Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013

16th Annual Global CEO Survey
The disruptive decade p3/ What worries CEOs most? p5/ A three-pronged
approach p10/ It’s a question of trust p22

Dealing with
disruption
Adapting to survive
and thrive
1,330
CEOs in 68 countries

36%
of CEOs are very confident
about their growth prospects
See page 3

82%
of CEOs plan to change
customer strategies in 2013
See page 15

www.pwc.com/ceosurvey

During the past decade, we’ve seen
economic volatility and disruption
escalate to arguably unprecedented
levels. In a globalised world – one
where countries, economies and
companies are more interconnected
and interdependent than ever before
– risks that once seemed improbable
and even remote have become the
norm. For business leaders across the
world, ‘expect the unexpected’ has
become the mantra.

To navigate through this environment, The focus on trust also goes much
companies need to develop resilience.
Preface This combines an ability to ride out the
immediate impact of shocks with a
further. In the post-crisis world, trust is
at a premium. But it’s also an essential
component of the ongoing relationship
long-term capacity to adapt to constantly between an organisation and all its
changing conditions. We’re helping stakeholders – and thereby an
more and more of our clients achieve important pillar of resilience. With
this blend of qualities not only to survive social media giving a voice to evermore
through new and emerging challenges, diverse groups of stakeholders, CEOs
but to thrive in this environment. are recognising the need to secure a
In my view, the shift to resilience helps stronger social mandate by rebuilding
to explain the widening gap between public trust. From promoting an ethical
CEOs’ levels of confidence in their culture to increasing workforce
organisations’ one-year and three-year diversity and reducing environmental
outlooks. This year’s survey shows that impacts, they’re pursuing a wide array
just 36% of CEOs are ‘very confident’ of initiatives to simultaneously support
about their business’s growth prospects their growth strategies, establish the
over the next 12 months, down from right mandate and boost resilience.
40% in 2012 and 48% in 2011 (see My sincere thanks go to the more than
Figure 1). In contrast, the proportion 1,300 CEOs from 68 countries who
confident about growth over the coming shared their thinking with us. Their
three years has held up much better. active and candid participation is the
This suggests that leaders believe their single greatest factor in the success of
organisations can be resilient by the PwC Annual Global CEO Survey,
rolling with the short-term blows while now in its 16th year. We greatly
reshaping for longer-term growth. appreciate our respondents’ willingness
What strategies are CEOs adopting to – indeed eagerness – to free up their
become more resilient? Our findings valuable time to help make this survey
highlight three common approaches. as comprehensive as possible. I’m
First, they’re targeting specific pockets especially grateful to the 33 CEOs who
of opportunity for organic growth, sat down with us in late 2012 to hold
avoiding spreading their resources too deeper and more detailed conversations.
thinly. Second, they’re maintaining a You can see their verbatim comments
clear focus on the customer, taking throughout this report.
active steps to stimulate demand,
loyalty and innovation in their
customer base – through mechanisms
ranging from digital marketing
platforms to collaborative R&D. And
third, they’re fine-tuning their
operational effectiveness by reducing Dennis M. Nally
costs without cutting value and Chairman, PricewaterhouseCoopers
collaborating with trusted partners. International

Contents

The disruptive decade 3

What worries CEOs most? 5

A three-pronged approach 10
Targeting pockets of opportunity 10

Concentrating on the customer 14

Improving operational effectiveness 18

It’s a question of trust 22

CEO survey participants 28

Research methodology and key contacts 30

PwC 16th Annual Global CEO Survey 1

I think the level of external threats has increased with every
passing decade. And as the pace of change has increased,
organisations like ours have to be a lot more flexible than
we might have been in the past.
Shikha Sharma, Managing Director and CEO, Axis Bank Limited, India

2 PwC 16th Annual Global CEO Survey

global economy will stay the same for

The disruptive decade the next 12 months and only 28%
believe it will shrink. In 2012, by
contrast, 48% were convinced the
global economy would contract.

But economic plateaux aren’t exactly
The global economic outlook is grounds for cheer. That’s why short-
certainly enough to test even the term confidence about the prospects
strongest enterprises. The eurozone for revenue growth has continued
is still mired in recession and the US falling (see Figure 1). CEOs in Western
economy is forecast to expand by just Europe are especially nervous. Only
2.2% this year.1 The situation in some 22% feel very confident they can
of the growth markets is also getting increase their company’s revenues in
harder, as the slowdown in the BRIC the coming 12 months, compared with
economies demonstrates. 53% of CEOs in the Middle East and
Latin America.
While market conditions in many
countries are still very difficult, CEOs
are more positive about the prognosis
than they were last year: 52% think the

Figure 1: CEO confidence has gone up and down sharply over the past decade
Q: How confident are you about your company’s prospects for revenue growth over the next 12 months?

