Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities
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Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities

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NEW SPECIAL REPORT: Corporate Clout Distributed: The Influence of the World’s Largest 100 Economic Entities ...

NEW SPECIAL REPORT: Corporate Clout Distributed: The Influence of the World’s Largest 100 Economic Entities
Of the world’s 100 largest economic entities in 2010, 42 (42%) are corporations. The largest, as in 2009 was Wal-Mart, whose 2010 revenues exceeded the GDPs of 171 countries making it the 25th largest economic entity in the world. The next group in terms of size is energy majors with the combined revenues of the five largest players (Royal Dutch Shell, ExxonMobil, BP, Sinopec and China National Petroleum) equivalent to 2.5% of global GDP in 2010.
While the proportion of corporations amongst the world’s largest 100 economic entities has fallen over the last decade one big trend is the movement from West to East as global challengers from rapidly developing economies (RDEs) continue their rise into the global halls of economic power – along with their countries. Among the Top 100 economic entities there are now 6 RDE companies versus just 1 in 2000, and looking at the Top 150 the number of RDE companies tripled between 2000 and 2010 to 15.
Overall it is a multi-hub world, with many distributed players cultivating – and in some cases losing – their economic clout. Understanding how this picture impacts your markets, customers, consumers, employees and value creation networks is critical to future success. It is also critical to the future success of economies and societies globally. The sheer size and influence of corporate entities means there is a need for them to take a more active role in addressing critical global challenges, from food to water to energy security.
It’s time to rethink how we channel and use corporate clout to best advantage of both business and society.
Access the full report on www.globaltrends.com for free.

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Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities Corporate Clout Distributed 2012: The Influence of the World's Largest 100 Economic Entities Presentation Transcript

