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Unformatted text preview: FORTUNE’S GLOBAL MOST ADMIRED COMPANIES: DO VALUES MAKE A DIFFERENCE? Which companies do you admire most, and why do you admire them? Fortune magazine conducts an annual survey of business analysts, executives, and directors to determine, among the world’s largest companies, which ones are most admired. The annual survey results, published in the magazine and available to subscribers on the Fortune Web site, typically appear in late February or early March. The same fundamental procedure is used for each year’s survey. For Fortune ’s 2005 survey, 357 companies—213 of which were headquartered outside the United States—were divided into 30 industry groups. Each company had at least $8 billion in revenue for 2003 or was a former industry leader. The Hay Group, which conducts the survey for Fortune magazine, sent a questionnaire to more than 10,000 analysts, executives, and directors during the fourth quarter of 2004. The respondents were asked to use a scale, ranging from one to ten, to rank the other companies in their industry with respect to nine categories (or reputational attributes). These reputational criteria are: innovation; social responsibility; financial soundness; ability to attract, develop, and retain employee talent; use of corporate assets; quality of management; globalness (i.e., global business acumen); long-term investment value; and quality of products and services. Fortune maintains that the industry rankings are especially meaningful because companies are being graded by their competitors. When we look at all 357 companies included in the 2005 global survey, which company is at the top of the list on each of Fortune ’s reputational criteria, and which companies appear most frequently in the top 10 on the reputational attributes? Which Companies Top the Lists? As shown in the following table, Berkshire Hathaway is the top- rated company on three of the reputational attributes—use of corporate assets, quality of management, and long- term investment value. No other company appears at the top of a 2005 list more than once. However, four of these companies—FedEx, United Parcel Service (UPS), General Electric (GE), and Alcoa—are among the companies that appear most frequently on the nine attribute lists. Reputational Attribute Company with the Highest Ranking Innovation FedEx Social Responsibility United Parcel Service Financial Soundness Intel Ability to Attract, Develop, General Electric and Retain Employee Talent Use of Corporate Assets Berkshire Hathaway Quality of Management Berkshire Hathaway Globalness Alcoa Long-Term Investment Value Berkshire Hathaway Quality of Products/Services Texas Instruments Source: The material in this table was developed from the list of the top 10 companies on each reputational attribute at . Which Companies Appear Most Frequently? The following table identifies the frequency with which companies appeared on the top 10 lists for the nine reputational attributes. Procter & Gamble (P&G) which companies appeared on the top 10 lists for the nine reputational attributes....
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This note was uploaded on 09/05/2011 for the course ECO 103 taught by Professor Mary during the Spring '11 term at FH Joanneum.

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