60% Very confident about company’s
prospects for revenue growth
over the next 12 months 52%
50%
50 48%

41%
40
40%
31%
36%
30
26%
31%

20
21%

10

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Base: All respondents (2013=1,330; 2012=1,258; 2011=1,201; 2010=1,198; 2009=1,124; 2008=1,150; 2007=1,084; 2006 (not asked); 2005=1,324;
2004=1,386; 2003=989)
Source: PwC 16th Annual Global CEO Survey

1 PwC, ‘Global Economy Watch’ (December 2012).


The prevailing mood is, as usual, …people always tend to think
somewhat more optimistic when it that a tough economic situation
comes to the longer-term outlook:
is the sign of a ‘new normal’
46% of CEOs are very confident about
expanding over the next three years.
and, conversely, that a robust
That said, CEOs in most parts of the world economy will last forever.
world are much less positive than But economic conditions
their peers in the E7 markets (46% always alternate.
versus 58%).2 Yasuchika Hasegawa, President and
It’s easy to understand why they’re CEO, Takeda Pharmaceutical Company
so cautious. Far-reaching changes Ltd., Japan
are happening – and they’re also
happening faster than before. Between
When people ask me, ‘What’s going 1970 and 2011, the number of man-
made disasters nearly tripled, while
to happen in the next five years?’,
the number of natural disasters surged
I throw up my hands and say sevenfold.3 The past decade alone has
‘I have no idea and neither do you.’ seen a number of major disruptions
How do you cope with that degree (see Figure 2).
of uncertainty? Well, I think, first,
In short, improbable risks aren’t so
by having the right attitude about improbable now; they’re becoming
the process of change and reinvention. the norm in a more uncertain world.
Peter Tortorici, CEO, GroupM And CEOs everywhere are feeling
Entertainment Global, US the heat.

Figure 2: Major disruptions over the last decade

Indonesia earthquake

iPhone launch
Global financial crash
Northern Rock bank run (UK)

US-led invasion of Iraq Lehman Brothers’ collapse
SARS epidemic US, UK and European bank bailouts
Wenchuan earthquake (China)

Southeast Asian tsunami WHO declares swine flu pandemic

Eurozone sovereign debt crisis
and first Greek bailout

Hurricane New Zealand and Japan
Katrina earthquake and tsunami
(US)
Hurricane Sandy
(US)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: PwC

2 E7 markets: China, India, Brazil, Russia, Mexico, Indonesia and Turkey.
3 Swiss Re, sigma No 2/2012.


What worries CEOs most?

The global community of regulators Today’s CEOs are concerned about a
– as well as the political classes – are wide range of potential and ongoing
threats to their business growth
keen on ensuring the stability of the
prospects. These include catastrophic
financial system. And that implies events, economic and policy threats
a completely new order, a new set of and commercial threats.
rules to play by. In these cases, it’s
not uncommon to wind up in a Major disruptions
situation of regulatory overreach. We asked CEOs about their
Piyush Gupta, CEO and Director, organisation’s ability to cope with the
DBS Group, Singapore potential impact of various disruptive
scenarios. The majority thought their
organisations would be negatively
affected, with major social unrest being
cause for the greatest concern (see
Figure 3). Indeed, CEOs are far more
concerned about this than they are
about a slowdown in China, possibly
because they’ve already factored the
latter into their calculations.

Figure 3: Major social unrest tops the list of scenarios that would have the worst impact on CEOs’ organisations
Q: How well would your organisation be able to cope with the following scenarios, if they happened within the next 12 months?
(respondents who answered ‘negative impact’)

Major social unrest in the country in which you are based 75

Recession in the US 67

Cyber attack or major disruption of the internet 63

A natural disaster disrupting a major trading/manufacturing hub 56

A breakup of the eurozone 53

Military or trade tensions affecting access to natural resources 53

Health crisis (e.g. viral pandemic, food/water safety crisis) 52

China’s GDP growth falling below 7.5% per annum 51

%

Base: All respondents (1,330)


Red numbers, red tape Has regulation gone too far? The US
Dodd-Frank Act of 2010 runs to a
Of course, major disruptions aren’t massive 884 pages, which makes it
the only cause for concern; CEOs are 23 times longer than Glass-Steagall,
nervous about a whole clutch of fiscal the reform that followed the Wall
and political threats. The prospect of Street Crash of 1929.4 And the
continuing economic volatility heads European Commission (EC) has
their worry list, as it has for the past generated so much red tape that
two years. But 71% – rising to 89% in business ministers from Germany,
North America – are also concerned the Netherlands, Poland and the UK
about how debt-laden governments recently wrote a letter urging Brussels
will try to address growing deficits. to reduce the burden.5 This is in spite
And 69% are anxious about the risk of of the EC’s efforts of the past years
overregulation, now seen as a bigger to consolidate, codify and simplify
threat than at any time since 2006 existing legislation and improve the
(see Figure 4a). quality of new legislation.

Figure 4a: Volatile conditions top the list of economic and political threats, but concerns vary by where CEOs are located
Q: How concerned are you about the following potential economic and policy threats to your business growth prospects?
(top four threats global CEOs named)

88% 89% 75% 66%
Africa North America Middle East Africa/Asia Pacific

81% Global 71%
Global
69%
Global
61%
Global

56% 54% 65% 50%
Middle East Latin America Western Europe Latin America

Uncertain or volatile Government response
economic growth to fiscal deficit/debt Overregulation Capital market volatility

Regions most concerned about this threat Regions least concerned about this threat

Base: All respondents (North America=227; Western Europe=312; Asia Pacific=449; Latin America=165; Middle East=32; Africa=50)

