– Thoughts on Strategy and Management

The world’s largest companies

Taking into account market capitalization Chinese and European companies have gained more importance. Opposite to this development the importance of North American companies as well as Japanese Companies declined. Among the top 100 most valuable companies firms from China were able to more than double their market value (+123 per cent). American companies had to face a decline of 10 per cent.

Within the list of top 100 world’s largest companies three countries head the list: United States, UK, and China. This list represents an example of the increasing importance of emerging markets (countries), in particular China. (Note: Another example for the importance of emerging market countries were recent measures by sovereign wealth funds (see this post)). Of course, it cannot be for granted that the enormous market capitalization of Chinese companies will be stable for the future. But it illustrates very well that the importance of US companies have been declined. In addition the weak USD, the subprime crisis and the weak economic development did influence the position of US companies in that list. Due to the stronger EURO companies from Europe were able to achieve a better position.

But see for yourself in the following to tables. Table A contains the world’s largest companies in terms of their turnover; table B contains the world’s most valuable companies in terms of market capitalization.

A) The world’s largest companies in detail (Top 10)

Rank    Company    Country    Business    Turnover in USD Million

1          Wal-Mart        USA        Commerce    348650

2          Exxon Mobil    USA        Energy        335086

3          Shell              NL        Energy        318845

4          BP                 UK        Energy        262285

5          GM                USA        Car        207349

6          Toyota          Japan        Car        204773

7          Chevron        USA        Energy        195341

8          Daimler         Germany    Car        190200

9          Conocophillis  USA        Energy        167578

10        Total            France        Energy        166486

B) The world’s most valuable companies in detail (Top 10)

Rank    Company    Country    Business    Market capitalization in USD Million

1    Petrochina    China        Energy        723794

2    Exxon        USA        Energy        511887

3    GE        USA        Conglomerate    374637

4    China Mobile    China        Telco        354025

5    I&C of China    China        Bank        338412

6    Microsoft    USA        Software    333054

7    Gasprom    Russia        Energy        331825

8    Shell        Netherlands    Energy        264330

9    AT & T        USA        Telco        252051

10    China P & CH    China        Energy        249608

(Data Source: FAZ: Amerika verliert Führungsrolle, in FAZ, No 4, January 5th, 2008, page 11)

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