SIVA SIVANI INSTITUTE OF MANAGEMENT

AN ASSIGNMENT OF
INTERNATIONAL FINANCIAL MANAGEMENT

SUBMITTED TO ANNAPURNA MADAM

SUBMITTED BY K.V.RAMA RAO ROLL NO: 2B2 51

Worlds Biggest 10 Companies-2012

RANKING 1 2 3 4 5 6 7 8 9 10 2011: RANKING 1 2 3 4 5 6 7 8 9 10 company name

Company name JP Morgan chase GENERAL ELECTRIC Bank of America EXXON MOBIL ICBC BANCO SANTANDER Wells Fargo HSBC holdings Royal Dutch sheel BP (petroleum gaint)

location U.S U.S U.S U.S CHINA SPAIN U.S U.K NETHERLANDS U.K

industry banking conglomerates banking Oil and gas operations banking banking banking banking Oil and gas operations Oil and gas operations

Wal-Mart Stores
Royal dutch sheel EXXON MOBIL BP Sinopec group China national petroleum Sate grid Toyota motors Japan post holdings Chevron

2010: 1 2 3 4 5 6 7 8 9 10

Wal-Mart Stores
Royal dutch sheel EXXON MOBIL BP Toyota motors Japan post holdings Sinopec group State grid AXA China national petroleum

2009:

ranking 1 2 3 4 5 6 7 8 9 10

Company name Royal dutch sheel EXXON MOBIL

Wal-Mart Stores
BP Chevron Total Conoco Phillips ING group Sinopec Toyota motors

Total no. of MNCs in the world

World top for multinational corporations

The World Investment Report 2009, published by the UNCTAD (United Nations Conference on Trade and Development), states there is a total of 889,416 multinational companies (MNCs) around the world: 82,053 parent corporations and 807,363 affiliates. In 2008, the 100 largest

MNCs sales combined amounted to nearly $8.5 trillion. The top three MNCs in 2009 (according to UNCTAD) are: Citigroup Inc., Allianz SE and ABN AMRO holding NV. The distribution of MNCs with headquarters in different countries has expanded remarkably. In 1999, in the top eight countries (USA, Japan, Germany, UK, Netherlands, France, Switzerland and Sweden), there were 1,572 MNCs with sales of over $50 billion but this number jumped to 4,008 with sales of over $200 billion in 2008. Hence percentage growth was 140 per cent. Even more astonishing, the number of MNCs outside the leading eight countries in 1999 was 167. In 2008 this had risen to 1,384. In other words, an increase of 729 per cent. Not surprisingly, the United States had the largest number of MNCs in 1999 or 26 per cent of the world total. Although the number of MNCs by 2008 rose by 150 per cent, the US share of the world total dropped to 22 per cent. The countries which registered the fastest growth of MNCs during these years were the Netherlands (248 per cent) and Germany (213 per cent). The bad news for the UK was that it reported the smallest increase in MNCs only 24 per cent. This reduced its share of the world total from 19 per cent in 1999 to 8 per cent in 2008. Why have so few new MNCs been registered in the UK compared to the Netherlands and Germany? The Dutch and Germans concentrate on expanding exports. This is clearly one of the reasons. The UK experienced a rapid expansion of financial services and not exports. There are now some 3,000 MNCs with sales over $1 billion operating in five or more countries with global sales of almost $55 billion. At the other end of the spectrum, there are 12,000 MNCs with sales over $100 million with operations in three or more countries. Global sales come to $63 billion. Now if one considers growth, a striking pattern emerges. If the global economy over the years from 1999 to 2008 expanded by about 2.5 per cent per annum, MNCs achieved about 12.5 per cent annual growth. Aggregate global sales rose even faster. This rapid growth is due to the lowering of trade barriers, international sourcing, liberalisation of markets and expansion of free trade areas. A new survey Global Network Outlook 2009 by BRC Consultancy estimates that the telecom market will be flat for the next two years but will then again resume its previous growth. This is because telecom traffic will increase due to the need to work harder for sales. MNCs during a recession will cut capital expenditure. This, in turn, creates business opportunities for a supplier who can take on a greater role, including wider provision of customer services equipment and/or outsourcing of applications formerly resourced in house. The outsourcing and network adjacent service offerings of the major network service providers may well therefore have a potential role as recession busters. Every recession may have a silver lining for the dynamic company which is alert to these opportunities.

