Rapid growth

There is a mismatch between multinationals' expectations of growth from rapidly developing economies (RDEs), such as China and India, and the resources allocated.

by Boston Consulting Group
Last Updated: 23 Jul 2013

This study finds companies expecting 34% of their sales to come from RDEs by 2010 (up from 21% last year), but currently deploying only 10% of their top managers to these markets. Similarly, employees in RDEs account for only 18% of total worldwide headcount, and only 13% of their current assets are in those markets. While an exact alignment between sales and resources may not be appropriate, the differences are said to be significant enough to be worrying. 

The explanation is often about management mindsets and organisational barriers that stem from a past focus on more mature markets. Senior managers must combat their mature-market mindsets of lean organsations that minimise costs, it is argued. RDE markets are growing 20% to 50% a year, necessitating quick and decisive investment in the right talent and resources to capture that growth.Organizing for global advantage in China, India and other rapidly developing economies

John Wong, Arindam Bhattacharya, Jim Hemerling, David C Michael, Ron
Nicol, Tjun Tang and Kevin Waddell, Boston Consulting Group, March 2006.

Reviewed by Steve Lodge.

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