Cable&Wireless: What MNCs Are Thinking

by Nick Lambert, Cable&Wireless Worldwide , 12 September 2009

1 comments

Facebook

Digg

Twitter

tags:
Cable&Wireless emerging markets growth investment MNC multinationals Nick Lambert

The recent financial crisis has led to a time of intense reflection and transformation for most organisations globally. The lack of credit and the lack of demand combined to create a once-in-a-millennium ebb of economic conditions not seen across the world since the Great Depression of the 1930s.

The Great Recession – as it is now being called – has caused firms to take a long hard look at their business value chains and make new plans for the future.

In such times, managers look to their peers – in competing firms, across verticals and regions – to learn, evaluate and act. A lot of our customers have asked how we see the global marketplace and where other multinational companies (MNCs) are looking for the next growth phase.

We commissioned a survey of key business decision makers from 300 multinational corporations based in the US, Europe and Asia. Only the highest level business decision makers – from sales, finance, IT and marketing - from large corporations with global operations, investments and ambitions, were included in the survey.

These key decision makers are at the core of global business confidence indices and investment decision cycles. Their consolidated view of the potential of emerging markets reveals a strong and sustained trend to invest for growth in these regions in the short and medium term.

The Fastest Growing Market Is . . .

In response to the intuitive initial question on the ‘leading’ emerging market, an overwhelming number of senior executives voted for China to continue its remarkable growth rate.

However, the interesting part was that only 7% of the Asia Pacific business decision makers queried thought China would be the fastest growing emerging market (Refer to Table 1). India, Eastern Europe, Russia and even Brazil rated higher in their view.

TABLE 1 Which of the emerging markets do you expect will experience the most growth in the next year?
	HQ region
	Total	North America	Europe	Asia Pacific
China	35 %	45 %	41 %	7 %
India	22 %	5 %	22 %	30 %
Eastern Europe other than Russia	11 %	10 %	10 %	14 %
Russia	9 %	5 %	9 %	11 %
Brazil	7 %	15 %	5 %	13 %
Middle East	7 %	5 %	7 %	9 %
Africa	5 %	10 %	4 %	7 %
S. America other than Brazil	3 %	5 %	1 %	9 %

The other significant trend was the emergence of Eastern Europe as the most preferred ‘non-Asian’ region in the list. The growing perceived potential of that region is possibly because many of the Eastern European nations are joining the European Union, have a highly skilled workforce with global aspirations, and seen as having very supportive, market-driven administrations.

I think the economy crisis

Submitted by angela on 23 November 2009 - 5:03pm

I think the economy crisis will last for 3 years.green lasers

Comment on this article

Accounting and Regulations

CFO innovation Asia Accounting and Regulation the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Accounting Regulation, IFRS, US GAAP, Tax, investor relations, corporate governance, Corporate Law, Financial Regulators, Internal Audit, Audit, Corporate Law.

Auditing, Investor Relations, Law and Compliance, Tax

Finance and Banking

CFO innovation Asia, Finance and Banking the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Corporate Finance, trade finance, treasury and risk management, capital expenditure, Banking, mergers and acquisitions

Cash and Liquidity Management, Corporate Finance, Insurance, Treasury Management

Management

CFO innovation Asia the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Management, Corporate Governance, Human Resource Management, Compensation and Benefits, Mergers and Acquisitions, Professional Development, Corporate Real Estate, Risk Management, Budgeting and Forecasting, Business Process Management, Business Process Reengineering, Outsourcing.

Budgeting and Planning, Business Expense Management, Human Capital Management, Outsourcing and Shared Services, Risk Management

Metrics

Corporates, Financial Services

Technology

CFO innovation Asia Technology the Asia Pacific resource center for senior finance executives, daily news, analysis, best practice and case studies in Finance Systems, Business Intelligence, EPR, Accounting software, CRM, Cloud Computing, Telecommunications, Business Process Outsourcing, Business Process Management Software.

Business Intelligence, Enterprise Software and Systems, Financial Systems, Security

CFO innovation ASIA