4 ‘Over-regulated America’, The Economist (18 February 2012), http://www.economist.com/node/21547789
5 James Kirkup, ‘Lift the weight of red tape, Vince Cable and allies urge Brussels’, The Daily Telegraph (20 November 2012), http://www.telegraph.co.uk/finance/yourbusiness/9689165/
Lift-the-weight-of-red-tape-Vince-Cable-and-allies-urge-Brussels.html


Too much tax, too little talent hard.6 Meanwhile, the competition
for talent has become more fierce than
On the commercial front, CEOs are ever before, with the aging of the
particularly anxious about higher global population and the changing
taxes and the shortage of key skills nature of work.
(see Figure 4b). These are perennial
fears, but current events have brought Energy and raw material costs are
them to the fore. also a significant source of unease
– especially in Africa and Asia Pacific,
In the US, for example, one of the most where 68% and 63% of CEOs,
pressing issues in President Obama’s respectively, see them as a serious threat.
in-tray is reform of the corporate tax
system. In February 2012, he proposed
reducing the headline tax rate by
eliminating dozens of subsidies, a
move that could hit some companies

Figure 4b: Volatile conditions top the list of business threats, but concerns vary by where CEOs are located
Q: How concerned are you about the following potential business threats to your growth prospects?
(top four threats global CEOs named)

65% 82% 68% 57%
Asia Pacific Africa Africa Asia Pacific

62% 58% 52% 49%
Global Global Global Global

50% 45% 31% 35%
Middle East Western Europe Middle East Latin America

Energy and Shifting consumer
Increasing tax burden Availability of key skills
raw material costs spending/behaviour

Regions most concerned about this threat Regions least concerned about this threat

Base: All respondents (Western Europe=312; Asia Pacific=449; Latin America=165; Middle East=32; Africa=50)

6 Jackie Calmes & John H. Cushman Jr., ‘Obama Unveils Proposal to Cut Corporate Tax Rate’, The New York Times (22 February 2012), http://www.nytimes.com/2012/02/23/business/economy/
obama-introduces-plan-to-cut-corporate-tax-rate.html?pagewanted=all


Silver lining for some From risk management Some European countries have
It’s not all doom and gloom, though. to resilience a high level of productivity while
Nearly a fifth of all CEOs in the Middle One thing is clear: the threats facing others have a lower level of
East believe the collapse of the eurozone CEOs are coming from all directions; productivity while they are all
could provide new business opportunities. they’re coming harder and faster; and wrapped up in a ‘monetary corset’
they’re coming in more subtly varied subject to different tax regulations.
Similarly, 16% of CEOs in the Middle
forms. Confronted with this changing If the eurozone fails, an array of
East and 13% of CEOs in Central and
risk landscape, CEOs recognise that
Eastern Europe believe China’s slowing opportunities may arise, because
traditional risk management
growth could open new doors. And
techniques aren’t enough. And, in a some of the current rigidities
13% of CEOs in North America would will disappear.
stagnating global economy, they know
welcome a squeeze on natural
they can’t rely on a rising tide to come Julio Patricio Supervielle, Grupo
resources for the same reason.
to the rescue. Supervielle’s CEO and Banco
In fact, Chinese CEOs are already Supervielle’s Chairman, Argentina
The only way forward is to build
benefiting from the lingering
organisations that can survive
uncertainty in the eurozone. Our
and thrive amidst disorder:
research shows that, in 2011, there
organisations that are agile and
were 61 deals in which mainland
adaptable, able to cope with
Chinese companies acquired European
disruption and emerge stronger
companies – up from 11 in 2006. And
than before.
in the three months to March 2012, the
number of Chinese firms purchasing “If you don’t evolve and change, you
European firms surpassed the number go backwards. It’s pure physics,” says
of European firms purchasing Chinese Larry Fink, Chairman and CEO of asset
firms for the first time in history.7 management firm BlackRock Inc. “So
we’ve adapted quite considerably. Even
this year we changed our entire firm
architecture to be more adapted
to our clients, to be more adapted to
the situation and, importantly, to
finalise our evolution from a founders’
culture firm to a global, hopefully
entrepreneurial firm. And that has
been a big evolution.”

7 PwC, ‘China deals: A fresh perspective’ (October 2012).


To be honest, we wouldn’t dare to predict the future. The fact is
the world has been changing a lot more quickly in recent years.
And looking back, we find that many forecasts of the global
economy turned out to be incorrect. In our company, we just
try to do well everything we need to do today. There are so
many things out of our control that we feel it’s unnecessary and
impractical to make too many predictions about the economy.
Instead, we focus on building robust systems that can operate
under a variety of conditions.
Alex C. Lo, President, Uni-President Enterprises Corporation, Taiwan


evidence to suggest that concentrating
your firepower works much better than
adopting a scattergun approach.

