Tag: Business Organizations

CA Foundation Business & Commercial Knowledge Study Material Chapter 3 Business Organizations – An overview of Selected Global Companies

1. AMERICAN EXPRESS

• Year of Incorporation : 1850
• Head office : New York, USA
• Chairman and CEO : Kenneth I. Chenault
• Website : www.americanexpress.com

History : American express was founded in 1850 as an express mail business.
Philosophy : Vision : To be a leading provider of payment solutions worldwide.
Mission : To leverage our local and global expertise to be a leading provider of payment solutions by delivering high quality, innovative and world class products and services, while maintaining the highest standards of governance and ethics.
Business portfolio : American Express operates in both card and non-card segments.
Operations : American Express has 2300 offices in 175 countries across the world. It has several subsidiaries and employs over 56000 people. Its revenue in 2015-16 was US $ 32.119 billion. American Express set up its first office in India in 1921 at Kolkata. Since then it has become the leading banking and travel related services. It is considered a pioneer in’off-shoring processes to captive centres in India.
Developments : In 2016, American Express was ranked the 25th most valuable brand in the World. In 2017 it was ranked as the 17th most admired company worldwide.

2. APPLE

• Year of Incorporation : 1976
• Head office : California, USA
• Chief Executive : Tim Cook
• Website : www.apple.com

History: Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Computer Inc. in January 1977 to develop and sell personal computers. In January 2007 it was renamed as Apple Inc. to reflect its shifted focus towards consumer electronics.
Philosophy: Vision: To produce high quality, low cost, easy to use products that incorporate high technology for the individuals.
Mission: To bring the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and internet offerings.
Business portfolio: Apple operates in Mac, iPad, iPhone, Watch, TV and Music segments. It operates the online Apple Store. Its iTunes store is the world’s largest online music retailer.
Operations: Apple is the world’s largest information technology multinational. It is the world’s second largest mobile phone manufacturer. It maintains 478 retail stores in 17 countries. It has more than 120,000 employees and its revenue in 2015-16 was US $ 215.369 billion.
Developments: In August 2014 Apple acquired Beats Electronics. It was ranked 8th among Forbes World’s Biggest Public Companies in 2016. It ranked 9th in Fortune 500 Global Companies same year.

3. HP

• Year of Incorporation : 1939
• Head office : California, USA
• Chairman : Dion Weisler
• Chief Executive : Dion Weisler
• Website : www.hp.com

History: William Redington Hewlett and David Packard founded HP in 1939 in a car garage in Palo Alto to produce electronic test equipment.
Philosophy: To create technology that makes life better for everyone, every where every person, every organization and every community around the globe.
Business portfolio: Major product lines of HP include personal computing devices, enterprise and industry services, related storage devices, networking products. Software, Printers imaging products. It sells to households as well as to-organizations.
Operations: HP is a global information technology company. It develops and sells a wide variety of hardware, software and related products.
Developments: In 2015 HP split its PC and printers business from enterprise products and services business. It resulted into two companies. HP Inc. and Hewlett Packard Enterprise.

4. IBM CORPORATION

• Year of Incorporation : 1911
• Head office : New York, USA
• Chairman : Ginni Rometty
• Chief Executive : Ginni Rometty
• Website : www.ibm.com

History: On June 16, 1911 four Companies were amalgamated to form the Computing Tabulating Recording Company. It was renamed International Business Machines in 1924. Later on the name was changed as IBM corporation.
Philosophy: Vision: To be the first and foremost on any new enterprise data centre migration short-list.
Mission: To be the leader in innovation, development and manufacture of the industry’s most advanced information technologies, including computer systems, software storage systems and micro-electronics.
Business portfolio: IBM operates in both products (analytics, cloud, commerce, Internet of things, security mobile, security, industry solutions, etc.,) and services business consulting, technology, financing, training etc.,/segments.
Operations: IBM is a global technology company with operations in more than 170 countries. It is a major research organization holding the record for most patents. It has more than 380000 employees and its revenue in 2015-16 was US $ 79.20 billion. It has a subsidiary IBM India Pvt. Ltd. in India since 1992.
Development: IBM acquired Lombard in 2009, Sanovi Technology in 2016 and Agile 3 Solutions and Ravy Technologies in 2017. It is ranked 82nd in Fortune 500 global companies.

