Comp whatever Case Notes ExxonMobil: Achieving speculative Profits During Hard times Synopsis This font provides an illustration of pricing issues in a commodity market. Specifically, Big Oil is represented by ExxonMobil in the petroleum market. An recital is given as a marrow of illustrating the drastic depart in flatulenceoline costs between 1998 and 2006. In that eight-year verse period, expenses to a greater extent than tripled. Many argon lively to point the finger of unsaved at greedy corporations that argon gouging, manipulating, or at the truly least, taking advantage of the consumer. This deterrent example provides extensive information on the factors that meet the prices in a commodity market; principally, give and demand. Thus, if cut is short and/or demand is high, prices will go up. Because the cost of doing business for stupendous anoint companies basically body the same, companies like ExxonMobil make their biggest acquire at a time when the consumer is world hit the hardest. The national also provides information on the effect of futures trading markets on price. Based on supposal about the impending temperament of supply and demand and any factor that might affect either one, oil and gas futures are constantly being bought and sold. Such trading activities are not only base on speculation of supply and demand, but also produce an effect on the total supply-demand situation.
Discussion Questions 1. Which, if any, of the pricing strategies discussed in the chapter are being utilize by ExxonMobil and other oil co mpanies? Could they adopt any other strategi! es? 2. Discuss buyer reactions to changes in the gas prices. How can you formulate these reactions? 3. How should ExxonMobil react to gasoline price changes by other bigger and small oil companies? stop ExxonMobil keep its prices stable (or dismantle lower them) when the market price is increasing? Should it? 4. Consider the normal policy issues within and across channel levels of the oil industry. Is...If you trust to get a mount essay, order it on our website: OrderCustomPaper.com
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