Wednesday, March 2, 2011
Micro Question 3/1/11
Research the Fortune 500 list for 2010. Make note of the top 10 firms. Look up the Fortune 500 list from 10 years ago (in 2000). Make a list of the top 10 companies in 2000. If the lists are different, can you explain why some of the firms are no longer on the top 10 list using what we've learned about entry/exit, profit conditions, competition, and costs to explain the change? Have fun with this one...
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I think the most interesting thing is how General Motors has moved on the Fortune 500 list. In 2000, GM was first, and in 2010 it wasn't even on this top ten list. I think this has something to do with how hard the company was hit during the financial crisis and how it was forced to take government bailout money. I also think it is interesting that Wal-Mart stores went from number two to number one. I think that this can also be tied to the financial crisis. When money is tight, people tend to shop more at bargain stores like Wal-Mart. As other, smaller stores may have been closing, Wal-Mart was benefiting from losing its competition.
ReplyDeleteAfter looking at fortune 500 companies list for 2000 and 2010, just like kelly zylman noticed how general motors was number one in 2000 and in 2010 was shocking to see them drop 14 spots in just 10 years. General Motors did get bailed out several times after the meltdown of the economy. Due to increased competition in the automobile industry General Motors could not keep up financially during the losses they faced. A lot of the retail stores like walmart and Target, moved up in the Fortune 500 because Target on one hand focuses a lot on advertising, and Walmart on the other hand focuses on keeping prices low. Walmart has beat out competition easily, for example they have pretty much wiped out Kmart, and bought sears, and Sams club.
ReplyDeleteFrom these lists, I drew the conclusion that some of the firms are no longer on the top 10 list because of financial circumstances. As prices raise and bargain shops go out of business, Walmart loses competition and moves up the list. Most businesses do not get as much traffic which doesnt allow them to lower their prices like Walmart does. Walmart has beat Kmart as well as many other large market industries, giving them the ability to buy out Sams Club. This makes it hard for entry because a new business would want to keep prices as low as Walmarts to get business, but because they wont get as much business, its hard to keep prices that low.
ReplyDeleteThe top ten companies for 2010 is Wal-Mart, Exxon Mobil,Chevron, General Electric, Bank of America, Conoco phillips, At&t, Ford Motor, JP. Morgan Chase, and Hewlell packard. However, the top ten list from 2000 were Wal-Mart, McDonalds which is part of the list and third was United Parcel Service also not part of the the top ten list all these was due to financial problems and even post 2008
ReplyDeleteThere are a few changes from the lists of 2000 to 2010. The obvious change was GM who went from first in 2000 and not even being apart of the top ten in 2010 due to the financial crisis in 2008. Citigroup and Boeing also fell out of the top ten. This can also be a result of the financial crisis. Wal-Mart went from number two to number one mainly because they meet the average American's daily needs. Still the US is not back to where they want to be but they offer goods and services that is still affordable.
ReplyDeleteAmanda M
what i noticed was that in the 2010 fortune 500 top 10 there were 3 oil companies as opposed to 1 in 2000. The skyrocketing prices of gasoline have increased their profits. They can get away with this because they have a monopoly on oil and gasoline. Other companies like GM have dropped out of the top 10 because profits were way down and costs became too high for them to compete
ReplyDeleteWhat I found was there has been minor changes from 2000-2010. One of the most dramatic changes was GM being number one, till not being part of the list. Boeing which was one of the top ten also slipped, and not on the list. Even if in America we are still able to buy and get our needs, we are not even close to what the statues that it once was.
ReplyDeleteI believe the reason why motor companies (namely GM) have gone down on the fortune 500 list is do to the massive government bailouts that the financial and motor companies recieved in the past few years. GM has filed for bankrupcy ergo exiting the industry all together. The reason for the bail out was the fact that the demand for cars during this time period was minimal and GM failed to offset the low demand by not producing as many cars and thus losing money instead of making money.
