ABOUT THE FORTUNE 500989999

8/7/2019 ABOUT THE FORTUNE 500989999

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ABOUT THE FORTUNE 500

Managing

Editor

Andy Serwer

Categories Business Magazines

Frequency Bi-weekly

Circulation ~850,000

Publisher Time, Inc., a Time Warnercompany.

First issue 1930

Country United States

Language English

Website http://www.fortune.com

Fortune is a global business magazine published by Time Inc.'s Fortune

Money Group. Founded by Henry Luce in 1930, the publishing business,

consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time

Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time

Warner was the world's largest media conglomerate. Fortune's primary

competitors in the national business magazine category are Forbes, which is

also published bi-weekly, and Business Week. The magazine is especially

known for its annual features ranking companies by revenue. During

the Great Depression, Fortune developed a reputation for its social

conscience. For many years Fortune was published as a monthly, but as of

January, 1978, it is published twice a month.


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AME ICAN P 1 C MPANIES

orbes is theprimarycompetitorof ortunemagazine in thenational business

magazinecategory hich ispublishedbi eekly. Themagazine isespecially

known foritsannual featuresrankingcompaniesbyrevenue.

Rank Company

Revenues

($ millions)

Profits

($ millions)

1 Wal-Mart Stores 408,214.0 14,335.0

2 Exxon Mobil 284,650.0 19,280.0

3 Chevron 163,527.0 10,483.0

4 General Electric 156,779.0 11,025.0

5 Bank of America Corp. 150,450.0 6,276.0

6 ConocoPhillips 139,515.0 4,858.0

7 AT&T 123,018.0 12,535.0

8 Ford Motor 118,308.0 2,717.0

9 J.P. Morgan Chase & Co. 115,632.0 11,728.0

10 Hewlett-Packard 114,552.0 7,660.0


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EC NOMIES OF SCALE AND SCOPE

Economiesofscale isaneconomic termdescribingabusinessmodel where

the long-run average cost curve declines as production increases, or in a

simple example explaining the principal, where a manufacturing company

savesmoneyas it produceshigher uantitiesof itsproduct, as inall business

areas, themoreyoubuy, themoreyousave'.

Anexample is that ofaprivatesoft drinksmanufacturer. Themoreorders that

the manufacturer receives the more savings it makes, as it will in turn get

cheaper prices for the materials it needs to produce its drinks (e.g. plastic,

aluminium, sugar). All these factorscontribute to thebenefitsofeconomiesof

scale.

WHY ECONOMICS OF SCALE HAPPEN

The advantages of large scale production that result in lower unit

(average)costs (cost perunit)

AC = TC / Q AC=Average Cost, TC=Total Cost, Q= Quantity.

Economies of Scale spreads total costs over a greater range of

output

utput


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Suppose, forexample, that onda wereconstrained toproduceonly ,motorcyclesayear insteadofapossible million. ith thiscircumstance, theneed foranassembly linewouldbecome obsolete. Eachmotorcyclecouldbeproducedbyhand. ondacould ruleout benefits that might bederived fromthedivision and specializationof labour. In producing sucha small number,theuseofanyproduction techni ues that reduceaveragecost wouldb ecome

obsolete. In these two examples, onda and eneral otors would enjoyeconomiesofscalewithreducedaveragecost simplyby increasing thescaleof theiroperations.

ore broadly, economies of scale can occur for a number of reasons,including specialization efficiencies, volume negotiating/purchasing benefits,better management of by-products, and other benefits of size that translateinto savings or greater profitability for a large -scale producer.

Internal advantages that ariseasaresult of t hegrowthof the firm

Technical

Commercial

inancial

anagerial

Risk Bearing

TECHNICAL

Someproductionprocessesneedmore thanonemachine

ifferent capacities

ayneedmore thanonemachine tobe fullyefficient .

COMME CIAL-

arge firms can negotiate favourable prices as a result of buying in

bulk.

arge firmsmayhaveadvantages inkeepingpriceshigherbecauseof

theirmarket power.

FINANCIAL

arge firmsable tonegotiatecheaperfinancedeals

arge firms able to be more flexible about finance share options,

rights issues, etc.

arge firmsable toutiliseskillsofmerchant banks toarrange finance .


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MANAGE IAL

y Use of specialists accountants, marketing, lawyers, production,

humanresources, etc.

RISK EARING

y iversification

y arketsacrossregions/countries

y Product ranges

y R&

External Economiesof Scale theadvantages firms cangainasa result of

thegrowthof the industry normallyassociatedwithaparticulararea .

Supplyofskilled labour

Reputation

ocal knowledgeandskills

Infrastructure

Training facilities

DISECONOMIES OF SCALE

The disadvantages of large scale production that can lead to increasing

averagecosts.

Problemsofmanagement

aintainingeffectivecommunication

Co-ordinatingactivities oftenacross theglobe!

e-motivationandalienationofstaff

ivorceofownershipandcontrol


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Economiesof Scope

Ifa single firmcan jointly produce goods X and Y more cheaply that any

combinationof f irmscouldproduce them separately, then theproductionof X

and Y is characterized by economies of scope .This is an extension of the

concept

of

economies

of

scale

to

the

mu

ltiproduc

tcase

.

Economies of scope exist if a firm can produce several product lines at agiven output level more cheaply than a combination of separate firms eachproducing a single product at the same output level. Economies of scopediffer from economies of scale in that a firm receives a cost advantage byproducingacomplementaryvarietyofproductswithaconcentrationonacorecompetency. hile economies of scope and scale are often positivelycorrelatedand interdependent, strictlyspeaking thebenefits fromscopeha velittle todowith thesizeofoutput.

or instance, in the paper products industry it is common for large firms to

produce theirownpulp, theprimary ingredient inpaper, beforemanufacturingthepapergoods themselves. owever, smaller firms may have to purchasepulp from others at a higher net cost than the large companies pay. Thesavings fromproducingbothpulpandpaperwouldbeaneconomyofscopefor the large producers, although the large companies probably also haveeconomiesofscale that make it feasible to invest inpulpingoperations in thefirst place.

Inanotherexample, bankshaveeconomiesofscopewhen theyofferavarietyof related financial services, suchas retail bankingand investment services,throughasingleservice infrastructure (i.e., theirbranches, ATMs, and Internetsite). Clearly, the costs of providingeach service separately wouldbe much

greater than the costs of using a single infrastructure to provide multipleservices.

Economiesofscope canbemeasuredbyasfollows:

here C(Q

,Q ) is thecost ofjointlyproducinggoods and in the

respective uantities; C(Q

) is thecost ofproducinggood alone,

andsimilarly forC(Q ).

)()(

),()()(

21

2121

QCQC

QQCQCQC

SC

!


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Exam l Let 1) $12 million; 2) $8 million; and 1, 2)

$17 million. Thus:

Thus joint production of goods 1 and 2 would result in a 1 percent reduction

in total costs.

Few Examples as follows

Economies of scope between cable TV and high speed internet

service.

