BP and Valdez oil spills.

The state of the nations economy isworse off than five years ago. According tothe Bureau of Labor Statistics, the

unemployment rate was reported at 4.6percent in August 2007. In the August 2012report, unemployment has almost doubledrising to 8.1 percent. This rise excludes thefact that additionally each month that therate is measured, more people drop out ofthe work force, meaning there are morepeople who are actually suffering from thelack of employment. The lack of economicgrowth has spurred some movements amongthose from lower income levels such as the

Occupy movement.The financial impacts have

negatively affected the confidence level inthe economy. According to a Gallup poll,36 percent of Americans are saying theeconomy is getting better while 59 percentare saying it is getting worse.

The state of the economy hascontributed to insecurity and fear in the livesof many Americans. The old adage thatchildren will end up better off than theirparents will be tested. The Federal Reservesaid that median family wealth is near thesame level it was in the early 1990s. Themedian family net worth dropped to $77,300in 2010, compared with $126,400 in 2007.

In this time of economic hardship,what people consider signs of belonging tothe middle class have alsochanged. According to a Pew ResearchCenter survey, to constitute part of the

middle class, 86 percent say a person needsa secure job, while just 45 percent say thesame about owning a home, 37 percentabout a college education and 28 percentabout financial investments.


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Pertinent to ExxonMobilsenvironment is the looming presidentialelection. Since the state of the economy is ahot-button issue, the economic philosophiesof the nominees will likely be a point ofdivision in the election. Many peoplebelieve that raising taxes for the upper classwill help to solve the economic problems.

According to a Pew Research Centersurvey, 44 percent of the public say thatraising taxes on incomes above $250,000would help the economy rather than hurtit. However, 22 percent say it would hurtthe economy, and 24 percent say it wouldnot make a difference. Additionally, 44percent say that increasing the taxes on therich would make the tax system fairer, while21 percent say that it would not.

In addition to the tax structure for the

rich, there is also growing distrust towardthe wealthy. Many people think thatwealthy people are potentially dishonest andgreedy. The attitudes shown in the graphpotentially stem from the governmentbailouts that were granted to banks aroundthe time the mortgage industrycollapsed. Many people perceive large

corporations to be similar to rich peoplewhom are not trusted.

A common campaign promise fromboth parties is the plan to bring security backto the American citizen by creating jobs.Job creation by large corporations seems tofavor backing a Republican

candidate. According to the graphic, the oiland natural gas industry is responsible for5.3 percent of employment in the UnitedStates economy.

Contrasting this graphic with agraphic from a recent Pew Research study,as much as 14 percent of people blame the


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oil companies for rising gas prices. Othersblame Obama, OPEC, and Iran.

The birth of the oil industry in theUnited States dates back to as early as 1859,when the first oil well was drilled inTitusville, Pennsylvania. The industry hassince grown to become one of the mostprofitable in the world and an icon ofAmerican big business and wealth.

Advances in technology soon led tothe expansion of drilling from Pennsylvania

into California, Texas, Alaska and the GulfCoast, which is the current site of mostdrilling in the United States. Today theUnited States reports an average productionof just less than 5.4 million barrels of oil perday. Average American daily consumptionhowever, is nearly 19 million barrels per day.

In spite of recent developments ofalternative energy solutions, the U.S.remains the highest consumer of oil in theworld second only to China. In an effort to

end the United States dependence onforeign oil, it is predicted that oil productionwill increase by 1 million barrels per day by2020. However, because of the UnitedStates dependence on oil, foreign importsfrom other countries continue to trouble theAmerican market. The Organization ofPetroleum Exporting Countries (OPEC),

which currently has 12 Middle Easterncountries as members, dictates oil prices perbarrel, and significantly impacts world gasprices and distribution of oil. Unrest in theMiddle East has also led to spikes in oil

prices as well as instability for the Americanmarket still heavily reliant on their imports.

Since its advent, the oil industrycontinues to remain a lucrative business.However, after the energy crises of 1973,and 1979, where oil prices quadrupled, theindustry has since become one of the mostprofitable in the world.

Todays economic market isprimarily dominated by what are consideredthe Big 5 U.S. Oil Companies. Thesecompanies include ExxonMobil, BP,Chevron, Conoco Phillips and Shell. The2011 SEC financial reports indicaterecorded combined earnings of $375 millionper day for the Big 5, or a breakdown of$261,000 per minute. Earnings in the oilindustry are estimated to have grown$1trillion from 2001 to 2011. ChiefExecutive Officers of Big 5 Companies alsoreceived an average compensation of$60,110 per day and average pay for allexecutives in the oil industry increased by55 percent in 2011.

