Exxon Corp And Mobil Corp Essay

1293 Words Apr 11th, 2016 null Page
In 1998, the Exxon Corp. and Mobil Corp. decision to merge sparked a debate , Years later the result of this merge is quite evident as Exxon Mobil Corp is one of the best companies doing well. This paper will examine the industry characteristics, the reasons for the merger, the nature of the deal terms, and financial impact of the merger.
Exxon Corp and Mobil Corp
The massive forces of change in technology, globalization, industry transformations and entrepreneurial innovations have forced the oil industry, like other sectors, to make adjustments. Oil has a global market with 53% of volume globally traded accounting for about 10% of world trade, more than any other commodity. While the oil market is global in scope, oil varies in quality, the requirements for pipelines, other specialized distribution, and marketing facilities has led to geographic market segmentation.
During the early 1980s, major oil company of any significant size underwent significant transformation. Because of the surrounding pressure of depressed stock prices and it was affordable to purchase oil reserves on Wall Street than by E&D charges. These pressures led to the full range of restructuring activities in major oil companies. Some of the measures include the development of programs for cost reduction. In addition to changes in organizational structure and systems which sought to increase efficiency, flexibility, and responsiveness to change. Besides, there were significant reforms in employment that…

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