Exxon Mobil Business Success Strategies
Here are strategies that saw Exxon Mobil becoming one of the world’s largest companies, which you can also adopt in your business.
Learning Your Business Before Starting
Having a thorough knowledge of your business before investing time and money into it is pivotal to the success of the business. It gives you the knowledge and the insight you require to deal favorably with the stakeholders in the industry and to recognize opportunities when they come.
There are different ways by which you can learn the business of your interest, and these include, apprenticeship and being on a paid job. These two ways are the most effective in assuring success.
Rockefeller’s success in his commodity trading business can largely been attributed to his four year job with Hewitt Tuttle where he learnt all he could about succeeding in large scale trading in the US.
Saving To Invest
As your business begins to make profit, you must continually save a good part of it to be able to explore juicy business opportunities that may come up later. Great business opportunities don’t come everyday, if you are not prepared for them by having enough funds to invest when they appear, you will lose out.
You could also use your savings to expand your business into a bigger enterprise.
Rockefeller and his partner, Clark were able to tap into the highly lucrative oil industry because they had saved quit some money from their commodity trading business.
Recognizing Good Business Opportunities
An important success factor in business is to be able to recognize a good business opportunity when you see one and go for it. Assessing a business idea to be sure it will be profitable involves checking if it carters for the need of a huge population of people, and if the product it offers is needed repeatedly and frequently.
The oil industry possessed huge profit potential and Rockefeller quickly recognized it even at the early stage of the industry. And this shaped his vision for his company taking a leading role in the industry, which he eventually achieved.
Forming Partnership For Success
Working and pulling resources together with other people in partnership can enable achieve your goal faster and easier. Getting into partnership is a great way to leverage on other people’s talent, skill, energy, and money, however, be sure you are going into partnership with people you trust, and with the terms of the partnership known and agreed on by the partners and legally documented.
From partnering with Clark, Andrews, and Flagler, Rockefeller’s rise in business was largely due to his going into partnership with other people possessing the talent or funding he needed to access bigger businesses.
Committing To Improving Your Operation
Business growth and success is achieved when you commit to investing in developing and improving your operational facilities.
In 1869, Rockefeller Andrews invested $60, 000 to improving and expanding its plant’s capacity. This was huge money, but it was well worth it, as the company could increase its production to 60 carloads a day, thereby making more income and attracting more investments.
Seeking To Vertically Integrate Your Business
As your business grows, plan to vertically integrate it by investing in others businesses that support your core business. This will enable you to both gain total control of your production as well as reduce its cost. And in addition you will also generate revenue from them.
By 1870, Standard Oil Company had vertically integrated, owning barrel-making plant, dock facilities, a fleet of railroad tank cars, warehouse in New York, and forest land for providing lumber used in producing barrel staves – all these other businesses were supporting businesses to Standard Oil Company’s operation.
Focusing On Your Core Business
A lot of times business owners fall into the temptation of abandoning their major business to try to make quick and seemingly easy money from other businesses. Unfortunately, they usually end up failing at both.
Without the knowledge and experience to succeed, it is very unwise to leave your core business where you have built enormous expertise to getting into a turf you are not familiar with. Don’t abandon your core business because it is having problem at the moment. Continue to work on it; soon you will discover the solution to the challenge.
Your best bet to achieving success in business is to remain focused on the business you have adequate knowledge, experience, and expertise in.
Exxon’s venturing into other businesses than oil in the 1970s in response to OPEC’s refusal to sell crude to the United States was a huge failure – $7 billion down the drain.
Cutting Cost Can Remarkably Increase Your Profit
A lot of businesses don’t make much profit because they run at high cost. By imbibing cost cutting measures in your operation, you will be able to save lots of money and record appreciable profit at the end of the year.
Cost cutting was Exxon Corporation’s top strategy for remaining profitable in the face of falling oil prices in the 1980s and 1990s. By 1996, the company’s operating cost had been reduced by $1.3 billion yearly, allowing it to make profit of $7.51 billion that year.
Cost cutting is so crucial to Exxon that it was cited as the basis of its merging with Mobil in 1999.
Read Exxon Mobil business success story here
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