Global Finance's World's Best Companies - 2005
© Dr. Terry J. van der Werff, CMC

For the eighth year, in its November, 2005, issue Global Finance magazine identifies the world's best companies in 29 economic sectors.

"Truly great companies seem to have something in their DNA that enables them to adjust to changing global economic conditions and to pounce on opportunities that present themselves."  Even so, the competitive landscape may shift, an acquisition or merger may go belly up, a new product may flop, or the R&D pipeline may run weak.  Global Finance list of the world's best companies again shows the dynamism of corporate leadership around the globe.

This year Global Finance welcomes 6 new companies to its list.  One of them - Apple Computer - displaces companies in two categories, and another - Altria Group - adds a second top slot.  By comparison, the 2004 list had 4 newcomers, the 2003 list had 13, and the 2002 list had 17.  Only seven of the companies listed below were on the 2001 list just four years ago.  Truly, it is exceedingly tough for any company to lead its industry year after year, in an environment in which global competition rises inexorably. 

Perusing the list below suggests "it doesn't get much better than this!"  Indeed, that may be why it is becoming harder to break into this privileged club of the world's best companies

Airlines	Singapore Airlines	Singapore	new
Automotive	BMW	Germany
Beverages	PepsiCo	United States
Chemicals	BASF	Germany
Computer hardware	Apple Computer	United States	new
Computer software	Oracle	United States	new
Conglomerates	United Technologies	United States
Construction & engineering	Bechtel	United States
Consumer durables	Whirlpool	United States
Consumer non-durables	Procter & Gamble	United States
Defense & aerospace	Lockheed Martin	United States
Electronics	Apple Computer	South Korea	new
Energy services/electricity	RWE	Germany
Energy services/equipment	GE Energy	United States
Food	Kraft Foods (Altria)	United States	new
Franchises	McDonald's	United States
Hotels	Marriott International	United States
Insurance	MetLife	United States	new
Leisure	Carnival	United States	new
Logistics	United Parcel Service	United States
Media & entertainment	News Corporation	United States
Metals & mining	Anglo American	United Kingdom
Network systems	Cisco Systems	United States
Oil & gas	ExxonMobil	United States
Pharmaceuticals	Pfizer	United States
Retailing	Wal-Mart	United States
Telecom equipment	Nokia	Finland
Telecom services	Vodafone	United Kingdom
Tobacco	Altria Group	United States

Global Finance's selection criteria have gradually evolved and are a mix of both objective and subjective factors.  This year's criteria include:

	revenue and profit growth
	market capitalization and share price
	corporate responsibility
	product innovation
	global expansion
	accountability

Each company has a two or three paragraph on each company.  While mostly descriptive, the writeups are also suggestive of strategies you may wish to consider for your own company.

As in years past, Global Finance also identifies the top companies in the same 29 sectors (with extra sectors for some continents) for North America, Europe, Asia, and Latin America, with a one paragraph description for each company.  Again, suggestive strategies are embedded in the writeups.

Source: Global Finance, November, 2005, issue.

	View Global Finance's list of best companies in 2001.
	View Global Finance's list of best companies in 2002.
	View Global Finance's list of best companies in 2003.
	View Global Finance's list of best companies in 2004.