ABOUT THE FORTUNE 500

Managing Andy Serwer

Editor

Categories Business Magazines

Frequency Bi-weekly

Circulation ~850,000

Publisher Time, Inc., a Time Warner

company.

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.

1
The Fortune 500 is an annual list compiled and published by 
Fortune magazine that ranks the top 500 U.S. closely held and public
corporations as ranked by their gross revenue after adjustments made by
Fortune to exclude the impact of excise taxes companies collect.[1] The list
includes publicly and privately-held companies for which revenues are publicly
available. The first Fortune 500 list was published in 1955. The original
Fortune 500 was restricted to companies whose revenues were derived from
manufacturing, mining, or energy exploration. At the same time, Fortune
published companion "Fortune 50" lists of the 50 largest commercial banks
(ranked by assets), utilities (ranked by assets), life insurance companies
(ranked by assets), retailers (ranked by gross revenues) and transportation
companies (ranked by revenues).

Global Top 10 Companies

Revenues Profits
Rank Company ($ millions) ($ millions)

1 Wal-Mart Stores 408,214 14,335

2 Royal Dutch Shell 285,129 12,518

3 Exxon Mobil 284,650 19,280

4 BP 246,138 16,578

5 Toyota Motor 204,106 2,256

6 Japan Post Holdings 202,196 4,849

7 Sinopec 187,518 5,756

8 State Grid 184,496 -343

9 AXA 175,257 5,012

10 China National Petroleum 165,496 10,272

2
 AMERICAN TOP 10 COMPANIES

Revenues Profits
Rank Company ($ millions) ($ 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

Forbes is the primary competitor of Fortune magazine in the national business

magazine category which is published bi-weekly. The magazine is especially
known for its annual features ranking companies by revenue.

3
 ECONOMIES OF SCALE AND SCOPE

Economies of scale is an economic term describing a business model where

the long-run average cost curve declines as production increases, or in a
simple example explaining the principal, where a manufacturing company
saves money as it produces higher quantities of its product, as in all business
areas, 'the more you buy, the more you save'.

An example is that of a private soft drinks manufacturer. The more orders 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 factors contribute to the benefits of economies of
scale.

WHY ECONOMICS OF SCALE HAPPEN

• The advantages of large scale production that result in lower unit

(average) costs (cost per unit)

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

• Economies of Scale – spreads total costs over a greater range of

output

Output

4
Suppose, for example, that Honda were constrained to produce only 10,000
motorcycles a year instead of a possible 1 million. With this circumstance, the
need for an assembly line would become obsolete. Each motorcycle could be
produced by hand. Honda could rule out benefits that might be derived from
the division and specialization of labour. In producing such a small number,
the use of any production techniques that reduce average cost would become
obsolete. In these two examples, Honda and General Motors would enjoy
economies of scale with reduced average cost simply by increasing the scale
of their operations.

More 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 translate
into savings or greater profitability for a large-scale producer.

Internal – advantages that arise as a result of the growth of the firm

– Technical

– Commercial

– Financial

– Managerial

– Risk Bearing

TECHNICAL –

• Some production processes need more than one machine

• Different capacities

• May need more than one machine to be fully efficient.

COMMERCIAL-

• Large firms can negotiate favourable prices as a result of buying in

bulk.

• Large firms may have advantages in keeping prices higher because of

their market power.

FINANCIAL –

• Large firms able to negotiate cheaper finance deals

• Large firms able to be more flexible about finance – share options,

rights issues, etc.

• Large firms able to utilise skills of merchant banks to arrange finance.

5
MANAGERIAL –

 Use of specialists – accountants, marketing, lawyers, production,

human resources, etc.

RISK BEARING –

 Diversification

 Markets across regions/countries

 Product ranges

 R&D

External Economies of Scale – the advantages firms can gain as a result of

the growth of the industry – normally associated with a particular area.

• Supply of skilled labour

• Reputation

• Local knowledge and skills

• Infrastructure

• Training facilities

DISECONOMIES OF SCALE
The disadvantages of large scale production that can lead to increasing
average costs.

– Problems of management

– Maintaining effective communication

– Co-ordinating activities – often across the globe!

– De-motivation and alienation of staff

– Divorce of ownership and control

6
Economies of Scope
If a single firm can jointly produce goods X and Y more cheaply that any
combination of firms could produce them separately, then the production of X
and Y is characterized by economies of scope .This is an extension of the
concept of economies of scale to the multi product case.

Economies of scope exist if a firm can produce several product lines at a

given output level more cheaply than a combination of separate firms each
producing a single product at the same output level. Economies of scope
differ from economies of scale in that a firm receives a cost advantage by
producing a complementary variety of products with a concentration on a core
competency. While economies of scope and scale are often positively
correlated and interdependent, strictly speaking the benefits from scope have
little to do with the size of output.

For instance, in the paper products industry it is common for large firms to
produce their own pulp, the primary ingredient in paper, before manufacturing
the paper goods themselves. However, smaller firms may have to purchase
pulp from others at a higher net cost than the large companies pay. The
savings from producing both pulp and paper would be an economy of scope
for the large producers, although the large companies probably also have
economies of scale that make it feasible to invest in pulping operations in the
first place.

In another example, banks have economies of scope when they offer a variety
of related financial services, such as retail banking and investment services,
through a single service infrastructure (i.e., their branches, ATMs, and Internet
site). Clearly, the costs of providing each service separately would be much
greater than the costs of using a single infrastructure to provide multiple
services.

Economies of scope can be measured by as follows:

C (Q1 )+C (Q2 )−C(Q 1 ,Q 2 )

SC=
C(Q 1 )+C (Q 2 )
Where C(Q1,Q2) is the cost of jointly producing goods 1 and 2 in the
respective quantities; C(Q1) is the cost of producing good 1 alone,
and similarly for C(Q2).

7
Example: Let C (Q1) = $12 million; C(Q2) = $8 million; and C(Q1,Q2) =
$17 million. Thus:

$ 12+$ 8−$ 17 $ 3
SC= = =.15
$ 12+$ 8 $ 20
Thus joint production of goods 1 and 2 would result in a 15 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.

 Corn 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).

 Computer aided design of (CAD) of aircraft components.

The Learning Curve

The learning curve embodies the (inverse) relationship between average production
cost and cumulative output.

Average Cost

Average cost is a decreasing function of cumulative output

8
9
 If the firm shuts down production, then losses will be equal to fixed
cost, or:

Losses = fadl

If the firm supplies Q* units at the price P*, then:

Losses = fabP*

So long as price (average revenue) exceeds average variable cost, the loss
minimizing strategy will entail producing some output.