Much attention has been paid of late to the BRIC (Brazil, Russia, India and China) countries. They are demanding a greater say in the running of the International Monetary Fund (IMF), the World Bank and Brazil and India want a permanent seat in the UN Security Council. China and others are pressing for a new currency (Special Drawing Rights) to replace the US dollar as the leading world reserve currency. How do they fare in the world of MNCs? Not very well. Of the 5,400 MNCs with sales over $100 billion in the top 30 countries, 33 have their headquarters in India, followed by China with 22 and Brazil with 15. Russia does not appear at all due to its policy of excluding MNCs from participation in its strategic industries. Since technology transfer is an important aspect of MNCs, it is clear that Russia is at a disadvantage by excluding significant foreign investment in its prime industries. About three quarters of the worlds MNCs have their headquarters in just eight countries. These are the companies which the G20 regulators would like to have greater influence over. They would like to curtail, for example, the ability of MNCs to enter a country, make a profit and then leave. This applies especially to the developing world. Will the G20 regulators be capable of doing this? No. Take, for instance, raw materials. China is now attempting to buy a share of MNCs which export to China. If it succeeds, these MNCs will become even more powerful economically. Beijing has no interest in curtailing the activities of those MNCs in which it has a stake. There will be some consolidation of MNCs during this recession. They will probably emerge even more powerful than before. The G20s dream of regulating them effectively is just that a dream

Top 10 most profitable companies in the world

Rank Company 500 Rank 2010 $ (millions)

1 2 3 4 5 6 7

Exxon Mobil AT&T Chevron Microsoft J.P. Morgan Chase & Co. Wal-Mart Stores International Business

2 12 3 38 13 1 18

30,460.0 19,864.0 19,024.0 18,760.0 17,370.0 16,389.0 14,833.0

Machines 8 9 10 Apple Johnson & Johnson Berkshire Hathaway 35 40 7 14,013.0 13,334.0 12,967.0

Top 10 fastest growers

Rank Company 500 Rank 2010 % Growth in EPS

1 2 3 4 5 6 7 8 9 10

Autoliv Nash-Finch Kroger Broadcom Harris Owens Corning BorgWarner TRW Automotive Holdings FedEx Capital One Financial

329 449 25 343 429 448 403 171 73 134

5,225.0 1,738.1 1,481.8 1,430.8 1,428.6 1,374.0 1,234.8 1,172.5 1,112.9 712.2

Top 10 biggest employers

1. US Department of Defense = 3.2 Million 2. Peoples Liberation Army, China = 2.3 Million 3. Wal-Mart = 2.1 million 4. McDonalds = 1.9 million 5. UK National Health Service = 1.7 million 6. China National Petroleum Corporation = 1.6 million 7. State grid corporation of china = 1.5 million 8. Indian Railways = 1.4 Million

9. Indian Armed Forces = 1.3 million 10. Hon hai precision Industry Foxconn = 1.2 million

Top 20 of the largest MNCs ranked by the size of foreign assets

Best countries to invest

Rank Company 500 Rank 2010 %

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Las Vegas Sands CC Media Holdings Cummins Tenneco Western Refining TRW Automotive Holdings BorgWarner Dillard's US Airways Group Universal American Wesco International American International Group Qwest Communications Limited Brands United Continental Holdings Whole Foods Market Foot Locker Autoliv Meritor Family Dollar Stores

