A Comparison of the Organizational Strategies between Chevron and ExxonMobil
MBAA 604: International Business Administration
Embry Riddle Aeronautical University Worldwide
Submitted to: Dr. Lahlou
Rose Carlson
Anthony Davis
Carlos Diaz
Michael Dinnell
George Faris
Table of Contents
ABSTRACT 3
CHEVRON’S STRATEGY 4
EXXONMOBIL’S STRATEGY 4
STRATEGY COMPARISON 5
CONCLUSION 28
REFERENCES 29
Abstract
Chevron’s Strategy
Chevrons’ organizational structure is the geographic area structure. According to a press release pertaining to the merger of Chevron and Texaco, “For the company’s businesses, the new organization relies mainly on decentralized operating companies segmented by business and geography, with "strategic business units" managing relevant operations” (Chevron, 2014). This is basically the definition of a geographic area structure which organizes the MNE according to different geographic areas …show more content…
398).
ExxonMobil’s Strategy
Exxon Mobile uses the global product division structure. According to a press release, Exxon had changed to the global structure in 1999, and completed this change by separating to 11 total different business which include "exploration, development, production, gas marketing and upstream research, along with the chemical, coal and minerals company" which can all be found at the headquarters in Irving, Texas, while the other businesses can be found in Fairfax, VA. (n.a., 1999) According to our text the advantages to this structure is the ability of each entity to function with full responsibilities globally, therefore there is a high response to cost efficiencies due to the ability to stop inefficiencies or duplications in multiple countries (Peng, 2014). The disadvantage to this structure is that local responsiveness tends to suffer (Peng, 2014).
Strategy
MBAA 604: International Business Administration
Embry Riddle Aeronautical University Worldwide
Submitted to: Dr. Lahlou
Rose Carlson
Anthony Davis
Carlos Diaz
Michael Dinnell
George Faris
Table of Contents
ABSTRACT 3
CHEVRON’S STRATEGY 4
EXXONMOBIL’S STRATEGY 4
STRATEGY COMPARISON 5
CONCLUSION 28
REFERENCES 29
Abstract
Chevron’s Strategy
Chevrons’ organizational structure is the geographic area structure. According to a press release pertaining to the merger of Chevron and Texaco, “For the company’s businesses, the new organization relies mainly on decentralized operating companies segmented by business and geography, with "strategic business units" managing relevant operations” (Chevron, 2014). This is basically the definition of a geographic area structure which organizes the MNE according to different geographic areas …show more content…
398).
ExxonMobil’s Strategy
Exxon Mobile uses the global product division structure. According to a press release, Exxon had changed to the global structure in 1999, and completed this change by separating to 11 total different business which include "exploration, development, production, gas marketing and upstream research, along with the chemical, coal and minerals company" which can all be found at the headquarters in Irving, Texas, while the other businesses can be found in Fairfax, VA. (n.a., 1999) According to our text the advantages to this structure is the ability of each entity to function with full responsibilities globally, therefore there is a high response to cost efficiencies due to the ability to stop inefficiencies or duplications in multiple countries (Peng, 2014). The disadvantage to this structure is that local responsiveness tends to suffer (Peng, 2014).
Strategy