International_Business_Characteristic of Fortune 500

7/31/2019 International_Business_Characteristic of Fortune 500

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Characteristic of Fortune 500

International Business

Kim Jae Pil (116034)

Oh Kwang Ho (117065)

Lee Mi Ju (118809)


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Contents

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3

4

5

2

Introduction of Fortune 500

Ranking factors

Country by Country analysis

Characteristics(12)

Reference


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1. Introduction of Fortune 500

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What is Fortune 500 ?

The Fortune Global 500 is a ranking of

the top 500

as measured by .

The lists complied and published

by Fortune magazine.

Source: http://en.wikipedia.org/wiki/Fortune_Global_500

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Until 1989, it listed only non-US industrial corporationsunder the title "International 500", while the Fortune 500

contained and still contains exclusively US corporation.

In 1990, US companies were added to compile a trulyglobal list of top industrial corporations as ranked by

sales.

Since 1995, the list has had its current form, listing alsotop financial corporations and service providers by

revenue.



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In 2005, more than 450 of them were headquartered in

Europe (195), the United States (176), and Japan (80).

This list ranks only public companies, or those which haveissued securities through an offering and which are traded

on the stock market.


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This list is important to a number of financial groups, but

particularly to investors, who study the performance of these

select companies.

In addition, academic and business researchers look to

these companies to learn about best practices in various

industries and to discover the secrets to their business and

financial success.

Source: http://www.answers.com/topic/fortune-500#ixzz1Bpxm3Vud

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Top 10 Brands on Fortune List 2011

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2.Ranking Factors of Fortune 500

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1. Sales Growth Ranking

2.Assets Ranking

3. Earnings Ranking

4. Capitalization Ranking

Four Ranking Factors

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Ranking FactorsUsed in Determining the Fortune 500

Tracking the increase in sales of a company is a way to

determine if the company is indeed growing. This is very

important to investors.

Sales growth is also indicative of the state of the economy.

One would expect a company's sales to grow during

a healthy period of economic activity.

growth rate> general growth in the industry outperform(continue..)

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OUTPERFORM

a superior quality product, low-cost production or service

delivery methods, excellent customer service and support,

or innovations in production and/or processing.

( characteristics )

Companies on the Fortune 500 list typically exhibit morethan one success measure that may be important for

competitors to emulate.

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Companies listed on the Fortune 500 usually have large

and growing asset balances.

An asset is any item of economic value owned by the

corporation, including cash, securities, accounts receivable,

inventory, office equipment, and property.

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Earnings = RevenuesCost of Sales

Operating ExpensesTaxes

Earnings are often the single most important determinant

of a corporation's stock price.

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Capitalization is the sum of a corporation's long-termdebt, stock, and retained earnings. It may also be called

invested capital.

Number of shares outstanding * Price per Share(Price per Share = market price of the entire company / market capitalization)

Source: http://www.inc.com/encyclopedia/fortune-500.html#

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3. Country by Country Analysis

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Country-by-country analysis

The number of country that has Global 500 company is only 33.

1 Australia 8 12 France 35 24 Russia 7

2 Austria 1 14 Germany 34 25 Saudi Arabia 1

3 Belgium 5 15 India 8 26 Singapore 24 Belgium/Netherlands 1 16 Ireland 2 27 South Korea 14

5 Brazil 7 17 Italy 10 28 Spain 9

6 Britain 30 18 Japan 68 29 Sweden 3

7 Britain/Netherlands 1 19 Luxembourg 1 30 Switzerland 15

8 Canada 11 20 Malaysia 1 31 Taiwan 8

9 China 61 21 Mexico 3 32 Thailand 1

10 Columbia 1 22 Netherlands 12 33 Turkey 1

11 Denmark 2 23 Norway 1 34 U.S. 133

12 Finland 1 24 Poland 1 35 Venezuela 1

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Country-by-country analysis U.S., Japan, and China accounted for over 50 percent.

1 U.S. 139 133

2 Japan 71 68

3 China 46 61

4 France 39 35

Total 256(51.2%) 262

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Industry Analysis Five companies of top 10 are petroleum refining industries.

1 1 Wal-Mart Stores U.S. Retail

2 2 Royal Dutch Shell Netherlands Petroleum

3 3 Exxon Mobil U.S. Petroleum

4 4 BP Britain Petroleum

5 7 Sinopec China Petroleum

6 10 China National Petroleum China Petroleum

7 8 State Grid China Power

8 5 Toyota Motor Japan Automobiles

9 6 Japan Post Holdings Japan Diversified

10 11 Chevron U.S. Petroleum

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Industry analysis

.

recaptured No.1 in two years

Year 2006 2007 2008 2009 2010 2011

Rank 2 1 1 3 1 1

YearRevenue

($ millions)Profits

($ millions)

2011 421,849 16,398

2010 480,214 14,335

2009 405,607 13,400

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Industry analysis


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Industry analysis

.

