Introduction
The main idea of the paper is to identify the major reasons for the success of Exxon Mobil in then world market and trace the major processes that took place in the company’s finance over the past years (Exxon Corporation, 2007). To start with, Exxon Mobil is the largest of the world’s six supermajor oil and gas producing companies. It produces about 3% of world’s oil and over 5% of the energy that is consumed in the world every year. The major reasons for such a success of Exxon Mobile are the increase of prices for oil and other energy sources, world-wide financial crisis that caused the decrease in the supplies of oil and made Exxon one of the few regular suppliers of oil and gas in the world. Thus, for example, a net income of Exxon Mobil Corporation for the year 2007 amounted to $40, 6 billion from which $30 billion were paid as taxes, while the year end cash balance of the company comprised $34 billion. The major directions of Exxon activity are Upstream (exploration and production of oil and gas), Downstream (production and marketing of petroleum) and Chemicals (production of petrochemicals). The company operates on all continents and has its subsidiaries in Latin America, Russia, China, etc. The total amount of shares issued by the Exxon consists of 5,331,546,810 in 2008 which were guaranteed by the sum of $5,148 million the same year. Compared to December 2007, the total cash assets of the Exxon Mobil increased from $34,5 million to $39,7 million in 2008, while the long-term debt of the company amounted to $7, 123 by the same period of time (Exxon Mobil Corporation, 2008).
The recruitment policies
The recruitment policies of Exxon are balanced and conform to the demands of the modern world’s political and economic situation. Exxon employs over 107, 000 people worldwide. Among which 63% are employed in Exxon’s subsidiaries abroad. Women comprise 12% of the employees, while minorities amount to 20% of them and can be employed in staff and in management of Exxon. Employees of Exxon also have certain programs for development at their disposal: Investing in Diversity, GlobeSmart, Working Globally Course and some others. Pension schemes are also a part of employment in Exxon with $ 302 to be paid by an employee per month to pension fund of the company. Moreover, Exxon encourages positive atmosphere in office, i. e. pays attention to the organizational culture, solving of the conflicts in staff, etc. In 2007, Exxon broke several records for US based companies, for instance by earning $116,64 billion which meant the increase of quarterly and annual income by 29,5%. From this sum, about $700 million were spent on promotion and advertisement. Exxon has its own website on the Internet that presents its employees and consumers a wide range of opportunities for the development and cooperation with Exxon. The company has always been an attractive subject for scholars, thus literature on its performance and changes is also numerous (Exxon Mobil Corporation, 2008).
The complexity operation and charity of Exxon’s
The complexity of Exxon’s operation consists in its usage of modern equipment and progressive technology. However, accounting is also complicated in Exxon as its subsidiaries can be found worldwide and their taxed have to be converted into US tax rates to be paid. For it, the Financial Accounting Standards Board’s (FASB) Interpretation No. 48 was adopted by Exxon to make the accounting easier. The marketing strategies of Exxon are also designed so that to enable company’s officials to control and develop the markets for production sales. Exxon is also famous for its charity and environmental protection. The sum of $173.8 equivalent in cash, as well as consumer goods and services were granted to the poor over the past year. The Save the Tiger Fund founded in 1995 still develops and cooperates with environment-protecting organizations. On the whole, Exxon is a rather profitable and developed company which is one of the leaders at the world’s oil and gas market (Exxon Mobil Corporation, 2008).
References
Exxon Corporation. (2007). Century of Discovery: An Exxon Album. Exxon Corporation.
Exxon Mobil Corporation. (2008). Taking on the World’s Toughest Energy Challenges. Web.