Paper Topic:

Business Policy

LESSON 7 , ASSIGNMENT 2

The atmosphere in which the modern business organization operates is something which can change in no time at all . In comparing Fortune Magazine 's Most Admired Companies ' from 2007 , and in retrospect 1987 , some interesting facts emerge . First , the two lists are compared as follows

2007 1987

1 . General Electric General Motors

2 . Starbucks Exxon

3 . Toyota Motor Ford

4 . Berkshire Hathaway IBM

5 . Southwest Airlines Mobil

6 . FedEx General Electric

7 . Apple ATT

8 . Google Texaco

p 9 . Johnson Johnson Dupont

10 . Proctor Gamble Chevron

These two lists are characterized by a few common elements first , the issue of profitability is something that is universal in the lists , even thought they are separated by a decade of time . The companies that are in the lists , upon further research , are all companies which , while not constant , have been profitable overall . In fact , some of these companies , such as Ford and Exxon , have fallen upon hard times occasionally , and their positive position in the mind of the public has allowed them to recover from some major catastrophes , such as Ford 's plant closings and Exxon 's Valdez disaster , which almost destroyed the company . Interestingly , in the 2007 list , a new type of company Starbuck 's appears . It can be said that the company is different because much of what they sell is image , and not the tangibles offered by automotive manufacturers as a quick example

How much of the evaluation is dominated by the profitability of the company

In the present day evaluations , profitability of the company , of course is a key element as it has always been however , the companies of today are evaluated more so on net income after taxes as a percentage of sales for a few key reasons . First , some of the companies that are rated as top companies are those which offer non-durable products such as Starbuck 's , for which a measure such as return on assets is not the best evaluative tool

How many of these companies currently on the 'Most Admired ' list also appear on Fortune 's current list of "The 100 Best Companies to Work For

As a matter of fact , three of the companies currently on the `Most Admired ' list also appear on Fortune 's current list of `The 100 Best Companies to Work For specifically , the companies are Google , Johnson Johnson and Starbucks . Based on this finding , there are several possible theories for the relationship between companies being ranked on both lists simultaneously . Obviously , companies that are among the best to work for will generate a level of admiration . Moreover , it is also likely that companies that are so admired will attract the kinds of talented and qualified people as employees who would be likely to speak well of companies . Conversely , companies that are not good to work for are unlikely to be admired

Conclusion

In conclusion , what can be seen in comparing popular companies from present and past is that some firms have great longevity , some do...

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