The fate of some real-world megacorps Options

[Kazuhiro]

Coca-cola. Pepsi co. Macdonald's. Wal-mart. Starbucks. Microsoft.

All of these companies are AA megacorps in their own right, and if the Shadowrun timeline comes to pass, any one of them or all of them have the potential to become AAA-level. So what happened to them? Did they get bought by Aztechnology? Did they go down with the Crash? Are they AA corps still?

[Axl]

I would guess that FASA/WizKids/Catalyst deliberately avoided bringing real corps into the canon, to prevent potential lawsuits.

[raben-aas]

But they did "Fuchi". Aha (IMG:style_emoticons/default/smile.gif)

[Ascalaphus]

And StarKaf and Microdeck.

[Blade]

Coca-cola. Pepsi co. Macdonald's. Wal-mart. Starbucks. Microsoft.

All of these companies are AA megacorps in their own right, and if the Shadowrun timeline comes to pass, any one of them or all of them have the potential to become AAA-level. So what happened to them? Did they get bought by Aztechnology? Did they go down with the Crash? Are they AA corps still?

First of all, none of these qualify as megacorps. They lack the diversity that makes a corp.

As far as I know, Microsoft went down in the Crash and turned into MicroDeck, which has the reputation of making poor software (and maybe hardware). I seem to recall reading in one of the latest book something about them getting better.

[Stahlseele]

Microdeck had a proto Otaku with William Bonney Gates the 2nd or 3rd i think.

[The_Vanguard]

Microsoft's crash creates the Redmond barrens (they practically own the area - SR1's Redmond barrens was a big "take that" to Microsoft). Frank Trollman did something about the Cola Wars - Pepsi is an Aztech brand now while Coke is owned by the CAS government, if I'm not mistaken. I'm not sure if this is canon though.

However, as Blade already pointed out, these do not really qualify as proto-megacorps. Currently (especially after the last financial crisis) it seems unlikely that these behemoths will ever come into existence, but the big holding companies like American Investment have the most potential IMHO. Maybe global industry players with a broad portfolio like General Dynamics, Honeywell or Siemens.

[Stahlseele]

Vodafone < =

[DWC]

Can't forget good old Saeder-Krupp, born out of BMW. Also, with Pepsi owning Taco Bell, Pizza Hut, and KFC, I could easily see Aztechnology, the NERPS king, as having bought Pepsico.

[Mantis]

Isn't Walmart in SR Kong-Walmart? I seem to remember it being called that somewhere. I always thought companies like GE or Honeywell or Seimens were far more likely to become the megacorps of SR, rather than one trick ponies like Coke or Pepsi. Oh yea and there is a reference to the Cola Wars in one of the intro stories in Street Magic so I suppose that's kind of Cannon.

[graywulfe]

Look into entities like the Blackstone Investment Group. They don't publicly relabel their acquisitions but they own are fairly diverse( to the best of my knowledge) array of companies.

[nezumi]

I thought MS got bought up by some other minor corp (sort of like Transys Neuronet), which got brought into Fuchi, which then split up.

Starbucks wasn't really around at the time of writing, and, like McDonald's, isn't a megacorp.

Nestle probably got wrapped into S-K.

[Digital Heroin]

While we're not talking AAA, invest in everything down to adult diapers for Trolls, megas here you can't really discount the sheer awesome power of both product distribution and market share some of these corporations have.

Coca cola is so pervasive in the world that there are developing countries whose populations saw its logo before any other Western logo, the Red Cross one included. It's powerful, something they identify with, and even in some cases want to go to the great beyond with.

McDonalds is the single largest distributor of food in the world. Not the US Army, not the World Health Organization, blooming McDonalds. Now while it's a sad commentary on society in general that there are 31000 McDonalds locations, that's the power of branding. I mean the golden arches even batter down ideological barriers... they have a McDonald's in the Museum of Communism in Prague of all places.

Along with McDonalds we have Starbucks, that has 16k plus locations. They're a bloody virus. Hell, there is an intersection that has three locations on its corners, and there's one in a bookstore just up the street. Pretty soon you won't be able to cop a dump without a guy in the restroom offering you a vent soy machiatto.

