SWOT and PESTEL Analysis By MyAssignmenthelp.com MyAssignmenthelp.com

 The SWOT analysis means examining the strengths, weaknesses and opportunities and threats of the company named ExxonMobil, which is one of the largest companies in the world in terms of oil and energy companies.  The company has operations in countries across the globe including developed and developing countries. Let us first have a look at the strengths, weaknesses, opportunities and threats facing the company.

 The brand reputation of ExxonMobil is one of its biggest strengths. It is a leader in its industry and has maintained this reputation for more than hundred years.  The next strength is its diverse portfolio that includes entering into new segments of the energy industry while further enhancing other credible brand names.  The Corporate Social Responsibility or CSR of the company is also amongst its biggest strengths. The company has worked hard to shed off its previous reputation for safety hazards and oil spills by developing a strong crisis management framework.

 One of its glaring weaknesses is its reputation as being a company damaging the environment. The stakeholders are still blaming the company for polluting the environment and overusing natural resources.  It has been blamed for being a greedy corporate giant because of its profitability in the midst of rising prices of petrol.  Environmental interest groups have accused the company of not communicating with them and it does not also have any proof of being a transparent company in terms of its policy on becoming a greener company.   The company is yet to develop alternative energy products despite the fact that it has the resources and the potential to develop the products. It rather continues to depend on oil as its primary business segment that is not a sustainable strategy.

 Despite its weaknesses, the company is faced with the opportunity to meet increasing demands for energy in several developing economies including the ones in Asia, Middle East, South Asia and South East Asia.  The company also has the opportunity to attain leadership position in the market of alternative energy if it could develop the solutions rapidly than its competition.  It has great opportunity in improving its reputation through increased effort in all the countries where it operates with increasing community engagement and social responsibility initiatives.

 The economic recessions in the developing countries of India and China have marred the energy demand. These countries are pressurized from the environmental groups to look for alternative energy sources.  The competitors are developing alternative energy sources at a very fast pace thus proving to be a threat to ExxonMobil. These companies are offering more to fulfill the expectations of the stakeholders than what the company could offer thus putting increasing pressure on it.  Increasing number of stakeholder groups are asking for accountability on the part of ExxonMobil and similar energy companies demanding them to become more transparent in their operations. This has further proved to be a threat to the company because it has put stress on the company to focus increasingly on its CSR strategies.

 The PESTEL analysis is a tool to analyze the political, economic, social, technological, environmental and legal aspects affecting macro environment of the corporation of ExxonMobil.  The analysis is important because any changes in the macro- environment could have direct impact on the company.

 Stability in the political environment and the importance of Major Integrated Oil and Gas sector is an important factor for the company to consider.  Military invasion is another political factor or rather a risk concerning ExxonMobil.  Corruption is another political factor that might affect the company especially the corruption in the regulation levels in Basic Materials sector.  The anti-trust laws associated with Major Integrated Oil and Gas is further an important political factor for the company to consider.  Interference and bureaucracy in Major Integrated Oil and Gas industry by the government is a political concern that the company must address.

 The type of economic system present in any country is an important factor that the company must consider while implementing its policies and strategies.  Government intervention and related Basic Materials in the free market is another economic factor to be considered by the company.  Apart from that, the exchange rates and stability of the country in which the business operates is also an important economic factor to consider.  The efficiency of financial markets also comes under the economic factors to be considered by ExxonMobil and it must answer the question whether it needs to raise capital in the local market or not.  The infrastructure quality of the Major Integrated Oil and Gas industry

 The first important social factor to consider is the skill level and demographics of the population where the company is targeting to reach.  Hierarchy, class structure, and power structure in the society are also some social factors important to be considered.  The educational standard and educational level in the company  Culture including gender roles and social conventions  Attitudes and leisure interest of the population

 The latest technological developments by the competitors of ExxonMobil  The impact of technology on product offering  Impact of technology on Major Integrated Oil and Gas industry’s cost structure  Rate of technological diffusion  Impact of technology on the Basic Materials sector’s value chain structure

 Climate change  Weather  Laws concerning environmental pollution  Regulations regarding air and water pollution  Recycling  Attitude demonstrated towards green and ecological products  Endangered species  Support for renewable energy sources and positive attitude towards it

 Anti-trust law in the Major Integrated Oil and Gas industry and all over the country  Discrimination law  Copyright laws, patents and intellectual property law  Consumer protection regulations and e-commerce  Laws related to employment  Laws related to health and safety  Data protection laws

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