10
 THE REASON OF SUCCESS FOR FORTUNE TOP 10
COMPANIES OF AMERICA IS DUE TO ECONOMICS OF
SCALE AND ECONOMICS OF SCOPE

Industry Retailing

Founded Rogers, Arkansas

Founder(s) Sam Walton

Area served Worldwide

Key people Mike Duke(CEO)

H. Lee Scott (Chairman of the
Executive Committee of the
Board)
S. Robson Walton (Chairman)

Products Discount Stores

Supercenters
Neighbourhood Market

Revenue  US$408.21 billion (2009)

11
 INCORPORATION AND GROWTH

It opened its home office and first distribution centre in Bentonville, Arkansas.
It had 38 stores operating with 1,500 employees and sales of $44.2 million. It
began trading stock as a publicly held company on October 1, 1970, and was
soon listed on the New York Stock Exchange. Wal-Mart was operating in five
states: Arkansas, Kansas, Louisiana, Missouri, and Oklahoma.

In the 1980s, Wal-Mart continued to grow

rapidly, and by its 25th anniversary in 1987 there were 1,198 stores with sales
of $15.9 billion and 200,000 associates. The company also opened overseas
stores, entering South America in 1995 with stores in Argentina and Brazil;
and Europe in 1999, buying Asda in the UK for $10 billion.

In 1998, Wal-Mart introduced the

"Neighbourhood Market" concept with three stores in Arkansas. By 2005,
estimates indicate that the company controlled about 20% of the retail grocery
and consumables business. I n 2005, Wal-Mart had $312.4 billion in sales,
more than 6,200 facilities around the world—including 3,800 stores in the
United States and 2,800 elsewhere, employing more than 1.6 million
"associates" worldwide. Its U.S. presence grew so rapidly that only small
pockets of the country remained further than 60 miles (100 km) from the
nearest Wal-Mart.

On September 12, 2007, Wal-Mart introduced new advertising

with the slogan, "Save Money Live Better," replacing the "Always Low Prices,
Always" slogan, which it had used for the previous 19 years. On March 20,
2009, Wal-Mart announced that it is paying a combined $933.6 million in
bonuses to every full and part time hourly worker of the company.

12
 STRATEGIES THAT WAL-MART FOLLOWED TO BECOME
NUMBER- 1 COMPANY

EFFECTIVE USE OF LOGISTICS & INVENTORY CONTROL &NON

DEPENDENCE ON ANY SINGLE VENDOR:-

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

supplier .when Wal-Mart negotiates with supplier, supplier knows that it is only
Wal-Mart which will give the most competitive price. This is because it is easy
for Wal-Mart to find another supplier for a particular product at lower price
without facing any logistic problem. This gives Wal-Mart a huge amount of
leverage when it deals with the supplier. When supplier knows that company
has found lower price it will lower price it will lower price accordingly.

RELIABILITY ON ITS OWN DISTRIBUTION SYSTEM:-

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

shipping good from warehouse to store within 48 hours. It helps Wal-Mart to
replenish the shelf 4 time faster than its competitor.

ASSOCIATES

Wal-Mart always empowers, or trains their employee and challenging them to

come up with new idea or suggestion which makes the company better.
Associates always try to cut the cost of company.

ROLE OF TECHNOLOGY

Technology plays an very important role in success of Wal-Mart. Process like

ordering, shipping, communications and logistics were automated Store level
data sales were collected, analysed and transmitted electronically on a real
time basis. . Through help of technology Wal-Mart gives customer a new way
of shopping. It has the best know how to provide the right set products to the
right set of customers.

13
MASSIVE SIZE

Because of Wal-Mart's massive size, it wields incredible power. It has driven

smaller retailers out of business; forced manufacturers to be more efficient.

SELLING BRANDED PRODUCTS AT LOW COST

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

from one end of supply chain to another is not as costly for additional units.
So Wal-Mart is able to sell branded product at lower cost.

The stories of how Wal-Mart pushes manufacturers into selling the same
product at lower and lower prices are legendary. One example is Lakewood
Engineering & Manufacturing Co. in Chicago, a fan manufacturer. In the early
1990s, a 20-inch box fan costs $20. Wal-Mart pushed the manufacturer to
lower the price, and Lakewood responded by automating the production
process, which meant layoffs. Lakewood also badgered it own suppliers to
knock down the prices of parts. Then, in 2000, Lakewood opened a factory in
China, where workers earn 25 cents an hour. By 2003, the price on the fan in
a Wal-Mart store had dropped to about $10.

PROVIDING PRODUCTS AT EVERY DAY LOW PRICES (EDLP)

Wal-Mart follows the philosophy like every day low price. Wal-Mart has
emerged as industry leader because it has been better at containing it cost
which has allowed it to pass on the saving to it customer.

The secret to their success is brilliance (ruthlessness) in keeping costs down

and a willingness to operate at razor thin margins. Wal-Mart doesn't make
much on each thing the sell, they rely on volume.

14
 EXXON MOBIL

Type Public (NYSE: XOM)

Industry Oil and gas

Founded 1999 (merger

Headquarters Irving, Texas, U.S.

Area served Worldwide

Key people Rex W. Tillerson

(Chairman, President, & CEO)

Products Fuels
Lubricants
Petrochemicals

Revenue US$284.65 billion (2010)

15
STRATEGIES THAT EXXON MOBILE FOLLOWED TO BECOME
NUMBER- 2 COMPANIES

SAVING TO INVEST
Rockefeller and his partner, Clark were able to tap into the highly lucrative oil
industry because they had saved quit some money from their commodity
trading business.

As your business begins to make profit, we must continually save a good part
of it to be able to explore juicy business opportunities that may come up later.
Great business opportunities don’t come every day, if we are not prepared for
them by having enough funds to invest when they appear, will lose out.

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

RECOGNIZING GOOD BUSINESS 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
eventually achieved.

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

business opportunity when you see one and go for it. Assessing a business
idea to be sure it will be profitable involves checking if it carters for the need of
a huge population of people, and if the product it offers is needed repeatedly
and frequently.

FORMING PARTNERSHIP FOR SUCCESS

Working and pulling resources together with other people in partnership can
enable achieve our goal faster and easier. Getting into partnership is a great
way to leverage on other people’s talent, skill, energy, and money, however,
be sure we are going into partnership with people trust, and with the terms of
the partnership known and agreed on by the partners and legally
documented.

From partnering with Clark, Andrews, and Flagler, Rockefeller’s rise in

business was largely due to his going into partnership with other people
possessing the talent or funding he needed to access bigger businesses.

