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I HAVE ATTACHED FIRST PART OF ASSIGNMENT AS A REFERENCE.
Instructions for Capstone Project Assignment Part 2
Now that you have your approved idea for the project it is time to begin the second part of the project, which builds on Project Part 1. Using the same company of choice (Exxon Mobil) that is proposing an expansion opportunity overseas (China) , conduct research on the country. Specifically focus on the culture and cultural exchange. For the culture, review the web site http://geert-hofstede.com/ to compare the cultural differences between the countries. Identify the cultural differences and consider the cultural exchange. In addition, research and choose the best distributions method: Product/Market, Pricing, and Positioning.
Exxon Mobil is the Fortune 500 Company
China is the country overseas
Identify the following:
- Cultural differences
- Cultural exchange
- Distribution Methods
Submit a two- to three-page Word document using 12-pt. font and APA format
Project Part 1: Project Proposal
Exxon Mobil ranks number 3 on the Fortune 500 list. Exxon Mobil company is an American multinational oil and gas organization that is headquartered in Irving, Texas. The corporation was established on November 30, 1999, and it came about as a result of the merger between Exxon that was initially, Standard Oil Company of New Jersey, and Mobil which was initially the Standard Oil of New York (Exxon Mobil Corporation Home Page, 2020). There are several brands that this organization supply to its customers which include Mobil, ExxonMobil chemicals, Esso, and Exxon. The company has been one of the world’s most successful corporations and it is considered the world’s largest company in terms of the amount of revenue that the organization generates. Since the year 1996 to 2017, the company has been positioned between the 1st and 6th ranking when it comes to publicly traded companies in terms of market capitalization. Additionally, still, on the performance of the company, the company was ranked 9th in the Forbes Global 2000 list in 2016 and also in the Fortune 500 list of 2017, the company was ranked as 2nd largest corporation by the amount of revenue generated (Revenue of ExxonMobil 2019 | Statista, 2020). Most of the shares in this organization are held by institutions.
Country of choice
China is a country that I believe is the most lucrative market that the organization can make entry into. The country is home to one of the largest populations in the world and this population has been increasing steadily over the years meaning that the country’s demand for energy is also rising (Population, total – China | Data, 2020). Since the company deals in the supply of gas and oil, it is most likely to enjoy and increase in the amount of revenue that it generates due to the large customer base. Although a lot of countries are going green and embracing activities and energy sources that are friendly to the environment, the company still has an opportunity to tap into this large market because it will take time for the entire country to stop using gas and oil as their main source of energy for both domestic and commercial operations. By making an entry into this new market, the country will enjoy some benefits, for example, the company will have access to a wider market meaning that by growing its market size, it will eventually increase its revenue and performance all over the world.
Mode of Entry
The most effective and efficient entry mode that the company can implement is the franchising mode and the main reason behind this selection is that the company will not face a lot of challenges when making entry into the new market. While there are some disadvantages that the company may suffer by using this technique there are various core benefits that make this mode stand out from the rest. By franchising, the company will use a local company meaning that it will face little resistance from the market and also from its competitors (Five Modes of Entry Into Foreign Markets, 2020). Additionally, through franchising, ExxonMobil will be able to lower its financial risks since the risks and uncertainties that come with the entry endeavor will be shared with the franchisee.