Ch 11 and Ch 13 Research Tasks

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Chapter 11
The criteria used by Fortune to rank the top global companies were revenues. These companies were not ranked by profit. In fact, Fannie Mae, ranked internationally as Global 500’s 26th company should a profit loss.

The US holds 7 positions of the top 25 companies while China only holds 3 positions and Japan only 2 positions. I was surprised by this because media causes us to believe that China and Japan are taking over US industry and profits. Not surprisingly, 14 of the top 25 companies are in the oil/gas/utility business and 4 are vehicle manufacturers. Fortune: Global 500

Rank CompanyRevenues
($ millions)Profits
($ millions)
1Netherlands
Royal Dutch Shell
484,48930,918
2US: Texas
Exxon Mobil
452,92641,060
3US: Arkansas
Wal-Mart Stores
446,95015,699
4Britain: London
BP
386,46325,700
5China: Bejing
Sinopec Group
375,2149,453
6China: Bejing
China National Petroleum
352,33816,317
7China: Bejing
State Grid
259,1425,678
8US: California
Chevron
245,62126,895
9US: Texas
ConocoPhillips
237,27212,436
10Japan
Toyota Motor
235,3643,591
11France
Total
231,58017,069
12Germany
Volkswagen
221,55121,426
13Japan: Tokyo
Japan Post Holdings
211,0195,939
14Switzerland
Glencore International
186,1524,048
15Russia: Moscow
Gazprom
157,83144,460
16Germany: Dusseldorf
E.ON
157,057-3,085
17Italy: Rome
ENI
153,6769,539
18Netherlands: Amsterdam
ING Group
150,5716,591
19US: Michigan
General Motors
150,2769,190
20South Korea
Samsung Electronics
148,94412,059
21Germany: Stuttgart
Daimler
148,1397,880
22US: Connecticut
General Electric
147,61614,151
23Brazil: Rio de Janeiro
Petrobras
145,91520,121
24US: Nebraska
Berkshire Hathaway
143,68810,254
25France: Paris
AXA
142,7126,012
26US: Washington D.C.
Fannie Mae
137,451-16,855
27US: Michigan
Ford Motor
136,26420,213

EXECUTIVE SUMMARY

This report was commissioned to examine the pursuit of international expansion opportunities in Poland. To achieve economies of scale, our marketing and manufacturing division is aiming toward a strategy of minimum local adaption and we believe that Poland is the best place to achieve that. We have determined that we can produce laptop computers more efficiently in Poland.

Poland has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and some government regulation. Poland has been a member of the European Union (EU) since 2004 and foreign direct investment (FDI) has played a significant role in supporting Poland’s labor-intensive and medium-technology sectors. Strong economic growth potential, a large domestic market, tariff-free access to the EU, and political stability will allow our company to develop a lucrative relationship with this central European country.

Poland is the only EU country that was not a part of the 2009 recession. Dell has a manufacturing facility in Poland which will give us access to a highly trained work force. The unemployment rate for the country is 12.5% which gives us the opportunity to enter this democratic and fast-developing country.

In developing this relationship, it will be essential to consider their local culture. Periods of silence during negotiations are not unusual. We should not try to fill the silence with unnecessary talk. We will have to be patient throughout negotiations. In Poland, the decision-making process is slower than in the United States. So we must be prepared to have several meetings before clinching the deal. Building relationships and face-to-face contact is imperative for business and cooperation for their culture. They don’t do much business over the phone or through email. They DO NOT work on Sundays and we must take this into consideration when hiring and scheduling our workforce.

To begin our pursuit of international expansion, our research shows...
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