16
FOCUSING ON 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, they usually end up failing at both.

Without the knowledge and experience to succeed, it is very unwise to leave

your core business where they have built enormous expertise to getting into a
turf they are not familiar with. Don’t abandon core business because it is
having problem at the moment. Continue to work on it; soon we will discover
the solution to the challenge.

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

business you have adequate knowledge, experience, and expertise in.

Exxon’s venturing into other businesses than oil in the 1970s in response to
OPEC’s refusal to sell crude to the United States was a huge failure – $7
billion down the drain.

CUTTING COST CAN REMARKABLY INCREASE PROFIT

Cost cutting was Exxon

Corporation’s top strategy for remaining profitable in the face of falling oil
prices in the 1980s and 1990s. By 1996, the company’s operating cost had
been reduced by $1.3 billion yearly, allowing it to make profit of $7.51 billion
that year.
By following these strategies ExxonMobil became successful
company in the world and secured 2nd position in Fortune 500 company
magazine.

17
SEEKING TO VERTICALLY INTEGRATE BUSINESS

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

businesses that support your core business. By 1870, Standard Oil Company
had vertically integrated, owning barrel-making plant, 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
supporting businesses to Standard Oil Company’s operation.

LEARNING BUSINESS BEFORE STARTING

Having a thorough knowledge of your business before investing time and

money into it is pivotal to the success of the business. It gives the knowledge
and the insight requires to deal favourably with the stakeholders in the
industry and to recognize opportunities when they come.
Rockefeller’s success in his commodity trading
business can largely been attributed to his four year job with Hewitt Tuttle
where he learnt all he could about succeeding in large scale trading in the US.

COMMITTING TO IMPROVING YOUR OPERATION

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

developing and improving your operational facilities In 1869, Rockefeller
Andrews invested $60, 000 to improving and expanding its plant’s capacity.
This was huge money, but it was well worth it, as the company could increase
its production to 60 carloads a day, thereby making more income and
attracting more investments.

By using above strategy Exxon Mobile is able to achieve Economies of

scale and economies of scope.

18
 ABOUT CHEVRON

Type Public 

Industry Oil and gasoline

Mining

Founded 1879 as Standard Oil of California

Headquarters SanRamon,California U.S.

Area served Worldwide

Key people John S. Watson

(Chairman and CEO)

Products Oil
Petroleum
Natural gas
Petrochemical
Fuel
Lubricant
List marketing brands

Revenue  US$163.52 billion (2010)

19
 STRATEGIES THAT CHEVRON FOLLOWED TO BECOME
NUMBER- 3 COMPANY

STRATEGIES
 TECHNOLOGY AND EMERGING ENERGY
 VALUING SCIENCE
 ENVIRONMENT SAFETY
 NEW RESERVES TO MEET GROWING DEMAND

TECHNOLOGY AND EMERGING ENERGY

Technology is propelling their growth. They're focusing on technologies that

improve their chances of finding, developing and producing crude oil and
natural gas. They also are investing in the development of emerging energy
technologies, such as finding better ways to make non food-based bio fuels,
integrating advanced solar technology into their operations and expanding
their renewable energy resources.

VALUING SCIENCE

Casting aside his original misgivings about the value of science in exploration,
Hillman soon built a strong staff of geologists under the leadership of Eric
Starke. Using a scientific approach became particularly valuable in assessing
California's soft subsurface formations.

Hillman's earliest oil and gas exploration successes came at Midway, where
the company made seven discoveries in an 18-month period, including the
largest, McNee No. 4, which produced are cord 30,000 barrels a day in April
1912. That same month, Derby No. 1 blew out with a daily flow of gas
estimated at 63 million cubic feet. On July 24, McNee No. 10 came in at 2,480
feet, flowing at 10,000 barrels a day and prompting Hillman to send his former
employer at Ohio Oil a cable that read:

20
"Can you match it, or do I take first place?" Two days later, Hillman's question
was answered when the same well broke loose, at least doubling its output.

ENVIRONMENT AND SAFETY

As a company and as individuals, they take great pride in contributing to the

communities where they live and work. They also care about the environment
and are proud of the many ways in which their employees work to safeguard
it. Their persistent efforts to improve on their safe work environment continue
to pay off. In2009, Chevron maintained a days-away-from-work injury rate that
is among the best in the industry.

NEW RESERVES TO MEET GROWING DEMAND

After moving into the Los Angeles basin, Fred Hillman led his exploration
team in delivering five gushers at the Emery Field in the West Coyote Hills
between December 1912 and October 1913.Standard Oil Co. (California)
scored big in December 1913 when it purchased the Murphy Oil Co. holdings
in West Coyote and East Whittier. By 1917, Standard had added two other
great Southern California discoveries in the Montebello and Baldwin No. 3
fields. The company's efficiency and ability to find new reserves helped it keep
pace with the surging demand for energy products fuelled by the dramatic
population growth and increased reliance on automobiles throughout
Standard's marketing area. In January 1919, the company had the first of
several discoveries in Elk Hills in California's San Joaquin Valley. While
Standard was compiling an impressive producing record, it also became a
leader in conserving energy resources. The Starke gas trap, an invention
devised by Standard engineer C.C.Scharpenberg and geologist Eric Starke,
was one of the more ingenious methods for "capturing" gas from a well that
then could be used to meet energy needs. To serve markets in areas such as
the Northwest United States, Standard more than doubled its ocean-going
capacity between 1912 and 1916 by adding five tankers, the A.F. Lucas, El
Segundo, Richmond, J.A. Moffett and D.G. Scofield. By 1926, 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 with
sales outlets, tripling the number of small bulk plants by the end of 1916 and
quadrupling the number of substations between 1911 and 1919.And, by
turning from horse-drawn vehicles to motor transport, the company increased
the speed and range of its sales operations.

GENERAL ELECTRIC
21
Type Public (NYSE: GE)
Dow Jones Industrial Average Component

Industry Conglomerate

Founded Schenectady, New York(1892)

Headquarters 3135 Easton Turnpike

Fairfield, Connecticut, U.S.