ReplyDeleteJustin Miller
The top spot from the fortune 500 list in 2000 hit a dramatic drought in the fortune 500 list in 2010. That company was GM, they came from being number 1 to pretty much dissapearing ten years later. This is because they filed for bankruptcy and the government took over it eventually. On the other hand, walmart has kept its competitiveness on a high consistent manor for ten years and has reached number one on the fortune 500 list in 2010.
ReplyDeleteIn those list there is only 5 of the top 10 for 2000 still remain in the top 10 list for 2010, and 3 of them are increase their ranking. The most interesting thing is the General Motors(GM). In 2000 the GM was the No.1 for the list, and in 2010 GM even not in the top 10 list. therefor, GM’s drop can obviously be attributed to its shedding of four major brands, along with a bankruptcy restructuring and a management shakeup that resulted in three new CEOs within the last year. GM does believe it will return to profitability in 2010.
ReplyDeleteAfter reviewing the fortune 500, i noticed that GM motors went from being number one on the top 10 list in 2000, to not even being on the list in 2010. I believe that the financial crisis and government bailouts had a major impact on GM motors. I also noticed that Wal-mart had moved up from number 2 to number one. With the financial hardships people are going through today, Wal-mart has gained a lot more business due to their low prices and affordability.
ReplyDeleteThe list of the two years of course were going to be different, what was popping in 2000 might not be in 2010. After we have technology improving as days go by some companies cant afford to keep up with the demands. Its sad to see that companies are no longer on the list or have dropped down dramatically from their spot. But in the business market nothing assured you your spot, we have to work and keep on our competitive hats to keep the company growing and running.
ReplyDeleteI noticed that in 2000 there were more car companies in the top 10 list. This was probably because the economy was a lot better 10 years ago and more people were able to buy cars. I think that in 2010 Wal-Mart rose to the #1 spot because more people were going for the best deals and Wal-Mart had them. People were no longer interested in buying cars as much. Also in 2010 more gas companies were in the top 10 probably because gas prices rose and lead people to spend more on gas. There are few car companies and it is hard to exit the industry and enter, but they were becoming bankrupt and the government bought some of them out.
ReplyDelete-Danielle Wolf
In the 2000 top ten i noticed, 2 automobile companies were in the top 5 (Ford and GM), and in the 2010 one dropped to 8th while the other dropped to 15th. When the recession first hit a few years back the motor companies get hit first, also the real state. Exxon made a one spot jump and Chevron came out of nowhere to the 3rd spot showing that people still drove their cars and needed gas even though not as many cars were being bought. A price increase must have occurred for gasoline during the recent recession which required an increase in costs and increase on TR. Walmart claimed the 1st place spot which makes a little sense since people will now go to the cheaper or even knock-off brands to save a buck or two in hard times.
ReplyDeleteThis list was very interesting because the majority of the companies are still on the list regardless of the recent financial crisis. I believe this has to do with the restriced entry/exit from the industries. I think that some companies like Walmart also benfited from the smaller companies going out of business. It expanded there customer base. Another interesting company was that the leader, GM was not on the top 10 any more. While the financial crisis was part of the reason they dropped so bad another reason was the competition from foreign auto makers, like Toyota and Honda. In the future I do think we will see them back up there.
ReplyDeleteJimmy Walker
In the list I noticed that general motors fell from number one out of the top ten. this is because of the economic recession that occurred and the car market was struck hard. Ford also fell from five to eight. The surprise is that gas rose up on the list even though people did not buy more cars. This is probably because people still drove and the need for gas is huge.
ReplyDeleteEnjoying the comments so far; Jimmy! A shout out to you; you always provide thoughtful posts and I admire your courageous leadership in class discussion...
ReplyDeleteI am going to try to avoid talking about G.M. since everyone else seems to be focussing on them. What caught my attention was Bank of America not only cracking the top ten but up at number five. I think this huge increase for B of A was due to what has happened to many of the smaller banks. These banks have been going under as of late and the strong only get stronger. Entry and Exit is extremely difficult in this industry. Not anyone can go start their own bank and banks are necessities for consumers. I was curious about the other large banking institutions and found that Wells Fargo improved from 68th in 2000 to 19th in 2010. J.P. Morgan Chase was ranked 92nd in the year 2000 and improved all the way to 9th. With the collapse of the economy the smaller banks have fell by the wayside and the larger banks have profited from it.