Decreased total sales compared with the previous year

Decrease of 8.3 percent(global 500)

Decrease of 11.4 percent(global 100)

But, increased operating profit

Increase of 16.9 percent(global 500)

Increase of 18.9 percent(global 100)

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Industry Analysis Nestle is the most profitable company in 2010.

Rank CompanyGlobal 500

Rank2010 Profits($ millions)

1 Nestle 42 32,843.0

2 Gazprom 35 31,894.5

3 Exxon Mobil 3 30,460.0

4 Industrial & Commercial Bank of China 77 24,398.2

5 Royal Dutch Shell 2 20,127.0

6 China Costruction Bank 108 19,920.3

7 AT & T 30 19,894.0

8 Petrolbras 34 19,184.0

9 Chevron 10 19,024.0

10 Micorsoft 120 18.760.0

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Industry Analysis

Rank

2009 2010 2011

companyRevenues($millions)



1Royal Dutch

Shell458,361 Wal-Mart Stores 408,214 Wal-Mart Stores 421,849

2 Exxon Mobil 442,851Royal Dutch

Shell285,129

Royal DutchShell

378,152

3 Wal-Mart Stores 405,607 Exxon Mobil 284,650 Exxon Mobil 354,674

4 BP 367,053 BP 246,138 BP 308,928

5 Chevron 263,159 Toyota Motor 204,106 Sinopec Group 273,422

6 Total 234,674Japan PostHoldings

202,196China National

Petroleum240,192

7 ConocoPhillips 230,764 Sinopec 187,518 State Grid 226,294

8 ING Group 226,577 State Grid 184,496 Toyota Motor 221,760

9 Sinopec 207,814 AXA 175,257 Japan PostHoldings

203,958

10 Toyota Motor 204,352 China National

Petroleum

165,496 Chevron 196,337


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The continuously promising country is China.

The number of Fortune Global 500

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011

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The number ofIndian company is increasing.


0

1

2

3

4

5

6

7

8

9

2006 2007 2008 2009 2010 2011

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The number of U.S.A company is decreasing.


0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011

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The number ofSouth Korean company is fluctuated.


0

2

4

6

8

10

12

14

16

2006 2007 2008 2009 2010 2011

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Top 14 S.Korean Breands on Fortune List 2011

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4. Characteristics (12) of

Companies on Fortune List

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Character 1. Vision

Fortunate 500 companies have a clear vision stemmingfrom top management as to what they are about and whatthey want to be. This vision is clearly communicated to all

employees and used on a daily basis for making decisions.

The vision of is quiet straight forward.

(continue)

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Character 1. Vision

s aimsto achieve long term, stable growth in

harmony with the environment, the global economy, the

local communities it serves and its stakeholders.

To design and create in the decade the new globalnetwork, processes of human resources to more complex

and productive work.

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Character 2. Empowerment

Employees are treated as though they are partners, notslaves, to the business.

The organization expects a lot from every employee, butis willing to help employees do their job with minimalbarriers.

Employees are expected to constantly be learning newskills and growing, and the organization provides trainingand career development options to facilitate that growth.

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Best big companies to work for

Rank Company Name Global Rank# Industry

20 Cisco Systems 62

Network and Other

Communications

Equipment

49 American express 91

4 Google 92Internet Services and

Retailing

67 Publix Super Market 102 Retail

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Character 3. Performance

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Top companies by Revenue

Rank # Company Name Industry

Revenues

($ million)

1. Wal-Mart Stores General Merchandisers 421,849

2. Royal Dutch Shell Petroleum Refining 378,152

3. Exxon Mobil Petroleum Refining 354,674

4. BP Diversified Financials 308.928

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Character 4. Profit

The company is profitable because being so is

necessary to survive, but does not treat this objective

as its sole purpose for being.

A company invests and involves in those transactions

which bring in profit for the company.

Companys image and stakeholders confidence largelydepend on the profits a company earn.