Area served Worldwide

Key people Jeffrey R. Immelt

(Chairman and CEO)

Products Appliances ,Aviation, Consume ,Electronics, Electrical

distribution, Energy, Entertainment, Finance, Gas,
Healthcare, Lighting, Locomotives, Oil, Software,
Water, Weapons, Wind turbines

Revenue  US$156.77 billion (2010)

22
STRATEGIES THAT GE FOLLOWED TO BECOME NUMBER- 4
COMPANY

SIX SIGMA STRATEGY

TRAINING
MENTORING
LEADERSHIP
FOCUSED IMPLEMENTATION
SHOW ME THE MONEY
EVERYBODY PLAYS
INFRASTRUCTURE CONCENTRATION

THE STORY OF SIX SIGMA AND GE

GE’s tryst with Six Sigma started in 1995 when CEO Jack Welch made it a
corporate goal to be a Six Sigma company by 2000. He led from the front and
ensured GE attained its Six Sigma goals within the stipulated period. Read on
to find out more about Six Sigma and GE.

General Electric’s (GE) focus on quality started in the

late 1980s with the launch of the “Work-Out” program that opened GE culture
to ideas from everyone and everywhere. The resultant learning environment
prepared the ground for Six Sigma.

Credit for the implementation of Six Sigma at GE goes to CEO Jack Welch,
who made it a corporate policy to attain Six Sigma goals by 2000. GE adopted
most of its Six Sigma concepts and methodology from pioneers such as
Motorola.

TRAINING
Six Sigma implementation at General Electric started with a heavy emphasis
on training the workforce for data-based problem analysis.

GE required all exempt employees to undertake a 13-day, 100 hour training

program in Six Sigma methodologies and complete a Six Sigma project by the
end of 1998.

The training covered the DMAIC procedure:

23
  Definition or identification of the process
 Measurement of process output
 Analyzing process inputs for criticality
 Improving process by modifying inputs
 Controlling process by controlling the appropriate input

Employees completing the initial course went through follow-up training to

reinforce these newly acquired skills.

MENTORING

The success story of Six Sigma and GE would not have been possible without
GE's system of mentoring programs.

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

Sigma, led the process change. Each Master Black Belt trained and mentored
key process employees for the Black Belt level. Employees selected for Black
Belt underwent four-month training and applied Six Sigma tools at work under
the guidance of the Master Black Belt mentor. GE soon deployed full time
Black Belt teams to implement Six Sigma projects throughout GE.

Part time project leaders or employees who received Six Sigma training that
were placed on Six Sigma projects only became Green Belts.

LEADERSHIP

General Electric’s experience in the implementation of

Six Sigma shows that the best of training and mentoring efforts would crumble
without effective leadership.

Jack Welch, GE’s 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

24
and bonus to quality improvement. Forty percent of each top management
bonus depended on the successful implementation of Six Sigma goals and a
Green Belt became the minimum requirement for the promotion of any
employee.

Jack Welch and other top management, most notably Dave Cote, President,
and CEO of GE Appliances followed a hands-on approach to Six Sigma and
led from the front through the following methods:

 Spending time in Six Sigma Training sessions and personally

answering questions for employees undergoing training
 Surprised visits to Six Sigma review sessions
 Work-floor visits to make first hand observations on the extent of Six
Sigma implementation at the workplace
 Weekly summary reports and monthly reviews with the Master Black
Belt team.

FOCUSED IMPLEMENTATION
One major reason for the success story of Six Sigma and GE is the focused
approach toward implementation.

GE's three time-tested implementation approaches are "Show Me the Money,"

"Everybody plays," and "Specific Techniques."

 Show Me the Money - GE approaches Six Sigma with a focus on the

bottom-line. The need to cut costs in a competitive price-sensitive
marketplace made GE applies Six Sigma to remove workplace defects
and improve productivity, besides improving product quality.
 Everybody Plays - Much of GE’s product lines are comprised of many
outsourced parts. GE understood the need for the supplier to
participate in the Six Sigma initiative to make the product fully Six
Sigma compliant and invested in bringing the suppliers to Six Sigma.
 Specific Techniques - GE cultivated the art of ranking projects and
aligning them to the business goals through Six Sigma tools such as
the process map

Concentration (Infrastructure)

25
One of GE’s alternatives is to implement a concentration strategy for one of its
business within the overall Corporation. One of the best businesses to
concentrate on is Infrastructure. Infrastructure currently makes more profit
for GE then any of their other businesses. By concentrating their efforts and
resources toward Infrastructure, GE can make their business 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 Infrastructure can compete against other companies that focus solely on
the products and services that they offer. For information on how this
alternative was analyzed using various dimensions,

26
Industry Banking
Financial services
Investment services

Key people Charles O. Holliday

(Chairman)
Brian Moynihan
(President and CEO)

Headquarter Charlotte, North Carolina

s

Area served Worldwide

Products Finance and insurance, Retail banking, Commercial

banking, Investment banking,
Investment management, Private banking, Private
equity, Mortgages, Credit cards.

Revenue  $150.45 billion (2010)

STRATEGIES THAT BANK OF AMERICA FOLLOWED TO

BECOME NUMBER- 5 COMPANY

27
DELIVERY OF A BROAD RANGE OF PRODUCTS AND
SERVICES

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

division in the company, and deals primarily with consumer banking and credit
card issuance. Now it deals also with provided mergers and
acquisitions advisory, underwriting, capital markets, as well as sales & trading
in fixed income and equities markets. Its strongest groups include Leveraged
Finance, Syndicated Loans, and mortgage-backed securities. It also has one
of the largest research teams on Wall Street.

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

(including Bank of America Investment Services, Inc.), The Private Bank,
Family Wealth Advisors, and Bank of America Specialist. Bank of America’s
size, scale and global presence enable it to provide customers and clients with a full
range of world-class products and services, delivered with convenience and
efficiency.

LOCAL TO GLOBAL

Bank of America serves clients in more than 150 countries and has a
relationship with 99% of the U.S. Fortune 500 companies and 83% of the
Fortune Global 500. Expanding internationally is a great 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
improve satisfaction, reduce problems and create solutions. Bank of America
is attracting and retaining associates who can lead in a global organization,
and is building on leading staffing, training and leadership development
programs. As Bank integrates businesses, it means bringing together a wide
spectrum of products and services for customers and clients while improving
quality, accuracy and efficiency and lowering costs. Investment in technology
and innovation to improve productivity and better meet associate, customer,
client and shareholder needs

28
MERGER AND ACQUISITION.

Mergers helped BankAmerica Corporation to once again become 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 in 1998 behind North Carolina's First Union Corp.

BankAmerica's next big acquisition came in 1992. The company acquired its
California rival, Security Pacific Corporation and its subsidiary Security Pacific
National Bank in California and other banks in Arizona, Idaho, Oregon,
and Washington BankAmerica acquired the Continental Illinois National Bank
and Trust Co. of Chicago.

