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“Fortune 500”

Compiled by:
Amber Agrawal
Danish Khan
Suruchi Pandey
&
Harsha Rajwanshi

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Guidance and support

Miss Gunjan Chouhan

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Contents

 Fortune 500
 Business process

 Case study:

Specific: Procter & Gamble Company


Outline: Walt Disney Company

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Fortune 500

By
Suruchi Pandey.

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Fortune 500
 The Fortune 500 is a ranking of the top 500 American public
corporations as measured by gross revenue, although eligible
companies are any for which revenues are publicly available
(which is a larger universe than "public companies", as the term
is commonly understood, meaning "companies having common
stock that trades on a stock exchange"). Fortune magazine
compiles and publishes the list annually.

 The Fortune Global 500 is a ranking of the top 500


corporations worldwide as measured by revenue. The list is
compiled and published annually by Fortune magazine. Until
1989 it listed only non-US industrial corporations under the title
"International 500", while the Fortune 500 contained and still
contains exclusively US corporations.

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Contd.
 This is the top 10 as published in July 2007. It is based on the
companies' fiscal year ended on or before 31 March 2007.

Wal Mart - United States (Retail)


ExxonMobil Corporation - United States (Oil/Retail)
Royal Dutch Shell - Netherlands/United Kingdom (oil)
BP - United Kingdom (oil)
General Motors - United States (automobiles)
Toyota Motor - Japan (automobiles)
Chevron - United States (oil)
DaimlerChrysler - Germany/United States (automobiles)
ConocoPhillips - United States (oil)
Total - France (oil)

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Business process

By
Amber Agrawal.

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What is Business process?
Business method is a collection of interrelated tasks, which solve
a particular issue.
There are three types of business processes:

 Management processes, the processes that govern the


operation of a system. Typical management processes include "
Corporate Governance" and "Strategic Management".
 Operational processes, processes that constitute the
core business and create the primary value stream. Typical
operational processes are Purchasing, Manufacturing,
Marketing, and Sales.
 Supporting processes, which support the core processes.
Examples include Accounting, Recruitment, IT-support.

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Contd.
The process definition of Johansson et al. (1993). They define a
process as

”a set of linked activities that take an input and transform it to


create an output. Ideally, the transformation that occurs in the
process should add value to the input and create an output that
is more useful and effective to the recipient either upstream or
downstream.”

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Characteristics for a business process.

 Definability: It must have clearly defined boundaries,


input and output.
 Order: It must consist of activities that are ordered
according to their position in time and space.
 Customer: There must be a recipient of the process'
outcome, a customer.
 Value-adding: The transformation taking place within the
process must add value to the recipient, either upstream
or downstream.
 Embeddedness: A process can not exist in itself, it must
be embedded in an organizational structure.
 Cross-functionality: A process regularly can, but not
necessarily must, span several functions

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Procter and Gamble Company

By
Harsha Rajwanshi

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Facts and Figures
 Type : Public
 Founded : 1837
 Headquarters : One Procter & Gamble Plaza,
Cincinnati, Ohio, USA 45202
 Industry : Consumer goods
 Products : Consumer goods
 Revenue : US$76.476 billion (2007)
 Net income : US$10.340 billion (2007)
 Employees : 138,000
 Slogan : Touching Lives, Improving Life.
 Website : www.pg.com

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contd.
 Industry information
Consumer Products Manufacturers
Personal Care Products (primary)
Beverages
Business Services
Food
Media
 Rankings
25 in FORTUNE 500
S&P 500
13 in FT Global 500

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Management Process
Corporate governance:

Four Pillars form the heart of P&G's organizational structure.

 Global Business Units (GBUs) build major global brands with


robust business strategies.
 Market Development Organizations (MDOs) build local
understanding as a foundation for marketing campaigns.
 Global Business Services (GBS) provide business technology
and services that drive business success.
 Corporate Functions (CFs) work to maintain our place as a
leader of our industries

Both inside and between our four organizational pillars, P&G relies
on teamwork to get the best results for their objective.

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Global Business Unit
 Philosophy: Think Globally
 General Role: Create strong brand equities, robust strategies
and ongoing innovation in products and marketing to build major
global brands.

 GBUs:
• Baby Care/Family Care
• Beauty Care/Feminine Care
• Fabric & Home Care
• Snacks & Beverage
• Health Care

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Market Development Organization

 Philosophy: Act Locally


 General Role: Interface with customers to ensure marketing
plans fully capitalize on local understanding, to seek synergy
across programs to leverage Corporate scale, and to develop
strong programs that change the game in our favor at point of
purchase.
 MDO Regions:
• North America
• Asia/ India/ Australia
• Northeast Asia
• Greater China
• Central-Eastern Europe/ Middle East/ Africa
• Western Europe
• Latin America

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Global Service Units
 Philosophy: Enabling P&G to win with Customers and
Consumers

 General Role: Provide services and solutions that enable the


Company to operate efficiently around the world, collaborate
effectively with business partners, and help employees become
more productive.

