S&P 500 Companies

A2 Business & Case Studies Fortune 500 Article 2

Instructions: Read the article below (see the link) and type the answers to the question. Print out your Word doc answers. Hand in the assignment at the beginning of the next class.

“Why Half of the S&P 500 Companies Will Be Replaced in the Next Decade”

https://www.inc.com/ilan-mochari/innosight-sp-500-new-companies.html

  1. Looking at the list of companies that have been “jettisoned” (i.e., thrown away or discarded) from the S&P 500 and the Fortune 500, what is the one industry that is replacing older industries?
  2. Within the list of companies that have been replaced during the past seven years, which one is an example of creative destruction, and what technology replaced the old technology?

What are several reasons why companies’ tenure (time or occupancy) on the S&P has been reduced?

  1. What is a biotech breakthrough?
  2. What are three reasons that companies drop off the lists?
  3. What is entrepreneurship and why is it also a reason that the Fortune and S&P 500 are so dynamic (i.e., likely to change)?
  4. What is unique about TESLA? How is this car company an example of creative destruction?
  5. What does it mean when the author of the article says that companies, in order to stay solvent and competitive?
  6. What is a fault line?
  7. What are the five potential fault lines?
  8. According to the survey of 91 executives, what did they say were their two biggest obstacles to adapting to market changes and disruptions?

Thinking question: How do Uber and Airbnb exemplify true capitalism?