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Which Consumer Products companies can sustain profitable growth amid ongoing disruption?

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  1. 1. How companies want to evolve How companies see their business Focus on funding growth In search of balance: Which Consumer Products companies can sustain profitable growth amid ongoing disruption? The biggest barriers to business transformation Make-or-break capabilities: most companies have a long way to go Decentralize decisions Enlist partners and expand outsourcing Emphasize flexibility over efficiency Few companies are confident that they can: Movebeyondconventional salesforecastingtosense andshape demand Tune supply chains to meet go-to-market objectives Innovate to meet changing consumer wants and needs Work with customers to gain a real-time, end-to-end view of the value chain Secure talent to translate insight into action Accurately map the portfolio revenue impact of individual SKUs Understand the true profitability of promotional spending Identifyandrevise processes thatdon’t fuelvaluecreation Take a long-term view Talent shortage Inconsistent governance and controls Inflexible operating models Ineffective innovation Capital constraints Early 2016, EY interviewed 212 senior executives from Consumer Products globally. Visit ey.com/balance to find out more Companies say that traditional value-creation tactics are losing their potency... Meanwhile they see margins getting squeezed... ...and can no longer reliably sustain profitable growth. ...which they say increases the pressure to change operating models... ...even though they admit many previous attempts have failed. Most companies recognize the need for bolder measures... ...but nearly half feel hamstrung by their cost cutting focus... ...and most say they over-emphasize quarterly results. 75% 75% 75% 74% 49% 58% 68% 46% 13% 22% 22% 14% 12% 22% 20% 10%