© 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 ofentities, the proportion of corporations rises to 59%
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 3
Note: Comparison of company revenues versus country GDPSources: IMF, World Bank, Fortune Global 500
is bigger than
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 4
Wal‐Mart revenues in 2009 exceeded the respective GDPs of 174 countries
The GDP of Pakistan (6th
most populous i )nation)
is bigger than +
The GDP of BangladeshBangladesh(7th most populous nation)
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 5
This file is licensed under the Creative Commons Attribution ShareAlike 3.0 License. In short: you are free to share and make derivative works of the file under the conditions that you appropriately attribute it, and that you distribute it only under a license identical to this one. Official license Subject to disclaimers.
)
SINOPEC
is bigger than
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 6
This file is licensed under the Creative Commons Attribution ShareAlike 3.0 License. In short: you are free to share and make derivative works of the file under the conditions that you appropriately attribute it, and that you distribute it only under a license identical to this one. Official license Subject to disclaimers.
Despite the auto industry’s woes, in 2009, FORD
is bigger than
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 7
Revenues of the 44 companies in the Top 100 versus global GDP, 2009 (US$ trillion)
57.9
E i l t t
6.4
R f i Gl b l GDP
Equivalent to 11% of
global GDP
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 8
Revenues of companies Global GDP
Sources: IMF, World Bank, Fortune Global 500
…BUT JUST 0.4% OF THE WORLD’S
OVER A MILLION MORE PEOPLE THAN
THE WORLD S ECONOMICALLY
ACTIVE POPULATION
THE COMBINED TOTAL POPULATIONS OF SWITZERLANDAND SINGAPORE…AND SINGAPORE…
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 9
Rank Country/ Corporation GDP/Revenues (US$ million, 2009)
1 United States 14,256,275 2 Japan 5,068,059 3 Chi 4 908 982
Rank Country/ Corporation GDP/Revenues (US$ million, 2009)
26 Taiwan Province of China 378,969 27 Saudia Arabia* 369,671 28 V l 337 2953 China 4,908,982
4 Germany 3,352,742 5 France 2,675,915 6 UK 2,183,607 7 Italy 2,118,264 8 Brazil 1,574,039
28 Venezuela 337,295 29 Greece 330,780 30 Islamic Republic of Iran 330,461 31 Argentina 310,065 32 Denmark 309,252 33 South Africa* 287,219
9 Spain 1,464,040 10 Canada 1,336,427 11 India* 1,235,975 12 Russia* 1,229,227 13 Australia 997,201 14 Mexico 874 903
34 ROYAL DUTCH SHELL 285,129 35 EXXON MOBIL 284,650 36 Thailand 263,889 37 BP 246,148 38 Finland 238,128 39 United Arab Emirates* 229 97114 Mexico 874,903
15 Korea 832,512 16 Netherlands 794,777 17 Turkey 615,329 18 Indonesia 539,377 19 Switzerland* 494,622
39 United Arab Emirates 229,971 40 Columbia* 228,836 41 Portugal 227,855 42 Ireland 227,781 43 Hong Kong SAR 210,731 44 TOYOTA MOTOR 204,106
20 Belgium* 470,400 21 Poland 430,197 22 WAL‐MART STORES 408,214 23 Sweden* 405,440 24 Norway 382,983 25 Austria 381,880
45 JAPAN POST HOLDINGS 202,196 46 Czech Republic* 194,828 47 Israel 194,825 48 Malaysia 191,463 49 Egypt 187,954 50 SINOPEC 187,518
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 10
25 Austria 381,880 50 SINOPEC 187,518
Sources: IMF, World Bank, Fortune Global 500
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 11
Number of companies in the Top 100 global economic entities Note: A key study was done in 1996 by Sarah Anderson and John Cavanaghf h fof the Institute of
Policy Studies which found 51 companies in the world’s top 100
5045 44 44
pglobal economic entities using the same approach. (See Corporate Empires
2000 2005 2008 2009
Empires, Multinational Monitor, December 1996, Volume 17, Number 12.)
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 12
Sources: IMF, World Bank, Fortune Global 500
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 13
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 14
Source: Fortune Global 500
N b f i f d l d t i d
1
5 445
50
Number of companies from developed countries and RDEs in the Top 100 global economic entities
5990
100
Number of companies from developed countries and RDEs in the Top 150 global economic entities
49
58
4
25
30
35
40 912 12
50
60
7080
90
940
3640
5
10
15
20 9183
74 76
1020
30
40
50
0
5
2000 2005 2008 2009
US, Europe, Japan RDEs
0
10
2000 2005 2008 2009
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 15
, p , p
Sources: IMF, World Bank, Fortune Global 500US, Europe, Japan RDEs
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 16
WHICH INDIVIDUALS AND GROUPS INFLUENCE AND SHAPE THE WORLD IN WHICH WE LIVE AND OPERATE?
