BACK TO CONTENTS
GLOBAL MARKETS
FOCUS 6
Q A
Did you observe different approaches to globalisation in developed and emerging economies?
“Perhaps the most surprising fi ndings of the research were the different approaches taken to globalisation between the developed and high growth markets. Businesses in developed markets are older and able to fund growth strategies with established resources. They also typically grow a little more conservatively.
“The emerging world does things completely differently. Businesses are younger - although some of them were 70 years old. But because they were small, and the resources weren’t as plentiful, they tended to be innovative in how they approach everything; from their approach to market entry, who they partner with and how they spend resources.
“Critically, they maintain this innovative approach. Even though some of these businesses are topping US$40 billion revenue a year, they’re acting like a US$200 million a year business.
“This is made possible by very fast decision making capabilities, made possible by very fl at organisational structures. These high growth market businesses also had deputies in their new areas of expansion that they trusted totally, and those deputies had complete autonomy.”
Those interviewed gave a holistic view of globalisation to Professor Hubbard - its challenges and their routes to success. While the business world is currently very focused on the high growth markets, there was a belief from the business leaders interviewed that industries will return to the developed world as high growth world economies mature.
With this will come an infl ux of businesses from high growth markets to compete in the developed world. As a result, the lessons learned from this research look set to only become more important in the future.
Findings are based on an M&A survey of 162 companies carried out and published by KPMG International. High-level interviews were conducted with over 70 senior executives from 16 countries; including CEOs, Heads of Strategy and Finance Directors regarding their experiences of globalisation and expanding business operations.
To request a synopsis of Professor Hubbard’s book, please contact your local KPMG team or
lisa.tang@kpmg.co.uk
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35