ReplyDeleteWhat caught my eye was how in 2010 Wal-Mart was number 1 on the list and General Motors was not. I think this has to do with the financial crisis we are having. I believe that Wal-Mart went up to number 1 because people are now always looking for ways to save, thus increasing Wal-Mart's profit conditions. I think that General Motors did not make the 2010 list because of the crisis. Since people started buying more fuel efficient cars, General Motors started to have negative economic profits because people stop buy GM's gas eating cars.
ReplyDeletethe list had some changes since 2000. Wal-Mart is leading right now. i believe the main reason of its success is because they always have more reasonable prices. Since they almost all their products are imports from China, and that affect the competition with other companies since they cannot provide similar prices. a lot small businesses run out of business which helped Wal-Mart to stay one of the best companies. what was very astonishing is that the GM company is not on the list anymore. from prespective, GM didn't discriminate the prices like Wal-Mart did, they let other companies to rise, by providing similar motors for cheaper prices, which increased the competition between the companies and helped enterpreneurs to enter that field because it is very profitable, since MG was leading the fortune 500.
ReplyDeleteWow, this is amazing. I never realy put attention to who was number one, who was going up nor who was falling down. This is good to know. Wow, it is hard to believe Wal-Mart is number 1. I shop at Wal-Mart (they don't have the best customer service or nor they are very organized but they really have amazing prices). Wal-Mart's prices really beat all the other companies prices. For example Wal-Mart and Target have very similar products but at Target it is maybe 3 dollars more expensive. Don't get me wrong, I like Target too but I shop were their are good bargains; especially with this economy. It's good to see that companies like Bank of AMeica,, Exon Mobil and Chevron have move up to be on the top ten list. Bank of America was number 11 in 2000 and in 2010 it is number 5, nice. Chevron, I did not see Chveron on the top ten list in 2000 but in 2010 it is number 3, wow. Other companies went down for example, Citigroup was number 7 in 2000 and in 2010 it is not even on the top ten list. All of this has to do with the financial circumstances, when money is tight people try to save or shop at good prices.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteThe differences between 2000 and 2010 are not extremely different because the entry/exit for large corporations like this are generally restricted. However, I did notice that there were a few more oil companies and less auto companies. GM completely dropped off the list and Chevron jumped to number three. I think this has to do with the inelasticity of oil and the elasticity of cars.
ReplyDeleteKatherine Hedd
As most people said General Motors has completely moved off the top ten list for Fortune 500 companies, this may be due to profit conditions because most people are not buying new cars at this time due to economic problems. But what is more interesting is that most of the other companies have stayed in the top ten but have moved places. For example walmart has moved to the number one spot because most people are looking for a deal and more people have shopped at Walmart over the past years which increases their profit. Interestingly enough Exxon Mobil even moved up on the list even with the expense of gas over the years, this may be because it is hard for the company to get out of the market as well as the fact that their costs seem to be lower than many other gas companies.
ReplyDeleteI'm sure some of the changes are due to either and increase or decrease in firms and competition. If businesses exit the industry then it's going to help the ones still around. If some enter then it may hurt businesses. For GM, other companies produce cars and can hurt them. With walmart, they are price takers and hurt other companies.
ReplyDeleteFrom then to now the fortune 500 list changed kind of drastically. The top rankings from before have either went down or been knocked off the charts and the lower rankings from before have drastically climbed the charts being top 3 companies. Older companies are remodeling to stay on top.
ReplyDeleteasyia romain
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ReplyDeleteFrom the list of 2000, the companies that were not even on the list on the 2010 list were GM, Intl. Business Machines, Citigroup, Altria Group, and Boeing. Competition definitely took place here as new banks came to the list in 2010 replacing other banks and the financial crisis with GM causing it to not even be on the top ten anymore.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteIt was not a shock to see that more oil companies and companies like walmart and general electric were still on top. During this economy people's priorities are on getting the best bang for their dollar and not more on luxuries such as cars.[such as katie states in her comment: it has to do with the inelasticity of oil and the elasticity of cars.]