Production of timber and particle board.

orn and ethanol production

Production of beef and hides.

Power generation and distribution

Joint cargo and passenger transportation in airlines reduces excess

capacity.

Global wholesale distribution of cheese, salad dressing, and cigarettes

example: Phillip-Morris-Kraft).

omputer aided design of AD) of aircraft components.

The Learning urve

The ler

i

curveembodies the (i

verse

relatio

shipbetwee

averageproductio

cost andcumulativeoutput.

Average Cost

Average cost is a decreasing function of cumulative output

15.20$

3$

8$12$

17$8$12$!!

!SC


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If the firmshutsdownproduction, then losseswill be equal to fixed

cost, or:

Losses = JEHP

If the firmsupplies Q* unitsat theprice P*, then:

Losses = JEFP*

So longasprice (averagerevenue)exceedsaveragevariablecost, the loss

minimizingstrategywill entail producingsome output.


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THE REASONOF S CCESS FORFORTUNE TOP 1

COMPANIES OFAMERICA IS DUE TO ECONOMICS OF

SCALE AND ECONOMICS OF SCOPE

Industry Retailing

ounded Rogers, Arkansas

ounder(s) Sam alton

Areaserved orldwide

Keypeople Mike uke(CEO)

. ee Scott (Chairmanof the

Executive Committeeof the

Board)

S. Robson alton (Chairman)

Products iscount Stores

Supercenters

NeighbourhoodMarket

Revenue US 4 . billion ( )


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INCORPORATIONANDGROWTH

It opened itshomeofficeand first distributioncentre in Bentonville, Arkansas.

It had storesoperatingwith ,5 employeesandsalesof 44. million. It

began tradingstockasapubliclyheldcompanyonOctober , , andwas

soon listedon the New York StockExchange. al -Mart wasoperating in five

states: Arkansas, Kansas, ouisiana, Missouri, andOklahoma.

In the s, al-Mart continued togrow

rapidly, andby its 5thanniversary in therewere , storeswithsale s

of 5. billionand , associates. Thecompanyalsoopenedoverseas

stores, entering South America in 5 with stores in Argentina and Brazil;

andEurope in , buying Asda in the UK for billion.

In , al-Mart introduced the

"Neighbourhood Market" concept with three stores in Arkansas. By 5,

estimates indicate that thecompanycontrolledabout % of theretail grocery

and consumables business. I n 5, al-Mart had .4 billion in sales,

more than 6, facilities around the world including , stores in the

United States and , elsewhere, employing more than .6 million"associates" worldwide. Its U.S. presence grew so rapidly t hat only small

pockets of the country remained further than 6 miles ( km) from the

nearest al-Mart.

On September , , al-Mart introduced new advertising

with theslogan, "SaveMoney ive Better," replacing the "Always ow Prices,

Always" slogan, which it had used for the previous years. On March ,

, al-Mart announced that it is paying a combined .6 million in

bonuses toevery full andpart timehourlyworkerof thecompany.


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STRATEGIES THATWAL-MARTFOLLOWEDTO ECOME

NUMBER- 1 COMPANY

EFFECTIVE USE OF LOGISTICS & INVENTORY CONTROL &NON

DEPENDENCE ONANY SINGLE VENDOR:-

Wal-Mart effective logistic system is the flexibility when it chooses any

supplier.whenWal-Mart negotiateswithsupplier, supplierknows th at it isonly

Wal-Mart whichwill give themost competitiveprice. This isbecause it iseasy

forWal-Mart to find another supplier for a particular product at lower price

without facing any logistic problem. This givesWal -Mart a huge amount of

leveragewhen it dealswith thesupplier. Whensupplierknows that companyhas found lowerprice it will lowerprice it will lowerpriceaccordingly.

RELIABILITYON ITS OWNDISTRIBUTION SYSTEM:-

Wal-Mart has their own distribution system, which assists Wal-Mart to

shippinggood fromwarehouse tostorewithin 4 hours. It helpsWal -Mart to

replenish theshelf 4 time fasterthan itscompetitor.

ASSOCIATES

Wal-Mart alwaysempowers, or trains theiremployeeandchallenging them to

come up with new idea or suggestion which makes the company better.

Associatesalways try tocut thecost ofcompany.

ROLE OFTECHNOLOGY

Technologyplaysanvery important role insuccessofWal -Mart. Process like

ordering, shipping, communicationsand logisticswereautomated Store level

datasaleswerecollected, analysedand transmittedelectronicallyonareal

timebasis. . Throughhelpof technologyWal -Mart givescustomeranewway

ofshopping. It has thebest knowhow toprovide theright set products to the

right set ofcustomers.


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MASSIVE SIZE

BecauseofWal-Mart'smassivesize, it wields incrediblepower. It hasdriven

smallerretailersout ofbusiness; forcedmanufacturers tobemoreefficient.

SELLINGBRANDED PRODUCTS ATLOW COST

Wal-Mart always purchases product in huge quantity so transportation cost

fromoneendofsupply chain toanother isnot as costly foradditional units.

SoWal-Mart isable tosell brandedproduct at lowercost.

The stories of howWal -Mart pushes manufacturers into selling the same

product at lowerand lowerpricesare legendary. Oneexample is akewood

Engineering & Manufacturing Co. in Chicago, a fanmanufacturer. In theearly

s, a -inch box fan costs . Wal-Mart pushed the manufacturer to

lower the price, and akewood responded by automa ting the production

process, which meant layoffs. akewood also badgered it own suppliers to

knockdown thepricesofparts. Then, in , akewoodopeneda factory in

China, whereworkersearn 5 centsanhour. By , thepriceon the fan in

aWal-Mart storehaddropped toabout .

PROVIDING PRODUCTS AT EVERYDAYLOW PRICES (EDLP)

Wal-Mart follows thephilosophy likeeveryday lowprice. Wal -Mart has

emergedas industry leaderbecause it hasbeenbetterat containing it cost

whichhasallowed it topasson thesaving to it customer.

Thesecret to theirsuccess isbrilliance (ruthlessness) inkeepingcostsdown

and a willingness to operate at razor thin margins. Wal -Mart doesn't make

muchoneach thing thesell, theyrelyonvolume.


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EXXONMOBIL

Type Public (NYSE: XOM)

Industry Oil and gas

Founded 1999 (merger

Headquarters Irving, Texas, U.S.

Areaserved Worldwide

Key people Rex W. Tillerson

(Chairman, President, & CEO)

Products Fuels

LubricantsPetrochemicals

Revenue US$284.65 billion (2010)


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STRATEGIES THAT EXXONMOBILE FOLLOWEDTOBECOME

NUMBER- 2 COMPANIES

SAVINGTO INVEST

Rockefellerandhispartner, Clarkwereable to tap into thehighly lucrativeoilindustry because they had saved quit some money from their commodity

tradingbusiness.

