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ExxonMobil Structure and Control Systems Essay

Exxon Mobil Corporation makes its unparalleled distinction through an exceptional, organizational structure based on functionality. Each of the company’s line of business companies oversees a targeted group of operations around the operational stations in the world with an overseeing president at the head and broad authority to run itself. ExxonMobil’s functional structure strategy is through the focus of a number of refineries into regional clusters, which in turn give the company enhanced operational and supply maximization.

Key refining stations are based on the Gulf Coast in the United States, the northwest of Europe, Japan as well as in Southeast Asia. Together, these stations characterize 60 percent of ExxonMobil’s overall refining power. Besides this, over 80 percent of the company’s refineries are incorporated with chemical or lubes operations providing the company its long standing competitive advantages founded on the enhanced feedstock suppleness and minor site-operational costs. ExxonMobil’s inventive applications and championing strategy for technological advancements for competitiveness are one of the leading in the energy industry.

As one of the analysts and authors unveiled, One of the methods used by Exxon to gauge alignment success is the Balanced Scorecard system. Balanced Scorecard, a measurement system that was developed in the 1990s by Robert

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Kaplan and David Norton, requires every action to answer to established corporate vision or goals. It’s based on the concept that you can’t improve what you can’t measure (Duvall 4). Exxon is mainly managed a Board of Directors though most of the power is given to the Chief Executive Officer (CEO) while the Board take the initiative and function independently in most of the vital matters affecting the company.

The effectiveness of the management team and Board of Directors is based on the ability to designate an individual who remains fully responsible to make all operations succeed. In most cases the chairman of the board may be a top manager in another company with a highly demanding responsibility and ExxonMobil knows this well enough to having support the management model of having an independent nonexecutive chairman with a CEO in charge of matters at the company in the past.

As it may be widely known, this management model is not only employed by ExxonMobil but widely used by its competitors such as BP, Royal Dutch Shell, Petrobras and many others. However, with the changing industrial and company demands, change of management may have taken a new turn when ExxonMobil embraced the model of having one leader who would serve both as chairman and CEO while maintaining the flexibility to change this structure whenever deemed fit by the Board.

This would in turn ensure that the company maintained a workforce and management team that would be dedicated to the development and growth of the company. Besides the specialization and structural operational division of the company’s business units, ExxonMobil’s corporate structure exhibits apt managerial and administrative control. The company corporate unit management structure is based on differentiated control locations as well as segmentation.

In the Houston headquarters, the company controls and manages the five global upstream business units/companies i. e. Exploration, Development, Production, Gas Marketing, Chemical, Coal and Minerals, as well as the competitive Upstream Research unit. The company’s administrative offices and team based in Fairfax, Virginia was also charged with the responsibility of overseeing and managing the four downstream business units namely; Refining and Supply, Fuels Marketing, Research and Engineering as well as the company’s Lubricants & Petroleum Specialties.

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