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FORTUNE 500

DEFINITION:

The term Fortune 500 refers to an annual listing by Fortune magazine of the top 500 public companies in the U.S., as ranked by sales, assets, earnings, and capitalization. This list ranks only public companies, or those which have issued securities through an offering and which are traded on the stock market. This list is important to a number of financial groups, but particularly to investors, who study the performance of these select companies. In addition, academic and business researchers look to these companies to learn about best practices in various industries and to discover the secrets to their business and financial success.

CRITERIA TO BECOME A FORTUNE 500 COMPANY:

 The ranking criteria for the Fortune 500 is quite simple. The company must be a U.S.-based firm that publishes their financial data. Ranking is determined by looking at a company's gross revenue. However, Fortune will make adjustments to the revenue figures based on any outstanding taxes. The companies are then ranked from highest gross revenue to lowest. The list has been criticized for failing to provide a fully accurate picture of all companies. Some privately held firms do not publish their financial data, and as such cannot be listed on the Fortune 500 list. Given below is the steps for he criteria for becoming a Fortune 500 company:

1. Focus your strategic efforts on revenue growth. The Fortune 500 relies solely on gross revenue figures, regardless of profitability, company image, innovation, or any other major factor of business success.

2. Maintain high marketing visibility. Utilize traditional advertising, promotions, and public relations techniques in tandem with new-media customer interaction strategies, such as maintaining an active social media presence, to gain an understanding of your customers and instill customer loyalty.

3. Strengthen your distribution system.

4. Expand through mergers and acquisitions.

5. Expand your operations internationally.                    

OPINION ABOUT FORTUNE 500 COMPANY:

In my opinion it is important to be ranked in the list of Fortune 500 companies because the higher the rank a company attains there will be greater opportunities for company to attract the investors, to strengthen its good will, raise its share price, creates customer loyalty, boosts and enhances public confidence over the overall performance of the company.  

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