ReplyDeleteWhen comparing the two lists, it is clear that the reason for the changes are financial reasons. For example, walmart moved to the number one spot most likely because it became the most logical escape during the economic downfall. I also believe that the car companies slipped from the top ten because of the green evolution. It is clear that oil companies are still booming but that is because oil is used for other things than just gas for transportation. Having your own car is not a necessity and our country has stressed the importance of using public transportation in order to lower greenhouse gases. It is more cost efficient as well as emission efficient to use this transportation rather than going out and buying a new car.
ReplyDeleteI feel that Walmart was at the top and remains at the top because of the level of competition that they have. Due to the many alternative stores that exist, Walmart has to constantly be aware of consumer needs and wants and they are the kind of company that sets prices. What is not very surprising is that General Motors fell off the list completely. They recently had a major financial fall-out, they had to close many factories, and their sales dropped immensely due to an increase in gas prices, and competition became too heavy for them, especially against local and overseas companies. Also, it is not surprising that the oil companies stayed in the top 10 seeing that gas has been a necessary, and still is.
ReplyDeleteFord and GM were in the top 5 in the year 2000 which are 2 automobile companies. But in 2010 they dropped to 8th and 15th place. This drop in rankings happened because of the recession and people didn’t buy new cars because consumers were scared to spend their money because of the market conditions. But what is weird is that Exxon and Chevron, 2 oil companies jumped up on the charts. Gas prices must have gone up which would increase the total revenue. Walmart jumped to 1st
ReplyDeleteFor the most part the top ten have not changed. the only one seemed to slip off was general motors. I think they fell off because they depended on the price of fuel. It seams as if the top ten rely on each other and even work together. When the price of the complimentary good(oil)goes up then the demand caused gm revenue to go down. Their profits get competed away nominal to free entry/exit.
ReplyDeleteI find it interesting that Walmart went from being the number two Fortune 500 company in 2000 to number one in 2010, but their profit and revenue dramatically increased. It was such a small step up on the list, and their profits more then doubled. My theory is this resulted from the financial crisis and small shops closing down. Because Walmart can afford to keep their prices low, people continued to shop there when the economy plummeted.
ReplyDeleteI think it's interesting that Boeing isn't even on the list anymore. It's a huge company that has obviously taken a hit in the last decade. They seem to be somewhat of a monopoly as far as aircraft production, but other factors in the economy have played a part in their lower ranking now. After 9/11, air travel lessened tremendously. Some commercial airline companies completely went out of business. People started driving or traveling by train. On the military side, there has been a gradual shift in the amount of resources in the US. We have downsized and closed military bases. The demand for Boeing is no longer as much as it was in the past. Even with their monopoly, they have seen profit losses that have likely caused their ranking to drop.
ReplyDeleteOne of the most interesting things about the two fortune 500 lists is how half of the companies didn’t manage to stay in the top ten. The companies that stayed in the top ten lists are: Wal-Mart, Exxon Mobil, AT&T, General Electric and Ford Motor. The reason why the other corporations didn’t make the top of the list in 2010 is primarily due to competition and financial crisis. For example Hewlett Packard replaced Intl Business machines in the top ten 500 fortune list of 2010. Another example is Citigroup, in 2000 they made the top ten list but in 2010 corporations such as Bank of America and J.P. Morgan Chase & CO replaced them through competition. Corporations such as General Motors were greatly affected by the rising price of gasoline which made the demand for their SUVs decrease and the demand for hybrid cars increase.