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Corporate Functions
 Philosophy: Be the Smartest/Best
 General Role: Ensure that the functional capability integrated
into the rest of the company remains on the cutting edge of the
industry. We want to be the thought leader within each CF.
 Our Corporate Functions:
• Customer Business Development
• External Relations
• Finance & Acct.
• Human Resources
• Information Technology
• Legal
• Marketing
• Consumer & Market Knowledge
• Product Supply
• Research & Development
• Workplace Services

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Behind the Governance
 The Board of Directors

 Committees
Audit Committee
Compensation & Leadership Development Committee
Governance & Public Responsibility Committee
Innovation & Technology Committee

 Auditor Independence

Officers & Executives

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Operational process
 Procter & Gamble’s Purchases organization is charged with the
strategic sourcing of all materials, equipment and services for
the Company and is responsible for overall supplier relationship
management and strategy

 They routinely collaborate with the other disciplines in Product


Supply, with other Functions, and with General Management as
they conduct business with their suppliers around the world.

 Supplier guidelines:

Best Total Value


Honest, Ethical and Fair Dealings
Externally-Linked Supply Solutions
Competition and Collaboration
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Contd.
Payment Processes:

 Electronic invoicing :

ERS or Evaluated Receipt Settlement


SOI or Supplier Owned Inventory
Electronic invoices


Paper invoicing

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Supply chain :
 P&G has taken the practice one step further by building an
adaptive supply network – a demand-driven supply chain
capable of analyzing streams of real-time data and
automatically producing highly accurate forecasts at any given
moment.

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Support Process
 Recruitment process:

Online Application
Testing/Interviewing

 Recruiting philosophy:

Promote from with in,


Recruit the best,
Total assessment,
College recruitment

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Walt Disney Company

By
Danish Khan

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Facts and Figures.
 Type : Public (NYSE: DIS)
 Founded : 16 oct 1923
 Founder : Walt and Roy Disney
 Headquarters : Burbank, California,
 Key people : Robert Iger,
President/CEO
 Industry : Media and Entertainment
 Products : ABC, ABC Family, ABC Kids,
Walt Disney Studios Distribution, Walt Disney Studios Motion Pictures Group,
Disney Channel, Disney Channel Original, ESPN, ESPN2, Jetix,
Walt Disney Studios, Walt Disney Parks and Resorts, Walt Disney Television,
Walt Disney Television Animation, Walt Disney Records, Walt Disney Pictures,
Playhouse Disney, Disney Consumer Products, Pixar, Soapnet,
Disney Interactive Studios, Disney Store Toon Disney
 Revenue $35 .3 billion USD (2006)
 Operating income $6.491 billion USD (2006)
 Net income $3.374 billion USD (2006)
Employees 133,000 (2006)
 Website http://corporate.disney.go.com/
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Contd.
 Industry information

Media (primary)
Computer Software
Consumer Products Manufacturers
Leisure
Retail
Telecommunications Services
 Rankings:

64 in FORTUNE 500
S&P 500
102 in FT Global 500

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Walt Disney as a Company
The Walt Disney Company is diversified worldwide entertainment
company with operations in four business segments:

 Media Networks,
 Parks and Resorts,
 Studio Entertainment and
 Consumer Products.

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Contd..
 The Media Networks segment consists of television, radio and
cable operations

 The Disney Parks and Resorts segment generates revenues


from the sale of admissions to theme parks, hotel reservations
and rentals at the resort properties.

 The Studio Entertainment segment produces and acquires live-


action and animated motion pictures, animated direct-to-video
programming, musical recordings and live stage plays.

 The Consumer Products segment works with licensees,


manufacturers, publishers and retailers throughout the world to
design, promote and sell a wide variety of products based on
Disney characters and other subjects.

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Corporate strategy:
 Disney's corporate level strategy is based on a horizontal and
decentralized and informal management approach. Ideas are
born from within the departments and are worked-up throughout
the relatively low hierarchy, where the final decisions are made.
The management focuses on group creativity and in team-work.
For instance, the most creative employees usually met every
Sunday in the purpose of coming-up with new ideas and new
business concepts/strategies. The Sunday meetings are
referred to as "Gong Shows", where all participants have to
come-up with a unique idea.

 A large emphasis is placed on employee participation,


especially on the most talented employees. Furthermore, the
company is frequently refreshing its top management with new
executives. "Top-flight" managers from the entertainment and
the financial business bring with them new ideas and concepts
which can be applied in the Disney Company

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Corporate responsibility

 Business Standards and Ethics


 Corporate Governance
 Community
 Disney's Environmentality
 International Labor Standards

Safety and Security

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Thanks!

“Thereis no security on this


earth, there is only
opportunity.”

-General Douglas MacArthur


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