Survey Shows Companies Not Achieving Goals in Emerging Markets
Despite the size and remarkable growth of emerging markets, a surprising number of companies are falling short of achieving their business goals, according to a survey by Deloitte’s Global Manufacturing Industry Group. In fact, just 47% of the more than 440 senior executives surveyed said their companies had been extremely or very successful in meeting their revenue goals in emerging markets. The study reveals that companies that use rewards, recognition and training, as well as compensation and benefits, as important human resource (HR) techniques were more likely to be successful in achieving their operational goals in emerging markets. For example, 73% of the companies that used rewards and recognition as an important HR technique said they were extremely or very successful in achieving their operational goals, compared to 51% who did not consider this an important technique. Locating operations in emerging markets brings increased risks in a variety of areas such intellectual property protection, geopolitical issues, and legal/regulatory issues to name a few. However, before investing in an emerging market, only 56% of companies surveyed conducted a very detailed risk assessment. And even fewer (45%) conduct a detailed risk assessment for their existing operations in emerging markets.