Asyourbusinessbegins tomakeprofit, wemust continuallysaveagoodpartof it tobeable toexplorejuicybusinessopportunities that maycomeup later.

reat businessopportunitiesdont comeeveryday, ifwearenot prepa red forthembyhavingenough funds to invest when theyappear, will loseout.

We could also use our savings to expand our business into a biggerenterprise.

RECOGNIZINGGOODBUSINESS OPPORTUNITIES

The oil industry possessed huge profit potential and Rockefeller quickly

recognized it even at the early stage of the industry. And this shaped his

vision for his company taking a leading role in the industry, which he

eventuallyachieved.

An important success factor in business is to be able to recognize a good

businessopportunity when you seeoneandgo for it. Assessingabusinessidea tobesure it will beprofitable involveschecking if it carters fortheneedof

ahugepopulationofpeople, and if theproduct it offers isneededrepeatedly

and frequent ly.

FORMING PARTNERSHIP FOR SUCCESS

Workingandpulling resources together withotherpeople inpartnership canenableachieveourgoal fasterandeasier. etting intopartnership isagreat

way to leverageonotherpeoples talent, skill, energy, andmon ey, however,besurewearegoing intopartnershipwithpeople trust, andwith the termsofthe partnership known and agreed on by the partners and legallydocumented.

rom partnering with Clark, Andrews, and lagler, Rockefellers rise inbusiness was largely due to his going into partnership with other peoplepossessing the talent orfundingheneeded toaccessbiggerbusinesses.


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FOCUSINGON CORE BUSINESS

A lot of times business owners fall into the temptation of abandoning their

major business to try to make quick and seemingly easy money from other

businesses. Unfortunately, theyusuallyendup failingat both.

Without theknowledgeandexperience tosucceed, it isveryunwise to leave

yourcorebusinesswhere theyhavebuilt enormousexpertise to getting intoa

turf they are not familiar with. ont abandon core business because it is

havingproblemat themoment. Continue toworkon it;soonwewill discover

thesolution to thechallenge.

It best bet to achieving success in business is to remain focused on the

businessyouhaveadequateknowledge, experience, andexpertise in.

Exxons venturing intootherbusinesses thanoil in the s inresponse to

OPECs refusal to sell crude to the United States was a huge failure

billiondown thedrain.

CUTTING COST CANREMARKABLY INCREASE PROFIT

Cost cutting was Exxon

Corporations top strategy for remaining profitable in the face of falling oil

prices in the s and s. By 6, thecompanys operating cost had

beenreducedby . billionyearly, allowing it tomakeprofit of .5 billion

that year.

By following these strategies ExxonMobil became successful

company in the world and secured nd position in ortune 5 company

magazine.


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SEEKINGTO VERTICALLY INTEGRATE BUSINESS

As business grows, plan to vertically integrate it by investing in others

businesses that support yourcorebusiness. By , StandardOil Company

hadvertically integrated, owningbarrel-makingplant, dock facilities, a fleet of

railroad tank cars, warehouse in New York, and forest land for providing

lumber used in producing barrel staves all these other businesses were

supportingbusinesses to StandardOil Companyso peration.

LEARNINGBUSINESS BEFORE STARTING

aving a thorough knowledge of your business before investing time and

money into it ispivotal to thesuccessof thebusiness. It gives theknowledge

and the insight requires to deal favourably with the stakeholders in the

industryand torecognizeopportunitieswhen theycome.

Rockefellers success in his commodity trading

business can largely been attributed to his four year job with ewitt Tuttle

wherehe learnt all hecouldabout succeeding in largescale trading in the US.

COMM

ITTIN

GTO

IM

PRO

VIN

GYO

URO

PERATION

Business growth and success is achieved when you commit to investing in

developing and improving your operational facilities In 6 , Rockefeller

Andrews invested 6 , to improving andexpanding its plants capacity.

Thiswashugemoney, but it waswell worth it, as thecompanycould increase

its production to 6 carloads a day, thereby making more income and

attractingmore investments.

Byusingabove strategy Exxon Mobile isable to achieve Economies of

scaleand economies ofscope.


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ABOUT CHEVRON

Type Public

Industry Oil and gasoline

Mining

Founded 1879 as Standard Oil of California

Headquarters SanRamon,California U.S.


Key people John S. Watson

(Chairmanand CEO)

Products Oil

Petroleum

Natural gas

PetrochemicalFuel

Lubricant

List marketing brands



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STRATEGIES THAT CHEVRONFOLLOWEDTOBECOME

NUMBER- 3 COMPANY

STRATEGIES

y TEC NOLOGY AN EMERGINGENERGY

y VALUING SCIENCE

y ENVIRONMENT SA ETY

y NEW RESERVES TOMEETGROWING EMAN

TECHNOLOGYAND EMERGING ENERGY

Technology is propelling their growth. They're focusing on technologies thatimprove their chances of finding, developing and producing crude oil andnatural gas. Theyalsoare investing in thedevelopment of emergingenergytechnologies, suchas findingbetterways tomakenon food -basedbio fuels,integrating advanced solar technology into their operations and expandingtheirrenewableenergyresources.

VALUING SCIENCE

Castingasidehisoriginal misgivingsabout thevalueofscience inexploration,illman soon built a strong staff of geologists under the leadership of Eric

Starke. Usingascientificapproachbecameparticularlyvaluable inassessingCalifornia'ssoft subsurface formations.

illman'searliest oil andgasexplorationsuccessescameat Midway, where

the company made seven discoveries in an -month period, including the

largest, McNee No. 4, whichproducedarecord , barrelsaday in April. That same month, erby No. blew out with a daily flow of gas

estimatedat 6 millioncubic feet. On uly 4, McNee No. came inat ,4

feet, flowingat , barrelsadayandprompting illman tosendhis former

employerat OhioOil acable that read:


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"Canyoumatch it, ordo I take first place?" Twodays later, illman'squestion

wasansweredwhen thesamewell broke loose, at least doubling itsoutput.

ENVIRONMENTAND SAFETY

Asacompanyandas individuals, they takegreat pride incontributing to thecommunitieswhere they liveandwork. Theyalsocareabout theenvironmentandareproudof themanyways inwhich theiremployeeswork tosafeguardit. Theirpersistent efforts to improveon theirsafeworkenvironment continuetopayoff. In2009, Chevronmaintainedadays -away-from-work injuryrate thatisamong thebest in the industry.