342 391 186 386 298 171 403 370 208 401 443 17 209 258 114 273 446 329 463 302

207.6 190.3 142.7 132.1 124.6 120.7 117.8 107.1 106.8 99.7 95.5 92.2 91.0 85.4 84.5 84.3 83.9 83.8 83.5 81.5

Internet Exercise
SALES AND REVENUES: DELL
Fiscal-Year 2012 Fourth Quarter and Full Year Highlights
Fourth Quarter Fiscal Year

(in millions)

FY12

FY11

Change

FY12

FY11

Change

Revenue

$16,031

$15,692

2%

$62,071

$61,494

1%

Operating Income (GAAP) Net Income (GAAP) EPS (GAAP) $931 $1,145 (19)% $4,431 $3,433 29%

$764

$927

(18)%

$3,492

$2,635

33%

$0.43

$0.48

(10)%

$1.88

$1.35

39%

Operating Income (nonGAAP) Net Income (non-GAAP) EPS (nonGAAP) $1,143 $1,286 (11)% $5,135 $4,149 24%

$913

$1,018

(10)%

$3,952

$3,106

27%

$0.51

$0.53

(4)%

$2.13

$1.59

34%

No. of Subsidiaries ALINWARE

Alienware is a United States computer hardware subsidiary of Dell, Inc. It mainly assembles third party components into desktopsand laptops with custom enclosures. Alienware also offers for sale rebadged computer peripherals, such as headsets, computer mice, monitors and keyboards. Their hardware has a distinctive "sci-fi" style, typically including decorative lighting. Alienware was founded in 1996 by Nelson Gonzalez and Alex Aguila. Alienware's corporate headquarters is located in The Hammocks, unincorporated Miami-Dade County, Florida, near Miami. Gaming laptops Gaming desktops

DELL subsidiaries countries exporting to imports of that company

Austria, Belgium, Channel Islands, Czech Republic, Denmark, England (UK), Finland, France, Germany, Gibraltar (UK), Guernsey UK), Ireland, Isle Of Man (UK), Italy, Jersey (UK), Liechtenstein, Luxembourg, Monaco, Netherlands, Norway, Poland, Portugal, Scotland (UK), Slovakia, South Africa, Spain, Sweden, Switzerland, United Kingdom and Wales (UK).

Head quarters:
Dell, Inc. (NASDAQ: DELL) is an American multinational computer technology corporation based in 1 Dell Way, Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell is listed at number 41 in the Fortune 500 list. It is the third largest PC maker in the world after HP and Lenovo. Dell has grown by both increasing its customer base and through acquisitions since its inception; notable mergers and acquisitions including Alien ware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce. Fortune Magazine listed Dell as the sixth largest company in Texas by total revenue. It is the second largest non-oil company in Texas behind AT&T and the largest company in the Austin, Texas area

Growth in 1990s and early 2000s

From 1997 to 2004, Dell enjoyed steady growth and it gained market share from competitors even during industry slumps. In 1996, Dell began selling computers through its website, and in 2002, it expanded its product line to include televisions, handhelds, digital audio players, and printers. Dell's first acquisition occurred in 1999 with the purchase of Converge Net Technologies. Dell surpassed Compaq to become the largest PC manufacturer in 1999. In 2002, when Compaq merged with Hewlett Packard (the 4th place PC maker), the combined Hewlett Packard took the top spot but struggled and Dell soon regained its lead In 2003, the company was rebranded as simply "Dell Inc." to recognize the company's expansion beyond computers. In 2004, Michael Dell resigned as CEO while retaining the title of Chairman, handing the CEO title to Kevin Rollins who was the President and COO. Under Rollins, Dell began to loosen its ties to Microsoft and Intel, the two companies which were responsible for Dell's dominance in the PC business. During that time, Dell acquired Alienware, which introduced several new items to Dell products, including AMD microprocessors. To prevent cross-market products, Dell continues to run Alien ware as a separate entity, but still a wholly owned subsidiary.