Over the years, the industry has beenhighly criticized by both the press and theAmerican public. A 1975 poll produced byHarris Interactive showed the growingAmerican concern about the deregulation ofthe gas prices. The report showed that 74percent of those polled believed thatderegulation would lead to significant gains

for the oil companies at the expense of thetaxpayers. The controversial energy crisesof 1973, and again in 1979, also left manyAmericans disillusioned and skeptical of theoil industry. CNN and the New York Timesconducted a poll in 1979 that revealed 69percent believed the shortages werefraudulent. A similar Roper Poll study


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conducted only a few years earlier revealedthe same surprising data, 73 percentbelieved there was no real shortage. Thisskepticism and feeling of deception hasnever been fully resolved.

In recent years, following thedownturn of former powerhouse giants suchas General Electric and General Motors, therise of major oil companies continued toharbor distrust among the American people.In an April 2012 poll conducted by HarrisInteractive, results showed that once again37 percent of Americans blame the oilindustry for the recent record highs in gasprices. Of those polled, 25 percent believedprices were to be blamed on conflicts in the

Middle East. Additionally, in an August2012 Gallup Poll, 61 percent had a negativeview of the oil and gas industry putting itjust below the federal government and laston the list compared to the computerindustry which had a 73 percent positiveview.

Historically, the oil industry has beenheavily regulated. In the late 1800s, inefforts to protect against the onslaught ofmonopolies, local governments regulated

natural gas. Regulation moved to a federallevel in the 1920s, and in 1938, thegovernment passed the Natural Gas Act,which gave federal jurisdiction to regulateinterstate gas sales. The Phillips Decision ofthe 1940s determined that wellhead priceswould also be monitored and allowed forreasonable sales prices as well as what wasconsidered a fair profit.

Initially, each producer was assessedseparately, but this policy changed to ageographic area policy and eventually anational price ceiling. In 1978, at the heightof the energy crisis, the Natural Gas PolicyAct passed and set ceiling wellhead prices.This decision also led to the organization ofthe Federal Energy Regulatory Commission.The 1980s led to significant reforms in theregulation of the oil industry including the

1989 Natural Gas Wellhead Decontrol Act,which ended wellhead regulation.

The Federal Energy RegulatoryCommission (FERC) stands today toregulate rates and practices of oil pipelines,

particularly in interstate transportation.They also seek to provide shippers withequal service and access to pipelines andmonitoring rates for the transportation ofpetroleum. Although the FERC is notinvolved in the overseeing of construction ormaintenance of oil pipelines, once projectsare considered operational the Departmentof Transportation regulates safety.

The Environmental ProtectionAgency (EPA) regulates the effect theindustry has on the environment. The EPAregulates oil and natural gas productionenforcing rules including performancestandards for emissions, hazardouspollutants, transmission and storage. InApril 2012, President Barak Obama passedinitiatives to tighten oil and gasregulation. New legislation requires all oiland gas companies to capture emissions andpotential pollutants. These regulationsrestrict the new process of fracking, orhydraulic fracturing, being experimentedwith by major industry competitors in aneffort to explore alternative energy solutionswith natural gas. The oil industry isexpected to comply and capture allemissions by 2016.

For more than 125 years ExxonMobilhas been one of the main leaders in moderntransportation, power, lubricate industry andin building petrochemical building blocks.

Promotions

From the beginning, Exxon hasembraced American heritage andvalues. Originally, Rockefeller and some ofhis associates started Exxon in 1882. Thename was Standard Oil Company andTrust. It was called the Standard Oil


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Company until 1972. Rockefeller and theStandard Oil Company were a driving forcein the reorganizing of not only the oilindustry, but also of all business. They wereinfluential in creating jobs and benefiting

towns and cities throughout the UnitedStates. In the 1870s, they purchased theVacuum Oil Company and through thisbecame lubricant pioneers. The StandardOil later became Exxon Company and in1999, it merged with Mobil Corporation andbecame ExxonMobil.