...and my personal favorite brand (though sadly owned by a larger company now, which would be the mega in this case) is Guiness. Not only does it virtually have a country that identifies with it (ok, so there are plenty of other good beers in Ireland, and Murphy's stout is fantastic, but it doesn't have the power of brand), but there was a time when it had 95% market share in the entire continent of Africa. Their marketing was so powerful there that the character invented for a series of ads ended up in his own full length motion picture.

While the power of these corporations isn't always obvious, they are pervasive, and a lot goes on behind the scenes. I'd say they would easily survive, and have at least A status in the 6th World. Of course the two crashes could change that.

[Nath]

As said above, Microsoft became Microdeck, as early as the good old First edition Seatle Source. In that book, they're a leader in software engineering. The story went a different way in Matrix, with Microdeck focusing on low-price, low-quality hardware after the 29 Crash (remember around the time Matrix got out, Microsoft was selling the first force-feedbak joystick...). Seattle 2072 still has them around.

Also in First edition, The Neo-Anarchist Guide to North America speaks about Coca-Cola Company HQ in Atlanta, with the company remaining within the top 500.

Pepsi, McDonald's and Starbucks didn't, as far as I remember, appeared in SR products. Wal-Mart is hinted at in corp names like NetMart and KongMart in some books (much more hilarious is "S-Kea" furnitures in the Sprawl Survival Guide if you ask me).

Nestlé isn't part of Saeder-Krupp (yeah, really, there are other corps in Europe, you can trust me on this one). They're part of Zeta-ImpChem.

[Starmage21]

As said above, Microsoft became Microdeck, as early as the good old First edition Seatle Source. In that book, they're a leader in software engineering. The story went a different way in Matrix, with Microdeck focusing on low-price, low-quality hardware after the 29 Crash (remember around the time Matrix got out, Microsoft was selling the first force-feedbak joystick...). Seattle 2072 still has them around.

Also in First edition, The Neo-Anarchist Guide to North America speaks about Coca-Cola Company HQ in Atlanta, with the company remaining within the top 500.

Pepsi, McDonald's and Starbucks didn't, as far as I remember, appeared in SR products. Wal-Mart is hinted at in corp names like NetMart and KongMart in some books (much more hilarious is "S-Kea" furnitures in the Sprawl Survival Guide if you ask me).

Nestlé isn't part of Saeder-Krupp (yeah, really, there are other corps in Europe, you can trust me on this one). They're part of Zeta-ImpChem.

Theres a picture in the SR4 core book (NOT SR4A) that features "Ares Wal-Mart"

[Nath]

Theres a picture in the SR4 core book (NOT SR4A) that features "Ares Wal-Mart"

One day, I'll finish updating my corporate index with SR4 books (Emergence, page 47 !). Yeah, one day. I usually forget to check the illos though.

[Bob Lord of Evil]

First of all, none of these qualify as megacorps. They lack the diversity that makes a corp.

I am with Blade on this, the aforementioned corps just don't have the awesome footprint that megacorps do. With that said...I think that in RL there is an upward limit to just how large a corporation can become and still operate at a profit. If there is an upward limit to the size of a geopolitical entity (and I believe that there is) why not have the same limitations applied to corps.

But for the sake of the game...I love megacorps! (IMG:style_emoticons/default/grinbig.gif)

[Nath]

I am with Blade on this, the aforementioned corps just don't have the awesome footprint that megacorps do. With that said...I think that in RL there is an upward limit to just how large a corporation can become and still operate at a profit. If there is an upward limit to the size of a geopolitical entity (and I believe that there is) why not have the same limitations applied to corps.

Nowadays, the main issue diversified conglomerates face is the dislike the markets have for them. Investors and speculators try to guess how business will evolve. The more diversified a conglomerate get, the harder it becomes to foresee how it will dabble. For instance, Shiawase dividends in the coming years will depend on Shiawase Atomics signing deal to build nuclear plants, Shiawase Envirotech signing and running municipal and private waste processing contracts, Shiawase Biotech selling new drugs and implants, and many other, unrelated, elements concerning each sector the corp is present in.
If nobody can give a reliable estimation combining all those factors, nobody will buy their shares, and the market value will go down, limiting the company capacity to fund its activity, be it by loan or share emission.

