For the intent of this reappraisal, the pupil selected six economic indexs formulated by the Bureau of Labor Statistics and two economic indexs formulated by the Department of Commerce. The BLS indexs are the undermentioned: Consumer Price Index, Employment Cost index, Employment Situation, Producer Price Index, Productivity and Costs, and Real Net incomes ( BLS, 2009 ) . The two Commerce Department indexs selected were Manufacturers ‘ Cargos Inventories and Orders and Manufacturers Trade and Inventories ( Department of Commerce, 2009 ) .
The pupil chose these indexs because their steps ( monetary values, employment, production costs and net incomes ) are related to the domestic operations of Exxon Mobil. She suggests that these federally formulated indexs be used by the house in foretelling what are the possible moves and programs which the house may utilize in the long tally.
The pupil chose Consumer Price Index ( CPI ) as a step for Exxon Mobil because the index steps alterations in monetary values of basic consumer goods ( BLS, 2009. Exxon Mobil is the taking manufacturer of petroleum-based merchandises ( Fortune Magazine, 2009 ) which are among the goods being measured by the CPI. The pupil thinks that it is of import for the house to track the monthly fluctuation of consumer monetary values through the CPI ; making so enables the house to plot the pricing schemes it has in selling its merchandises. This is of class depending on the degree of supply and demand for petroleum-based merchandises. It is besides of import for the house to cognize the monetary value alterations sing the current economic state of affairs the state is confronting and the predominating market conditions in the crude oil industry.
Another BLS index used for this survey would be the employment cost index. This measures how much companies spend to pay for their employees ‘ rewards and lawfully mandated benefits. ( BLS, 2009. In peculiar, the index measures compensation costs incurred for civilian and private industry workers. The employment cost index is relevant for Exxon Mobil because through this index, it can detect fluctuations in how much other companies-especially those in the petrochemical industry. It besides helped that the measurings are done in three- and 12 month-periods and are besides seasonally adjusted ; companies like Exxon Mobil can analyze the factors which may increase or diminish employee compensation costs. Corollary to this is the demand for the house to equilibrate puting aside its grosss for employees ‘ wages/benefits and financess which would finance its operational and investing costs.
Exxon Mobil needs besides to see the current employment state of affairs. Its functionaries can analyze the BLS ‘ Employment Index index, which measures the degree of employment ( and unemployment ) among household- and establishment-based workers ( BLS, 2009. The pupil thinks that these functionaries can peculiarly larn from the monthly constitution studies because they reveal which industrial sectors have a big demand for employment and what sectors do non necessitate extra work force. They can specifically look at consequences at the entries on “ manufacturing/ service proviso and retail trade. ” They can so compare the findings with figures from other beginnings demoing employment degrees in the crude oil industry. From these informations, these functionaries can be after new methods in engaging new employees and retaining older 1s in the visible radiation of altering conditions in the industry. Exxon Mobil ‘s functionaries can besides analyze tendencies in hiring and using workers from assorted racial groups so that they can keep equal chance conditions in employment while still implementing high criterions in the quality of end products produced by these employees.
Exxon Mobil ‘s direction can besides analyze the BSL ‘s Producer Price Index, This month-to-month and year-to-year index measures the per centum alteration in production costs for nutrient, and energy goods ; these two are categorized into finished, intermediate and rough goods ( BLS, 2009. The house ‘s direction can use this index to measure and better its public presentation: a. ) both within the production of all sorts of goods and B. ) in the context of crude oil industry concerns. Exxon Mobil can analyze the alterations in production costs for energy-related goods, compare it to old months and old ages, and so analyze the factors which influenced these increases. At the same clip, by perusing these figures, Exxon Mobil ‘s functionaries can analyze the deductions of go throughing on extra costs to other clients when the house incurs extra operating costs. This may be true to industries concerned with transit, logistics, power coevals and chemicals, which beginning their natural stuffs from petrochemicals-based companies such as Exxon Mobil.
The Bureau of Labor Statistics besides uses the Productivity and Costs index, which measures disbursals incurred by houses in bring forthing goods within a peculiar set of work-hours ( BLS, 2009. This indicator-measured on a quarter-to-quarter and year-to-year bases- steps productiveness in the undermentioned sectors: non-farm concerns, concerns, fabrication durable goodss, and fabricating non-durables. This pupil opines that analyzing the index may assist Exxon Mobil better, revise or modify its production procedure. She thinks that its functionaries, after measuring the consequences of the Productivity and Costs index of these sectors in general, they may besides utilize these consequences to see how much Exxon Mobil spends in bring forthing its assorted petroleum-based merchandises.