Much work was done to create a goodreputation, grow and become profitable.Exxon has also had their hand in importantmoments in American history. They

lubricated Thomas Edisons first generatingsystem. In 1903, the Wright Brothers usedtheir lubricant in their historic first flight. Inaddition, in the 1900s, its products wereused to produce rubbing alcohol (1920),artificial rubber-butyl and used by AmeliaEarhart and Charles Lindbergh (1928) intheir historic flights across the AtlanticOcean. Exxon evolved from a domesticprovider and refiner into a multinationalcompany. It is currently involved in all

aspects of oil and gas.

ExxonMobil has gone to great lengths toshow their involvement in the communityand their interest in children. They donated$125 million to the National Math andScience Initiative to help improve math and

science education in the United States. Thiscould be used as a way to highlight theimportance of math and science education inconnection to a comfortable living andsecure employment. Advertising campaigns

for ExxonMobil have shown how theypromote the study of advanced science andmathematics for youth and young adults.

ExxonMobil has put considerablefinancial emphasis on theenvironment. They are continuallysearching for methods and ways to minimizethe impact on the environment. In 2011,environmental expenditures totaled nearly$4.9 billion. ExxonMobil also hires localsto help develop the local economy by

improving education and training.

ExxonMobils competitor, ConocoPhillips, has addressed many concernsthrough their recent advertisingpromotions. Their strategy involveshighlighting the work that they are doing inconnection with many of the high-profileissues like clean energy, natural gas,improving the economy and safety inharvesting the energy. Despite the CEO ofConoco Phillips making more in totalcompensation than the CEO of ExxonMobil,Rex Tillerson, ConocoPhillips succeeds ingiving middle-class Americans an ally in thedifficult economic times. They focus theiradvertising campaigns on audiences ofmiddle-class families, college students, andblue-collar workers. Common themesinclude job creation, research for alternativeenergy, and safety concerns.

Market Share

Of the Big 5, ExxonMobil holds anestimated 29 percent of the market share.According to the reports for the first quarterof the 2012 fiscal year ExxonMobil reported$ 9.5 billion in profits comparing to acombined total of the 33.5 billion in profit ofthe other companies. This percentage ofmarket share has been substantiated for


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several years now making ExxonMobil theleader among the oil industry and the secondlargest publicly traded company in the world.In recent years, ExxonMobil has alsoexpanded significantly in its exploration of

natural gas. The acquirement of new naturalgas fields is expected to expand thecompanys gas production by 12 percent andmakes ExxonMobil the largest provider ofnatural gas in the world. In 2009, Exxonalso collaborated with Chevron and RoyalDutch Shell on natural gas projects withExxonMobil and Shell owning 25 percent ofthe plant, and Chevron a 50 percentshareholder.

Competition

The main competitors to ExxonMobil areChevron Corporation, Royal Dutch/ShellGroup, TOTAL S.A., Conoco Phillips,Valero Energy Corporation, BP Plc, RepsolYPF, S.A., Imperial Oil Limited, Sunoco,Inc. and Hess Corporation. As mentionedbefore, the main competitors that

ExxonMobil has are BP, Conoco Phillipsand Chevron. All these companies,including Exxon, have experienced a drop inoverall revenue and operating costs due tothe declining price of natural gas and oilduring the recession. This has caused thepricing of the stocks for these companies todrop as well. With all that in mind, the

company still was able to have a net gain inthe second quarter this year of $7.5 billion.That is more than all their competitors.

All of these companies also have todeal with the negative perception that large

oil companies have in the public eye. Theoil business is a very lucrative business andbecause of this, many people have anegative opinion on what they do and howmuch they make. This problem is universalto all involved in the industry.

The other problems that exist are allexternal problems discussed earlier. Suchproblems include political debates, problemsin the Middle East, and domestic problemsdealing with the economy. These problemswill continue so long as the public perceivesthe companies as making too much moneyand not putting it back in the society andpaying taxes on it. In reality, Exxon doespay back a lot of money in taxes to thegovernment.

Resources

Because of the bad history of the oilindustry, it will be difficult to change theperception that the nation has of thecompany. The industry has poured in a lotof money in Washington in form oflobbying and so there would be manyopinion leaders that could help with acampaign. The problem with politicalleaders is that they want to appease theirconstituents and might not want to appear inconnection with oil industries. If we can getenvironment activist groups as well as othercelebrities who fight for the economy to seewhat ExxonMobil is doing for theenvironment, then we could use them asintervening publics and opinion leaders tohelp sway the public to see what we aredoing to help better the world.

We could also highlight some of thenew facilities we are building and providingon behalf of the many donations we have


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given to different organizations across thecountry. We want to show the country thatwe are not only thinking of ourselves, butalso we are thinking of the world and thebounties that it has to offer the company.