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Top companies by profit

Rank Company NameGlobal

Rank#Industry

Profit

($ million)

1 Nestle 42 Beverage Industry 32,843.0

2 Gazprom 35 Energy 31,894.5

3 Exxon Mobil 3 Petroleum Refining 30,460.0

4

Industrial and

Commercial Bank

of China

77 Finance 24,398.2

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Character 5. Team Approach

Employees are organized as much as possible intoteams to facilitate the best means for solving problems,building morale, and creating synergy for achievinggroup and organizational goals.

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Character 6. Customer Service

Customers are treated as if they are the most important

part of the business, which they are. Every employee

and manager seeks to serve the customer or support

those employees that are doing so. All work towards

a common goal of customer satisfaction.

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T i b C S i A di


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Top companies by Customer Service - According to asurvey by J.D. Power & Business Week


Rank#Industry Service Index

1

United Services

Automobile

Association

132 Insurance 992.6

3 General Motors 15 Motor Vehicles 985.4

4 Nordstrom 270General

Merchandisers 947.1

7 Toyota Motors 5 Motor Vehicles 932.5

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Character 7. Quality

The organization prides itself on producing quality goods

and services all the time. The company knows that

long-term success depends in large part upon the

long-term reputation of the company and so consistently

seeks to develop lasting, quality relationships and to build

quality products.

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Top Companies by quality


Rank#Industry

Industry

Rank

1 Walt Disney 57 Entertainment 1

2 Intel 62 Semiconductors 1

3 UPS 43 Delivery 1

4 Apple 56 Computers 1

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Character 8. Communication

Management knows that communication is the oil thatkeeps the company operating smoothly. It seeks tocommunicate frequently to employees at all levels of

the organization and to allow optimal opportunity for

employees to communicate in any direction within theorganization.

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Character 9. Ethics

Ethics in business are about distinguishing between the

right and the wrong and adhering to the ethical

principles.

The trustworthiness of a business, its customer service,

its employee care, its way of dealing with customers

and its urge to retain their old customers, is a part of the

business ethics which plays a important role for longterm success of companies.

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Character 10. Employee Management

One of your strongest assets is a loyal and content work force.

Disgruntled employees don't care about the company whichmeans they don't care about their work and the customers. So

a lot of emphasis is given on employee satisfaction.

It includes their work, surrounding environment, pay andgrowth opportunities.

An efficient reward system is present in these companies, toreward those who make steady improvements and performbeyond expectations, which includes profit sharing.

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Top companies in people management


Rank#Industry

Industry

Rank

1Goldman Sachs

Group39 Megabanks 1

2 Apple 56 Computers 1

3 Nike 124 Apparel 1

4 UPS 43 Delivery 1

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Character 11. Acceptance to Change

Changes are necessary for a company to excel and improveits performance over time.

These companies make changes taking care that they are

effectively integrated with existing organizational practices.

This requires the combined and managed efforts of many

people in the organization over a period of one to three years.

Involvement of people is a key way to build commitment.

They follow a strategy of constant change and improvement.

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Top companies by Growth in Revenue

Rank Company Name Global Rank#% Growth in

Revenue

1 Old Mutual 220 39,434.1%

2American International

Group41 829.3%

3 Aegon 103 485.6%

3 Gruppo Mediolanum 472 421.1%

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Top companies by Growth in Profit


Rank#

% Change in

Profit

Profits

($ million)

1 Ping An Insurance 383 5,170.3 2,032.3

2 Sistema 460 2,551.7 1,643.4

3 Shanghai Automotive 223 1,924.5 1,070.2

4 Scottish & So. Energy 215 940.4 1,969.4

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Character 12. Innovation

Executives now firmly believe that innovation is central to

a companys strategy and performance, but getting it

right is as hard as ever.

Corporate performance is most likely to be affected by

breakthrough innovations.

Companies generally focus on innovation in areas suchas product or service development. In certainly helps

them in maintaining their market leadership.

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Top Companies by Innovation

Rank Company Name Global Rank# Industry

1 Apple 56 Computers

2 Google 102Internet Services and

Retailing

3 Nike 124 Apparel

4 Amazon.com 100Internet Services and

Retailing

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Reference

1. http://en.wikipedia.org/wiki/Fortune_Global_500

2. http://www.google.com.hk

3. http://www.inc.com/encyclopedia/fortune-500.html#

4. http://money.cnn.com/magazines/fortune/global500/2010/index.html

5. http://money.cnn.com/galleries/2010/fortune/1002/gallery.mostadmird_product_quality.fort

une/2.html

6. http://articles.moneycentral.msn.com/News/25CompaniesWhereCustomersComeFirst.aspx?

page=3

7. http://www.uspages.com/fortune500.htm

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International_Business_Characteristic of Fortune 500

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