Students: Included here are some internet/case assignments that you can use to review
or that your instructor may give as assignments. Your instructors have been
given the answers to these questions and may choose to give them out to you
or not.
Several references to the Global Fortune 500 are made in Chapter 1. This case
is designed to: - Acquaint you with the information available at the Global Fortune 500 web
site.
- Illustrate how the ranking of global companies differs depending upon the
criteria used.
- Have you begin thinking about country differences that might explain ranking
differences in the Global Fortune 500.
Every year, Fortune produces listings of top US and the top global companies
based on various categories. The Fortune Global 500 ranks the top 500 companies
in the world based upon revenues. The companies are also ranked in terms of
biggest increase in revenues, highest profits, biggest increase in profits,
highest returns on revenues, highest returns on assets, and biggest employers.
In addition, the Global 500 web site provides information about the top performing
industries based on change in revenues, revenues per employee, change in profits,
return on revenues, return on assets, and assets per employee. Finally, one
can customize the rankings based upon revenues, profits, assets, shareholders'
equity and number of employees. INSTRUCTIONS: - Familiarize yourself with the information available at the Fortune Global
500 web site using the URLs in the footnotes to this case.
- Go to the Fortune Global 500 listing of the top 50 companies in terms of
revenues: (http://www.fortune.com/fortune/global500/ ).
Look at the top 20 companies in that list. How many of the top 20 companies
are American? How many are Japanese? How many are European? (Hint: If you
click on the company name, you will be taken to a page with information about
that company. Included on that page is the address of the company's headquarters.
The address, however, gives the city that the company is located in, but not
the country. If you're not sure where the city is, try the search engine Ask
Jeeves, (http://www.askjeeves.com )
and type in the question, Where is ________?)
- Go to the custom ranking page of the Fortune Global 500:
( http://www.fortune.com/fortune/global500/search/0,6066,CR,00.html
). Type in "20" companies to rank in number 1. Select "All Industries"
in number 2. Select "Very Important" for Profits in number 3, leaving
all other categories selected as "Not Important". Click "List
Companies". How many of the top 20 companies in terms of profits are American?
How many are Japanese? How many are European? 4.Compare the listing of the top 20 companies based on revenues with the
listing based on profits. Why do you think such a difference exists in the ranking
of the top 20 companies in the Fortune Global 500 in terms of revenues versus
profits? Several references to the Global Fortune 500 are made in Chapter 1. This case
is designed to: - Acquaint the student with the information available at the Global Fortune
500 web site.
- Relate concepts that students may have been exposed to in other business
classes with international business.
- Provide students an opportunity to use a spreadsheet to analyze information.
- Illustrate how key company financial measures differ between countries.
- Have the students begin thinking about country differences that might explain
ranking differences.
Every year, Fortune produces listings of the top US and the top global companies
based on various categories. The Fortune Global 500 ranks the top 500 companies
in the world based upon revenues. In addition, it allows one to customize the
rankings based upon revenues, profits, assets, shareholders' equity and number
of employees. INSTRUCTIONS: - Familiarize yourself with the information available at the Fortune Global
500 web site using the URLs in the footnotes to this case.
- Go to the custom ranking page of the Fortune Global 500:
(http://www.fortune.com/fortune/global500/search/0,6066,CR,00.html) .
Type in "20" companies to rank in number 1. Select "All Industries"
in number 2. Select "Very Important" for Revenues in number 3, leaving
all other categories selected as "Not Important". Click "List
Companies". How many of the top 20 companies in terms of revenues are
American? How many are Japanese? How many are European? (Hint: If you click
on the company name, you will be taken to a page with information about that
company. Included on that page is the address of the company's headquarters.
The address, however, gives the city that the company is located in, but not
the country. If you're not sure where the city is, try the search engine Ask
Jeeves, (http://www.askjeeves.com) and type in the question, Where is ________?) - Prepare a matrix with the following headings:
| Company Name | Country | Revenue | Profit | Assets | Stockholders' Equity | Return on Revenue | Return on Assets | Return on Equity |
- For the top 20 companies in terms of revenues from number 2, fill in Company
Name, Country, Revenue, Profit, Assets and Stockholders' Equity. Compute "Return
on Revenue" (Profit/Revenue), "Return on Assets" (Profit/Assets),
and "Return on Equity" (Profit/ Stockholders' Equity).
- Analyze the differences in Return on Revenue, Return on Assets, and Return
on Equity among the countries represented by the top 20 global companies in
terms of revenues.
6. What might explain the differences among the countries in these three
financial measures? |
2002 McGraw-Hill Higher Education