By connecting with the audience in apersonal way, we will have better results inour campaign. We can follow a similarexample of Wal-Mart. They place adswhere they show how they are thinking ofthe children and their needs and this willallow them to connect with families. Theyhave also run ads showing how people cansave money and save the environment bybuying products that Wal-Mart offers. If wecan create similar ads, we can tap into those

same feelings and help the public to see usin a different light and they will not feel asstrongly against us as they do.

SWOT

The main strategy for ExxonMobilsexploration is to identify, evaluate, pursueand capture the highest-quality resourceopportunities. The global presence thatExxon has allows it to explore diverseopportunities in all environments. Because

of the money that they have allocated forresearch, they can use their geosciencecapabilities and understanding of the globalhydrocarbon potential to identify, evaluateand prioritize the highest quality resourceopportunities.

This strategy has allowed Exxon tohave a strong research and developmentteam. They spent $1,044 million in R&Dand this has allowed them to develop moreeffective ways to identify new resourceopportunities, drill more accurately, improverecovery of oil drills, optimize the value ofhydrocarbon molecules, deliver acomprehensive suite of lube and advancedfuels hydro processing and engineeringcapabilities in the refining sector as well asto enable the commercial development of insitu bitumen. All these advances help

Exxon to attain a competitive advantageover its peers, to maintain a technologicaledge over its competitors and to stay aheadof industry trends.

The company itself has a wide

presence throughout the world with manydifferent international divisions. This givesthe company a competitive advantage overits competitors and shows that the companyhas a wider understanding of the differentevents in the world. This diversification hasallowed the company to avoid exposure toeconomic conditions or political stability inone country or region.

One of the greatest weaknesses thatthe company faces is legal problems withdifferent departments of the company. Thishas caused many people to have an adverseopinion in regards to oil companies.Typically, people only see the negative sidesof a situation and this is especially true withoil companies. These problems will affectthe image of the company in a negative way,which could result in reducing theprofitability of ExxonMobil.

Another problem is the growing

economic condition of the country. Thiscauses many people to have a negativeperception of the company and how muchmoney it makes. Because the economy isnot improving as much as people would like,it has caused a greater problem in the waypeople view Exxon and other companies thatare similar to them. Referring to the statisticearlier, 14 percent of the country believesthat the oil companies cause the rising gasprices as well. However, the real cause of

the problem is the decline in resources andthe growing problem in the Middle East.

Exxon has many opportunities in thenear future to change the negativeperception that the company has. It hasbeen putting thousands of dollars into theresearch of shale gas, which in the future isexpected to form a large part of domestic


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U.S. petroleum production. They purchasedPhillips Resources and TWP for $1.69billion in June of 2011, to better positionitself in the forefront of shale gas researchand production in the future.

Because the population is expectedto grow rapidly in the future, the globaldemand for energy is expected to rise aswell. As you can see in the graphic above,new productions will be required to keep upwith the growing population. This hascaused Exxon to devote $185 billion over

the next five years to research and developnew projects and technologies to efficientlysupply energy to the world. This will helpto lower costs of energy and allow morepeople to afford the energy they need fortheir families.

Even though Exxon has been presentin many countries across the world for manyyears, the majority of their exploration andproduction comes from regions with a

history of political instability. This hascaused many questions to arise as to whatwill happen in the future with the outlook ofthe company. Although no can predict whatwill happen, it is fair to say that manyproblems could arise if something were tohappen in those regions.

Many environmental regulationshave been put in place and especially theClean Air Interstate Rule (CAIR) from 2005,that requires states to limit their emissionsoverall. Exxon is committed to falling

within those regulations but the cost to do sowill causes Exxon to put money into makingsure it meets those standards and not onimproving the company.

The economy is the biggest threat toExxon. With the economy so low, it causesmany people to worry about where to spendtheir money and with the rising costs ofliving, it forces the public to have a negativeperception of the company.

Potential Publics

Educators

Nationwide there are an estimated3.2 million public school teachers teachingnearly 49.9 million students. According tothe National Center of EducationInformation, of the current workforce themajority of teachers are stilloverwhelmingly women. Roughly 84percent of all teachers are female andequally it is estimated that 84 percent ofteachers are also white.