TECHNOLOGY ADVANCEMENT

Technology will also be a major emphasis amongst financial service

companies as it provides a new outlet to consumers all across the globe.
How effective the Internet will be remains to be seen, but it is already causing
major changes. Those corporations that can make e-commerce succeed will
be successful and those that cannot will face major obstacles. The credit card
industry alone will provide billions of dollars in income through the Internet for
financial companies and there will be a lot of competition.

CREATING RELATIONSHIP
Bank of America seeks to build broad, deep and long-lasting relationships
with 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 clients also benefit
from the company's relationship-based approach, with client managers
coordinating delivery of a broad range of products and services, including (but

29
not limited to) commercial lending, treasury management, debt and equity
capital rising, risk management and mergers and acquisitions advisory
services.

AGGRESSIVE MARKETING

The Bank has to do aggressive marketing and also have to provide various
promotional schemes to cater the needs of the people.
Bank of America is affected directly by market conditions. For example,
changes in interest rates could adversely affect net interest margin - the
difference between the yield the bank earns on assets and the interest rate it
pays for deposits and other sources of funding - which could in turn affect
earnings. Market risks include fluctuations in interest and currency exchange
rates, and equity and futures prices. Such risks affect loans, deposits,
securities, short-term borrowings, long-term debt, trading account assets and
liabilities, and derivatives.

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
variety of products and services. Various types of accounts and credit cards
are provided by Bank of America. The Bank is also affected by demand and
the supply conditions prevailing in the industry. Bank of America also enjoys
economies of scale due to its strong learning and experience effects.

30
Type Public (NYSE COP)

Industry Oil and Gasoline

Founded August 30, 2002 (merger)

1875 (Conoco)
1917 (Phillips)

Headquarter Energy Corridor

s Houston, Texas U.S.

Area served Worldwide

Key people James J. Mulva

(Chairman & CEO)

Products Oil & Natural Gas ,Petroleum

Lubricant
Petrochemical

Revenue

31
 STRATEGIES THAT CONOCO PHILIPS FOLLOWED TO
BECOME NUMBER- 6 COMPANY

Success in business is achieved by the application of effective strategies. 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 irrespective of difference in time and geography.

Here are strategies which ConocoPhillips have implemented in the course of

their history, and which have enabled them to achieve their goals and become
one of the biggest companies in the world.

IDENTIFYING A PROBLEM AND PROVIDING SOLUTION

The ability to identify a pressing need that is faced by lots of people, 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 the consumer can afford.

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
thrive and make money.

Conoco’s business was an immediate success right from its inception

because it provided a huge relief to the masses in Ogden, Utah who could not
purchase kerosene to light their homes because it was too expensive. By
noticing this problem and going ahead to fixing it immediately put Conoco on
the path of success.

32
SEEKING SYNERGY WITH OTHER BUSINESSES

Two heads are always better than one. Combining resources with other
businesses can enable you to easily and quickly achieve your goals. It’s a
great way to leverage on other businesses’ expertise, experience and
facilities.

There are different ways through which synergy can be obtained. It can be by
forming partnership, or by acquiring or merging with other businesses.

From merging with Standard Oil, DuPoint, Phillips, and Burlington Resources,
seeking synergy has always been Conoco’s vital strategy for achieving its
business goals.

GROWING YOUR BUSINESS AS QUICKLY AS YOU CAN

You shouldn’t 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 also sold other
products, such as benzene to clean stoves, candles, hoof oil for horses, and
ready-mixed paints at the early years of its existence.

Then recognizing the surge in the number of automobiles on roads, Conoco

knew it would be profitable running refineries and service stations to provide
fuel for automobiles, and therefore merged with Marland Oil in 1929.

DOING WHAT YOU NEED TO DO

For your business to survive difficult times, you must have the courage to take
certain decisions, which may not be popular, but needed to save the situation.

33
In the wake of the stock market crash of 1929, Conoco had to cut down
salaries, amongst other measures that it took to salvage the situation. Though
these were tough decisions, they however helped to save lots of money for
the company, which was used to finance important projects.

REWARDING YOUR STAFF APPROPRIATELY

Just as you shouldn’t hesitate to cut staff salaries in difficult times, you
shouldn’t also hesitate to lavish them with incentives and bonuses when your
business is doing well.

Few years after the stock market crises of 1929 that made Conoco to cut
down on staff salaries, the company’s staff was rewarded with bonus checks
worth $770,000 in 1937 when Conoco came back to profitability.

EXPAND TO FOREIGN LANDS

The more the number of people needing your product or service, the more
your business prospers. You need to find a way of exposing your product or
service to the international market, and you will be surprised to find your
product could even be more accepted in foreign lands than at home.

Expanding to markets outside your local operation should be prepared for and
should be in your business plan. Today, with huge advancement in
communication technology it has become a lot easier to expose your business
to the global market – using Internet technology.

The era between 1945 and 1972 saw Conoco executing a great deal of its
expansionist plan, expanding its refinery operations nationally, and its
petroleum exploration and production operation internationally.

34
 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

Area served Worldwide

Key people Randall L. Stephenson

(Chairman, President and CEO)

Services Telephone
Wireless
Internet
Television

Revenue  US$124.280 billion (2010)

Employees  294,600 (2010)

35
STRATEGIES THAT HELPED AT&T IN ACHIEVING
ECONOMIES OF SCOPE AND ECONOMIES OF SCALE

ACQUISITION OF MANY OTHER COMPETITOR COMPANIES IN THE

MARKET

Is bigger necessarily better when it comes to running a telecommunications

company? Apparently AT&T thinks so in announcing plans to buy BellSouth,
the primary phone and broadband provider in the Southeast, for $67 billion.
The company acquired BellSouth and Cingular Networks to increase its size
and to cut competition. A decade ago, when the regional Bell companies were
the nation's main providers of telephone service — buying a competitor was
easier to explain. Adding phone customers meant more revenue, economies
of scale on equipment and network investment, and the ability to cut
overlapping administrative jobs.

A TELECOMMUNICATIONS SUPERMARKET AS IT CAN SELL MORE

SERVICES — WHETHER PHONE, BROADBAND OR TELEVISION — TO
CUSTOMER EVERYWHERE

To compete in an Internet economy, AT&T executives say the company has

to become a telecommunications supermarket so it can sell more services —
whether phone, broadband or television — to customers everywhere.

AT&T's chairman and chief executive, Edward E. Whitacre Jr., said on a call
with analysts yesterday that the merger "will create a strong national and
global competitor, better positioned to innovate and deliver new services to
both businesses and consumers. To merge its businesses, the company will
buy new network technology that integrates wireless and wireline phones so
that customers, among other things, will be able to use one handset that runs
on a cellular network outdoors and then switch to a wireless Internet
connection indoors.

