Industry Analysis Rankings - Good to Great: Why Some Companies Make the Leap... and Others Don't - Jim Collins

Good to Great: Why Some Companies Make the Leap... and Others Don't, 1st Edition Hardcover - Jim Collins (2001)

Appendix 5.A. Industry Analysis Rankings

We compared each good-to-great company’s industry relative to all other industries that appeared in the Standard & Poor’s Analyst’s Handbook for a period from the transition year to 1995. We used the following procedure:

1. For each good-to-great company, determine all industries that are listed in the S&P Analyst’s Handbook from the year of transition to 1995.

2. For each of these industries, use the total returns from the transition year of the corresponding company to 1995, to determine the percentage change in total returns for a period from the transition year to 1995.

3. Rank the industries according to their percentage returns over this period.

The following table shows that a company does not need to be in a great-performing industry to produce a transition to great results.

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