搜索
HarvardBusinessSchool9-197-025Rev.September16,1999ProfessorRobertS.Kaplanpreparedthiscaseasthebasisforclassdiscussionratherthantoillustrateeithereffectiveorineffectivehandlingofanadministrativesituation.Mr.EdLewisofMobil’sBusinessandPerformanceAnalysisgroupprovidedinvaluableassistance.Copyright©1996bythePresidentandFellowsofHarvardCollege.Toordercopiesorrequestpermissiontoreproducematerials,call1-800-545-7685orwriteHarvardBusinessSchoolPublishing,Boston,MA02163.Nopartofthispublicationmaybereproduced,storedinaretrievalsystem,usedinaspreadsheet,ortransmittedinanyformorbyanymeans—electronic,mechanical,photocopying,recording,orotherwise—withoutthepermissionofHarvardBusinessSchool.1MobilUSM&R(A):LinkingtheBalancedScorecardFromwhatIcansee,wehadagoodquartereventhoughfinancialresultsweredisappointing.Thepoorresultswerecausedbyunusuallywarmwinterweatherthatdepressedsalesofnaturalgasandhomeheatingoil.Butmarketsharesinourkeycustomersegmentswereup.Refineryoperatingexpensesweredown.Andtheresultsfromouremployee-satisfactionsurveywerehigh.Inalltheareaswecouldcontrol,wemovedtheneedleintherightdirection.BobMcCool,executivevicepresidentofMobilCorporation’sU.S.MarketingandRefining(USM&R)Division,hadjustcommentedonfirstquarter1995results.Oneexecutivethoughttohimself:Thisisatotaldeparturefromthepast.HerewasaseniorMobilexecutivepubliclysaying,“Hey,wedidn’tmakeanymoneythisquarterbutIfeelgoodaboutwherethebusinessisgoing.”MobilU.S.Marketing&RefiningMobilCorporation,headquarteredinFairfax,Virginia,andwithoperationsinmorethan100countriesis,withExonandShell,amongtheworld’stopthreeintegratedoil,gas,andpetrochemicalscompanies.Mobil’s1995return-on-capital-employedof12.8%rankedit4thamongthe14majorintegratedoilcompanies;its19.1%averageannualreturntoshareholdersfrom1991to1995wasthehighestamongthe14majoroilcompaniesandexceededtheaverageannualreturnontheS&P500bymorethan2percentagepoints.SummarysalesandearningsinformationareshowninExhibit1.Thecorporationconsistsoffivemajordivisions:Exploration&Producing(the“upstream”business),Marketing&Refining(the“downstream”business),Chemical,Mining&Minerals,andRealEstate.TheMarketing&Refining(M&R)Divisionprocessescrudeoilintofuels,lubricants,petrochemicalfeedstocksandotherproductsat20refineriesintwelvecountries.M&RalsodistributesMobilproductsto19,000servicestationsandotheroutletsinmorethan100countries.Totalproductsaleshadgrownmorethan5%peryearoverthepastfiveyears.TheUnitedStatesMarketing&Refining(USM&R)Divisionwasthefifth-largestU.S.refiner.Itoperatedfivestate-of-theartrefineries,anditsmorethan7,700Mobil-brandedservicestationssold197-025MobilUSM&R(A):LinkingtheBalancedScorecard2about23milliongallonsperdayofgasoline.Thisrepresenteda7%nationalshare(numberfourintheUnitedStates).Mobil’sretailnetworkwashighlyconcentrated.Intheeighteenstateswhereitsoldnearly95%ofitsgasoline,Mobilhada12%marketshare.MobilwasalsothelargestmarketeroffinishedlubricantsintheUnitedStates,witha12%marketshareandrecentgrowthratesofabout3%,especiallyinpremiumqualityblends.In1992,USM&Rhadreportedanoperatinglossfromitsrefiningandmarketingoperations,andranked12outof13oilcompaniesinprofitabilityfromU.S.marketingandrefiningoperations.1Aprofitturnaroundstartedin1993,andearningsandreturn-on-assets,whichhadbeendepressedin1991and1992,soonexceededindustryaverages.SummaryfinancialdataoftheUSM&RDivisionarepresentedinExhibit2.Until1994,USM&Rwasorganizedfunctionally.ThesupplygroupobtainedcrudeoilandtransportedittooneofMobil’srefineries.Themanufacturingfunctionoperatedrefineriesthatprocessedcrudeoilintoproductslikegasoline,kerosene,heatingoil,dieselfuel,jetfuel,lubricants,andpetrochemicalfeedstocks.Theproductsupplyorganizationtransportedrefinedpetroleumproducts,throughpipelines,barges,andtrucks,toregionalterminalsaroundthecountry.Theterminalmanagersreceived,stored,andmanagedtheextensiveinventoriesofpetroleumproductsanddistributedtheproductstoretailersanddistributors.ThemarketingfunctiondeterminedhowUSM&Rwouldpackage,distribute,andsellMobilproductsthroughwholesalersandretailerstoend-useconsumers.Reorganization:1994Intheearly1990s,USM&Rfacedanenvironmentwithflatdemandforgasolineandotherpetroleumproducts,increasedcompetition,andlimitedcapitaltoinvestinahighlycapital-intensebusiness.McCoolrecalled:In1990weweren’tmakinganymoney;infacttherewasahalf-billion-dollarcashdrain.Expenseshaddoubled,capitalhaddoubled,marginshadflattened,andvolumeswereheadingdown.Youdidn’tneedanMBAtoknowwewereintrouble.McCoolspentthenexttwoyearsattemptingtostabilizethebusinesstostopthebleeding.Wesucceeded,butthenwehadtoconfronthowwecouldgeneratefuturegrowth.Aclimatesurveyin1993revealedthatemployeesfeltinternalreportingrequirements,administrativeprocesses,andtop-downpolicieswerestiflingcreativityandinnovation.Relationshipswithcustomerswereadversarial,andpeoplewereworkingnarrowlytoenhancethereportedresultsoftheirindividual,functionalunits.McCool,withtheassistanceofexternalconsultants,initiatedmajorstudiesofbusinessprocessesandorganizationaleffectiveness.Basedonthestudies,McCoolconcludedtha