Exxonmobile: Social Responsibility in a Commodity Market

High desiel prices are a consequence of capitalism. As all fuel prices have been going up people are blaming the federal govenerment. They believe the president has influence of derterming the outcomes of tensions betwwen Israel and Iran. Some people blame incrased prices based on fears around the world. It all comes down to one thing to blame, capitalism. Calitalism can be great to an economic system because of its emphasis on efficienc and inbradible success rate at allowing those who control the means of production and resources to meet the demands of those with purchasing power. Capitalism is constantly evolveing and will impact the gap between current and future goals on oil prices.

PepsiCo is a huge, multi-billion-dollar company that invests its time and money into creating loveable and lasting products for consumers all over the world. PepsiCo has been on the rise for years and if things continue to prosper like they do know, they should be a lasting company for many more years to continue. PepsiCo relates to their customers and continues to create new and improved products that bring publicity to their company, while still producing the recognizable products that that they are known for.

and the wealth it brought, when any other competitor tried even to step foot into the oiling industry, Rockefeller dropped his prices until the rookie industry was forced out. After he ! regained monopoly, he then jacked up the prices. Sure, the people were

Competition in the oil industry is separated by about 10 cents here in the US. The difference between ARCCO, Shell, Mobil, and Chevron, is between 1 and 10 cents. Oil companies don’t compete with each other. With gas prices constantly fluctuating towards the $3 mark, there is little room to raise prices. Consumers will not pay 25 cents more for a gallon of gas. Although Chevron Texaco and ExxonMobil make have a slight difference in price at the pump, the will not try to do anything to rock the boat.

Since we are able to make wholesale purchases and get large discounts on our gasoline, we no longer have to markup our gas prices and we can keep a very low profit margin on our gasoline, which will in turn attract customers. With the increase in customers, we should be able to reasonably expect our in store sales to increase as well, which is where we expect a majority of our profit to come in from anyways. Moreover, from Chevron’s perspective, we should be worried that the current ruling does not get appealed because if it does we potentially can be worse off than we were before because of being forced to change our prices drastically which has a negative impact towards our market.

Yergin, Daniel. “What’s behind rising gas prices?” The Wallstreet Journal. New York Times, 16 Mar. 2012. Web. Mar. 15 2012.

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

Over the past two years, oil prices have increased very rapidly. “With OPEC production cuts and a growth in crude oil demand,” oil prices went from a 25-year low of $11 per barrel in February 1999 to a peak of close to $36 per barrel in December 2003 (Jablon 1). “Some analyst, however, said the cut could soon push crude prices above the psychologically important threshold of $40 per barrel and worsen the pain for U.S. motorists” (“Rising Prices Fuel Gas Clash” 1). During this winter, the price of natural gas has gone through the roof. This brings many questions to mind. Are the companies just raising prices? Is there actually a shortage that is causing the raise in price?

1. Consider and discuss the impact of the rising price of gasoline on as many other products and services as possible.

The global span of ExxonMobil makes the importance of ethical behaviour paramount; however, this has not always been the case. Investigations (Banerjee 2015 & Various 2015) have revealed that ExxonMobil discovered the link between human activity and climate change years before it became a public issue. Instead of adapting its business model

One night, I was surfing the internet when I came across a picture showing a gas station with the gas prices on a sign sitting in front of it. The gas sign said that the price for regular was "an arm", the price for plus was "a leg" and the price for premium was a "first born". As I marveled over what Photoshop can do, I began to think about these high gas prices and what is causing them. Everyone talks about, complains about, and jokes about the high gas prices, but no one does anything about them. Many people told me what they thought was causing the high gas prices, but I was always wondering what really is causing them. Is it corporate greed or is it supply and demand? It is actually a combination of both corporate greed and

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

Exxon Mobile is one of the most successful companies in the oil and energy industries today. But what makes them so successful? In an effort to answer this question, a thorough internal investigation can be helpful in determining what aspects of this company are making it an industry leader. Two aspects of this internal analysis of Exxon Mobile are the company’s resources and capabilities.

Exxon-Mobil is the world’s largest privately owned multi-national oil and gas company (Skjaerseth 2003). For companies as large as ExxonMobil, which possess considerable capital resources and are able to exert considerable power and influence, society is increasingly demanding that they behave in a socially responsible manner (Diara, Alilo, and McGuire 2004). There is a growing expectation that companies will adopt a business approach that illustrates responsibility to society above and beyond the economic function and legal performance of the firm (Gibbs 2009). This expectation can be understood as an implicit social contract. One of the underlying

The US consumed 142 billion gallons of gasoline in 2007 and the tax applied on it is 18. 4 cents on one gallon. All around the US, there are around 162,000 retail gasoline outlets. With the price of crude oil hovering around $100 a barrel, it is no wonder that concern is growing about the gas prices being so high. After all, modern economies are kept moving by this lifeblood. For instance, in the United States alone personal vehicles consume more than 140 billion gallons of diesel fuel and gasoline per year.However, there are several factors that contribute to the gas prices being so high. Given below are a few of them. Increasing Demand for Oil One of the main catalysts for the incessant rise in gas prices has been one of the most