Question

imagine you are a business consultant to ExxonMobil and you have been asked to analyze, advise,and create recommendations on how the firm can ensure its future success in it's current market.
prepare a minimum of 1050 word analysis of economic data and business data to explain how the core economic principles impact the sustainability of the firm and what actions the firm can take to ensure success. address the following:
•identify the market structure of ExxonMobil operates in, analyze its market share, and identify the firms local and global competitors. Analyze the barriers to entry in this market to illustrate the potential for new competition and its impact on ExxonMobil future in the market.
•identify and explain trends in current macroeconomic indicators for last three years including:
1. current stage of business cycle
2. real gross domestic product
3. inflation as measured by the consumer price index
4. unemployment rate
5. federal funds rate
6. current rate for borrowing funds such as the so called prime rate.
7. evaluate trend in demand over last three years and explain their impacts on industry and the firm.include quarterly (last two quarters) and annual sales (last three years) figures for the product that ExxonMobil sells. create business strategies by analyzing information and data related to the demand for supply of ExxonMobil products to support your recommendation for the firms actions. include graphical representation of the data and information.
8. examine available current data and information such as pricing and the available of substitutes and explain how you can determine the price of elasticity of demand for ExxonMobil products. assess how the price of elasticity of demand impacts ExxonMobil pricing decisions and revenue growth.
9. apply the concepts of variable and fixed costs to ExxonMobil for informing its output decisions, for instance analyze how different kinds costs,( labor, research and development, raw materials) affect the firms level of output.
10. based on the data gathered and analysis performed for this report write a conclusion in which you:
• create business strategies includingprice and non price strategies based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in dynamic business environment and provide reccomendations.
•develop a recommendation for how ExxonMobil can manage its future by synthesizing the macroeconomic and microeconomic data presented.
•propose how the firms position within the market and among its competitors will allow it to take your recommended action.
•reccomend strategies for ExxonMobil to sustain its success going forward by evaluating the findings from demand trends,price elasticity,current stage of business cycle, and government policies.

cited three peer reviewed references and a minimum of two government economic data sources/references

Answer 1

Exxon Mobil is a petroleum company which has an oligopolistic market structure and which also happens to be world's largest publicly traded company. Oligopolostic market structure is one in which the gamble of market dominance is played between a few players who through their business strategies try to obtain as much share from the market as possible , by weaning away the consumers from other companies . Sometimes these companies may collude with each other to dictate the supplies, thereby causing a major shift in market prices. More than 50% of the world’s largest companies are oil companies. Impact of new companies entering in Oil sector

As per the recent ranking study of oil companies of the world by Petroleum Intelligence Weekly [1], the top slots is taken by Saudi Arabian State oil company while Exxon Mobil is at 3rd position after Iran’s state oil company. Venezuelan and Chinese state owned oil companies were at 4th and 5th position respectively. This ranking clearly underscores that State support is must for any enhancement in the net worth. May be this is the reason that the latest entrants into the top 50 list of PIW [1] Uzbekneftegas, China’s CNOOC and Kazmunaigas of Kazakhstan — all majority state-owned

The entry to this businesss requires lots of government clearance and capital which makes the entry of the new player difficult here.