One analysis of how 4,700 companies
weathered three previous downturns
shows that the star performers – those
that emerged stronger than ever –

A three-pronged approach weren’t the obvious ones. They weren’t
the companies that cut fast and
furiously or went on the offensive with
ambitious restructuring programmes,
acquisitions and the like. The former
saw customer satisfaction drop as the
Growth is not necessarily about So what are CEOs doing to make their
organisations more resilient in this quality of their offerings deteriorated,
revenue growth. In this uncertain while the latter were stretched much
era of ‘stable instability’? Our survey
environment there is more and more too thin.8
shows that they’re taking three
emphasis on bottom line growth. specific approaches: The companies that fared best in terms
Peter Terium, CEO, RWE AG, Germany
• Targeting pockets of opportunity: of both sales growth and profits
CEOs are focusing on a few well- growth were those that mastered the
chosen initiatives, primarily in their delicate balance between cutting costs
existing markets, to stimulate organic to survive in the short term and
growth. They’re more wary about investing to expand in the longer term.
entering new markets or engaging They took advantage of depressed
in mergers and acquisitions (M&As), prices to buy property, plants and
and diluting their resources too much. equipment that would help them
compete more effectively in the future.
• Concentrating on the customer: And they invested judiciously in R&D
CEOs are looking for new ways to and marketing to boost their sales and
stimulate demand and foster profits when demand rose again.9
customer loyalty, such as capitalising
on digital marketing platforms and The CEOs in our survey are responding
involving customers in product/ in the same fashion. They’re weighing
service development. But they’re also up all their options, making a few
aiming to keep their R&D costs down smart investments and consolidating
and make the innovation process their resources to maximise the odds of
more efficient. success. And they’re doing so not
because they think it’s the best way of
• Improving operational surviving a downturn but because they
effectiveness: CEOs are balancing think it will make their organisations
efficiency with agility. They’re trying more robust.
to cut costs without cutting value or
leaving their organisations exposed Steve Holliday, CEO of international
to external upheavals. They’re also energy distributor National Grid Group
delegating power more widely and Plc., sums up this approach. “It’s very
collaborating with organisations easy to just go off and think you can do
to share resources and develop things that you do well in many
new offerings. countries around the world which
arguably need some of your skills,” he
Targeting pockets warns. But if a company doesn’t have a
clear idea of where it can deliver value
of opportunity
and isn’t disciplined in its focus, it risks
Two-thirds of all CEOs are focusing on extending itself too far. “We’re very,
a few carefully selected initiatives very conscious of making sure we don’t
rather than nurturing numerous overreach ourselves.”
different ideas and then weeding out
the weakest. That’s easier said than
done because every business unit
naturally thinks its plans should take
precedence. But there’s considerable

8 Ranjay Gulati, Nitin Nohria & Franz Wohlgezogen, ‘Roaring Out of Recession’, Harvard Business Review 88, no. 3 (March 2010): 62–69.
9 Ibid.


Homing in on organic growth
So exactly which pockets of
opportunity are CEOs targeting?
Nearly half are pinning their hopes
on organic growth in their existing
markets (see Figure 5). Only 17%
plan to complete M&As or form new Figure 5: CEOs are pursuing the opportunities for organic growth in existing markets
strategic alliances. And only 25% are
Q: Of these potential opportunities for business growth, which one is the main opportunity in
turning to new product and service the next 12 months?
development.

At first glance, then, it might look as
if CEOs are hunkering down and
waiting for better times. But CEOs also
know that, if they want to grow their
business, they’ll have to go where the
32% Organic growth
25%
in existing
growth is – and four distinct economic
clusters are emerging (see Figure 6).
domestic market New product
or service
development
17%
New M&A/joint

17%
The troubled states of Southern Europe ventures/strategic
alliances
are contracting. Meanwhile, Australia,

8%
Japan, North America and the more Organic growth
in existing
robust members of the European Union foreign market
are showing signs of recovery, albeit
rather shaky. New operation(s)
in foreign markets
The growth countries are also
diverging. China and India are still Base: All respondents (1,330)
Note: 1% of CEOs responded ‘Don’t know/Refused’
expanding rapidly, but the pace is Source: PwC 16th Annual Global CEO Survey
slowing down. Conversely, some parts
of Southeast Asia and Latin America
are picking up speed. This pattern is
expected to continue for the rest of
the decade.

Figure 6: Two faster and two slower economic lanes are developing

The global growth leaderboard is changing

Growing but susceptible to disruption Growing and accelerating
Poland 3.4% France 1.2% Indonesia 6.2%
Australia 3.1% Japan 0.9% Brazil 4.0%
Canada 2.3% United Kingdom 2.1% South Africa 3.6%
United States 2.4% Netherlands 1.1%
Germany 1.3% Ireland 2.2%

Struggling to grow Growing but decelerating
Italy 0.3% China 7.3% South Korea 3.6%
Spain 0.9% India 6.6% Mexico 3.7%
Portugal 0.5% Saudi Arabia 4.2% Russia 3.8%
Greece 0.6% Turkey 5.1%

Aggregates Eurozone 1.0% Global (market rates) 3.0%

All percentages are projected 2013-15 average growth rates

Sources and methodology: PwC analysis, national statistical authorities, Thomson Datastream and IMF. The tables above form our main scenario projections and
are therefore subject to considerable uncertainties.