NEWRESERVES TOMEETGROWINGDEMAND

After moving into the Los Angeles basin, red illman led his explorationteam in delivering five gushers at theEmery ield in theWest Coyote illsbetween ecember 912 and October 1913.Standard Oil Co. (California)scoredbig in ecember1913when it purchased theMurphyOil Co. holdingsinWest Coyote andEast Whittier. By 1917, Standard had added two othergreat Southern California discoveries in the Montebello and Baldwin No. 3fields. Thecompany'sefficiencyandability to findnewreserveshelped it keep

pace with the surging demand for energy products fuelled by the dramaticpopulation growth and increased reliance on automobiles throughoutStandard's marketing area. In anuary 1919, the company had the first ofseveral discoveries in Elk ills in California's San oaquin Valley. WhileStandard was compiling an impressive producing record, it also became aleader in conserving energy resources. Th e Starke gas trap, an inventiondevised by Standard engineer C.C.Scharpenberg and geologist Eric Starke,wasoneof themore ingeniousmethods for "capturing" gas froma well thatthencouldbeused tomeet energyneeds. Toservemarkets inareassuchasthe Northwest United States, Standard more than doubled its ocean -goingcapacity between 1912and 1916 by adding five tankers, the A. . Lucas, ElSegundo, Richmond, .A. Moffett and .G. Scofield. By1926, the fleet grew

to 40 vessels, including 22 ocean-going tankers as well as stern-wheelers,launches, barges and tugs. Standard saturated its marketing territory withsalesoutlets, tripling thenumberofsmall bulkplantsby theendof1916 andquadrupling the number of substations between 1911 and 1919.And , byturning fromhorse-drawnvehicles tomotor transport, thecompany increasedthespeedandrangeof itssalesoperations.


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GENERAL ELECTRIC

Type Public (NYSE: GE)

Dow Jones Industrial Average Component

Industry Conglomerate

Founded Schenectady, New York(1892)

Headquarters 3135 Easton Turnpike

Fairfield, Connecticut, U.S.


Key people JeffreyR. Immelt

(Chairmanand CEO)

Products Appliances,Aviation, Consume,Electronics, Electrical

distribution, Energy, Entertainment, Finance, Gas,

Healthcare, Lighting, Locomotives, Oil, Software,

Water, Weapons, Wind turbines



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STRATEGIES THATGE FOLLOWEDTOBECOME NUMBER- 4

COMPANY

SIX SIGMA STRATEGYTRAININGMENTORINGLEA ERS IPOCUSED IMPLEMENTATION

S OWMETHEMONEYEVERYBODY PLAYSIN RASTRUCTURE CONCENTRATION

THE STORYOF SIX SIGMAANDGE

GEs tryst with Six Sigma started in 1995 when CEO ackWelchmade it a

corporategoal tobea Six Sigmacompanyby 2000. He led from the front and

ensuredGEattained its Six Sigmagoalswithin thestipulatedperiod. Readon

to findout moreabout Six SigmaandGE.

General Electrics (GE) focus on quality started in the

late1980swith the launchof the Work-Out program that openedGEculture

to ideas from everyoneand everywhere. The resultant learning environment

prepared theground forSix Sigma.

Credit for the implementationof Six Sigmaat GEgoes to CEO ackWelch,

whomade it acorporatepolicy toattain Six S igmagoalsby2000. GEadopted

most of its Six Sigma concepts and methodology from pioneers such as

Motorola.

TRAINING

Six Sigma implementationat General Elect ricstartedwithaheavyemphasis

on training theworkforce fordata -basedproblemanalysis.

GE requiredall exempt employees toundertakea13-day, 100hour training

program in Six Sigmamethodologiesandcompletea Six Sigmaproject by the

endof1998.


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The trainingcovered theDMAIC procedure:

y Definitionoridentificationof theprocessy Measurement ofprocessoutputy Analyzingprocess inputs forcriticalityy Improvingprocessbymodifying inputsy Controllingprocessbycontrolling theappropriate input

Employeescompleting the initial coursewent through follow -up training to

reinforce thesenewlyacquiredskills.

MENTORING

Thesuccessstoryof Six SigmaandGEwouldnot havebeenpossiblewithout

GE'ssystemofmentoringprograms.

ull-time Master Black Belts, hired specifically for implementation of Six

Sigma, led theprocesschange. EachMasterBlack Belt trainedandmentored

keyprocessemployees for the Black Belt level. Employeesselected forBlack

Belt underwent four-month trainingandapplied Six Sigma toolsat workunder

the guidance of the Master Black Belt mentor. GE soon deployed full time

Black Belt teams to implement Six Sigmaprojects throughout GE.

Part timeproject leadersoremployeeswho received Six Sigma training thatwereplacedon Six SigmaprojectsonlybecameGreen Belts.

LEADERSHIP

General Electrics experience in the implementation of

Six Sigmashows that thebest of trainingandmentoringeffortswouldcrumble

without effective leadership.


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JackWelch, GEs CEO supported the Six Sigma initiative not just with the

necessary financial resources, but also through securing vital commitment

from both the senior executives and the workforce. Welch linked promotion

and bonus to quality improvement. orty percent of each top management

bonusdependedon thesuccessful implementationof Six Sigmagoalsanda

Green Belt became the minimum requirement for the promotion of anyemployee.

JackWelchandother topmanagement, most notablyDave Cote, President,

and CEOofGE Appliances followedahands-onapproach to Six Sigmaand

led from the front through the followingmethods:

y Spending time in Six Sigma Training sessions and personallyansweringquestions foremployeesundergoing training

y Surprisedvisits to Six Sigmareviewsessionsy Work-floor visits to make first hand observations on the extent of Six

Sigma implementationat theworkplace y Weekly summary reports and monthly reviews with the Master Black

Belt team.

FOCUSED IMPLEMENTATION

Onemajorreason for thesuccessstoryof Six SigmaandGE is the focused

approach toward implementation.

GE's three time-tested implementationapproachesare "ShowMe theMoney,"

"Everybodyplays," and "SpecificTechniques."

y S owMetheMoney-GEapproaches Six Sigmawitha focuson thebottom-line. The need to cut costs in a competitive price-sensitivemarketplacemadeGEapplies Six Sigma toremoveworkplacedefectsand improveproductivity, besides improvingproduct quality.

y E erybody Plays-MuchofGEsproduct linesarecomprisedofmany

outsourced parts.GE

understood the need for the supplier toparticipate in the Six Sigma initiative to make the product fully SixSigmacompliant and invested inbringing thesuppliers to Six Sigma.

y Specific Techniques -GE cultivated the art of ranking projects andaligning them to the business goals through Six Sigma tools such astheprocessmap


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Concentration (Infrastructure) OneofGEsalternatives is to implement aconcentrationstrategy foroneof itsbusiness within the overall Corporation. One of the best businesses toconcentrateon is Infrastructure. InfrastructurecurrentlymakesmoreprofitforGE thenanyof theirotherbusinesses. Byconcentrating theireffortsand

resources toward Infrastructure, GE can make theirbusiness even stronger.By working to improve the weaknesses that they are currently experiencing,GE could turn Infrastructure into a powerhouse for the company. That way,GE Infrastructurecancompeteagainst othercompanies that focussolelyonthe products and services that they offer. or information on how thisalternativewasanalyzedusingvariousdimensions,


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Industry Banking

Financial services

Investment services

Key people Charles O. Holliday

(Chairman)

Brian Moynihan

(President and CEO)

Headquarters Charlotte, North Carolina


Products Financeand insurance,Retail banking, Commercial

banking, Investment banking,

Investment management, Private banking, Private

equity, Mortgages, Credit cards.

