Essay about Operation Management

Submitted By trishgal
Words: 1347
Pages: 6

EXXON MOBIL OPERATIONAL MANAGEMENT ANALYSIS

Exxon Mobil is a rather obvious choice of a publically traded company and that company's aggressive determined and dedicated demand for success is herein noted. Items and components critical to this success will be analyzed and discussed based upon course precepts. The initial critical component addressed is Value Chain Analysis. Exxon Mobil was ranked number one by Fortune 500 magazine for 2012. The first component of VCA is "Inbound Logistics". For EM or any petro producer/retailer, this would be characterized by petroleum procurement, be it drilling onshore or offshore and obtaining this raw material. The second component "Operations" would be illustrated by petroleum refining or transformation of the raw product into the finished or marketable version. "Outbound Logistics" could be described as simply, delivering the product from product production centers or refineries, to the distributors of the products. This concept was exponentially increased when Exxon Mobil acquired XTO Energy in 2010. This enabled Exxon Mobil to produce almost as much gas as it does oil. "Marketing and Sales" is, as the name implies, the strategy whereby the product is positively presented to the consuming public, stressing product superiority, in a variety of modes. In the case of petroleum products, ultimately gasoline, these strategies include but are not limited to, octane performance, reliability, consistency of quality, reputation, longevity and other factors. Naturally, every medium is inundated with information, data, and statistics and in some cases, theatrics to insure the gasoline consuming public is convinced of their products superiority. "Services" would include resolution of any and all customer complaints and would also include internal "services" meaning the production end supports the distributors by guaranteeing timely deliveries in all exigencies such as weather issues or political and market upheavals. This naturally in a rudimental fashion, but nonetheless, accurate. Performance Measurement: Exxon Mobil. Shares rose by 20% and profits surged by 35% to $41.1 billion. Revenues jumped 28% to $452.9 billion, helping Exxon reclaim the top spot in the Fortune 500 for 2012 as reported in that very publication "Fortune Magazine".
To further illustrate the performance phenomenon, Exxon has certainly benefited from rising oil prices, particularly during the last quarter of 2011. But the company has also positioned itself well to capitalize on the latest controversial trend in domestic energy production: Fracking. Exxon now produces just about as much gas as it does oil, thanks to its $35 billion purchase of XTO Energy in 2010. As CEO Rex Tillerson told Fortune recently, with world demand for energy expected to rise considerably during the coming decades, the shale gas party has just begun" Exxon Mobil, therefore is blatantly performance oriented as exhibited by this shift into shale as a source of petroleum as opposed to the traditional sources.

"Goods and Service Design"
Exxon Mobil offers the obvious designs in their distinctive logo even to the fact that basically Exxon is probably the only English language word containing double X's.
"Supply Chain Issues": According to Exxon Mobil's web page, “Third parties providing services to ExxonMobil can impact our operations and reputation. Currently we rely on more than 175,000 suppliers of goods and services, including more than 85,000 third party contractor personnel. Because our global reach expands well beyond our fence lines, we seek and develop relationships with suppliers that uphold our commitment to operations integrity". Exxon Mobil further expands relative to supply chain citing "....... We apply a standardized procurement approach that allows our operations to share the same rigorous standards, accountability, and best practices worldwide. Our procurement staff is trained to conduct supplier prequalification…