With growth rates among both mature And a growing number of CEOs are CEO opinion is divided on Europe,
and growth economies diverging, and looking to Africa. For example, Nestlé though some CEOs see promise,
with highly unique opportunities and sees Africa as one of the biggest including those countries that are
threats in each market, CEOs are opportunities for the food industry in struggling to grow. “People there [in
looking for specific opportunities in the next 10-20 years.15 Dr. João Bento, Western Europe] have decided that
all clusters. CEO of Portugal-based international they should work less and retire earlier.
technology provider Efacec Capital And that may not be affordable. So I
It’s not surprising that five of CEOs’ top SGSP SA says, “…we also have a think that Western Europe has a
ten overseas destinations are growth presence in growth economies, such serious structural issue.” says Seymur
markets, nor that four of these are the as Latin America, Southern Africa, Tari, CEO of Turkish private equity
BRIC economies (see Figure 7). But the Magreb and also in India.” firm Turkven.
fact that Indonesia is now in the top ten
– for the first time – shows that CEOs The US, meanwhile, remains second Yves Serra, President and CEO of Swiss
have been quick to spot more subtle shifts on CEOs’ list of top ten overseas industrial components manufacturer
in the distribution of economic power. destinations, as it did last year. Georg Fischer Ltd., is more positive.
All five of the mature economies on “We focus our efforts on where we
Indonesia is the fastest of the the list are growing, albeit susceptible see growth. This includes Asia and
accelerating markets, with real GDP to disruption. These markets, which America, at least for our products, and
growth forecast to increase by 6.2% comprise five of the G7 countries, are also some sectors in Europe. …So the
a year for the next three years.10 quite simply too big to ignore: the US, picture is not just black and white;
By 2050, Indonesia’s economy in Japan and Germany are projected to there are definitely pockets of growth
purchasing power parity (PPP) terms remain among the world’s ten biggest in Europe as well.”
could be bigger than that of Germany, economies, in PPP terms, in 2050,
France or the UK.11 Its stock market has while Canada and the UK are expected The traffic isn’t going in only one
soared 12.6% in the past 12 months to remain in the top 20.16 direction, though. CEOs in the mature
alone.12 And the government has markets may be looking to various
launched a major programme to Furthermore, although the E7 countries growth markets, but CEOs in growth
improve the country’s overburdened are set to overtake the G7 countries in markets are equally prepared to go
infrastructure.13 terms of GDP size and growth by 2050, further afield: 33% of CEOs in Asia
they are still expected to lag far behind Pacific and 19% of those in the Middle
Other emerging markets are also being the G7 countries in terms of GDP per East are targeting the US, for example,
prioritised, like Mexico and Thailand, capita.17 So large, mature markets will while 27% of CEOs in Latin America
which are close on the heels of CEOs’ still remain attractive for higher valued and 18% of those in Africa are
top ten markets. Mexico is particularly products and services, given their more targeting China.
notable – it could become the world’s 7th affluent consumers.
largest economy by 2050 in PPP terms.14

Figure 7: Half of CEOs’ top ten countries are growth markets
Q: Which three countries, excluding the country in which you are based, do you consider most important for your overall growth prospects over
the next 12 months? (maximum of 3 responses)

5% UK 8%
Canada 6% Russia

12%
23% Germany
31% 5%
Japan
US
10% China
India
7%
Indonesia
15%
Brazil


10 PwC projections.
11 PwC, ‘World in 2050’ (January 2013).
12 Daniel Inman, ‘Southeast Asia’s Growing Appeal’, The Wall Street Journal (3 December 2012), http://online.wsj.com/article/SB10001424127887324020804578151761632189982.
html#mod=djemITPE_t
13 Eric Bellman, ‘Indonesia Boosts Infrastructure Investment’, The Wall Street Journal (7 December 2012), http://online.wsj.com/article/SB10001424127887323501404578165794187322794.html
15 Caroline Scott-Thomas, ‘Nestlé eyes big food industry opportunities in Africa’, Food Navigator (26 November 2012), http://www.foodnavigator.com/Financial-Industry/Nestle-eyes-big-food-
industry-opportunities-in-Africa
17 Ibid.


…I think what we have to do ... is look for the growth
opportunities very carefully. The easy route is to say, well
that’s an emerging market so that’s got to be good, that’s
a mature market, that’s got to be tougher, but ... I think
you’ve got to drill down to see where the growth really is.
... and there is growth in every market – but you’ve got to
go granular.
Alison Cooper, Chief Executive, Imperial Tobacco Group,
United Kingdom


Concentrating on
the customer
Irrespective of the markets they’re in,
CEOs have one overwhelming goal: to
grow their customer base. Indeed, 51%
say it’s a top three investment priority
for the coming year. Figure 8: Not all growth markets are consumer-led economies

That’s not surprising. What’s changed
30
is the fact that CEOs are now trying to
Producers Consumers and producers
attract more customers while focusing Nigeria

(proxied by growth in number of people of working age)
25

Projected production potential over 2011-20 period
on a smaller, more targeted range
of growth strategies – no easy task in
20 Saudi Arabia
the current economic climate. The
recession has hit some businesses and
15 Malaysia
consumers badly, particularly those in India
richer countries. Between 2000 and Mexico
10
2011, consumer spending in the Indonesia
mature markets increased by just Brazil
5
2.1% a year. In the growth markets, South Africa Vietnam
by contrast, it increased by a much
0
healthier 5.7%.18 China

Very different consumption volumes -5 South Korea
and patterns in different markets add
to the challenge. Though the growth -10
Russia
economies have some common Consumers
characteristics, they also differ in key -15
0 20 40 60 80 100%
respects – and these differences are
Projected consumption potential over 2011-20 period
likely to intensify as they continue to (proxied by GDP per capita growth)
develop. Some growth countries are
primarily producers rather than Note: Dotted lines represent average values
consumers, for example (see Figure 8). Source: PwC analysis, UN population figures.