Revenue $150.45 billion (2010)


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STRATEGIES THATBANK OFAMERICAFOLLOWEDTO

BECOME NUMBER- COMPANY

DELIVERY OF A BROAD RANGE OF PRODUCTS AND

SERVICES

Global Consumer and Small Business Banking (GC&SBB) is the largest

division in thecompany, anddealsprimarilywithconsumerbankingandcredit

card issuance. Now it deals also withprovidedmergers and

acquisitionsadvisory, underwriting, capital markets, aswell assales & trading

in fixed incomeandequitiesmarkets. Itsstrongest groups include Leveraged

inance, SyndicatedLoans, andmortgage-backedsecurities. It alsohasone

of the largest research teamson W

all Street.

It has five primary lines of business: Premier Banking & Investments

(including Bank of America Investment Servi ces, Inc.), The Private Bank,

amilyWealth Advisors, and Bank of America Specialist. B of Ameri

si e, scale and global presence enable it to provide customers and clients wit a full

range of world-class products and services, delivered wit convenience and

efficiency.

LOCALTOGLOBAL

Bank of America serves clients in more than 150 countries and has a

relationship with 99% of the U.S. ortune 500companies and 83% of the

ortuneGlobal 500. Expanding internationally isagreat opportunity for Bank

of America. Through its expansion in developing countries like India and

China, helps in increasing revenue. Bank of America is always working to

improvesatisfaction, reduceproblemsandcreatesolutions. Bankof America

is attracting and retaining associates who can lead ina global organization,

and is building on leading staffing, training and leader ship development

programs. As Bank integratesbusinesses, it meansbringing togetherawide

spectrumofproductsandservices forcustomersandclientswhile improving

quality, accuracyandefficiencyand loweringcosts. Investment in technology


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and innovation to improve productivity andbetter meet associate, customer,

client andshareholderneeds

MERGERANDACQUISITION.

Mergershelped BankAmerica Corporation toonceagainbecome the largest

U.S. bank holding company in terms of deposits, but the company fell to

second place in 1997 behind fast-growing NationsBank Corporation, and to

third in1998behind North Carolina's irst Union Corp.

BankAmerica'snext bigacquisitioncame in1992. Thecompanyacquired its

Californiarival, Security Pacific Corporationand itssubsidiary Security Pacific

National Bank in California and other banks in Arizona, Idaho, Oregon,

andWashington BankAmericaacquired the Continental Illinois National Bank

andTrust Co. of Chicago.

TECHNOLOGYADVANCEMENT

Technology will also be a major emphasis amongst financial service

companies as it provides a new outlet to consumers all across the globe.

Howeffective the Internet will beremains tobeseen, but it isalreadycausing

majorchanges. Thosecorporations that canmakee-commercesucceedwill

besuccessful and those that cannot will facemajorobstacles. Thecredit card

industryalonewill providebillionsofdollars in income through the Internet for

financial companiesand therewill bea lo t ofcompetition.

CREATINGRELATIONSHIP

Bank of America seeks to build broad, deep and long-lasting relationshipswith its customers by providing a full range of banking, investing and

insurance products and services, and to create value for customers by

delivering financial solutions within the context of each customer's complete

banking relationship and financial situation, as one company with one

customer experience. Middle-market and large corporate clientsalso benefit


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from the company's relationship-based approach, with client managers

coordinatingdeliveryofabroadrangeofproductsandservices, including (but

not limited to) commercial lending, treasury management, debt and equity

capital rising, risk management and mergers and acquisitions advi sory

services.

AGGRESSIVE MARKETING

The Bank has todo aggressive marketing andalso have to provide various

promotional schemes tocatertheneedsof thepeople.

Bank of America is affected directly by market conditions. or example,

changes in interest rates could adversely affect net interest margin - the

differencebetween theyield thebankearn sonassetsand the interest rate itpays for deposits and other sources of funding - which could in turn affect

earnings. Market risks include fluctuations in interest and currencyexchange

rates, and equity and futures prices. Such risks affect loans, deposits,

securities, short-termborrowings, long-termdebt, tradingaccount assetsand

liabilities, andderivatives.

PRODUCT INNOVATION

Bank of America is dominated greatly by product innovation. Technology is

the main factor that is dominating the industry. Bank also provides wide

varietyofproductsandservices. Various typesof accountsandcredit cards

areprovidedby Bankof America. The Bank isalsoaffectedbydemandand

thesupplyconditionsprevailing in the industry. Bankof Americaalsoenjoys

economiesofscaledue to itsstrong learningandexperienceeffects.


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Type Public (NYS COP)

Industry Oil and Gasoline

Founded August 30, 2002 (merger)

1875 (Conoco)

1917 (Phillips)

Headquarters Energy Corridor

Houston, Texas U.S.

Area served Worldwide

Keypeople James J. Mulva

(Chairman & CEO)

Products Oil & Natural Gas ,Petroleum

Lubricant

Petrochemical

Revenue


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STRATEGIES THAT CONOCO PHILIPS FOLLOWEDTO

BECOME NUMBER- 6 COMPANY

Success inbusiness isachievedby theapplicationofeffectivestrategies. And

the good thing is that with a little modification one can make use of the

winning strategies of one business to achieve the same success in theirs.

This is irrespectiveofdifference in timeandgeography.

Herearestrategieswhich ConocoPhillipshave implemented in thecourseof

theirhistory, andwhichhaveenabled them toachieve theirgoalsandbecome

oneof thebiggest companies in theworld.

IDENTIFYINGA PROBLEMAND PROVIDING SOLUTION

Theability to identifyapressingneed that is facedby lotsofpeople, and then

set up a business to provide the needed solution at affordable price is the

foundation of business success. Business is not an organization set up

primarily to make money, but to offer solution to an identified problem at a

cost theconsumercanafford.

The more the number of people needing the solution, and the more their

frequency of needing it, the greater and more consistent your business will

thriveandmakemoney.

Conocos business was an immediate success right from its inception

because it providedahugerelief to themasses inOgden, Utahwhocouldnot

purchase kerosene to light their homes because it was too expensive. By

noticing thisproblemandgoingahead to fixing it immediatelyput Conocoon

thepathofsuccess.


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SEEKING SYNERGYWITHOTHERBUSINESSES

Two heads are always better than one. Combining resources with other

businesses can enable you to easily and quickly achieve your goals. Its agreat way to leverage on other businesses expertise, experience and

facilities.

Therearedifferent ways throughwhichsynergycanbeobtained. It canbeby

formingpartnership, orbyacquiringormergingwithotherbusinesses.

rommergingwith StandardOil, DuPoint, Phillips, and Burlington Resources,

seeking synergy has always been Conocos vital strategy for achieving its

businessgoals.

GROWINGYOURBUSINESS AS QUICKLYAS YOU CAN

You shouldnt remain offering one product or service for too long. There

should be other related products you can create or acquire and grow your

business quickly. Relying on a single product offering is dangerous to your

business as your income could suddenly freeze if the product goes out of

need.

