How to succeed in emerging markets

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culled from:hbswk.hbs.edu

Winning the $30 trillion decathlon: How to succeed in emerging markets

Annual consumption in emerging markets will rise to $30 trillion, from $12 trillion, by 2025. McKinsey experts discuss how multinationals can harness the biggest economic force in the history of capitalism.
October 2012
Interactive
By 2025, more than half of the world’s population will have joined the consuming class, driving annual consumption in emerging markets to $30 trillion, from $12 trillion. Emerging markets could account for more than 70 percent of global economic growth during this period.
While executives recognize that winning in emerging markets is the key to long-term growth, many companies remain reluctant to commit resources and talent at scale. McKinsey research shows that the largest companies headquartered in developed economies currently derive only 17 percent of their revenues from emerging markets, even though these markets already represent 36 percent of global GDP. Moreover, despite advantages in scale, technology, and access to capital, multinationals often lose out to more nimble local competitors.
In this video, McKinsey experts Yuval Atsmon, Peter Child, Richard Dobbs, and Laxman Narasimhan highlight a number of business disciplines where global companies need to raise their game in order to compete effectively. These include resource allocation, innovation, brand building, sales and distribution, and the development of local leadership. In all, global companies need to master ten key disciplines, requiring a level of commitment akin to a world-class decathlete. As with a decathlon, winning depends on all-around excellence—sitting out an event is not an option.
Surprisingly Effective Things to Say

As the boss, you have to know it all and always be in the right. Wrong. Try these simple, yet powerful words to build trust and lead with integrity.
 
We all make mistakes, say the wrong things, and misjudge a situation from time to time. But not everyone will admit their errors, especially in a competitive environment.
Perhaps legendary leadership author and pastor John C. Maxwell said it best: "A man must be big enough to admit his mistakes, smart enough to profit from them, and strong enough to correct them."
I learned that very important lesson early in my career at NBC-TV.  As the assistant to the vice president of sales I reported to an amazing mentor who relied heavily on my judgment and diligence.  But on one occasion I had a terrible lapse in common sense and fell short of her expectations. I really screwed up.
Naturally, my boss was livid. She immediately called me on the carpet for my error in judgment. My defenses reared up; my fight or flight instinct screamed, "Fight to survive!" Thankfully, in a moment of sanity I took a more sensible approach. Here's what I said.
 I was wrong. I'm sorry. I know that I still have a lot to learn. Please let me fix it.
Apparently, this reply from a young, ambitious employee was far from expected. I will never forget the series of internal responses reflected in my boss's eyes:  surprise, confusion, acceptance, and something that may have been admiration. Whew! In that moment I knew I'd done exactly the right thing.
This experience taught me something I've carried with me through the years: a little honesty and humility go a long way in life.  It enriches relationships, prevents unnecessary confrontation, saves time, and builds trust. What could have destroyed my career instead earned the trust of a powerful and successful woman and opened the door to growth, learning, and many promotions over the years.
The next time your defenses are up you may find instant relief in one or more of these surprisingly effective, yet simple statements. Give it a try, the only thing you have to lose is a little ego!
I'm sorry.
A short and sweet apology lowers the levels of resistance and anger in the room. Diffuse the situation with these simple words. The conversation will become less stressful and a solution to your problem or challenge is more likely to surface.
I was wrong.
Admitting your mistake is cleansing. No need to defend yourself, no need to create a litany of excuses. How freeing! Admit it and correct it. It's that simple!
I need help.
Go ahead. Accept that you don't know it all. A great entrepreneur surrounds herself with people who know more than she does. Reach out to your army of supporters and save yourself a lot of frustration and time.
I don't know.
Do you think you have to have all the answers? Well, you're wrong. Even "experts" don't know it all.  Any true expert will tell you is that no one is expected to have all the answers. Let's face it, if we knew everything life would be boring! This is an opportunity learn and grow; something every entrepreneur loves to do!
Want to become a better, smarter, more effective team builder and communicator? Join us at Inc.'s upcoming Leadership Forum June 10 to June 12 in San Diego. Visit leadership.inc.com for details.


Marla Tabaka is a small-business adviser who helps entrepreneurs around the globe grow their businesses well into the millions. She speaks widely on combining strategic and creative thinking for optimum success and happiness. @MarlaTabaka



Source:inc.com

How Brand China Can Succeed

A series of recent setbacks including the Mattel toy recalls threaten China's new and improving image, says Professor John Quelch. There is just not enough preexisting brand equity among the world's consumers to inoculate Brand China against the current tide of negative publicity. What should the country do to polish its image? Key concepts include:

•    Recent setbacks threaten China's new and improving image. China looks like a country that loves the world's markets but does not play by the world's rules.
•    To fix the situation, China should:
•    Tighten and enforce nationwide manufacturing quality standards and health and safety laws.
•    Move towards an economy based on invention rather than imitation.
•    Use the Olympics as an event for national progress, not just Beijing progress.

by John Quelch
Editor's Note— Harvard Business School professor John Quelch writes a blog on marketing issues, called Marketing Know: How, for Harvard Business Online. It is reprinted on HBS Working Knowledge.
As the British nineteenth century commentator John Ruskin astutely observed: "Great nations write their autobiographies in 3 manuscripts: the book of their deeds, the book of their words, and the book of their art." China has a long and proud history and a rich culture. In deeds, today's Chinese businesspeople and government officials can do better.
Clearly, China has come a long way during the past decade. Its double digit economic growth rates—especially for a country of over a billion people—have been enviable. China has become factory to the world. The Chinese are rightly proud of their achievements and the 2008 Olympics promise to be China's coming out party, much as the 1994 Barcelona Olympics helped Spain present itself to the world as a modern, up-and-coming member of the European Union.
However, a series of recent setbacks threaten China's new and improving image. As a result, China looks like a country that loves the world's markets but does not play by the world's rules. China is hardly alone in these behaviors, but its size as the third largest economy in the world now commands attention—and the expectation of better behavior.
Not until recently has China's government given serious attention to the country's international image. Though the number of tourists and foreign investors grows apace, there is just not enough preexisting brand equity among the world's consumers to inoculate Brand China against the current tide of negative publicity.
What should China do?
First, the central government must ensure that manufacturing quality standards and health and safety laws are tightened and enforced nationwide. Western multinationals have a role to play in ensuring their Chinese subcontractors deliver on quality, but Beijing must push provincial governments to upgrade and enforce existing laws. Tough sentences no doubt send a message of deterrence.
Not until recently has China’s government given serious attention to the country’s international image.
Second, China must move towards an economy based on invention rather than imitation. Japan and Korea have made the transition. Brands like Sony and Samsung are now respected worldwide. The global aspirations of cutting-edge Chinese brands like Lenovo and Haier suffer when the misbehaviors of corrupt Chinese businessmen and government officials drag China's image down. Pretty soon, China will be exporting cars. Cars are a benchmark product that consumers worldwide will use to assess Chinese production quality across the board. The cars China exports better be as good as Hyundais and Toyotas.
Third, China must use the Olympics as an event for national progress, not just Beijing progress. To spread the modernizing impact of the Olympics, China is rightly planning to hold many Olympic events outside Beijing. It is vital that, for 2008, all Chinese raise their game, not just in competitive sport but in commerce. It would be too bad if China is the largest medal winner in 2008 but remains an also-ran in business practices.
Do you think China will succeed in its effort to rehabilitate its brand?