Recent trends, however, have showna decrease in average age among educators,22 percent are younger than thirty years old.Similarly, percentages of teachers who haveless than five years of experience haveincreased by 18 percent in the past five years.The percentage of teachers with overtwenty-five years experience has decreased

by 17 percent.Currently, more than half of public

school teachers have a masters degreeincluding a new trend of teachers earningtheir masters in subjects other thaneducation. Average income for teachersnationwide is around 40,000 dollars.Educators are also among the most likely to


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participate in a union. An estimated 43.2percent of teachers are involved in a union.

Teachers are highly influential in theshaping of young childrens views and ideasespecially nowadays when mothers are

returning to the work force and have lesstime to spend with their children. Teachersare likely to volunteer and are availableduring the summer to participate inprograms and trainings for the incomingschool year. Educators recognize the needto improve math and science skills in theUnited States and often actively participatein grants and other opportunities for theirstudents.Current Relationship: Most educators are

unaware of ExxonMobils continued effortsto support the growth of math and sciencestudies. Particularly in parts of the countrywhere ExxonMobil does not have plants.Influentials: Fellow educators andadministrators, union leaders, communityleaders and parent councilsSelf-Interests: Professional reputation,increased test scores in students, grants, andrecognition/awardsChannels: newspapers, internet, academic

journals, local and national news

Students

In the United States this fall, 21.6 millionstudents are expected to attend colleges anduniversities. Since 2000, there has been anincrease of about 6.2 million students. Themajority of college students are females,12.3 million compared to 9.3 million males.The percentages of Black and Hispanic

students attending college are increasing aswell. In the past 10 years, college studentswho were Black rose from 11.3 to 14.5percent and Hispanics rose from 9.5 to 13.0.

Last year, about 74 percent of youngadults with a bachelors degree or higherwere employed full-time and 65 percent ofthose with an associates degree. The

median earnings for young adults with abachelors degree were $45,000.The collegedemographics consists almost exclusively of18-24 year-olds.

Current relationship: Students are

generally aware of how important and largethe oil industry is, but they are less aware ofwhat opportunities are available to them inthe industry.

Influentials:Peers, professors, parentsSelf-interests: Open to new ideas, education,friends and family, motivated

Channels: College student are mediasavvy and are open to new ideas. They arebest reached through the internet becausethey spend hours at a time online whether

they are studying, surfing the net orsocializing with friends. They are harder toreach with traditional advertising becausethey have grown up greatly exposed toads. Word of mouth from their friends isanother good channel.

Share Holders

Investors most likely fall into the agegroup of senior citizens and babyboomers. These people have retirementaccounts and stock portfolios. This groupreflects many traditional American values.They uphold the American dream of owninga home and getting a collegeeducation. These people lived through otherrecessions such as in 1980, which was also atime when oil shortages were common.Current Relationship: positive. While manyAmericans do not trust large corporations,this group voted on and approved theexecutive compensation plan. Theshareholders are advocates forExxonMobil. They understand whatExxonMobil is doing within the contexts ofcommunities and the environment.Self-interests: family and a secure retirementmotivate this group.Influentials: company executives andeducated American leaders in business.


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Channels: This public listens to channelsthat include newspapers, traditionalbroadcast news and radio. Shareholderliterature is also an effective channel.

Middle Class Families

According to the Pew ResearchCenter graphic above, almost 50 percent ofwhites, blacks and Hispanics considerthemselves part of the middle class. Manypeople who are in this category believe thatthey are being taken advantage of. They aremostly a younger generation between their30s and 50s. The middle class wants whatis best for their families. They value the

American Dream. They all long to becomewealthy and provide for their families butunfortunately, the economic downfall hasplayed a factor into them not being able to.Current Relationship:They do notunderstand completely the factors thatinfluence why Exxon does what it does andwhy the money does not go back into the

economy. They want more money to beavailable to the public and want more taxesplaced on the wealthy. Some are interestedin the environment, the majority are moreinterested in providing for their families and

making it paycheck to paycheck.Self-Interests: Their self-interests arewith their families, the countriesunemployment and economic problems,making money and the taxes that the richpay. They want everything to be equal andthink that the wealthy are taking advantageof the poorer people in America.