These kinds of services are particularly important to big corporate clients that
have thousands of corded telephones, mobile phones and Internet lines.

36
VOLUME DISCOUNTS AND EXPERIENCE CURVE EFFECTS

It is true that large service providers can achieve economies of scale through
volume discounts, experience curve effects, and consolidate operations at a
scale that minimizes unit costs, says Weinman. A volume discount is a
method used by sellers and manufacturers to reward those who are able to
purchase in bulk amounts or in mass quantities.

CONSOLIDATE OPERATIONS AT A SCALE THAT MINIMIZES UNIT

COSTS

Different tasks can be clubbed together so as to minimize the cost and which
are linked with each other. As is the case with most company
acquisitions, AT&T Inc.'s deal to acquire Deutsche Telekom AG subsidiary T-
Mobile USA, could mean consolidations at the two companies' call centres,
headquarters and retail operations.
As Co Star Group Inc. reported Wednesday, T-Mobile USA is a tenant in
5,100 locations nationally, and AT&T has about 4,600 locations. The merger
could mean one or both companies will shed some of those locations. AT&T
has said it expects to save $3 billion in consolidation of operations over the
next three years.

37
 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
Revenue  US$128.954 billion (2010)
Employees 164,000 (2010)

38
STRATEGIES THAT HELPED FORD MOTORS IN ACHIEVING
ECONOMIES OF SCOPE AND ECONOMIES OF SCALE

FOCUS ON AUTOMOBILE DESIGN AND MANUFACTURING

During the mid to late 1990s, Ford sold large numbers of vehicles, in a
booming American economy with soaring stock market and low fuel prices.
With the dawn of the new century, legacy healthcare costs, 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
consumer automobile loans through Ford Motor Credit Company.

By 2005, corporate bond rating agencies had downgraded the bonds of both
Ford and GM to junk status, citing high U.S. health care costs for an aging
workforce, soaring gasoline prices, eroding market share, and dependence on
declining SUV sales for revenues. Profit margins decreased on large vehicles
due to increased "incentives" (in the form of rebates or low interest financing)
to offset declining demand.

In the face of demand for higher fuel efficiency and falling sales of minivans,
Ford moved to introduce a range of new vehicles, including "Crossover SUVs"
built on unibody car platforms, rather than more body-on-frame chassis. In
developing the hybrid electric powertrain technologies for the Ford Escape
Hybrid SUV, Ford licensed similar Toyota hybrid technologies to avoid patent
infringements Ford announced that it will team up with electricity supply
company Southern California Edison (SCE) to examine the future of plug-in
hybrids in terms of how home and vehicle energy systems will work with the
electrical grid. Under the multi-million-dollar, multi-year project, Ford will
convert a demonstration fleet of Ford Escape Hybrids into plug-in hybrids, 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 typical
customer settings," according to Ford.

History Since the Ford Motor Company's incorporation by Henry Ford in 1903,
its strategic focus has remained on automobile design and manufacturing. Up
until 1970, competition was from the two other manufacturers making up the
Big Three Automakers; General Motors and Chrysler. However, starting in the
1970's, foreign competition, mostly from Toyota and Honda, eventually lead to
overcapacity within the industry. As more and more developing and industrial

39
nations encouraged development into the automobile industry, overcapacity in
the automobile markets reached an estimated 20 million vehicles.

PROVIDES WIDE RANGE OF PRODUCTS

Ford is one of four manufacturers in NASCAR's three major series: Sprint Cup

Series, Nationwide Series, and Camping World Truck Series. Major teams
include Roush Fenway Racing and Yates Racing and Richard Petty
Motorsports. Ford is represented by the mid-size Fusion in the Sprint Cup,
the Mustang in the Nationwide Series, and by the F-150 in the Camping World
Truck Series. Some of the most successful NASCAR Fords were the
aerodynamic fastback Ford Torino and Mercury Montegos, and the aero-
era Ford Thunderbirds. The Ford nameplate has won eight manufacturer's
championships in Sprint Cup, while Mercury has won one. The Ford Fusion is
also used in the ARCA Remax Series. It also manufactures Formula One
cars, Rally, sports cars, touring cars, trucks, buses and tractors.

SAVING POWER COST AND REDUCED CARBON FOOTPRINT

THROUGH POWER MANAGEMENT

On March 2010, Ford announced its PC Power Management system which it

developed with Night Watchman software from 1E. The company is expected
to save $1.2m on power cost and reduce carbon footprint by an estimated
16,000 to 25,000 metric tons annually when the system is fully implemented.

PC power management is being rolled out to all Ford computer users in US

this month and it will be used in Ford operations around the world later in the
year. Computers with this power profile enabled will monitor its usage patterns
and decides when it can be turned off. PC user will be alerted of the
approaching power down time and given the opportunity to delay it.

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

achieved by developing 'Power Profiles' for every PC in the company.

ENVIRONMENTAL INITIATIVES

Ford announced in late 2008 July that it will bring six of its more fuel-efficient
European models to the U.S.
Compressed natural gas
The alternative fossil fuel vehicles, such as some versions of the Crown
Victoria especially in fleet and taxi service, operate on compressed natural
gas—or CNG. Some CNG vehicles have dual fuel tanks - one for gasoline,

40
the other for CNG - the same engine can operate on either fuel via a selector
switch.
Flexible fuel vehicles
Flexible fuel vehicles are designed to operate smoothly using a wide range of
available ethanol fuel mixtures—from pure gasoline, to bioethanol-gasoline
blends such as E85 (85% ethanol and 15% gasoline)
or E100 (neat hydrous ethanol) in Brazil. Part of the challenge of successful
marketing alternative and flexible fuel vehicles in the U.S., is the general 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 to ramp up production and distribution of E85 fuels are underway and
expanding.

Ford is also planning to produce 250,000 E85-capable vehicles a year in the

US, adding to some 1.6 million already sold in the last 10 years.

41
 J. P. MORGAN CHASE

Type Public (NYSE: JPM)

Dow Jones Industrial Average Component
Industry Banking
Financial services
Founded New York City, New York (1799)
Headquarters New York City.  New York, U.S.
Area served Worldwide
Key people Jamie Dimon
(Chairman, President & CEO)

Products Finance and insurance

Consumer banking
Corporate banking
Investment banking
Global wealth management
Mortgage loans
Credit cards
Revenue  US$ 102.694 billion (2010)
Profit  US$ 17.370 billion (2010)

42
STRATEGIES THAT JPMORGAN CHASE CO FOLLOWED TO
BECOME NUMBER- 9 COMPANY

Certain principles are so fundamental to our success that we would like to

describe them in some detail. If we can adhere to these principles – and they
are not in order of importance – we will reach our goal of becoming the best
financial services company in the world. We also hope they will give you a
roadmap on how and why we make our decisions.