ReplyDeleteThe first thing that stood out to me when comparing the lists was that the car companies and the banks had changed. General Motors was removed from the top ten due to the recession in 2008 and Ford Motor Company was also moved down because of the bad economy. Citigroup is no longer in the top ten because the financial crisis changed the profit conditions and made it harder for the banks to gain revenue. Oil companies such as Exxon, Chevron, and Conoco Philips all moved up to replace the other companies because oil has been in high demand. The barriers to entry also allow these companies to create a cartel and control the price of oil, which then helps these companies make more money.
ReplyDeleteDayna Wheatley
Looking at both lists the first thing I noticed was General Motors, who in 2000 was number one on the list and now they are no longer in the top 10. Along with them, many companies who were in the top 10 in 2000 all fell due to competition and economic crisis. Oil companies have risen and taken the spots because oil has become such a necessity in our world within the past 10 years. This demand and problem around oil has affected people's demand for larger SUV's as they are now switching to smaller and possibly hybrid vehicles, which can relate to General Motor's decline. Walmart has continued to remain on the top of the list because of their low prices. They can afford to keep their prices low which means their sales will continue because during economic recession, people start budgeting more and spending less.
ReplyDeleteI think that the top 10 list is not all that interesting. GM is no surprise not being in the top 10. GM has a hard time making good quality, low-cost products with their current and previous constraints on limiting their costs. The unions were a gigantic constraint on the limiting of costs for GM. Now, of course, the government has bailed them out like most of the other "too big to fail" enterprises. As time progresses onward the amount of Government Sponsored Enterprises (GSE's) rises more and more. Ahhh, free market capitalism at its finest. The top 10 while not all are monopolies per se, they are in the category of imperfect competition. I am not surprised to see any of the big banks in the top 10 either, especially BofA being the huge conglomerate that it is taking over Countrywide and the rest of the small banks it has taken over with the help of our government and the Federal Reserve. All of the big banks have eaten away at the competition by buying out the smaller banks, especially with bailout funds and also absorbing Merrill Lynch and Countrywide. BofA is the biggest holder (biggest portfolio) of all mortgages when compared to all other banks. While the government and the FED think they are doing a good job preventing or minimizing "systemic risk" they have been facilitating the ever-increasing monopolization of the banking industry. I am sure, with the government's help, we will see GM back up in the top 10 soon. While externalities may become present or not is the issue...the issue is how to remove them. One way to remove most of the externalities is to get the government out of economics and abolish the FED. While most people say they help our economy, they end up creating most of teh barriers to entry and help sustain imperfect competition even if it is "unintentional." Notice, not one of the firms in the top 10 list is in a "perfect competition" category. I would say they are probably more in the oligopoly category. Some of them, on a local region basis only, they are a pure monopoly.
ReplyDeleteThe main difference that I noticed in the fortune 500 list was that General Motors dropped down from the number one overall spot to number 15 in just ten years. There are a couple of reasons why this could of occurred: first was the massive recession that occurred in the US which could of severely crippled General Motor's revenue intake, the second reason why General Motors fell 15 spots is because over the last couple of years the American car market has been flooded with international car companies with cheaper and more gas friendly cars. In turn General Motors crippled under the pressure of competition causing their company to take serious losses.
ReplyDeleteBoeing went from number ten in 2000 to number 28 in 2010. This can be explained because the company's profits began to plunder. The need for more planes declined because people are traveling less. The cost of transportation has gone up and people are still recovering from the recession. The price for traveling increase can be related to the increase in oil, the price of oil goes up, then jet fuel goes up, then then eventually a plane ticket price increases. Less people travel, they lose money and fall in the Fortune 500 list.
ReplyDeleteOne thing i noticed was that Boeing dropped from number 10 to 28. This is possibly because due to the rising prices of gas airlines have to charge more for tickets and it causes a decrease in flying and so airlines buy less planes. It obviously hurt Boeing enough to move them 18 spaces in ten years. This was due to costs.
ReplyDeleteI saw in 200 how it was all about the car business. Thats beacause 11 years ago alot of people were getting new cars and trade in on there old ones alot om my family members did at least. I think that in 2010 Wal-Mart rose to number 1 is because more people were going for the best deals after the bubble burst in 07 and Wal-Mart had them. People were no longer interested in buying cars as much specially with gas in the summer.
