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Characteristics of Fortune 500 Group 1: Tae-Wooing Park AbhayAgarwal                      Pengna Chen January 25, 2011 1
January 25, 2011 5 Outline  1. Introduction of Fortune 500  2.Ranking Factors   3. Country by Country Analysis    4. Characteristics (12)   5. Reference 2
January 25, 2011 1. Introduction of Fortune 500 3
What is Fortune 500 ? ,[object Object]
The lists complied and published annually by Fortune magazine.
Until 1989 it listed only non-US industrial corporations under the title "International 500", while the Fortune 500 contained and still contains exclusively US corporations.  Source: http://en.wikipedia.org/wiki/Fortune_Global_500 January 25, 2011 4
January 25, 2011 What is Fortune 500 ? ,[object Object]
Since 1995, the list  has had its current form, listing also top financial corporations and service providers by revenue.  Source: http://en.wikipedia.org/wiki/Fortune_Global_500 5
January 25, 2011 What is Fortune 500 ? ,[object Object]
This list ranks only public companies, or those which have issued securities through an offering and which are traded on the stock market. Source: http://en.wikipedia.org/wiki/Fortune_Global_500 6
January 25, 2011 What is Fortune 500 ? ,[object Object]
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 7
January 25, 2011 Top 10 Brands on Fortune List 2010 8
January 25, 2011 2.Ranking Factors of Fortune 500  9
January 25, 2011 Four RankingFactors  1. Sales Growth Ranking  2.Assets Ranking    3. Earnings Ranking  4. Capitalization Ranking 10
January 25, 2011 Ranking Factors Used in Determining the Fortune 500 ,[object Object],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       11
January 25, 2011 Ranking Factors Used in Determining the Fortune 500  Cont’d ,[object Object],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 more  than one success measure that may be important for  competitors to emulate. 12
January 25, 2011 Ranking Factors Used in Determining the Fortune 500 ,[object Object],   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. 13
January 25, 2011 Ranking Factors Used in Determining the Fortune 500 ,[object Object],Earnings            = Revenues – Cost of Sales – Operating Expenses – Taxes      Earnings are often the single most important determinant           of a corporation's stock price. 14
January 25, 2011 Ranking Factors Used in Determining the Fortune 500 ,[object Object],   Capitalization is the sum of a corporation's long-term debt,          stock, and retained earnings. It may also be called invested             capital.      Number of shares outstanding * Price per Share        market price of the entire company / market capitalization Source: http://www.inc.com/encyclopedia/fortune-500.html# 15
January 25, 2011 3. Country by Country Analysis 16
Country-by-country analysis ,[object Object],January 25, 2011 17
Country-by-country analysis ,[object Object],January 25, 2011 18
Country-by-country analysis ,[object Object],January 25, 2011 19
Industry Analysis ,[object Object],January 25, 2011 20
Industry analysis ,[object Object]
recaptured No.1 in two yearsJanuary 25, 2011 21
Industry analysis ,[object Object]
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)January 25, 2011 22
Industry Analysis ,[object Object],January 25, 2011 23
Industry Analysis ,[object Object],January 25, 2011 24
Country-by-country analysis ,[object Object],January 25, 2011 25
Country-by-country analysis ,[object Object],January 25, 2011 26
Country-by-country analysis ,[object Object],January 25, 2011 27
Country-by-country analysis ,[object Object],January 25, 2011 28
January 25, 2011 4. Characteristics (12) of       Companies on Fortune List 29
Character 1. Vision ,[object Object],      top management as to what they are about and what they        want to be. This vision is clearly communicated to all        employees and used on a daily basis for making decisions.  ,[object Object],“To become a world wide leader in retailing.” January 25, 2011 30
Character 1. Vision       Cont’d… ,[object Object],       harmony with the environment, the global economy, the  local communitiesit serves and its stakeholders.” ,[object Object],       processes of human resources to more complex and productive work.” – AT&T January 25, 2011 31
Character 2. Empowerment ,[object Object],      slaves, to the business.  ,[object Object],      willing to help employees do their job with minimal barriers. ,[object Object],      and growing, and the organization provides training and        career development options to facilitate that growth.  January 25, 2011 32
Best Employers January 25, 2011 33
Character 3. Performance ,[object Object],      that encourages optimal performance.  ,[object Object],      feedback is routinely provided as to how employees are        doing against those goals. Even the individual projects and        company has certain goals and performance is measured        against them. January 25, 2011 34
Top companies by revenue January 25, 2011 35
Character 4. Profit ,[object Object],       survive, but does not treat this objective as its sole purpose         for being.  ,[object Object],      which bring in profit for the company.  ,[object Object],      depend on the profits a company earn. January 25, 2011 36
Top companies by profit January 25, 2011 37
Character 5. Team Approach ,[object Object],      to facilitate the best means for solving problems, building        morale, and creating synergy for achieving group and        organizational goals. January 25, 2011 38
Character 6. Customer Service ,[object Object],       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. January 25, 2011 39
Top companies by Customer Service - According to a survey by J.D. Power & Business Week January 25, 2011 40
Character 7. Quality ,[object Object],     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. January 25, 2011 41