  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 1
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 2
  • Looking at the top 150 economic entities, the proportion of corporations rises to 58%Note: Comparison of company revenues versus country GDPSources: IMF, World Bank, Fortune Global 500, 2011 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 3
  • Wal-Mart revenues in 2010 exceeded the respective GDPs of 171 countries – all those in green in the map.© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 4
  • Austria 2010 revenues are bigger than the GDPs of South AfricaThis file is licensed under the Creative Commons Attribution ShareAlike 3.0 License. In short: you are free to share Argentinaand make derivative works of the file under the conditions that you appropriately attribute it, and that youdistribute it only under a license identical to this one. Official license Subject to disclaimers. © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 5
  • Greece BP United is bigger Arab than Emirates Venezuela© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 6
  • In fact, the largest 5 energy companies in the world in 2010 had revenues equivalent to 2.5% of total global GDP! That’s slightly less than Canada, the tenth largest country in the world in terms of GDP!© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 7
  • The largest 5 automakers in the world in 2010 had revenues equivalent to 1.24% of total global GDP! More than the GDP of the Netherlands!© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 8
  • The largest 5 financial services companies in the world in 2010 had revenues equivalent to 1.15% of total global GDP! More than the GDP of Indonesia!© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 9
  • Between them these 15 corporate titans employed 4.65 million people in 2010: More than the entire population of Ireland… …OR New Zealand …OR Qatar and Kuwait combined! +© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 10
  • Revenues of the 42 companies in the Top 100 versus global GDP, 2010 (US$ trillion) 63.1 Equivalent to 11% of 7 global GDP Revenues of companies Global GDPSources: IMF, World Bank, Fortune Global 500, 2011 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 11
  • OVER A MILLION MORE PEOPLE THAN …BUT JUST 0.4% OF THE COMBINED THE WORLD’S TOTAL POPULATIONS ECONOMICALLY OF GREECE AND ACTIVE POPULATION QATAR…© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 12
  • Rank Rank Country/ Corporation Country of Companies GDP/Revenues (US$ % Change 2009 to 2010 2010 2009 million, 2010) 1 1 United States 14,526,550 4.2% 2 3 China 5,878,257 17.8% 3 2 Japan 5,458,797 8.5% 4 4 Germany 3,286,451 -0.6% 5 5 France 2,562,742 -2.6% 6 6 United Kingdom 2,250,209 3.1% 7 8 Brazil 2,090,314 30.6% 8 7 Italy 2,055,114 -2.9% 9 11 India 1,631,970 29.0% 10 10 Canada 1,577,040 17.9% 11 12 Russia 1,479,825 21.1% 12 9 Spain 1,409,946 -3.9% 13 13 Australia 1,237,363 25.2% 14 14 Mexico 1,034,308 17.6% 15 15 South Korea 1,014,482 21.6% 16 16 Netherlands 780,668 -1.9% 17 17 Turkey 735,487 19.7% 18 18 Indonesia 706,752 31.3% 19 19 Switzerland 527,920 7.2% 20 21 Poland 469,401 9.0% 21 20 Belgium 467,779 -0.9% 22 23 Sweden 458,725 13.7% 23 27 Saudi Arabia 448,360 18.9% 24 26 Taiwan 429,845 13.9% 25 22 Wal-Mart Stores US 421,849 3.3%Sources: IMF, World Bank, Fortune Global 500 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 13
  • Rank Rank Country/ Corporation Country of Companies GDP/Revenues (US$ % Change 2009 to 2010 2010 2009 million, 2010) 26 24 Norway 412,990 11.4% 27 30 Islamic Republic of Iran 407,382 12.4% 28 34 Royal Dutch Shell Netherlands 378,152 32.6% 29 25 Austria 377,382 -1.2% 30 31 Argentina 369,992 19.2% 31 33 South Africa 363,655 28.1% 32 35 Exxon Mobil US 354,674 24.6% 33 36 Thailand 318,908 20.9% 34 32 Denmark 309,866 0.3% 35 37 BP UK 308,928 25.5% 36 29 Greece 305,415 -6.7% 37 39 United Arab Emirates 302,039 11.7% 38 28 Venezuela 293,268 -10.0% 39 40 Colombia 289,433 23.6% 40 50 Sinopec Group China 273,422 45.8% 41 56 China National Petroleum China 240,192 45.1% 42 38 Finland 239,177 -0.9% 43 48 Malaysia 237,959 23.3% 44 41 Portugal 229,154 -2.4% 45 51 State Grid China 226,294 22.7% 46 43 Hong Kong SAR 224,459 7.3% 47 52 Singapore 222,699 21.5% 48 44 Toyota Motor Japan 221,760 8.6% 49 49 Egypt 218,465 15.8% 50 47 Israel 217,445 11.6%Sources: IMF, World Bank, Fortune Global 500 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 14
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 15
  • Note: A key study Number of companies among the Top 100 global was done in 1996 economic entities by Sarah Anderson and John Cavanagh of the Institute of 50 Policy Studies which found 51 companies in the world’s top 100 45 global economic 44 44 entities using the same approach. 42 (See Corporate Empires, Multinational Monitor, December 1996, Volume 17, 2000 2005 2008 2009 2010 Number 12.)Sources: IMF, World Bank, Fortune Global 500 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 16
  • Key shifts in the Fortune Global 500 List • US firms still dominate with 133 companies in 2011, but this is down from 186 companies in 2001 • Chinese companies now number 61 on the 2011 list, including three of the top 10, versus just 12 in 2001 • Over 23% (117 companies) of Global 500 firms are headquartered in rapidly developing economies, up from 95 in 2009, and almost double the 61 RDE companies on the list in 2006© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 17
  • Number of companies from developed countries Number of companies from developed countries and RDEs in the Top 100 global economic and RDEs in the Top 150 global economic entities entities 1 5 9 5 4 12 8 6 12 15 49 91 40 40 83 36 36 74 76 72 2000 2005 2008 2009 2010 2000 2005 2008 2009 2010 US, Europe, Japan RDEs US, Europe, Japan RDEsSources: IMF, World Bank, Fortune Global 500 © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 18
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 19
  • The starting point: 43,000 Transnational corporations (TNCs) The Core: 1347 strongly connected corporations • About 75% of the ownership of firms in the core remained in the core • Each firm in the core had, on average, connections to 20 other firms in the core • Only 737 firms (the majority in the core) had 80% of the control over the value of all TNCs – a control ten times bigger than what could be expected based on their wealth Source: The Global Network of Corporate Control, Stefania Vitali, James B. Glattfelder, and Stefano Battiston , Swiss Federal Institute of Technology, http://www.sg.ethz.ch/research/economic_networks/ownership_networks© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 20
  • THE BOTTOM LINE 147: THE NUMBER OF CORPORATIONS THAT CONTROL 40% OF TOTAL GLOBAL VALUE CREATION • All are in the core • The group of 147 has almost total control over itself • Almost three-quarters of these economic “super- entities” are financial intermediaries Source: The Global Network of Corporate Control, Stefania Vitali, James B. Glattfelder, and Stefano Battiston , Swiss Federal Institute of Technology, http://www.sg.ethz.ch/research/economic_networks/ownership_networks© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 21
  • This file is licensed under the Creative Commons Attribution ShareAlike 2.0 License. Author: Crispin Semmens.© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 22
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 23
  • Spheres of influence • Employment Influence • Value creation/wealth distribution that is often • Economic and social policies, legislation and regulation greater than • Research and innovation that of the • Trade nations, societies and • Investment communities • Resource use and sustainability in which • Environment large • Role models for the future of business and society corporations • Global challenges, e.g. water, food, energy security operate© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 24
  • The role for corporates with clout: Not just as suppliers and consumers of resources or resource-based products and services, but as role models and influencers for more responsible and sustainable use of resources. Increasing efficiency of water use: Estimated Water Addressing the energy challengeFootprint per US$ of Industrial Output, Selected Countries (Liters of Water to Produce) • 25% of people worldwide, over 1.5 billion mainly 100 in Africa and Asia, have no access to electricity. 80 • Yet, each day New York City consumes the same amount of electricity as all sub-Saharan African 50 nations combined, excluding South Africa. 20-25 • Consumption of energy is projected to increase 10-.15 by a staggering 53% from 2008 to 2035 with the largest projected increase in demand in the non- OECD economies. (Source: EIA) • The challenge: moving from excessive dependence on fossil fuel towards developing sustainable energy sources while improving energy efficiency and reducing wastage.Source: The Water Footprint Network, www.waterfootprint.org© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 25
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 26
  • © Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 27
  • This presentation is adapted from the article “Corporate Clout Distributed: The Influence of the World’s Largest 100 Economic Entities,” by Tracey Keys and Thomas Malnight, first published in May 2012 on www.globaltrends.com. To access the list of the top 100 economic entities and further analysis click here. About the Authors Tracey Keys is a Director of Strategy Dynamics Global Limited, publisher of www.globaltrends.com. She works with senior executives worldwide on complex strategy issues and to translate global trends into action today. Thomas Malnight is a professor of strategy and general management at the International Institute for Management Development (IMD), in Lausanne, Switzerland.© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 28