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Balancing the global equation was the focus of the IPS Corporate Associates Breakfast last February. Mr Gautam Banerjee, Executive Chairman of PricewaterhouseCoopers (PwC) highlighted key findings from PwC’s 10th Annual Global CEO Survey. In his presentation, he discussed the views of global CEOs in the area of mergers and acquisition (M&A), outsourcing and the role of society in business. In terms of the overall results, more than half of the respondents indicated that their companies growth would be generated through new markets, new businesses via M&A, and new products and technical innovation. 67% of Asia Pacific CEOs were intending to conduct M&A outside of their region or with new trade partners. The key challenge the CEOs identified for the intended M&A were cultural issues. However, there were optimistic that with a genuine global perspective, there were likely to achieve successful cross-border M&A initiatives.
The survey also found that companies were increasingly moving towards strategic and collaborative relationships with their supplies which were a marked departure from previous arrangements that relied solely on the lowest cost. This also meant that there were hints of a new value chain model that was beginning to appear – a model in which even core functions of companies were being outsourced.
While the idea of responsible business is good business is not new, some of the respondents recognized that long term financial success would be more sustainable if the company focused on creating real value for all its stakeholders. CEOs felt that there was a need to reorientate their business around sustainable development and value as globalisation, coupled with continuing distrust of the business community in many parts of the world, made responsible business even more of a priority.
This survey was based on 1,084 global interviews conducted between 13 September and 12 December 2006. 278 (26%) overall say business confidence was at a record high. It was notable that Asia Pacific CEOs were more concerned about non-business risks.
The survey can be downloaded here.
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