5. MICROSOFT CORPORATION

• Year of Incorporation : 1911
• Head office : Washington, USA
• Chairman : John Thompson
• Chief Executive : Satya Nadella
• Website : www.microsoft.com

History: Paul Allen and Bill Gates founded Microsoft on April 4,1975. It entered OS business in 1980. It rose to dominate the personal computing with MS-DOS. Since 1990 it has diversified.
Philosophy: Vision: To help individuals and businesses realize their full potential.
Mission: To be a global organization by providing products/services of value for the target market.
Business portfolio: Software and services, devices and Xbox, business developers and IT, for students and educations are the major segments for which Microsoft has products.
Operations: Microsoft is a multinational technology company. It is best known for its software products like Windows, Office, Internet Explorers and Edge Web browsers. It is the largest software maker in the world. It has more than 115000 employees and its revenue in 2015-16 was US $ 85.32 billion. Microsoft Corporation of India was set up 1990. It has six major business units.
Developments: Microsoft acquired Skype Technologies in 2011, mobile hardware division of Nokia in 2014 and Linked in 2016.

6. NESTLE

• Year of Incorporation : 1866
• Head office : Vevey, Switzerland
• Chairman : Peter Brabeck Letmathe
• Chief Executive : Mark Schneider
• Website : www.nestle.com

History: Henri Nestle founded Angloswiss Condensed Milk Company in 1866. In 1879, it merged with milk chocolate inventor Daniel Peter. In 1905 the company was renamed Nestle. It entered India in 1923.
Philosophy: To provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions from morning to night.
Business portfolio: Nestle has popular brands in bottled water, cereals, health, skincare, pet care, coffee, etc.
Operations: Nestle is a global food and drink company. It is the world’s largest food, nutrition, health and wellness company. It has 2000 plus brands across the globe. It operates 418 plants in 86 countries. Its products are available in 191 countries. It employs 3,35,000 people and its revenue was 89.8 billion Swiss Frank in 2015-16.
Developments: Nestle acquired San Pellegrino, Spillers Pet Foods, Ralston Purina, Chief America, Delta Ice cream, Hsu Fachi, Vitablo and Prometheus Laboratories. It ranked 66th in Fortune 500 and 33rd in Forbes 2000 companies in 2016. It has joint ventures with General Mills, Coca Cola Company, Lactalis and Colgat Palmolive.

7. WALMART

• Year of Incorporation : 1962
• Head office : Arkansas, USA
• Chairman : Greg Penner
• Chief Executive : Dough Mcmillion
• Website : www.walmartstores.com

History: Sam Walton founded Walmart in 1962. It was incorporated on October 31, 1969.
Philosophy: Vision: To be the best retailer in the hearts and minds of consumers and employees.
Mission: Saving people money so that they can live better, Tagline: Save money Live better.
Business portfolio: Walmart sells a wide range of products such as groceries, foods, fruits and vegetables, personal and house care, clothing’s, office supplies and general merchandise. It is organized into four divisions.
Operations: Walmart is a multinational that operates a chain of hyper markets, discount stores, grocery stores and online stores. It is world’s largest retailer. It has 11695 stores in 28 countries. It has more than 23,00,000 employees and its revenue was $ 485.87 billion in 2015-16. Walmart India has 21 stores which sell 5000 items in 9 States. It launched B2B e-commerce platform on July 1,2014.
Developments: Walmart acquired Moose Jaw and Bonobos, and jet.com. It is number 1 company in Fortune 500 list and was ranked 15th on Forbes Global list 2000.