Reference no: EM132279486

ExxonMobil is a major company in the Oil and Gas industry specializes in manufacturing Fuels, Lubricants, and Petrochemicals. ExxonMobil is the world’s biggest openly traded international oil and gas corporation. The quality, size, and variety of their joined portfolio are apparent converged all three of their world market divisions: Upstream, Downstream, and Chemical (corporate.exxonmobil.com). ExxonMobil operates business in nearly all the continents of the world. The contemporary management technique best suited ExxonMobil is the value chain analysis because it is a strategic tool that the company can use to comprehend its competitive edge better; distinguish where quality to clients can be increased or reduced prices; and to precisely understand the company’s systems of links with suppliers, clients, and other companies in the market. For ExxonMobil, it starts with new product creation and trial, then materials acquisition and production, and lastly selling and customer service. (Blocher, E. J., Stout, D. E., Juras, P. E., & Cokins, G., 2019, p.43).

ExxonMobil is selected because the Oil and Gas industry is pivotal to the debates on sustainable expansion. The sector plays a vital part in marketing enterprises and our everyday lives. Still, there are growing anxieties concerning the adverse effect of its activities and products on the environment and welfare of society. Hence, it is crucial for us to know the condition of maintainable methods in the industry. It permits us to see possibilities for reform that could promote efficient execution of maintainable supply chain management (SSCM) tactics in the industry (Wan, Wan Nurul Karimah, de Brito, M. P., & Tavasszy, L. A. (2016). Also, the Oil and Gas industry faces extreme urgency to meet the world’s demand for reasonably priced and reliable energy, but with concerns from environmentalist, it intensified the inter-fuel competition (Weijermars, R., 2010). However, ExxonMobil is addressing the environmental challenge through its management strategy led by a thorough scientific comprehension of the environmental effect of their actions (corporate.exxonmobil.com).

Because of the growing reliance on energy sources in the country, the insufficient quantity of alternative energy sources, and the inferior asset estimation of oil companies produced a prolonged unsteady crude oil market (Reddy, K. S., & Xie, E. 2017). ExxonMobil can utilize value chain analysis in positive force to help it identifies the precise steps needed to render a competing product and service to the consumer. The value chain analysis would help management find which measures or activities are not competitive, where prices can be decreased, or which activity should be contracted out. Management would best comprehend the company’s competitive edge and tactics by dividing its operations based on activity (Blocher, E. J., Stout, D. E., Juras, P. E., & Cokins, G., 2019, p.43). Two distinct steps of the value chain analysis would help ExxonMobil achieve critical success in their competitive industry. Step 1 is to identify the particular value chain activities that the company must conduct in the process to create, produce, and to supply service. Step 2 is to grow a competitive advantage by decreasing cost or makes products more appealing to consumers. This is where ExxonMobil must decide whether to analyze the value activities of its present and future competitive advantage and cost drivers identified in step 1.