The purchasing power and preferences
of consumers can also vary a lot
within, as well as between, countries, In fact, nearly half the CEOs we polled We keep close track of the real
and adapting to such disparate tastes see shifts in consumer buying patterns estate sector in order to remain on
requires a deep understanding of the as a serious business threat. And they
the cutting edge of all advanced
local environment. “It all starts with realise that being able to respond
the consumer – a rich and robust quickly and effectively to such changes
trends in the construction of
understanding of what they want, is crucial. buildings, energy efficient
where they’re going, but, most technologies and environmentally
importantly, what they want in the Dr. Weihua Ma, President and CEO friendly materials. We introduce
future,” Douglas D. Tough, Chairman of China Merchants Bank Co. Ltd.,
puts the position particularly well:
ready-to-move-in residential
and CEO of International Flavors &
“We commercial banks are service apartments in our buildings in
Fragrances, Inc., observes.
institutions, so changes in customer response to client suggestions.
“We interview consumers all around demands are extremely important for Valentina Stanovova, Senior Vice-
the world to make sure we have a us. Just as a chef in a restaurant will President, Capital Group, Russia
robust database, and we don’t lose his job if his cooking cannot satisfy
extrapolate necessarily from any one his customers, a service institution will
country to get a global view.” But there not exist if it has no customers.”
are obvious risks for multinationals, he
adds. “…they have to adapt properly
to local needs.” The competition from
local and regional rivals is also
increasing all the time.

18 PwC, ‘Introducing the PwC Global Consumer Index’ (October 2012), http://press.pwc.com/GLOBAL/global-consumer-spending-slowdown-eases.-pwc-releases-first-ever-global-consumer-index-
gci/s/bc11166a-cd72-4ea7-93fa-c167d10a5cb5


Getting customers onside In terms of the importance of our different stakeholders, our customers
So it’s no wonder that new strategies to are absolutely the most important. If we don’t give them a good service
stimulate demand and foster customer – affordable tariffs, high reliability, good customer service – then we know
loyalty play a big part in CEOs’ plans we are going to be in trouble.
for the next 12 months. A full 82% Andrew Bradler, CEO, CLP Holdings Ltd., Hong Kong, China
anticipate making changes on this
score – and 31% have major changes in
mind (see Figure 9).

One obvious measure is to take Engaging with customers isn’t just
advantage of the new marketing about communicating with them,
platforms now emerging. Most though. It’s also about working with
organisations have traditionally used them to co-create new offerings, and
market research, competitive helping them use the products and
benchmarking and the like. But these services they’ve bought more enjoyably
sources of information can only show or effectively. Boeing has perfected the
how customers behave en masse. first of these two approaches: it
consults airlines and frequent flyers
That’s not the case in the digital arena.
alike when it’s designing new planes.19
Mining social media sites, blogs,
Digital music service Spotify has
consumer reviews and other such data
perfected the second by inviting
sources helps an organisation find out
subscribers to customise their playlists,
what individual customers think and
which enhances the product offering
want. Equipped with these insights, it
for them and for others.
can then develop products and services
for specific customer segments and
craft more personalised marketing
messages – as well as enhancing the
brand. This may explain why three-
quarters of CEOs say they’re increasing
their technology investments.

Figure 9: Attracting – and keeping – more customers is a key priority
Q: To what extent do you anticipate changes at your company over the next 12 months?

Don’t know/refused
Customer growth/retention/loyalty strategies 17 51 31 1%

Strategies for managing talent 23 54 23 1%

Increase in technology investments 25 54 21 1%

Organisational structure 26 52 22 1%

Increase in R&D and innovation capacity 32 50 17 1%
0 100

%

No change Some change A major change


19 Bryan Urbick, ‘Innovation Through Co-creation: Consumers Can be Creative’, Innovation Management (26 March 2012), http://www.innovationmanagement.se/2012/03/26/innovation-
through-co-creation-consumers-can-be-creative/


Making the most of disruption Finland-based international Human capacity is key to any
communications and information company’s growth. The second
Yet innovation – generally one of the
technology company Nokia is a case
most important factors in attracting important factor is R&D.
in point. “…our focus is very much
and retaining customers – is surprisingly Karen Agustiawan, President Director
on disruption – disrupting ourselves,
low down the schedule for many CEOs. and CEO, PT Pertamina (Persero),
disrupting the trends that have been
It comes fifth on their list of investment Indonesia
established in the industry and moving
priorities for this year. And though
forward with new strategies, new
67% plan to increase their company’s
products and new ways of managing
R&D capacity, only 17% intend to
our organisation in order to keep pace
make major alterations.
and indeed accelerate the pace beyond
The drive for efficiency explains why others.” says President and CEO
some CEOs are reluctant to invest more Stephen A Elop.
in R&D, but a closer look at the data
“One of the most important ways that …we want more than just satisfied
also shows marked regional variations.
we see to drive disruption is to focus on consumers. We want to delight
CEOs in Africa, Asia Pacific and Latin
unique and differentiating consumer
America are more likely to be beefing them – to go beyond their
experiences. That’s a fancy way of
up their company’s R&D than those in
saying, ‘how can we help you do
expectations. We are seen as a
the rest of the world – possibly because company that delivers excellence
something you couldn’t do before?’
the growth countries are still in in terms of customer service.
… when you look at the patterns
catch-up mode.
of disruption, particularly in the area But our main innovations are
Nevertheless, CEOs know that of technology, it’s often something our [retail] collections and how
innovation isn’t possible without relatively focused, relatively simple
quickly we get them to market.
investment. That’s why a number that allows you as a person to do
something you couldn’t do before, José Galló, CEO and Director,
of leading companies are adopting Lojas Renner, Brazil
a more imaginative approach to the or to do it faster or more efficiently.
innovation process itself, whether And it’s those types of innovations that
it’s incremental changes or more we’re focused on today,” he explains.
fundamental changes to their business
models, in order to become more agile
and responsive to competitive threats
or shifts in customer demand.