In relation to keeping productiveness, this pupil suggests the house study the BLS ‘ existent gaining index. This index measures how much workers-both farm-based and non-based- earn in an hr, in a twenty-four hours. The agency conducts the survey every month- consequences of which are besides compared on a year-to-year basis- and takes into consideration the CPI ; topics for this survey are urban pay earners and clerical workers ( BLS, 2009. From this footing, this pupil thinks Exxon Mobil can utilize the survey as a agency to measure how alterations in monetary values in general will impact the incomes of its employees, peculiarly those working in metropoliss and Exxon Mobil ‘s subdivision offices. She besides suggests that the house compare the Real Net incomes index with the Productivity and Cost Index to correlate the degrees of higher productiveness with higher earnings/income. By comparing the Real Net incomes and Productivity and Costs index, the house may implement steps to maximise productiveness while still able to high rewards to employees, when their public presentation and length of stay warrants so.
This pupil besides suggests the Manufacturers ‘ Cargos, Inventories, and Orders index formulated by the Department of Commerce. In this measuring, the section evaluates the figure of orders ( both filled and unfilled ) and cargos recorded by makers in relation to their merchandises ‘ stock lists within each month. These monthly informations, in bend, would be compared to informations recorded for old months and old ages. This pupil thinks the index will be helpful to Exxon Mobil because the index will demo a. ) the sum of goods shipped and stored by makers in general and B. ) the relationship between the measures of shipped and stored goods. In the instance of Exxon Mobil, it will assist the company ascertain the measures of crude oil merchandises that it had shipped to clients, and the merchandises which it stored.
For the Manufacturing and trade stock list and gross revenues index, this index measures the sum of combined value of trade gross revenues and makers cargos made per month ( Department of Commerce, 2009 ) . Similar to other economic indexs, this monthly index is compared to old months and besides year-on-year. Graphs for this index demo a dislocation of figures for makers, jobbers and retail merchants. This pupil thinks this index would be helpful to Exxon Mobil in that it will demo the sum of gross revenues of merchandises reported by makers in relation to its stock lists. From this study, the company can make its ain appraising step which will determine the measure of crude oil merchandises that it had sold and compare it the current crude oil stocks. In add-on, the company can besides compare the gross revenues made by its single retail merchants as portion of a intra-company public presentation enhancement step.
In line with these indexs, the pupil formulates a program by which the house can utilize the steps as benchmarks for its long term programs. Exxon Mobil may analyze the most recent informations for these indexs, get downing from January this twelvemonth up to August. ( The company will hold to measure the general economic environment of the United States. ) Then it can compare these informations with those information gathered in old old ages.
Once the house had studied consequences of these indexs, it may so explicate its ain steps based from these indexs. This will be utilized to heighten its public presentation, increase its gross, and keep its ranking as the taking crude oil refinement company in the United States ( harmonizing to Fortune Magazine ) . An alternate suggestion calls for Exxon Mobil to trust on the authorities informations for the intent of supervising the over-all economic conditions in the domestic market. The house will so utilize other steps which are best suited for the house and the industry. The authorities indexs, while supplying some informations relevant to the petrochemical houses, by and large cover all facets of the U.S economic system.
The pupil selected eight economic indexs from both the Bureau of Labor Statistics and the Department of Commerce which pertained to variables relevant to Exxon Mobil and the crude oil refinement industry in general. These cover stock lists, gross revenues, productiveness costs, existent net incomes, manufacturer monetary value and employment. She concluded that these steps are critical for the house to set to the prevailing and predicted economic conditions of the United States.
( 2009 ) . Economic News Release Retrieved from www.bls.gov/bls/newsrels.htm & gt ; [ 27 Aug 09 ] ( 2009 ) . Fortune 500. Retrieved from hypertext transfer protocol: //money.cnn.com/magazines/fortune/fortune500/2009/snapshots/387.html
( 2009 ) . Manufacturers ‘ Cargos, Inventories, and Orders Retrieved from www.economicindicators.gov
( 2009 ) . Fabrication and trade stock list and gross revenues Retrieved from www.economicindicators.gov