You may think you are doing a terrific job but do you know how well your Company is doing compared to the rest of the industry? For that matter, do you know how your industry is doing compared with others?
The challenges of business vary from industry to industry. Some are on the ascent while others show a decline. While researching some information for a project I am working on, I came across these findings from the Business Today’s 500 Most Valuable Companies ( based on market capitalization) in India’s private sector:
The Top 10 in terms of market cap were:
- Reliance Industries
- Bharti Airtel
- Tata Consultancy Services
- Infosys Technologies
- Reliance Communication
- ICICI Bank
- Larsen & Toubro
Some observations, to see how the industry you work for is doing:
- No. of IT cos. in the Top 100 fell from 18 in 2002 to 9 in 2007.
- By and large, cos.in IT, FMCG, auto and pharma fell in ranks
- Gainers came from Banking, Financial services and Infrastructure
- 6 of the 48 new entrants in BT 500 are from one sector- real estate
- Food & Groceries make up the bulk of the fast growing retail sector
- The Top 100 Cos accounted for as much as 80 % of the combined market cap of the BT 500
- The composition of the BT 100 was largely made up of IT 16.17 %, Oil & Gas 13.32 %, Telecom 12.6 %, Financial Service 10.8 %.
I urge young executives to read the lead article in Business Today of December 17, 2007 for the following reasons:
- Many are not aware of key data relating to the business in which they work- size of the industry, profitability, growth rates etc
- Perspective of relative positioning within their industry makes sense of their company’s business plans and in turn how their division/business unit contributes
- The most effective managers I know are good with data and know how to use that data.
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This is Post No: 196 of the “A Step A Day” series : To provide perspective and provoke thought to facilitate self-development across a wide spectrum of issues- big and small- crucial for executive success