It all starts with the consumer – a rich and robust
understanding of what they want, where they’re going,
but, most importantly, what they want in the future.
Douglas D. Tough, Chairman and CEO, International Flavors
& Fragrances, Inc., US


Improving operational objectives. As Artem Konstandyan, I think the underlying idea of
effectiveness CEO of Russia’s Promsvyazbank (PSB), trying to reduce cost in whatever
notes, “Downsizing is not a goal in
Under pressure to meet demanding we do actually makes us become
itself. We’re trying to streamline our
customer growth targets within tightly operations and improve staff
creative and innovative.
defined investment parameters, CEOs performance.” Aireen Omar, CEO,
know they’ll have to change the way AirAsia Berhad, Malaysia
their companies function. Nearly half An example? Many companies
say improving operational discovered in the aftermath of the
We believe the underlying growth
effectiveness is one of their top three tsunamis in Southeast Asia and Japan
that the quest to maximise the
trends will be slow. So we have to
investment priorities this year.
efficiency of their supply chains had just be better than the competition
Anders Nyrén, President and CEO of severely impaired their ability to cope in these markets, and that is also
global investment firm Industrivärden with disruption. Today’s CEOs have one of the reasons why we have
AB, based in Sweden, spoke for many clearly learned from that experience: to keep costs under control.
CEOs when he told us: “Given that the 50% are diversifying their supply
global economy and the global pace Martin Blessing, Chairman of the
chains and working with suppliers
of life are getting faster in all aspects, Board of Managing Directors,
in a wider range of territories.
one needs to become more agile and Commerzbank AG, Germany
efficient about everything – including CEOs are also wary about
running a company. It’s essential that inadvertently cutting value in the …we have had to look seriously at
you streamline operations and become course of cutting costs – and slashing
how we manage our business. And,
leaner wherever you can, so as to be the workforce is one action that can
able to react more quickly to changing certainly backfire. This probably we have had to learn how to be
market conditions.” explains why 25% have kept their prepared to disrupt ourselves. So,
company’s headcount the same for rather than getting too rigid and
Finding the right balance the past 12 months, while 48% have bureaucratic and too procedures-
actually increased it. It may explain, driven, sometimes we’ve had to step
Cost-cutting is still high on the agenda:
too, why 77% of CEOs plan to revise
77% of CEOs have undertaken outside of ourselves, but yet within
their strategies for managing talent
cost-saving initiatives in the past ourselves, by creating new units
in the coming year; they realise they
12 months and 70% plan to do so in to challenge the way that we do
won’t be able to attract and retain new
the next 12 months (see Figure 10).
But they’re not wielding the knife
customers without well-trained, highly business and to extend that
motivated employees. learning to the traditional parts
indiscriminately; they’re trying to
balance efficiency with other strategic of our business.
Alex Arena, Group Managing Director,
HKT Ltd., Hong Kong, China

Figure 10: Cost-cutting tops the list of restructuring activities CEOs plan to put in place in 2013
Q: Which, if any, of the following restructuring activities do you plan to initiate in the coming 12 months?

70% 47% 31%
Implement a Enter into a new Outsource a
cost-reduction strategic alliance business process
initiative or joint venture or function



Figure 11: Involving less senior managers in strategic decisions is seen as most effective in preparing them for leadership
Q: Do you deploy any of the following to develop your leadership pipeline?
Q: If so, how effective are they?
100

% of CEOs who deploy the following to develop their leadership pipeline
79
80
69 71
62
61 % of CEOs who
60 58 don’t rate their
initiatives as
%
highly effective

40 37

33
20 24
22 22
19
11 13
0
Shadowing Programmes Encouraging Rotations to Dedicated Active Involving
senior to encourage global mobility different executive succession managers below
executives diversity and functions/ development planning, board level
among international challenges programme including in strategic
business experience identifying decision-making
leaders multiple
successors
Effectiveness of methods deployed to develop leadership pipeline
Very effective Somewhat effective Not very effective Not at all effective Don’t know/refused