ReplyDeleteI noticed that in 2000 bank of america or Chase weren't on the top 10 of the list. Since the recession hit people decided to save their money instead of spending it. Which opened up more competition for banks. Also the general motors did drop off the list also due to the recession and the increase in gas prices. There for some exited the market creating less competition for others.
ReplyDelete-cynthia inchaurregui
From observing both lists, it seems as though the reason why the list are different from each other are due to different financial problems that may have occured throughout the years. As many people have mentioned about how General Motors and some of the other car companies have dropped in ranking, I personally think it was because of all of those bailouts that they were facing, and having to tap into their reserves. I also noticed how Wal-mart has became #1 in 2010. I think Wal-mart is at the top spot because of their competitive prices, especially while the economy was in a slump.
ReplyDelete-Cory W.
One thing that caught my eye was that Boeing went from being number ten in the year 2000 to number twenty-eight in the year 2010. This happened because the company’s profits began to diminish due to the fact that people were traveling less. The recession affected everyone harshly and a lot of people are still trying to recover from it.
ReplyDeleteA big thing that I noticed about the lists is that in 2010 many American based auto companies dropped significantly and other companies like gasoline based distributors rose through the ranks toward the top. This is because the auto companies like GM were hit hard during the financial crisis and were forced to take the government bailout money. The gas companies rising shows that no matter how hard the economy was people still drove their cars and needed gas and so their total revenue increased because they had to increase their prices. A lot of people changed their ways of spending to adjust and it forced many companies to take drastic measures to stay in business thats why there are so many changes in this list in only a ten year span.
ReplyDeleteCharlie Newton
The top 10 firms of 2010:
ReplyDeleteWal-Mart Stores, Exxon Mobile, Chevron, General Electric, Bank of America, ConocoPhillips, At&t, Ford Motor, J.P Morgan Chase, and Hewlett Packard.
The top 10 firms of 2000: General Motors, Wal-Mart Stores, Exxon Mobil, Ford Motors, General Electric, International Business Machines, Citigroup, At&t, Altria Group, and Boeing.
Basically, we can see that there has been a change mainly between the car and gas companies in these 10 years. Since the economy is suffering more people that have less money are less willing to spend it on cars. Therefore, General Motors is no longer number 1, and there are less car companies in the list for 2010. As far as gas the price has fluctuated, but still been about 3.50$ to 4$ a gallon making if affordable for some, but way too much for others.
In 2000, the top ten was General Motors, Wal-Mart, Exxon Mobil, Ford Motor, General Electric, Intl. Business Machines, Citigroup, AT&T, Altria Group and Boeing. In 2010 the top ten was Wal-Mart, Exxon Mobil, Chevron, General Electric, Bank of America, ConocoPhillips, At&T, Ford Motor, JP Morgan Chase, and Hewlett-Packard. I think that the most surprising change in the last ten years would have to be that the banks, Chase and Bank of America have entered the list for 2010. I think that this is a product of more people saving their money at this point in time.
ReplyDeleteI noticed that citigroup, a banking company, is not in the top 10 of the Fortune 500 list of 2010 but it was in 2000. I think this is because other banks began to buy out banks during the recent financial crisis, for example, J.P. Morgan Chase taking over Washington Mutual; Chase, by the way is in the top 10 in 2010. General Motors really suffered in the past 10 years because of the tough economy, and because of that is not on the list in 2010.
ReplyDeleteThe number one firm for 2010 is Wal-Mart, and for 2000 it was General Motors. Wal-Mart was second in 2000 even when we weren't in this recession. Now that the government took over GM, it is not even in the 2010 fortune 500. Wal-Mart has always done good and will continue to do well because of its low prices. Same with AT&T, they have always done well, and now with the iPhone they will continue to do well.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteWow! The Fortune 500 list is a clear representation of the aftermath of the economic crash. I was very surprised to see the companies that were on the list in 2000 of the top ten were no longer there in 2010. And the ones on the list in 2000, like GM and IBM, where companies that were constantly in the news for what happened with their firms. Some of the firms are almost not listed because the competition in that industry is high. For example Verizon no longer is listed, because AT&T has stepped up and been more superior. And like some of my classmates said with the iPhone success of AT&T they will continue to do well because of the effectiveness of the product.