Business Leaders
Media Social Networks
Financial Power Brokers
Religious Leaders Academics
Ideas to
Impact
NGOs Govern‐ments Individuals
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 17
Political O i ti
GeographiM k t Criminal
The Influence Landscape
ConsumerLearner/NGOs
Business Leaders Transnational
Organizations
Organizations
“Industry” Communities
c Markets
Military
Criminal Organizations
Social Organizations
Employee/Decision‐maker
Family member
Learner/ Teacher
Govern‐ments
Media
NGOsFinancial Power Brokers
Shapers & Individuals & Their Roles
Business Organizations
Belief‐based Organizations
Citizen/ Politician Leader/
FollowerReligious Leaders
Social Networks
Shapers & Influencers
Activist/ Member
Innovator
Influencer
Academic Institutions
Consumers/ Individuals
• Competition for impact• Increasing interconnections• Exploding channels of influence• Individual choice & power rising
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 18
• Individual choice & power rising• Disruptive technology shifts
CEO of the decade:Let’s show the world how to Google: “When it’s too easy
AREAS OF INFLUENCE: Consumption, raw materials, economic growth, employment, capital flows,
CEO of the decade: “Innovation distinguishes between a leader and a
follower.”
Google: When it s too easy to get money, then you get a lot of noise mixed in with the
real innovation and entrepreneurship. Tough
times bring out the best parts
trade, politics, the environment and even popular culture.
of Silicon Valley.”
"Be nice to nerds. Chances are you'll end
ki f "
Empowering the bottom of the pyramid: "I thought if you can
up working for one. "
"One hundred years from now, I expect the Tatas to be much bigger than it is
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 19
pyramid: I thought, if you can become an angel for 27 dollars, it would be fun to do more of it."
now.”
Share of Total Global R&D Spendingp g
35
40
45
Americas
U S
15
20
25
30U.S.
Asia
Japan
China
0
5
10
15India
Europe
Rest of World
Total (US$billions): 1121.8 (2008) 1112.5(2009) 1156.5(2010)
2008 2009 2010
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 20
Sources: R&D Magazine (Emerging Economies Drive Global R&D Growth), 2009; Booz & Co Global Innovation 1000 study 2009
25%
Growth in Value of Global Exports
Transportation Services
Fuels & Mining Products20%
000 to 200
8 (%
)
Total Commercial Services
Transportation ServicesOther Commercial
Services
Total Merchandise
15%
ual G
rowth Rate 20
TravelAgricultural Products
Manufactures5%
10%
Average
Ann
0%
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
Value of World Exports 2008 (US$ billion)
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 21
p ( $ )
Source: World Trade Organization
© 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
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 24
Investor and Target Regions and Countries in Overseas Land Investment for Agricultural Production, 2006–May 2009(Number of signed or implemented deals)
1
6
1 2
1
41
4
Question:What will be the economic and
13 1 51 2 3
221
12
2
124
1 1 31 6
1
1 2 11
10 4
12
political impact of relatively
poorer countries trading their
future resources1
2
1
1
1 1
21
2
1
future resources away for gains
today?Will such
investments be
Notes: This figure includes only confirmed deals that have been signed, of which some have been implemented. However, not all signed deals were eventually implemented, and signed deals that were rescinded
Investors’ country
Target country
sustainable?
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 25
by one or both parties before the end of May 2009 have been excluded from the map. Prospective deals which have been reported in the press, but have not progressed to the stage of agreements have been excluded. China and the Russian Federation are both investors and targets for "land deals"; China is primarily an investor, and the Russian Federation Is primarily a target for such deals. The total number of deals is 48, shown by both source and destination countries.Source: UNCTAD
Smart partnering to ensure sustainable supplies of critical raw materials1
Unilever is the world’s largest buyer of tea. In 1999, Unilever Tea Kenya started a pilot program in Kericho to apply company sustainability principles to the production of tea. The initiative focused on improving productivity, sustainability, and environmental management, as well as energy and habitat conservation. For Unilever, growing pressure on natural resources means
p g pp
that securing high‐quality, long‐term supplies of critical raw materials is of paramount strategic importance.
The Kericho initiative had a direct impact on the company’s ability to control the supply of tea not just today but also into the future, while simultaneously enhancing Unilever’s corporate reputation with both consumers and employees. Company leadership felt that higher short‐t t f t i h d b th l t t t i d U il i d f itterm costs were far outweighed by the long‐term strategic edge Unilever gained for its raw‐materials supplies and brands. In 2008, as a signal of its commitment, Unilever expanded the scope of its sustainable‐agriculture program, pursuing certification from the Rainforest Alliance for all Lipton tea farms by 2015.
The smart partnering approach simultaneously benefited society. The initiative increased farmer revenue through a 10 to 15 percent premium paid above market prices It alsofarmer revenue through a 10 to 15 percent premium paid above market prices. It also positively impacted issues of significant concern for governments and farmers alike, including improving farmer skills, environmental protection, and sustainable production methods, as well as enhancing local associated jobs.
Note 1: Adapted from “Making the Most of Corporate Social Responsibility” Tracey Keys
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 26
Note 1: Adapted from “Making the Most of Corporate Social Responsibility”, Tracey Keys, Thomas W. Malnight and Kees van der Graaf, The McKinsey Quarterly, December 2009
© 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: The Influence of the World’s Largest 100 Economic Entities ” by Tracey Keys and Thomas Malnightthe World s Largest 100 Economic Entities, by Tracey Keys and Thomas Malnight, first published in August 2010 on www.globaltrends.com.
To access the list of the top 100 economic entities, please go to the website toTo access the list of the top 100 economic entities, please go to the website to download a complementary copy of the full article and to access further materials on global trends topics.
About the Authors
Tracey Keys is Director of Strategy Dynamics Global Limited and also works with the International Institute for Management Development (IMD), in Lausanne, Switzerland, where Thomas Malnight is a professor of strategy
d l
© Strategy Dynamics Global Limited. All rights reserved. Not to be used without permission. www.globaltrends.com 28
and general management.