Putting power in more hands That said, there are pronounced I prefer a management style based
regional variations in behaviour. on openness and cooperation at
In fact, some CEOs are going
CEOs in North America are far more
considerably further: they’re devolving every level; one that does not
likely to encourage their employees to
power more widely to make their
participate in strategic decisions than
necessarily obey or respect
organisations more agile and responsive. hierarchy at all times. I believe in
those based in Central and Eastern
Although only 31% encourage all their leadership that can stay flexible.
Europe, Asia Pacific and Latin America.
staff to get involved in strategic
They’re also more likely to involve Sándor Csányi, Chairman and CEO,
planning, 79% include managers
middle managers. OTP Bank Plc., Hungary
below board level in such decisions as
part of the process of developing their These variations obviously reflect
leadership pipelines. And most CEOs cross-cultural differences in how
think it’s the best way of nurturing decisions are made. CEOs in cultures
their successors (see Figure 11). that are relatively egalitarian typically
adopt a more participative approach
“We don’t have one way of doing things
than those in cultures that are
nor do we have one point of authority
relatively hierarchical.20 But whereas
to which all questions have to be
participative management can improve
directed,” says Carl Sheldon, CEO of
profitability in less hierarchical
United Arab Emirates-based global
cultures, it can worsen profitability in
energy company TAQA. “Instead, our
more hierarchical cultures.21 So using
approach is to create a culture that
different decision-making styles in
empowers people and – within the
different cultures makes good
context of a set of shared values –
business sense.
provides them with the freedom to
take action. That gives you tremendous
strength, flexibility, and agility.”

20 Pankaj Ghemawat & Sebastian Reiche, ‘National Cultural Differences and Multinational Business’, Globalization Note Series, 2011.
21 Karen L. Newman & Stanley D. Nollen, ‘Culture and Congruence: The Fit Between Management Practices and National Culture’, Journal of International Business Studies 27, No. 4 (4th Quarter,
1996), pp. 753-779.


Sharing as well as buying We believe the dip in M&A is being Our innovation comes from
driven by current levels of uncertainty globally collaborative efforts and a
It’s not just the way management
rather than a major change in
and employees interact within lot of encouragement from within.
emphasis. But we’re also seeing a move
organisations that’s changing, though;
by businesses towards ‘sharing’, by
It is also about empowerment,
it’s also the way organisations interact decentralisation and
forming partnerships or networks.
with each other. Nearly half the CEOs encouragement to come up with
Inspired by companies like Amazon
we polled aim to form a new strategic
and Apple, CEOs recognise that they’re new ideas for R&D programmes
alliance or joint venture during the
no longer confined to the traditional and product development.
next 12 months, which is broadly
options of ‘build or buy’.
in line with the pattern for the past A.M. Naik, Executive Chairman,
four years. Collaborating with other organisations Larsen & Toubro Limited, India
in the same or adjacent industries
At the same time, global M&A activity
provides new opportunities for
has declined sharply since the start of
generating business by co-developing
the global financial crisis, although
products and services, taking
CEOs in some sectors, like mining,
advantage of a common infrastructure
power and utilities and communications,
and sharing customers. It also carries
are much more likely to be prioritising
much less risk than an M&A because
investment in M&A in the coming year.
it doesn’t require a significant upfront
Even so, the aggregate value of the investment and doesn’t entail spending
deals completed in the first half of several years integrating the target
2012 was less than half the value of company to realise the gains.
the deals completed in the first half
That’s not to say there’s no place for
of 2007.22 Further evidence of how
M&As. On the contrary, one study
cautious CEOs have become is the
shows that firms using multiple modes
fact that three-quarters of the deals
to obtain new resources were much
conducted in 2012 were cash-only
more likely to survive over a five-year
transactions.23
period than those that relied solely on
Yet, some firms have plenty of money alliances, solely on M&As or solely on
in their piggy banks. US companies are internal development.27
sitting on about $1.7 trillion in cash
But partnering with other
reserves.24 Canadian companies hold
organisations, as distinct from
nearly $300 billion.25 And British
purchasing them, does carry
businesses hold another £720 billion.26
considerable organisational implications.
Nearly two-thirds of the CEOs who
The qualities needed to form a
participated in our survey also intend
successful network are quite different
to boost their capital spending over the
from those needed to pull off an
next 12 months, which suggests that
acquisition. Key among these is the
they have enough cash to finance their
high degree of collaboration that’s
plans or are confident of raising the
required to make an alliance work.28
funds. So, if money isn’t the issue,
what is?

22 mergermarket H1 round-up report (July 2012).
23 mergermarket 2012 round-up report (January 2013).
24 Federal Reserve, ‘Flow of Funds Accounts of the United States’ (June 2012).
25 ‘Dead money’, The Economist (3 November 2012), http://www.economist.com/news/finance-and-economics/21565621-cash-has-been-piling-up-companies’-balance-sheets-crisis-dead
26 Michael Izza, ‘Business Confidence research suggests recovery has not yet taken hold’, ICAEW (5 November 2012), http://www.ion.icaew.com/MoorgatePlace/25687
27 Laurence Capron & Will Mitchell, Build, Borrow, or Buy: Solving the Growth Dilemma (Harvard Business Review Press, 2012).
28 PwC, ‘Creating successful alliances and joint ventures’ (2012).


One key point of our strategic advantage is the capability
to ‘orchestrate’ the production and engineering value
chain we create in partnership with other companies.
That gives us the ability to scale up or scale down quickly
and efficiently. We try to ensure our organisational
structure is sufficiently fluid so that we can respond
quickly to changes in demand.
Pertti Korhonen, President and CEO, Outotec Oyj, Finland


Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013

Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (15)

Semelhante a Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013

Semelhante a Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013 (20)

Mais de PwC France

Mais de PwC France (20)

Último

Último (20)

Etude mondiale de PwC sur les priorités des dirigeants d'entreprises pour 2013