HRM / OB Case Study

Exxon Mobil's New CEO, Rex Tillerson's Agenda - Diplomacy: Can he Manage?

OR

Abstract:
In the mid-1980s, the global oil industry witnessed the rise of a new phenomenon called resource nationalism. Nationalisation of oil reserves resulted in restricted access to oil reserves for global oil majors. With oil-rich nations dictating tougher terms, Exxon Mobil, the largest oil company faced the biggest challenge, as under the leadership of its former CEO, Lee Raymond, the company was largely resented by national governments due to its tough negotiating stand. It is believed that to sustain its access to oil reserves across the globe, Exxon Mobil needs to negotiate with national governments employing tact and diplomacy, a skill that Rex Tillerson, the new CEO of Exxon Mobil, is known for.

Pedagogical Objectives:

• To understand the landscape of the global oil industry and how geopolitical forces exert a strong influence on the supply-side
• To discuss whether the diplomatic skills of Exxon Mobil's new CEO, Rex Tillerson, would help the company in successfully negotiating oil deals with hostile governments of oil- rich countries
• To debate whether alternative sources of energy would ever be able to completely substitute oil
• To analyse, in the light of the fact that global oil reserves are fast depleting, whether Exxon Mobil can afford to place its bet on technology to explore and exploit new reserves and overlook the growing importance of alternative fuel.

Keywords :  Geopolitics of oil, Major producers of oil worldwide, Leadership Case Study, The major consumers of oil, Nationalisation of oil reserves, Role of goodwill for a company, Factors that drive growth in global oil industry, The changing trends of global oil industry, The importance of alternative fuels, Negotiation skills, Impact of oil prices on world economy, Successful global CEOs (chief executive officers), Leadership strategies, Business model of Exxon Mobil, Consumption patterns of oil, Royal Dutch Shell, Chevron, Texaco, BP (British Petroleum), Organizational Behavior, OB, Organizational Behavior case study, Motivation Case Study, MBA, MBA Program, Course Mapping

Contents:

• Oil Prices and the World Economy
• Oil Industry: The Geopolitics
• Global Oil Industry: The Changing Paradigm
• The Reserve Replacement Ratio of Major Oil Companies
• Exxon Mobil CEO's New Agenda: Diplomacy
• Oil Industry: What’s the Future Fuel?