-: Globalization in the past has been very much
just about growth.
Emerging markets have been the fastest growing part
of the global economy.
Nowadays, this is changing.
Many emerging markets are not growing as fast as before.
In addition to that, they see that in many parts
of the world, the competitiveness of the environment
is changing massively.
So, they see local competitors coming up.
They see that often the countries they're in
are less accommodating and less positive
towards foreign investment and foreign companies.
They see that people, talent they want to employ
is more looking to work with local companies
than multinational companies.
And lastly, they see the costs rising as well.
So, when you transform, you want to fundamentally
get a company towards a better trajectory.
The first element of that is that companies need
to rethink their priorities.
Most companies, for example, chose the markets they're in
very much on growth potentials.
So, if you look at most markets growth potentials,
you come up with China, with India as the biggest market,
sometimes Indonesia, Brazil, the BRICS and so on.
And then, they set the priorities according
to those growth opportunities.
Nowadays, they need to think about setting
strategic priorities based on how likely
is it that they are competitive,
how likely is it that they can really win
against local competitors, against local companies
in those markets, and that's a fundamental strategic shift.
It works quite well if companies don't have
a very heavy handed controlling headquarters,
which tries to drive the transformation
take the decisions in the corporate center,
and then, applies those decisions to all markets,
but what we see working normally is that you start
with one country, really turn that around,
really make that productive,
and then, translate the learnings to other countries.
So, BCG is probably the consultancy in the world,
which has the best global footprint
and has worked in all of those markets
in a significant way to really turn around companies
to help them grow, but as well
to help them become productive.
So, if a company works with BCG, we can ensure
that on one hand there is this concrete transformation
in a specific country, but then that the leveraging
to other markets will happen.
We have a lot of experience as well
in the concrete aspects of globalization,
be it a rapid reorganization and reset of the organization
with a de-layering with all of those tools,
be it the process excellence in those markets.
We have worked on go-to-market processes,
on supply chain processes in many markets.
You need that breadth of capabilities to really
transform a full company, and that's what BCG can bring.