Influentials: The influentials are politicalfigures that fight for the middle class, unionsand each other

Channels: The channels that influencethis public are television, newspaper, onlineforums and grassroots campaigns.Unemployed

The unemployed are similar to themiddle class families. The graphic below isfrom 2011 but is similar to what ishappening this year. The majority ofunemployed Americans are either black orLatino. They too, feel like they have been

taken advantage of and that life is not fair.The one difference between the two groupsis that this stretches over all ages. Itparticularly hits the older generation as wellas the younger generation right out ofcollege. They want to provide for theirfamilies and to give them the type of lifethat they deserve. The economy limits whatthey can do and how they are able to do it.Current Relationship: They really do notcare much about the environment or

anything like that; they are mostly interestedin making money for their families. Theydo not trust the oil companies and they donot understand how they make so muchmoney but appear to give none of it back.Self-Interests:Their self-interests are in theirfamily, the current economic condition andthe political campaigns right now. They are


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hoping to get a job and are most concernedabout that.

Influentials: Families, political leaders andunions.Channels: Social media, newspapers,

television and grassroots campaigns.

Environmentally Concerned

With the onset of the greenmovement, several Americans young andold have become environmentally active.Since the 1960s, campaigns have grown onlocal, state, national and even internationallevels. Activists involved in non-governmental organizations are especiallyactive in seeking to create public policy

regarding environmental issues. However,once considered radical and leftist, severalAmericans are significantly more concernedabout the well-being of the environment.According to a GfK Roper Consulting Poll,four in ten Americans say they are willing topay more for environmentally safe products.Furthermore, 35 percent of Americans saidthat large industries should be competitivebut not at the sacrifice of green efforts.While 50 percent believe that the

government is responsible to preserve andprotect our environment, 35 percent felt thatit is the responsibility of businesses andindustries. Only 29 percent believe that upuntil this point the environment has beenappropriately cared for. Underlying thedesire to protect the environment, 52 percentbelieve many green Americans are acting

out of the best interest for their family, notnecessarily the environment. Typically,those most actively purchasing greenproducts or appliances are the middle toupper class, because such products tend to

be more costly.Current Relationship- In the aftermath of oilspills and general distrust of the oil industrymany of the environmentally conscious viewbig oil companies skeptically.

Influentials: peers, family members,friends, coworkers,

Self-Interests: family welfare, cost ofgreen items, image among neighbors,

Channels: social media, local andnationwide broadcasting, newspapers

Employees

ExxonMobil currently has 103,700employees who come from a broad range ofdemographics. ExxonMobil recruits locallyas well as globally. United States, AsiaPacific and Europe make up the majority ofthe workforce along with small percentagesof Canada, Africa/Middle East and LatinAmerica. Last year, 44 percent of new hireswere women.

Current Relationship: Positive.ExxonMobil has open communication withits employees. Last year 19 town-hall-styleforums were held and numerous meetings ona wide variety of topicsSelf-Interest: Supporting familyInfluentials: Fellow employees, leaders,peersChannels: Traditional news outlets, internet,and social media.


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Situation Analysis

Recently, executive compensationhas come under scrutiny by the Americanpublic. Justification of such compensationis difficult to explain. Moreover, the issue atplay here is executive compensation is asurface issue that represents a deeperculmination of complaints. In a recoveringeconomy, Americans find it difficult to learnthe compensation figures of executives,especially when the current unemploymentrate is 8.1 percent. In addition to a fallingstandard of living, the oil industry hasviolated the trust of Americans in thepast. Since the oil crisis of the late 1970s, anegative perception of oil companies has

existed.

The negative perception stems fromAmericas dependence on oil, harmfuleffects on the environment, and a generalnegative perception of corporate America ineconomically challenging times. SinceExxonMobil is top profit earning oilcompany in America, much of the criticismfalls on them. The worlds population isprojected to grow to nearly nine billion

people by the year 2040, and this growth isexpected to increase the energy demand fortransportation by about 45percent. ExxonMobil understands thelimitations of the energy reserves, and isbecoming a leader in alternative energytechnology.

Core Problem

Due to the current struggling USeconomy, and unresolved distrust andskepticism rising from past legal issues andenergy crises, ExxonMobil remains a targetfor criticism and holds an overwhelminglynegative perception in the public eye.

Communications Solution

In one years time, we want to helpthe public be better informed about whatgood ExxonMobil is doing as acompany. We will reach out to our publicsthrough highlighting various programs,research, and technology that is beingincorporated by ExxonMobil to show theirpositive influence in America andthroughout the world. We will show theirlongstanding commitment to embracingAmerican values and their dedication inhelping America succeed. Specifically, howtheir contribution is boosting our strugglingeconomy, supporting education, andbenefiting the whole world with its plan to

use 185 billion dollars over the next fiveyears to invest in new technology for cleanand alternative energy.


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