WEBVTT 1 00:00:07.710 --> 00:00:10.350 Globalization in the past has been very much 2 00:00:10.350 --> 00:00:11.490 just about growth. 3 00:00:11.490 --> 00:00:14.460 Emerging markets have been the fastest growing part 4 00:00:14.460 --> 00:00:16.410 of the global economy. 5 00:00:16.410 --> 00:00:17.853 Nowadays, this is changing. 6 00:00:18.690 --> 00:00:21.570 Many emerging markets are not growing as fast as before. 7 00:00:21.570 --> 00:00:24.270 In addition to that, they see that in many parts 8 00:00:24.270 --> 00:00:26.985 of the world, the competitiveness of the environment 9 00:00:26.985 --> 00:00:29.670 is changing massively. 10 00:00:29.670 --> 00:00:33.090 So, they see local competitors coming up. 11 00:00:33.090 --> 00:00:36.060 They see that often the countries they're in 12 00:00:36.060 --> 00:00:39.870 are less accommodating and less positive 13 00:00:39.870 --> 00:00:42.600 towards foreign investment and foreign companies. 14 00:00:42.600 --> 00:00:45.510 They see that people, talent they want to employ 15 00:00:45.510 --> 00:00:48.090 is more looking to work with local companies 16 00:00:48.090 --> 00:00:49.950 than multinational companies. 17 00:00:49.950 --> 00:00:52.200 And lastly, they see the costs rising as well. 18 00:00:52.200 --> 00:00:55.617 So, when you transform, you want to fundamentally 19 00:00:55.617 --> 00:00:59.763 get a company towards a better trajectory. 20 00:01:00.990 --> 00:01:03.270 The first element of that is that companies need 21 00:01:03.270 --> 00:01:04.770 to rethink their priorities. 22 00:01:04.770 --> 00:01:07.770 Most companies, for example, chose the markets they're in 23 00:01:07.770 --> 00:01:09.840 very much on growth potentials. 24 00:01:09.840 --> 00:01:12.870 So, if you look at most markets growth potentials, 25 00:01:12.870 --> 00:01:15.930 you come up with China, with India as the biggest market, 26 00:01:15.930 --> 00:01:18.543 sometimes Indonesia, Brazil, the BRICS and so on. 27 00:01:19.590 --> 00:01:21.210 And then, they set the priorities according 28 00:01:21.210 --> 00:01:23.250 to those growth opportunities. 29 00:01:23.250 --> 00:01:25.830 Nowadays, they need to think about setting 30 00:01:25.830 --> 00:01:29.100 strategic priorities based on how likely 31 00:01:29.100 --> 00:01:30.660 is it that they are competitive, 32 00:01:30.660 --> 00:01:33.480 how likely is it that they can really win 33 00:01:33.480 --> 00:01:36.780 against local competitors, against local companies 34 00:01:36.780 --> 00:01:39.207 in those markets, and that's a fundamental strategic shift. 35 00:01:39.207 --> 00:01:42.930 It works quite well if companies don't have 36 00:01:42.930 --> 00:01:45.750 a very heavy handed controlling headquarters, 37 00:01:45.750 --> 00:01:47.940 which tries to drive the transformation 38 00:01:47.940 --> 00:01:50.610 take the decisions in the corporate center, 39 00:01:50.610 --> 00:01:55.290 and then, applies those decisions to all markets, 40 00:01:55.290 --> 00:01:58.350 but what we see working normally is that you start 41 00:01:58.350 --> 00:02:01.260 with one country, really turn that around, 42 00:02:01.260 --> 00:02:02.730 really make that productive, 43 00:02:02.730 --> 00:02:06.180 and then, translate the learnings to other countries. 44 00:02:06.180 --> 00:02:10.050 So, BCG is probably the consultancy in the world, 45 00:02:10.050 --> 00:02:14.220 which has the best global footprint 46 00:02:14.220 --> 00:02:16.638 and has worked in all of those markets 47 00:02:16.638 --> 00:02:19.830 in a significant way to really turn around companies 48 00:02:19.830 --> 00:02:21.450 to help them grow, but as well 49 00:02:21.450 --> 00:02:23.520 to help them become productive. 50 00:02:23.520 --> 00:02:27.720 So, if a company works with BCG, we can ensure 51 00:02:27.720 --> 00:02:31.860 that on one hand there is this concrete transformation 52 00:02:31.860 --> 00:02:34.830 in a specific country, but then that the leveraging 53 00:02:34.830 --> 00:02:36.960 to other markets will happen. 54 00:02:36.960 --> 00:02:38.512 We have a lot of experience as well 55 00:02:38.512 --> 00:02:41.250 in the concrete aspects of globalization, 56 00:02:41.250 --> 00:02:44.100 be it a rapid reorganization and reset of the organization 57 00:02:44.100 --> 00:02:46.530 with a de-layering with all of those tools, 58 00:02:46.530 --> 00:02:48.870 be it the process excellence in those markets. 59 00:02:48.870 --> 00:02:51.360 We have worked on go-to-market processes, 60 00:02:51.360 --> 00:02:53.970 on supply chain processes in many markets. 61 00:02:53.970 --> 00:02:56.760 You need that breadth of capabilities to really 62 00:02:56.760 --> 00:02:59.763 transform a full company, and that's what BCG can bring.