ReplyDeleteBrittany McSwain
Brittany McSwain
I noticed that there are a lot of the same companies when comparing 2000 to 2010. There is a couple changes like General Motors or Boeing, but this just shows that there might be limited entry to these fields. GM or Boeing were impacted most from the economy and events, but it shows that that the big companies are more tolerable to these changes.
ReplyDeleteComparing the fortune 500 list from 2000 and 2010 I noticed that the current state of our economy has made the companies that produce elastic commodities such as cars have dropped dramatically. Whereas the companies that sell there products for less such as Walmart gained the top spot in the infamous list. Major gas companies do not fall too far behind Walmart due to their inelastic demand.
ReplyDeleteIn 2000, General Motors was number 1 but they couldnt keep up with competition. Walmart was able to make it to number 1 because of their low prices and all of their services they provide. You can almost get everything at Walmart.
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteGeneral motors was number 1 in 2000 and in 2010 they fell down to number 15, one reason why this had occur was he automative firm has a lot of competition, GM is made in the United States and it was going up against Japanese cars that are fuel-efficent, german cars which are a luxury item, and going also there was ford motors. Gm was making too many cars and consumer were buying foreign cars, and also the government had over seize GM to help them.All of this contribute to the Gm ending up at number 15 spot 10 years later when they were number in 2000.
ReplyDeleteI notice that in the 2000 fortune 500 General motors was #1 and 10 years later it's not in the top 10. There is a lot of competition in the automotive industry. I feel that the reason that GM has droped is because of the elastic demand for cars in 2010.
ReplyDeleteI think the main reasons for the change of status of some of the Fortune 500 hundred companies in 2000 are no longer there in 2010 because some firms are not making us much profit as opposed to the cost to produce its goods. For example, GM is no longer on the list because people are seeking other more gas efficient automobiles, while Walmart is still on the list because it supplies goods that the public can use on a daily basis, sold at a somewhat reasonable price so profit is still able to be made from its sales. Firms that continue to produce goods that are affordable, that can be used on a needed daily basis, and can be seen or used as an "improvement" will raise themselves up in the list and continue to maintain on the list. For example technologies such as computers and phone applications are always seeking ways to improve itself and people will continue to be interested in them and stay 'update' with the technology. As for the oils, though there are a few options for alternates, oil is still somewhat an inelastic good so the demands will remain.
ReplyDeleteSusan Lo
The lists are different and it was interesting to me that General Motors went from #1 to #15. General Motors was a big decrease in position on the list and I think this is because there is an infinite amount of firms of this type which means that General Motors does not make a great impact.
ReplyDeletei think some of the reason would be the prices of the market change in some companies and the one who could keep it low is the one who stays on top the entry to enter the markets the big companies make it tough for little competitors to get in
ReplyDeleteGeneral motors was top of the list in 2000 but didnt make it in fortune 500 in 2010 because they produced to many cars quickly and little by little more of the population had cars and then they had more competition with different companies. Exxon rose higher in the list because of the war it gave it a reason to raise the price for each barrel due to the cost of attaining each barrel.
ReplyDeletei think that the most interesting thing was that GM was in the top 500 in 2000 and after the recession they do not even appear on the top 10 in 2010. the only reason why they did not go bankrupt was because the government had to bail them out.
ReplyDeletewhat i realized is that in the year of 2000 the companies that were on the top were car companies.The one reason that i think the last was like this was because the economy was much better than it is now. a lot more people were able to buy vehicles. Many people were hesitant to buying another car because of the recession so fewer people had no incentive to go get a new car. The gas prices were also Walmart was ranked at number 1 in 2010. in 2010 there were also gas companies who were ranked very high because of the amount of gas that was in demand. gas prices were rising very high. there are very few car companies in the world and it is extremely difficult to enter and exit this type of industry.