Combination of Powerful Brands

The company is formed by merger of different companies and bank which is

positive point and provide the company with diversified experience. Some of
the mergers are given below:

In 1991, Chemical Banking Corp. combined with Manufacturers Hanover

Corp. Keeping the name Chemical Banking Corp. In 1995, First Chicago
Corp. merged with National Bank of Detroit's parent NBD Bancorp. In 1996,
Chase Manhattan Corp. merged with Chemical Banking Corp., creating what
was then the largest bank holding company in the United States .In 1998,
Banc One Corp. Merged with First Chicago NBD, taking the name Bank One
Corp. Merging subsequently with Louisiana's First Commerce Corp. In 2000,
J.P. Morgan & Co. merged with Chase Manhattan Corp., (J.P. Morgan,
Chase, Chemical and Manufacturers Hanover) into one firm called J.P.
Morgan Chase & Co. These mergers culminated in July 2004 with the joining
of J.P. Morgan Chase & Co. and Bank One Corp. to form today's JPMorgan
Chase & Co..

Develop a world-class franchise in every business we

operate:
To be great, a company must have the ability to deliver good returns and solid
growth over time. To achieve these results, we must provide our customers
with a broad, complete and high-quality set of products and services while
leveraging the benefits and efficiency that come with scale. We must also
demonstrate our ability to grow both organically (e.g., new products, market-
share gains) and by acquisition. Finally, we must demonstrate that the whole
is greater than the sum of the parts. Each business fuels and complements
the others, providing substantial competitive advantages such as distribution
channels (credit cards and mortgages for retail customers, or treasury and
securities services for wholesale clients, to name just a few) and great global
brands.

43
Demand and maintain strong financial discipline, building for
good and bad times:
Financial discipline is a bedrock of great companies, particularly financial
companies .Financial discipline – including sound accounting standards,
transparent public reporting 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 provides
reasonable risk relative to the capital deployed.
Financial discipline must be matched with superior–not just average–risk
management. If we properly manage risk, we should get a good return
through the cycle, not just during the good times. We must consider walking
away from business where we cannot see a fair return over the cycle. This
may slow short-term growth, but it underscores our commitment to grow in a
sustainable way. It is a trade-off we will always be prepared to make.

The Company was not hit by recession as said Throughout the financial crisis,
JPMorgan Chase never posted a quarterly loss, served as a safe haven for
depositors, worked closely with the federal government, and remained an
active lender to consumers, small and large businesses, government entities
and not-for-profit organizations. As a result of our steadfast focus on risk
management and prudent lending, and our disciplined approach to capital and
liquidity management, we were able to avoid the worst outcomes
experienced by others in the industry.

Maintain a strong system of internal governance and controls:

Good internal governance is essential to effective management. It ties
together 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 the
company’s performance with the best interests of our shareholders. Some
code of Ethics are given below :

 Engage in and promote ethical conduct, including the ethical handling

of actual or apparent conflicts of interest between personal and
professional relationships, and to disclose to the Office of the Secretary
any material transaction or relationship that reasonably could be expected
to give rise to such a conflict.

 Carry out your responsibilities honestly, in good faith and with integrity,
due care and diligence, exercising at all times the best independent
judgment.

 Assist in the production of full, fair, accurate, timely and

understandable disclosure in reports and documents that the firm and its
subsidiaries file with, or submit to, the Securities and Exchange

44
 Commission and other regulators and in other public communications
made by the firm.

 Comply with applicable government laws, rules and regulations of

federal, state and local governments and other appropriate regulatory
agencies.

 Promptly report (anonymously, if you wish to do so) to the Audit

Committee of the Board of Directors any violation of this Code of Ethics or
any other matters that would compromise the integrity of the firm's financial
statements. You may contact the Audit Committee by mail, by phone, or by
e-mail; contact information is set forth below.

 Never to take, directly or indirectly, any action to coerce, manipulate,

mislead or fraudulently influence the firm's independent auditors in the
performance of their audit or review of the firm's financial statement

Having best of employees:

To reach our goal of being the best financial services firm in the world,
JPMorgan Chase is committed to creating an open, entrepreneurial and
dynamic workplace that encourages each employee to contribute to the best
of his or her ability.

 Performance

 Partnership

 Meritocracy

 Inclusion

 Directness

Working together:

Being the best requires working together – across time zones, languages and
borders. That can only take place in an environment where people respect,
value and support one another.
We need to constantly remind ourselves that the most important thing we can
do for employees is to build a healthy, vibrant company that treats people with
respect and creates opportunity. Everyone counts, and we have to remember
that we all support one another. 
We strive to create a more inclusive work environment that draws on and
develops the best talent. We want individuals of any race, nationality, gender,

45
sexual orientation, or physical ability to have the opportunity to excel based on
their performance and contribution to the firm. 

HEWLETT PACKARD

Industry Computer hardware

Computer software
IT consulting
IT services
Founded Palo Alto, California(1939)
Founder(s) Bill Hewlett
David Packard
Headquarters Palo Alto, California, U.S.
Area served Worldwide
Products Computer Monitors, Digital Cameras,
Enterprise Software, Mobile Phones,
Networking
Personal Computers and Laptops,
Personal Digital Assistants, Printers,
Scanners
Servers, Storage, Televisions
,Telecommunications hardware and
software
Revenue  US$ 126.033 billion (FY 2010)[
Operating income  US$ 11.479 billion (FY 2010

Net income  US$ 8.761 billion (FY 2010)[

46
Total assets  US$ 124.503 billion (FY 2010)
Total equity  US$ 40.781 billion (FY 2010)

STRATEGIES THAT HEWLETT PACKARD FOLLOWED TO

BECOME NUMBER- 10 COMPANY :

HP is a technology company that operates in more than 170 countries around

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 apply 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 company offers as complete a technology product portfolio as HP.
We provide infrastructure and business offerings that span from handheld
devices to some of the world's most powerful supercomputer installations. We
offer consumers a wide range of products and services from digital
photography to digital entertainment and from computing to home printing.
This comprehensive portfolio helps us match the right products, services and
solutions to our customers' specific needs. 