Of course, in Shadowrun 1) there are big expert system to analyze complex market data 2) megacorporate shareholding is so concentrated that share emission must be pretty rare anyway 3) Zurich-Orbital Gemeinshaft Bank work is to loan money the AAA (and AA).

[Kazuhiro]

Theres a picture in the SR4 core book (NOT SR4A) that features "Ares Wal-Mart"

WHAT PAGE. I MUST KNOW.

[Method]

The megacorps, as they were conceptualized in SR1/1989 are based on Japanese keiretsu, so the closest thing you will find in real life are companies like Mitsubishi. Yeah, they make cars. They also make just about every thing else (or the components), are built around a central bank, and even operate private universities.

Nath makes a good point about speculation, but I've always gotten the impression that a mega's real market base is its own employees. They exist just to produce stuff for themselves in a kind of Orwellian "consumption --> production --> consumption" kind of situation. The basic premise of the game (i.e.- runners steal info to give one corp an advantage over another in a competitive market) makes less sense, but then the AAA corps don't make much sense otherwise...

Oh, and you should definitely update your corp list, Nath. That is one of the handiest fan-made resources I've ever found.

they have a McDonald's in the Museum of Communism in Prague of all places.

That just about says it all.

[LivingOxymoron]

Actually, its interesting that the closest thing to mega-corps in the real world, at least that I have seen, are the South Korean Chaebol. Many of the largest, Samsung, LG, Hyundai, might be known for one or two things, but in reality have a ton of diversity. Many of these incorporate manufacturing, heavy industry, construction, finance, advertising/PR, consumer goods, etc under one roof. Interestingly enough, many of them are linked by marriage, with a child of a top executive of one marrying the child of a top executive of another (and within the divisions of a single Chaebol) as a relatively commonplace occurrence.

The megacorps, as they were conceptualized in SR1/1989 are based on Japanese keiretsu, so the closest thing you will find in real life are companies like Mitsubishi. Yeah, they make cars. They also make just about every thing else (or the components), are built around a central bank, and even operate private universities.

Nath makes a good point about speculation, but I've always gotten the impression that a mega's real market base is its own employees. They exist just to produce stuff for themselves in a kind of Orwellian "consumption --> production --> consumption" kind of situation. The basic premise of the game (i.e.- runners steal info to give one corp an advantage over another in a competitive market) makes less sense, but then the AAA corps don't make much sense otherwise...

Oh, and you should definitely update your corp list, Nath. That is one of the handiest fan-made resources I've ever found.

That just about says it all.

[The_Vanguard]

Coca cola is so pervasive in the world that there are developing countries whose populations saw its logo before any other Western logo, the Red Cross one included. It's powerful, something they identify with, and even in some cases want to go to the great beyond with.

McDonalds is the single largest distributor of food in the world.

Wow, that's some fascinating stuff. But there are big differences between a business to consumer company that lives and dies by its public image and a business to business outfit. Many really big movers and shakers do not care about advertising and brand recognition because the right people need to know them if they want to achive anything. While these Africans may worship the almighty Coke, their government sells the diamonds they dig up to a company they have never heard about for more money than all soda companies combined make in their country.
Also, there are other companies who actively try to keep a low profile (*cough* Halliburton *cough*).

They exist just to produce stuff for themselves in a kind of Orwellian "consumption --> production --> consumption" kind of situation. The basic premise of the game (i.e.- runners steal info to give one corp an advantage over another in a competitive market) makes less sense, but then the AAA corps don't make much sense otherwise...

I envision megacorps to be closer to countrys and as such, the stolen secrets have political clout as well. They need good relations with the nations where they are physically located as well as trade agreements for import/export. Uncovering environmental pollution scandals can seriously damage the goodwill of your neighbors, while leaked financial information may allow your competition to undercut you in deals with other countrys. And as Aztechnology just had to find out in LA, trustworthy allies can be more important than financial power when it's about politics. It's the cold war all over again but this time the arms race is an economic one.

[Daylen]

http://en.wikipedia.org/wiki/Krupp

GE used to build just about anything ya can name. they still build alot. oh and they make loans.

[SecGuard]

Too true about GE, my employer does some work for some of there divisions.

[Method]

Also, there are other companies who actively try to keep a low profile (*cough* Halliburton *cough*).

Oh no! Not that evil Halliburton! Is it 2006 again?