Global Competition
Published by Bob Foster
The July 20, 2009 issue of Fortune magazine published its annual Global 500 special section, giving information on the performance of the 500 largest companies in the world. Some interesting things can be interpreted from this special report. Let’s take a look.
Top 7 corporations in the world, by Revenue:
- Royal Dutch Shell – Netherlands
- Exxon Mobil – U.S.
- Wal-Mart Stores – U.S.
- BP – Britain
- Chevron – U.S.
- Total – France
- ConocoPhilips – U.S.
Note that Wal-Mart Stores is the only non-oil company on this list. Is oil a really big business in the world, or what? Do we really think that big oil will support alternative energy?
Top 6 most profitable corporations in the world:
- Exxon Mobil – U.S.
- Gazprom – Russia
- Royal Dutch Shell – Netherlands
- Chevron – U.S.
- BP – Britain
- Petrobras – Brazil
Well, apparently, oil pays well, since the six most profitable businesses in the world are all oil corporations.
Interesting Observations:
• Of the top 100 largest corporations in the world, there are only 5 American manufacturing companies.
- General Motors – no. 18
- Ford – no. 19
- Hewlett-Packard – no. 32
- IBM – no. 45
- Proctor and Gamble – no. 68
• The two most profitable banks in the world are Industrial & Commercial Bank of China, and China Construction Bank.
• America has 6 of the top 10 money-losing companies in the world, and only two of them are financial institutions.
• Since 1998, the number of American companies in the Global 500 have dropped from 185 to 140, a 24% decrease.
• Since 1998, the number of Chinese companies in the Global 500 has risen from 6 to 37, a 616 % increase.
What can we learn?
First, it is obvious that big business in America has trouble competing in the world market. If it wasn’t for U.S. oil companies, our position would be even more abysmal. Considering the declining number of U.S. companies on the Global 500 list, it is easy to conclude that the future for big business in the U.S. is pretty dismal.
The good news is that small business can pick up the slack in world trade left by the big guys. Every small business in America should be factoring world-wide trade into their business plans. From a sales and marketing standpoint—think globally!
Comments
8 Responses to “Global Competition”
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Excellent post and excellent questions. How is it that a country the size of America with all it’s natural resources and entreprenurial spirit can only compete within the oil industry? But from the way it looks oil is big business for all of the other countries too. The question regarding our incentive for alternative energy is a good one.
Judith – Thank you for your comment, you bring up some excellent points. I think the U.S. has become lazy, or at least complacent, living off the efforts of cheap labor in foreign countries. Somehow, we need to rekindle the American entrepreneurial spirit and begin to do some things for ourselves–like make things.
With oil still relatively cheap and readily available, alternative energy is going to be a tough sell. Maybe we need another oil embargo with long lines at the gas pumps to get everyone’s attention.
Thanks again for your comment.
“Somehow, we need to rekindle the American entrepreneurial spirit and begin to do some things for ourselves–like make things.”
So very true. A very good friend who is a senior executive for a Fortune 100 always says that outsourcing is the easiest thing in the world to do; it takes very little innovation and effort, no imagination.
“…outsourcing is the easiest thing in the world to do; it takes very little innovation and effort, no imagination.”
Judith – How true, how true. This has been the bane of American industry for far too long, and I fear it has become permeated throughout our entire culture–most likely because outsourcing is also very profitable.
You may have noticed that I did not complete my series of posts on U.S. Innovation falling behind the rest of the world. Whenever I try to write about “why” the U.S. can no longer successfully compete with the rest of the world, I get a rush of anger–and sorrow. I look at the younger generations, and their parents, and I see little hope of regaining our position in the world, as the industrial nation to be looked up to.
Fortunately, there is a small group of people, young and old, who are keeping the entrepreneurial spark alive, and it behooves our entire nation–government and lay person– to capitalize on that spark and help it grow into something truly meaningful.
Thank you for your comments Judith–they make my day.
Bob – I have become rather friendly with Jack Bogle. (If you haven’t read his book Enough. It’s a must read! I have also written a review of it on the Huffington Post which he appreciated should you desire to read my take on the book. Also, I have written quite a lot of Jack on my blog.) A few months back he wrote to encourage me by saying when he speaks before young people that they get it. At his age and with the widsom he possesses, I was incredibly heartened. Keep the faith, Bob! Your blog helps me in my entrepreneurial pursuits.
Judith – How fortunate to have Jack Bogle as a friend. I have the greatest admiration for him. I have “Enough” on my reading list, but alas, I’m falling way behind on my reading.
I only wish more young people could appreciate the potential contributions of many members of our older generations. There is a vast warehouse of knowledge and wisdom in our elders–largely untapped.
Bob – I so honor older generations. This I have done my entire life and have been made better because of it. I also honor younger generations. Age should teach wisdom; sometimes it does not.
Judith – Yes, you are right–sometimes it is difficult to separate wisdom from cynicism. But, sometimes it is worth the effort.
Thank you for your comments Judith.