An increase or decrease of the capital markets highly depends on company’s operations. Cmpanies that have good management and supervision will ultimately do well in the stock market compared to those that have problems in the internal environment of a business (Exxon Mobil Corporation, 2014). Rvenue decrease for any business calls for alarm and Exxon Mobil Corporation is a not an exemption. Adecrease from 110. 9billion to 87. 3billion is not a slight decrease for it translates to 23. Te fall is drastic and continuing with that ultimately leads to collapse of the business.
Te radical changes in the revenue collection and stock market emanate from the high cost of production. Fllowing the trend, te company opted to slash the spending budget by 12% to get 34 billion. Trough the approach, te company will normalize the operations and at the same time create the good reputation in the stock market to deter such occurrences in the future. Te company achieved that through joining four dozen U. Senergy producers that formulated plans to curb capital by approximately $ billion.
Trough the approach, te company would sharply reduce the stock buy backs in the near-term. Te other big oil companies have applied the same principles that have worked effectively in reducing cases loss (Crude oil trading, 2014). O 5 February, Exon Mobil Shares managed to rise the ladder by 0.66percentage to hit $92. Te superb increase emanates from effective management and monitoring the previous loss of 23. Difficult lessons help people to make wise decisions that deter similar problems happening (Crude oil trading.
Fr instance, te elongated decrease of the market price calls for alarm and, terefore, te analysts must have speculated the market trend that would favor the company. Mreover, a indicated in the previous notes, god management and reputation of the corporation promote the prices of shares o in the stock market. Te public announcement that the company would cut down the costs of operation gives the investors a good reason to invest in the company. Tis action ultimately draws more clients to the I addition, wen the company receives more customers, te growth rate will be very high as it receives more customers and net profits.
Ay bad experience arms one to wait for such experience if it happens to hit...
Please type your essay title, choose your document type, enter your email and we send you essay samples