2015 Strategy& Growth Survey Summary of Results

Transcription

1 July Results document 2015 Growth Survey Summary of Results

2 Survey overview PwC s has conducted a survey on how companies approach growth (e.g. how aggressive they are, what tactics they use) and how successful they have been and expect to be in the future Methodology Web-based survey, including 19 questions on the topic of growth The survey was in the field during March 2015 respondents included more than 500 executives from around the world whose companies have annual revenues between $100 million and more than $10 billion Established a link between reported performance (based on respondents ranking of their company s profitability and revenue growth relative to their industry) and how they approach growth (as determined by their responses to the various questions of the survey) 1

3 US Canada Germany UK France Netherlands Spain China Brazil India Russia 503 respondents have completed the survey, 42% at board/clevel; 1/3 based in North America, Europe, and BRIC, respectively Number of respondents Position of respondent 168 Number of respondents 125 Location of respondent Annual revenue of respondent s company (USD bn) Number of respondents Pres. / CEO Founder / Proprietor Other SVP / C- VP / SuiteDirector Mgr

4 Revenue growth targets are the most frequent growth targets in use most companies use several growth targets in parallel What types of growth targets does your company use regularly? 70% Number of growth targets that companies use regularly (among the four that were proposed) 60% 58% 25% 25% 22% 40% 20% 8% Revenue growth targets Bottom line growth targets Market share growth targets Shareholder return growth targets

5 Companies have very high growth ambitions for 94% growth is a priority and 85% target at or above-industry growth rates How important is growth at your company? How much growth does your company target over the coming 5 years? 64% 42% 43% 30% 5% 1% 10% 6% It s more important than anything else It s one among several priorities It s not a priority Don t know We target below industry growth rates We target growth rates in line with industry growth We target above industry growth rates Don t know / NA 4

6 But only 38% of execs are highly confident their company is going to realize its growth targets 61% agree it s going to take significant, if not Herculean, effort How confident are you that your company is going to realize its growth targets? 47% How much effort will it take your company to realize its growth targets? 50% 38% 32% 11% 11% 1% 3% 5% 3% Not at all confident Somewhat not confident Somewhat confident Highly confident Don t know / NA Herculean Significant effort effort Some extra effort Little effort Don t know / NA 5

7 Only 22% report their leaders are excellent at driving growth a majority of companies are not very clear about how they re going to realize their growth targets How good are your company s leaders at driving growth? How clear is your company about how it is going to realize its growth targets? 49% 48% 41% 24% 22% 8% 3% 2% 2% 2% Poor Fair Good Excellent Don t know / NA Not clear at all Somewhat unclear Somewhat clear Very clear Don t know / NA 6

8 Respondents report it is much more difficult to grow now than 10 years ago there are many growth opportunities, but they don t know which one to pursue How much do you agree with the following statements? 3% 2% 4% 3% 36% 33% 43% 27% 34% 39% 31% 39% Don t know/na Strongly agree Somewhat agree Somewhat disagree Strongly disagree It's more difficult now than 10 years ago to 19%... generate profitable growth 20% 7% 6% 4% 6% generate consistent growth 18% There are more growth avenues we could pursue now than 10 years ago 24% know which growth avenue is going to lead to success 7

9 Digitization and globalization are seen as the biggest opportunities, financial uncertainty as the biggest risk for companies Do you consider each of the following trends to be more of an opportunity or more of a threat for your company? 16% 12% 16% 8% 24% 15% 16% 22% Neither, nor Threat 29% 61% Opportunity 72% 77% 47% 62% 24% Globalization Digitization Deregulation Financial uncertainty Changing customer needs and tastes 8

10 Execs report having been most successful growing their business by focusing on the core only 24% of those growing into adjacencies report having been very successful How successful has your company been over the past 10 years when pursuing growth using each of these tactics? 100% 2% 2% 1% 10% 3% 2% 2% 100% 100% 2% 7% 15% 5% 17% 100% 6% 3% 5% 13% 47% 53% 44% 45% Don t know / NA Have not tried Unsuccessful Not very successful 39% 24% 26% 29% Somewhat successful Very successful Growing the core of the business Expanding into adjacent product/service segments Expanding into entirely new product/service segments Expanding into new geographies 9

11 Executives have many concerns about their growth plans the main one is around spreading their spending too thin Which of the following, if any, are you concerned about given what your company will need to do to meet its growth targets? 39% 37% 31% 27% 15% Losing our focus Weakening our company s capabilities Spreading our spending too thin Losing the positives of our company culture Don t know / NA 10

12 Managers are said to be mainly frustrated about having to pursue too many opportunities, the company not stopping unsuccessful ones, and it changing course too often Which of the following, if any, are frustration factors for managers at your company when they try to meet growth targets? 34% 33% 31% 24% 15% Not having funds for promising growth ideas Having to pursue many growth opp ties in parallel because none is significant enough to make a difference Company continuing to pursue initiatives that have proven not to work Company changing course too often and not having the confidence to wait to see our action bear fruit Don t know / NA 11

13 More than half of respondents only handle growth, at best What is your personal response to the importance placed on growth at your company? 53% 39% 5% 3% I thrive on it I handle it I do not find it productive for me and my work Don t know/na 12

14 Global Copyright and Definition 2015 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see for further details. Disclaimer: This content is general information purposes only, and should not be used as a substitute for consultation with professional advisors. 13