Apart from kerosene, which it started business with; Conoco alsosoldother

products, suchasbenzene tocleanstoves, candles, hoofoil forhorses, and

ready-mixedpaintsat theearlyyearsof itsexistence.

Then recognizing thesurge in thenumberofautomobilesonroads, Conoco

knew it wouldbeprofitable running refineriesandservice stations toprovide

fuel forautomobiles, and thereforemergedwithMarlandOil in1929.

DOINGWHATYOUNEEDTODO

oryourbusiness tosurvivedifficult times, youmust have thecourage to take

certaindecisions, whichmaynot bepopular, but needed tosave thesituation.


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In the wake of the stock market crash of 1929, Conoco had to cut down

salaries, amongst othermeasures that it took to salvage thesituation. Though

these were tough decisions, theyhowever helped tosave lots of money for

thecompany, whichwasused to finance important projects.

REWARDINGYOUR STAFFAPPROPRIATELY

Just as you shouldnt hesitate to cut staff salaries in d ifficult times, you

shouldnt alsohesitate to lavish themwith incentivesandbonuseswhenyour

business isdoingwell.

ew years after the stock market crises of 1929 that made Conoco to cut

downonstaffsalaries, thecompanysstaffwasrewardedwithbonuschecks

worth 770,000 in1937when Conococameback toprofitability.

EXPANDTOFOREIGNLANDS

Themore thenumberofpeopleneedingyourproduct orservice, themore

yourbusinessprospers. Youneed to findawayofexposingyourproduct or

service to the international market, andyouwill besurprised to findyour

product couldevenbemoreaccepted in foreign lands thanat home.

Expanding tomarketsoutsideyourlocal operationshouldbeprepared forand

shouldbe inyourbusinessplan. Today, withh ugeadvancement in

communication technology it hasbecomea lot easiertoexposeyourbusiness

to theglobal market using Internet technology.

Theerabetween1945 and1972saw Conocoexecutingagreat deal of its

expansionist plan, expanding itsrefineryoperationsnationally, and its

petroleumexplorationandproductionoperation internationally.


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AT&T

Type Public (NYSE: T)

Dow Jones Industrial Average Component

S&P 500 Component

Industry Telecommunications

Founded October 5,1983

Headquarters Whitacre Tower

Dallas, Texas, United States


Key people Randall L. Stephenson

(Chairman, President and CEO)

Services Telephone

Wireless

Internet

Television


Employees 294,600 (2010)


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STRATEGIES THATHELPEDAT&T INACHIEVING

ECONOMIES OF SCOPE AND ECONOMIES OF SCALE

ACQUISITIONOFMANYOTHER COMPETITOR COMPANIES INTHE

MARKET

Isbiggernecessarilybetterwhen it comes torunninga telecommunications

company? Apparently AT&T thinksso inannouncingplans tobuy BellSouth,

theprimaryphoneandbroadbandproviderin the Southeast, for 67billion.

Thecompanyacquired BellSouthand CingularNetworks to increase itssize

and tocut competition. A decadeago, when thereg ional Bell companieswere

thenation'smainprovidersof telephoneservice buyingacompetitorwas

easiertoexplain. Addingphonecustomersmeant morerevenue, economies

ofscaleonequipment andnetwork investment, and theability tocut

overlappingadministrativejobs.

ATELECOMMUNICATIONS SUPERMARKETAS IT CAN SELL MORE

SERVICES WHETHER PHONE, BROADBANDORTELEVISION TO

CUSTOMER EVERYWHERE

Tocompete inan Internet economy, AT&Texecutivessay thecompanyhas

tobecomea telecommunicationssupermarket so it cansell moreservices

whetherphone, broadbandortelevision tocustomerseverywhere.

AT&T'schairmanandchiefexecutive, EdwardE. WhitacreJr., saidonacall

withanalystsyesterday that themerger"will createastrongnational and

global competitor, betterpositioned to innovateanddelivernewservices to

bothbusinessesandconsumers.Tomerge itsbusinesses, thecompanywill

buynewnetwork technology that integrateswirelessandwirelinephonesso

that customers, amongother things, will beable touseonehandset that runs

onacellularnetworkoutdoorsand thenswitch toawireless Internet

connection indoors.

Thesekindsofservicesareparticularly important tobigcorporateclients thathave thousandsofcorded telephones, mobilephonesand Internet lines.


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VOLUME DISCOUNTS AND EXPERIENCE CURVE EFFECTS

It is true that largeserviceproviderscanachieveeconomiesofscale through

volumediscounts, experiencecurveeffects, andconsolidateoperationsat a

scale that minimizesunit costs, saysWeinman. A volumediscount isa

methodusedbysellersandmanufacturers toreward thosewhoareable to

purchase inbulkamountsorinmassquantities.

CONSOLIDATE OPERATIONS ATA SCALE THATMINIMIZES UNIT

COSTS

Different taskscanbeclubbed togethersoas tominimize thecost andwhich

are linkedwitheachother. As is thecasewithmost companyacquisitions, AT&T Inc.'sdeal toacquireDeutscheTelekom AGsubsidiaryT-Mobile USA, couldmeanconsolidationsat the twocompanies'call centres,

headquartersandretail operations.As Co StarGroup Inc. reportedWednesday, T-Mobile USA isa tenant in

5,100 locationsnationally, and AT&Thasabout 4,600 locations. Themergercouldmeanoneorbothcompanieswill shedsomeof those locations. AT&T

hassaid it expects tosave 3billion inconsolidationofoperationsover thenext threeyears.


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FORD MOTORS

Type Public (NYSE: F)

Industry Automotive

Founded June 16,1903

Headquarters Dearborn,Michigan, U.S.

Area served Worldwide

Key people William C. Ford, Jr.

(Executive Chairman)

Alan R. Mulally

(President & CEO)

Products Automobiles

Automotive parts

Services Automotive finance

Vehicle leasing

Vehicle service


Employees 164,000(2010)


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STRATEGIES THATHELPEDFORDMOTORS INACHIEVING

ECONOMIES OF SCOPE AND ECONOMIES OF SCALE

FOCUS ONAUTOMOBILE DESIGNANDMANUFACTURING

During the mid to late 1990s, ord sold large numbers of vehicles, in a

booming American economy with soaring stock market and low fuel prices.

With thedawnof thenewcentury, legacyhealthcarecosts, higher fuel prices,

and a faltering economy led to falling market shares, declining sales, and

sliding profit margins. Most of the corporate profits came from financing

consumerautomobile loans through ordMotorCredit Company.

By2005, corporatebondratingagencieshaddowngraded thebondsofboth

ord andGM to junk status, citing high U.S. health care costs for an aging

workforce, soaringgasolineprices, erodingmarket share, anddependenceon

declining SUV sales forrevenues. Profit marginsdecreasedon largevehicles

due to increased "incentives" (in the formofrebatesor low interest financing)

tooffset decliningdemand.