ReplyDeleteDaniel Cruz
9:20-10:30
i think the most interesting and even obvious without looking at the fortune 500 (2010) is the gas companies and GM moving down. each day we see the prices rising (almost to $4/gal or already there) and it makes sense as the economy went down and the gas prices rose the GE cars were no longer a "must have". for example we see that walmart stores is number one mainly because everyone is trying to save a buck and getting what they "need" for the best price and somewhat decent quality.
ReplyDeleteACS
Researching the changes in the Fortune 500 list from 2000 to 2010 was rather interesting. The economic recession was really pushed firms to the limit and tested whether or not they could withstand the recession. For example due gas prices going up and not having fuel efficient vehicles they moved out of the top ten list. Walmart however moved up the list due to it's competitors being forced out of business.
ReplyDeleteIn regards to the differences in the Fortune 500 list from 2000 to 2010, General Motors was the biggest change. This change could be due to the fact that the price of the complimentary goods for cars has increased and has made buying GM cars less desirable or it could be due to the housing bubble that popped in 2008 that caused GM to be bailed out by the government.
ReplyDeleteI think some of the reasons a company like General Motors is no longer the top company, and no longer in the top ten is due in part from the fact that it is an oligopoly, and therefore entry and exit in the long run is more persistent for a somewhat competitive industry and will adversely lower profits. This could also explain Ford Motors, even though it moved up the list, it actually has relatively low profits than it did in 2000. I also think the reason why some of the businesses, that were on the list in 2000 are not on the list for 2010, is that they don’t always offer competitive prices, which I think consumers in the past decade have become more interested in, such as Wal-Mart, consumers are looking for lower prices and larger quantities, as well as businesses that look like life timers, as oppose to the scare with the bailouts a couple of years back, and banks buying out other banks.
ReplyDelete-Susan S
It doesnt surprise me to see that Wal-Mart appeared on both list seeing as how it is one of the biggest consumer stores on the market buying out the competition and lowering its prices to consumer needs --Oakford Gross
ReplyDeletethe first thing i noticed after analyzing the two list, was that although it was different companies in the top 10, the same industries came up. automotive,banking,retail,investing companies. it seems the same industries stay on top just that the position of power is switched off, seems very difficult to stay on top.
ReplyDeleteI think that the most interesting thing that I found while comparing the two lists is that Boing is on the list from 2000, but in 2010 it has fallen to 28th. I think it's obvious that this is because of September 11. This is sad because it was 10 years ago that this tragedy befell America, but the air-travel industry is still struggling to make a profit.
ReplyDeleteLike most people, I noticed how GM was not on the fortune 500 top ten list in 2010 compared to it's top spot in 2000. There were a bunch of factors that lead to the failure of GM. They failed to innovate because they took more care in profiting from finance instead of building better vehicles. Also, they ignored competition which resulted in a decline in their control over the north american vehicle market. In 1994 they controlled 54% of the north american vehicle market and in 08' that number tumbled down to 19%. Whats interesting is Wal-Mart's ability to stay on top of the fortune 500 for such a long time. They're ability to stop unions from starting and outdoing all of the competition is impressive...Even though I don't agree with it.
ReplyDeletehwat I have noticed is how AT&T has dropped of the fortune 500 since 2000. The reason it has dropped off is due to entry of new competitors in the market since 2000. This includes Verizon, T-Mobile, & Sprint. WIth new competitors profit for AT&T has decreased because the supply of the market has increased.
ReplyDeleteChaun Calvin
I noticed in 2000 Bank of America was number 11 on the Fortune 500 list and in 2010 they moved up in the rankings to number 5. This is very interesting to me because of the recession that hit the banks and the economy. I would have expected the banking system to drop in their profits and revenue, however this is obviously not the case. I also noticed that GM was no longer in the top 10 in the year 2010. This is due to the fact that they were not innovating within their company and weren't updating their cars. This caused them to drop dramatically in the rankings and lose money as well.
ReplyDelete