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Characteristics of fortune 500 companies

  • 1. Characteristics of Fortune 500 Group 1: Tae-Wooing Park AbhayAgarwal Pengna Chen January 25, 2011 1
  • 2. January 25, 2011 5 Outline 1. Introduction of Fortune 500 2.Ranking Factors 3. Country by Country Analysis 4. Characteristics (12) 5. Reference 2
  • 3. January 25, 2011 1. Introduction of Fortune 500 3
  • 4.
  • 5. The lists complied and published annually by Fortune magazine.
  • 6. Until 1989 it listed only non-US industrial corporations under the title "International 500", while the Fortune 500 contained and still contains exclusively US corporations. Source: http://en.wikipedia.org/wiki/Fortune_Global_500 January 25, 2011 4
  • 7.
  • 8. Since 1995, the list has had its current form, listing also top financial corporations and service providers by revenue. Source: http://en.wikipedia.org/wiki/Fortune_Global_500 5
  • 9.
  • 10. This list ranks only public companies, or those which have issued securities through an offering and which are traded on the stock market. Source: http://en.wikipedia.org/wiki/Fortune_Global_500 6
  • 11.
  • 12. 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 7
  • 13. January 25, 2011 Top 10 Brands on Fortune List 2010 8
  • 14. January 25, 2011 2.Ranking Factors of Fortune 500 9
  • 15. January 25, 2011 Four RankingFactors 1. Sales Growth Ranking 2.Assets Ranking 3. Earnings Ranking 4. Capitalization Ranking 10
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. January 25, 2011 3. Country by Country Analysis 16
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27. recaptured No.1 in two yearsJanuary 25, 2011 21
  • 28.
  • 29. Decreased total sales compared with the previous year
  • 30. Decrease of 8.3 percent(global 500)
  • 31. Decrease of 11.4 percent(global 100)
  • 33. Increase of 16.9 percent(global 500)
  • 34. Increase of 18.9 percent(global 100)January 25, 2011 22
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41. January 25, 2011 4. Characteristics (12) of Companies on Fortune List 29
  • 42.
  • 43.
  • 44.
  • 45. Best Employers January 25, 2011 33
  • 46.
  • 47. Top companies by revenue January 25, 2011 35
  • 48.
  • 49. Top companies by profit January 25, 2011 37
  • 50.
  • 51.
  • 52. Top companies by Customer Service - According to a survey by J.D. Power & Business Week January 25, 2011 40
  • 53.
  • 54. Top Companies by quality January 25, 2011 42
  • 55.
  • 56.
  • 57.
  • 58. Disgruntled employees don't care about the company which means they don't care about their work and the customers. So a lot of emphasis is given on employee satisfaction.
  • 59. It includes their work, surrounding environment, pay and growth opportunities.
  • 60. An efficient reward system is present in these companies, to reward those who make steady improvements and perform beyond expectations, which includes profit sharing.January 25, 2011 45
  • 61. Top companies in people management January 25, 2011 46
  • 62.
  • 63. Top companies by Growth in Revenue January 25, 2011 48
  • 64. Top companies by Growth in Profit January 25, 2011 49
  • 65.
  • 66. Top Companies by Innovation January 25, 2011 51
  • 67. Reference http://en.wikipedia.org/wiki/Fortune_Global_500 http://www.google.com.hk http://www.inc.com/encyclopedia/fortune-500.html# http://money.cnn.com/magazines/fortune/global500/2010/index.html http://money.cnn.com/galleries/2010/fortune/1002/gallery.mostadmird_product_quality.fortune/2.html http://articles.moneycentral.msn.com/News/25CompaniesWhereCustomersComeFirst.aspx?page=3 http://www.uspages.com/fortune500.htm January 25, 2011 52
  • 68. January 25, 2011 Thank You! 53

Editor's Notes

  1. http://www.activ8inc.com/blog/tag/fortune-global-500/