In the faceofdemand forhigher fuel efficiencyand fallingsalesofminivans,

ordmoved to introducearangeofnewvehicles, including "Crossover SUVs"

built onunibodycar platforms, rather than morebody-on-framechassis. Indeveloping the hybrid electric powertrain technologies for the ord Escape

Hybrid SUV, ord licensedsimilarToyotahybrid technologies toavoidpatent

infringements ord announced that it will team up with electricity supply

company Southern CaliforniaEdison (SCE) to examine the future ofplug-in

hybrids in termsof howhomeandvehicleenergy systems will workwith the

electrical grid. Under the multi-million-dollar, multi-year project, ord will

convert ademonstration fleet of ordEscapeHybrids intoplug-inhybrids, and

SCE will evaluate how the vehicles might interact with the home and the

utility's electrical grid. Some of the vehicles will be evaluated "in typicalcustomersettings," according to ord.

History Since the ordMotorCompany's incorporationbyHenry ord in1903,

itsstrategic focushasremainedonautomobiledesignandmanufacturing. Up

until 1970, competitionwas from the twoothermanufacturersmakingup the

BigThree Automakers;General Motorsand Chrysler. However, starting in the

1970's, foreigncompetition, mostly fromToyotaandHonda, eventually lead to


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overcapacitywithin the industry. Asmoreandmoredevelopingand industrial

nationsencourageddevelopment into theautomobile industry, overcapacity in

theautomobilemarketsreachedanestimated20millionvehicles.

PROVIDES WIDE RANGE OF PRODUCTS

Ford isoneof fourmanufacturers in NASCAR's threemajorseries: Sprint Cup

Series, Nationwide Series, and Camping World Truck Series. Major teams

include Roush Fenway Racingand Yates Racingand Richard Petty

Motorsports. Ford is represented by the mid-sizeFusion in the Sprint Cup,

theMustang in the Nationwide Series, andby the F-150 in the CampingWorld

Truck Series. Some of the most successful NASCAR Fords were the

aerodynamic fastbackFord TorinoandMercury Montegos, and the aero-

eraFord Thunderbirds. The Ford nameplate has won eight manufacturer's

championships in Sprint Cup, whileMercuryhaswonone. TheFordFusion is

also used in the ARCA Remax Series. It also manufactures FormulaOnecars, Rally, sportscars, touringcars, trucks, busesand tractors.

SAVING POWER COST AND REDUCED CARBON FOOTPRINT

THROUGH POWERMANAGEMENT

OnMarch2010, Fordannounced its PC PowerManagement systemwhich it

developedwith Night Watchmansoftware from1E. Thecompany isexpected

to save 1.2m on power cost and reduce carbon footprint by an estimated

16,000 to25,000metric tonsannuallywhen thesystem is fully implemented.

PC power management isbeing rolledout toall Fordcomputerusers in US

thismonthand it will beused inFordoperationsaround theworld later in the

year. Computerswith thispowerprofileenabledwill monitoritsusagepatterns

and decides when it can be turned off. PC user will be alerted of the

approachingpowerdown timeandgiven theopportunity todelay it.

According to company reduction in carbon footprint and power cost will be

achievedbydeveloping'PowerProfiles' forev ery PC in thecompany.

ENVIRONMENTAL INITIATIVES

Fordannounced in late2008July that it will bringsixof itsmore fuel -efficient

Europeanmodels to the U.S.

Compressednatural as

Thealternative fossil fuel vehicles, such as some versions of the Crown

Victoriaespecially in fleet and taxi service, operate on compressed natural


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gasor CNG. Some CNG vehicles have dual fuel tanks - one for gasoline,

theotherforCNG - thesameenginecanoperateoneither fuel viaaselector

switch.

Flexiblefuel ehicles Flexible fuel vehicles aredesigned tooperatesmoothlyusingawiderangeofavailableethanol fuel mixturesfrom pure gasoline, tobioethanol-gasoline

blends such asE85 (85% ethanol and 15% gasoline)

orE100 (neat hydrousethanol) in Brazil. Part of the challenge of successful

marketingalternativeand flexible fuel vehicles in the U.S., is thegeneral lack

of establishment of sufficient fueling stations, which would be essential for

these vehicles to be attractive to a wide range of consumers. Significant

efforts torampupproductionanddistributionofE85 fuelsareunderwayand

expanding.

Ford isalsoplanning toproduce250,000E85 -capablevehiclesayear in the

US, adding tosome1.6 millionalreadysold in the last 10years.


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J. P. MORGAN CHASE

Type Public (NYSE: JPM)Dow Jones Industrial Average Component

Industry BankingFinancial services

Founded New York City, New York (1799)

Headquarters New York City. New York, U.S.

Area served WorldwideKey people Jamie Dimon

(Chairman, President & CEO)

Products Finance and insuranceConsumer bankingCorporate banking

Investment bankingGlobal wealth managementMortgage loans

Credit cards

Revenue US$ 102.694 billion (2010)

Profit US$ 17.370 billion (2010)


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Demandandmaintainstrongfinancialdiscipline, buildingfor

good andbadtimes:

Financial discipline is a bedrock of great companies, particularly financialcompanies .Financial discipline including sound accounting standards,transparent public report ing and great management information systems leads to high-quality earnings that are recurring and predictable in nature;yields high returns on capital; produces good margins; and providesreasonableriskrelative to thecapital deployed.

Financial discipline must be matched with superiornot just averagerisk

management. If we properly manage risk, we should get a good return

through thecycle, not just during thegood times. Wemust cons iderwalking

away from business where we cannot see a fair return over the cycle. This

mayslowshort-termgrowth, but it underscoresourcommitment togrow ina

sustainableway. It isa trade-offwewill alwaysbeprepared tomake.

The Companywasnot hi t byrecessionassaidThroughout the financial crisis,JPMorgan Chasenever posteda quarterly loss, served as a safehaven for

depositors, worked closely with the federal government, and remained an

active lender toconsumers, small and largebusinesses, government entities

and not-for-profit organizations. As a result of our steadfast focus on risk

management andprudent lending, andourdisciplinedapproach tocapital and

liquidity management, we were able to avoid the worst outcomes

experiencedbyothers in the industry.

Maintainastrongsystemofinternalgovernanceand controls:

Good internal governance is essential to effective management. It tiestogether all our businesses worldwide with a common set of rules,

expectations and oversight activities. These help safeguard our reputation,

which we believe is one of our most important assets, and align thecompanys performance with the best interests of our shareholders. Some

codeofEthicsaregivenbelow :

y Engage in and promote ethical conduct, including the ethical handling ofactual orapparent conflictsof interest betweenpersonal andprofessionalrelationships, and to disclose to theOffice of the Secretary any materialtransactionorrelationship that reasonablycouldbeexpected togiverise t o

suchaconflict.

y Carryout yourresponsibilitieshonestly, ingood faithandwith integrity, duecareanddiligence, exercisingat all times thebest independent judgment.

y Assist in the production of full, fair, accurate, timely and understandabledisclosure in reportsand documents that the firm and its subsidiaries filewith, or submit to, the Securities and Exchange Commission and otherregulatorsand inotherpubliccommunicationsmadeby the firm.