Global business strategy

Global citizenship is one of HP’s corporate objectives, a commitment

spanning our entire organization and rooted in values that have guided the
company since it was founded. For over 70 years, this commitment has driven
us to meet higher standards of integrity, contribution and accountability as we
align our business goals with our impacts on society and the environment. HP
is in a unique position to make meaningful and lasting contributions to
improve people’s lives and work. We regularly communicate and meet with
stakeholders to respond to their feedback, express our views, gain insights,
share best practices, shape standards and influence public policy discussions.
In all matters, we are committed to carrying out engagements in a transparent
and appropriate way .Our global citizenship efforts span a broad range of
areas—from ethics and compliance, environmental sustainability and
education to responsible supply chain management, privacy and social
innovation— as detailed by this report.

The recent economic downturn, combined with powerful social, demographic

and environmental forces, is creating unprecedented challenges and
opportunities for individuals, communities, companies and governments alike

47
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
for all cut across industries, economies and borders and require new levels of
leadership, innovation and collaboration.

Having Big Business Houses as Customer:

Walt Disney was the first customer of HP. The company has tie with SAP ,
ORACLE , Microsoft etc.

In Australia, a bank uses the HP Carbon Footprint Calculator to evaluate the

greenhouse gas emissions from powering its printers and PCs. In Singapore,
a sales team gathers in an HP Halo solutions room rather than boarding an
airplane to meet with colleagues in Germany. In Canada, a nonprofit
organization taps into HP cloud computing technology to develop a solution
that reduces the time for manufacturers to trace and remove recalled food
products from the supply chain. In the United States, a nurse in a 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
other ways, HP products, services and solutions are profoundly changing how
the world lives and works.

Long history of ‘doing the right thing’: since 1957, HP has had defined
CSR values:

Recently HP Pledge 1 million US $ in INDIA for Science and Technology and

Math Education. HP was first to introduced green house emission reduction
program. Our commitment to Social Innovation and education stretches back
more than six decades. HP focuses on programs and organizations that help
educators build skills and use technology to enhance lessons and re-imagine
their approach to teaching. We help educators combine excellent instruction
with the unique capabilities of technology to transform the learning
experience.

HP awards grants of cash, HP technology and other resources to primary and

secondary public schools, colleges, and universities. Evidence shows that the
effective use of technology, combined with exemplary teaching, can positively
impact student academic outcomes, and create a more engaging,
personalized and collaborative learning environment. Since 2000, HP has
provided more than $250 million in funding, equipment and training to support
education, including $60 million for our HP Technology. Part of our emphasis

48
 on education is cultivating tomorrow’s 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 to prosper.

Employees are supported as they try new approaches, even

when they fail;

Our employees are integral to the success of our business. Their talent,
expertise and skills drive everything from how we innovate products and
manage our supply chain to how we connect with customers and collaborate
with partners. Recruiting and retaining the best people is a key competitive
advantage, and we strive to create a supportive, motivating work environment
where all employees can flourish. Much of our focus in 2009 was on
integrating those who joined HP through the acquisition of EDS, which
increased our number of employees to 304,0001. This section represents our
combined workforce. In some cases, this makes it difficult to compare data or
progress in 2009 with previous years, which we have noted. Our employment
policies apply globally and reflect our commitment to fair treatment of all
employees wherever we operate. At a minimum, we comply with local laws,
but our own policies often set a more demanding standard:

Various division of HP:

 Personal systems HP is the world’s leading vendor of personal

computers, shipping over 50 million devices annually. And that’s just one
segment of our personal systems offering. We have the industry’s broadest
portfolio of notebooks, desktops, workstations, thin clients, displays, handheld
devices and personal storage solutions.

 Imaging and printing The 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, and stand out.

 Enterprise Business HP helps large organizations establish strategic

advantages by creating ecosystems that use technology to respond efficiently
to dynamic conditions in real-time. Our solutions use HP servers, storage,
software, networking and services to create or strengthen business elasticity,
insight and sustainability.

49
 Services HP 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
and business process outsourcing.

 HP Labs With hundreds of dedicated researchers in six worldwide

locations, HP Labs develops solutions to the most complex challenges facing
our customers in the next decade, including those in the areas of analytics,
cloud, immersive interaction, content transformation, digital commercial print,
information management, intelligent infrastructure and sustainability.

Customer centric company:

Consumers are increasingly attuned to a broad spectrum of global citizenship

issues, including the environment, human rights and labour practices, privacy
and philanthropy.

For example, according to survey results from The Carbon Trust Standard,
two-thirds of U.K. consumers said that it is important to buy from
environmentally responsible companies.3 Studies in the United States and
other countries yielded similar findings, even during the global recession. Yet
research also indicates a lack of consensus among consumers about what it
means to be environmentally sustainable, and which measures are most
important and effective .HP continues to educate consumers about ways they
can be more sustainable as well as our progress in reducing our own
environmental impact. For example, we introduced the HP Eco Highlights
label in 2008, helping customers easily identify and understand the
environmental attributes of a specific HP product, tool or service. The HP Eco
Highlights label is available on more than 215 HP products. In addition, HP
offers many products that meet eco-label programs, including EPEAT,
ENERGY STAR®, China’s Energy Conservation Program, Germany’s Blue
Angel and Japan’s Green Mark .HP also increases consumer awareness of
environmental issues through specific initiatives. For example, our
global “Power to Change” campaign highlighted how individuals can increase
energy efficiency by making simple changes in using technology and taking
advantage of power management features of HP products. The campaign
featured a free downloadable widget that tracks the cumulative energy
savings associated with participants powering down idle PCs. In Brazil, HP
teamed with Akatu Institute, a nonprofits organization that educates and
mobilizes citizens about environmental responsibility, on a program called
“Conscious Choice” that raised approximately $560,000. HP promoted
products that help consumers reduce their environmental impact and donated
a portion of the sales to the Akatu Institute.

50
These educational initiatives are in addition to our efforts to improve the
environmental performance of HP products through our Design for Environment
(DfE) program. For example, HP has set a goal to help customers save 1 billion kWh
of electricity by 2011, relative to 2008, through a variety of product design strategies
in HP’s high-volume HP desktop and notebook PC families.

BIBLIOGRAPHY

Text book

1. Deresky Helen: International Management: Managing Across Boarders

and Culture, Pearson Education, 2003.
2. Paul J: International Business, Prentice-Hall, 2004.

Website

 “BankAmerica Corp.," Wall Street Journal, February 4, 1993, p. B6.

 BankAmerica Environmental Progress Report, BankAmerica Corporation,

1992.
Success principle online.com
 www.walmart.com
 www.exxommobil.com
 www.ge.com
 www.hp.com
 www.chevron.com

Other sources

 Company’s annual report

 Magazines

51
52