Week3Discussion1.docx
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What qualities make a future issue a "trigger"? Our textbook states that the qualities that make a future issue a trigger should be external, specific, and quantitative (Abraham, 2012). When all three qualities are present, it would be in the organization's best interest to introduce a contingency plan. A trigger is any external, quantitative variable that can affect a decision the organization has to make daily. Quantitative measures are something to keep in mind because they keep standards specific and ensure that action is taken at any time. Post a summary of your selected company and the risks you perceive based on your prior Environmental Scan and SWOT analysis. The organization that I conducted an environmental scan and SWOT analysis was ExxonMobil. Exxon is one of the world's most significant oils and natural gas refiners, with operations in over 14 countries and a distillation capacity of 136,000 barrels per day. With over 135 years of experience, its brand value ranks in the top 100 in Brand Finance with a brand value of $19 billion. The SWOT analysis I performed on Exxon reveals that a potential trigger would be the considerable competition that has led to a significant revenue fall. ExxonMobil's competitors also lead the way in more advanced technology, which they have invested heavily to provide innovative new products. Environmental regulations have become more stringent. It becomes challenging for Exxon regarding global warming, greenhouse gases, water usage, etc.
Exxon invested in new projects that will bring more recent products using the latest advanced technology but is projected to wait to launch new products for years. State the three-sentence trigger/contingency pair and justify your choice of contingency plan—external cause of trigger-Huge competition which has caused a fall in revenue. Quantitative trigger-Environment regulations have become more stringent. Contingency trigger-World economy has posed several challenges, causing a considerable decline in oil imports, and threatening their profits. In summary, ExxonMobil can utilize these strategies to adventure into new opportunities in the rising demand for energy at its peak, and expected to keep rising shortly. The need for other energy sources in the future will involve a massive percentage of renewable sources. Exxon must understand this change and prepare accordingly, with 40% of the growth in energy demand will be met by new energy sources. Exxon needs to invest in a unique technology to beat the competition.
References
Abraham, S. (2012). Strategic management for organizations. Retrieved from
ExxonMobil Outlines Aggressive Growth Plans to More than Double Earnings. (n.d.). Retrieved from
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