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STRATEGIES THATHEWLETT PACKARDFOLLOWEDTO

BECOME NUMBER- 1 COMPANY:

HP isa technologycompany that operates inmore than170countriesaround

the world. We explore how technology and services can help people and

companies address their problems and challenges, and realize their

possibilities, aspirations and dreams. We ap ply new thinking and ideas to

create more simple, valuable and trusted experiences with technology,

continuously improving the way our customers live and work.

No other companyoffers as complete a technologyproduct portfolioas HP.

We provide infrastructure and business offerings that span from handheld

devices tosomeof theworld'smost powerful supercomputer installations. We

offer consumers a wide range of products and services from digital

photography to digital entertainment and from computing to h ome printing.

Thiscomprehensiveportfoliohelpsusmatch theright products, servicesand

solutions to our customers' specific needs.

Globalbusinessstrategy

Global citizenship is one of HPs corporate objectives, a commitment

spanning our entire organization and rooted in values that have guided the

companysince it was founded. Forover70years, thiscommitment hasdriven

us tomeet higherstandardsof integrity, contributionandaccountabilityaswe

alignourbusinessgoalswithourimpactsonsocietyand theenvironment. HP

is in a unique position to make meaningful and lasting contributions to

improve peoples lives and work.W

e regularly communicate and meet withstakeholders to respond to their feedback, express our views, gain insights,

sharebest practices, shapestandardsand influencepublicpolicydiscussions.

Inall matters, wearecommitted tocarryingout engagements ina transparent

and appropriate way .Our global citizenship efforts span a broad range of

areasfrom ethics and compliance, environmental sustainability and

education to responsible supply chain management, privacy and social

innovationasdetailedby thisreport.

Therecent economicdownturn, combinedwithpowerful social, d emographic

and environmental forces, is creating unprecedented challenges and

opportunities for individuals, communities, companiesandgovernmentsalike

Issues such as meeting the resource needs of a fast-growing global

population, mitigating the effects of climate change, managing rapidly

increasing volumes of information and opening up educational opportunities

forall cut across industries, economiesandbordersandrequirenew levelsof

leadership, innovationandcollaboration.


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HavingBigBusinessHousesas Customer:

Walt Disney was the first customer of HP. The companyhas tie with SAP ,

ORACLE , Microsoft etc.

In Australia, abankuses theHP CarbonFootprint Calculator toevaluate the

greenhousegasemissions frompowering itsprintersand PCs. In Singapore,

asales teamgathers inan HP Halo solutions room rather thanboardingan

airplane to meet with colleagues in Germany. In Canada, a nonprofit

organization taps into HP cloud computing technology to developa solution

that reduces the time for manufacturers to trace and remove recalled food

products from thesupply chain. In the United States, anurse ina Veterans

Affairs hospital scans bar codes created by the HP Patient ID system to

ensure patients receive the correct medication. And in India, Lithuania and

Nicaragua, teachers and students use HP Tablet PCs to connect and

collaborate, opening up new avenues for learning. In these and countless

otherways, HP products, servicesandsolutionsareprofoundlychanginghow

theworld livesandworks.

Long history of doing theright thing: since 19 7, HP hashaddefined

CSRvalues:

RecentlyHP Pledge1million US in INDIA forScienceandTechnologyand

MathEducation. HP was first to introduced greenhouse emission reduction

program. Ourcommitment to Social Innovationandeducationstretchesback

more thansixdecades. HP focusesonprogramsandorganizations that help

educatorsbuildskillsanduse technology toenhance lessonsandre -imagine

theirapproach to teaching. Wehelpeducators combineexcellent instruction

with the unique capabilities of technology to transform the learning

experience.

HP awardsgrantsofcash, HP technologyandotherresources toprimaryand

secondarypublicschools, colleges, anduniversities. Evidence shows that the

effectiveuseof technology, combinedwithexemplary teaching, canpositively

impact student academic outcomes, and create a more engaging,

personalized and collaborative learning environment. Since 2000, HP has

providedmore than 250million in funding, equipment and training tosupporteducation, including 60million forourHP Technology. Part ofouremphasis

on education is cultivating tomorrows entrepreneurs. HP works with

organizations to help young people acquire the IT skills and knowledge

required to succeed in the workforce, launch new business and help

communities toprosper.


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Employees are supported as they try new approaches, even

whentheyfail;

Our employees are integral to the success of our business. Their talent,expertise and skills drive everything from how we innovate products and

manageoursupplychain tohowweconnect withcustomersandcollaborate

with partners. Recruiting and retainin g the best people is a key competitive

advantage, andwestrive tocreateasupportive, motivatingworkenvironment

where all employees can flourish. Much of our focus in 2009 was on

integrating those who joined HP through the acquisition of EDS, which

increasedournumberofemployees to304,0001. Thissectionrepresentsour

combinedworkforce. Insomecases, thismakes it difficult tocomparedataor

progress in2009withpreviousyears, whichwehavenoted. Ouremployment

policies apply globally and reflect our commitment to fair treatment of allemployees wherever we operate. At a minimum, we comply with local laws,

but ourownpoliciesoftenset amoredemandingstandard:

VariousdivisionofHP:

y Personal systemsHP is the worlds leading vendorof personal computers,

shippingover 50milliondevicesannually. And thats just onesegment ofour

personal systems offering. We have the industrys broadest portfolio of

notebooks, desktops, workstations, thin clients, displays, handheld devices

andpersonal storagesolutions.

y Imaging and printingThe worldwide leader in inkjet and laser printing for

over 20 years, HP is advancing the digital transformation of printing while

offering customers new ways to be creative, save money, improve

productivity, andstandout.

y Enterprise BusinessHP helps large organizations establish strategic

advantagesbycreatingecosystems that use technology torespondefficiently

to dynamic conditions in real-time. Our solutions use HP servers, storage,

software, networkingandservices tocreateorstrengthenbusiness elasticity,

insight andsustainability.

y ServicesHP is the second-largest IT services company in the world, giving

us the scale and scope to manage customers' most critical business

technology needs. We offer one of the industry's broadest portfolios of

technology services, including applications services, infrastructure services

andbusinessprocessoutsourcing.


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BIBLIOGRAPHY

Textbook

1. DereskyHelen: International Management: Managing Across Boardersand Culture, PearsonEducation, 2003.

2. Paul J: International Business, Prentice-Hall, 2004.

Website

BankAmerica Corp.," WallStreetJournal, February 4, 1993, p. B6.

BankAmericaEnvironmental Progress Report, BankAmerica Corporation,

1992.

Successprincipleonline.com

y www.walmart.com

y www.exxommobil.com

y www.ge.com

y

www.hp.comy www.chevron.com

Othersources

y Companysannual report

y Magazines


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