ExxonMobil EFAS Chart
External Factors / Weight / Rating / Weighted Score / CommentsOpportunities
Increase profits through new sources (change the demand) / .10 / 4.0 / .40 / Investing in more profitable liquids will boost its revenues in the future.
Adhere to Political Policy changes (domestic as well as abroad). / .10 / 3.0 / .30 / Becoming more sensitive to political tensions around the globe to prevent tarnished relationships in the future; lose now to gain later.
Freedom of information to stakeholders (describing how they intend to be more ecofriendly) / .10 / 2.0 / .20 / Exxon Mobil has the potential to set a standard for other energy companies in terms of what kind of information is important to investors.
Develop environmental alternatives to fuels / .10 / 5.0 / .50 / ExxonMobil agreed to publish a “Carbon Asset Risk” report describing how it assesses its financial risks from climate change, namely a potentially lowered valuation of its oil reserves.
Increase R & D expenditures to lessen the burden on natural resources. / .10 / 4.0 / .40 / R & D is currently underway on “a record 10 new projects” Example: Colorado R&D lease from Bureau of Land Management is approved
Threats
Political unrest in foreign investments / .10 / 3.0 / .30 / Russian military forces then seized control of Ukraine’s Crimean peninsula, prompting U.S. and European officials to talk of economic sanctions against Moscow
Overcoming the sociocultural challenges as the present themselves. / .10 / 4.0 / .45 / Trillions of dollars in assets hangs in the balance.
Preventable man-made disasters from over production and natural disasters. / .10 / 4.0 / .40 / Continued production at current level would cause serious geographical consequences (e.g. earthquakes).
Competition from rivals. / .05 / 5.0 / .25 / Chevron, Phillips 66, Valero Energy, BP
Decrease in revenues that will affect the company’s market value. / .15 / 4.0 / .60 / Political unrest and restrictions imposed by foreign countries will result in decrease in production.
Total Scores / 1.0 / 3.8
Seeking Alpha. (March 1, 2014). Seeking Alpha. Exxon Mobil: Better Opportunities Elsewhere. Retrieved from
Vittorio, Andrea (Mar 21, 2014). Bloomberg. Exxon Mobil Agrees to Report on PlansFor Low-Carbon Future, Carbon Risks. Retrieved from
Landers, Jim. (March 5, 2014). Dallas Morning News. Exxon Mobil puts Ukraine gas prospect on hold. Retrieved from
Webb, Sara and Anthony Deutsch. (January 17, 2014). Reuters. UPDATE 4-Dutch to cut output from huge Groningen gas field. Retrieved from