BDO Ambition Survey 2011 - Global opportunities

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This year, BDO has set out once again to understand how CFOs from globally aspiring companies view their growth prospects overseas, as well as looked at what is changing and what, in the last year, has made a difference to their plans.

The key findings were:

- Mid-cap CFOs are nearly all (95%) confident that their three year plans to expand internationally will succeed
- China, USA and Germany are the top three countries that are both global investors and attractors of inward investment. For China, opportunity and risk go hand in hand
- Finding local people with the right skills and knowledge is more challenging than finding the money to expand abroad

For more information on the BDO Ambition Survey 2011 see:
http://www.bdointernational.com/ambitionsurvey2011

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  • BDO Ambition Survey 2011 - Global opportunities

    1. 1. BDO AMBITION SURVEY 2011<br />Global opportunities<br />SUMMARY OF GLOBAL RESULTS<br />BDO / Strategy One<br />September 2011<br />
    2. 2. METHODOLOGY<br />All survey respondents and companies were required to satisfy specific criteria:<br />C-suite CFOs, FDs and other Heads of Finance - all reporting to the CEO<br />Have global revenues of between US $50m – US $1bn<br />Have international offices outside their headquartered country<br />Expect revenues representing the international side of their businesses to account for a higher or about the same proportion in the next 3 years<br />Companies operating in one of the following sectors or industries: Financial services, Manufacturing, Real estate & construction, TMT (Technology, Media, Telecommunications), Retail, Natural resources, Professional services, Tourism/ leisure/ hospitality, Transport and utilities<br /><ul><li>751 telephone interviews were conducted globally
    3. 3. Fieldwork was conducted between 23 May & 8 July 2011</li></ul>BDO Ambition Survey 2011<br />Page 2<br />
    4. 4. KEY FINDINGSExpanding abroad: opportunities<br /><ul><li>Despite the economic and regulatory challenges facing businesses, 95% of mid-cap CFOs are confident that their 3 year plans to expand internationally will succeed</li></ul>CFOs’ business plans back their confidence:  on average they expect 44% of revenue in 3 years’ time to come from international sources (up from 37% now)<br /><ul><li>CFOs say they have no problem getting money to expand abroad, but finding the right people - skilled, trustworthy and cross-cultural - is a real challenge
    5. 5. CFOs see China as having 3 times the business opportunity of Brazil, the UK or France. However, China is a gamble as it has the most reward and the most risk factors of any country</li></ul>China, USA and Germany are the top 3 global investment destinations and sources<br />Page 3<br />BDO Ambition Survey 2011<br />
    6. 6. KEY FINDINGS CONTINUTEDExpanding abroad: making it happen <br /><ul><li>The best sources of advice for CFOs on how to expand come from close to home - internal sources and trusted customers, along with accountants and tax advisers who understand their clients’ businesses
    7. 7. CFOs are in a hurry to expand - they expect to open an office within a year of making a decision, which means that aligning customers, staff, partners, distributors, advisers and bankers is critical
    8. 8. Most businesses act fast once a decision to open a new office is made
    9. 9. Internal sources and existing customers are the most trusted sources when expanding
    10. 10. For external advice, accountants/ tax advisers are the most trusted professionals
    11. 11. Most businesses will expand in their core sector, with existing products and services</li></ul>Page 4<br />BDO Ambition Survey 2011<br />
    12. 12. KEY FINDINGS CONTINUTEDExpanding abroad: good advice<br /><ul><li>Key insights from CFOs: be prepared and invest in the right people</li></ul>Do thorough research to improve your knowledge of the market<br />Recruitment of good staff is key to success<br />Find good partners in the region<br />Have a strong business plan<br />Make sure you understand the culture and language<br />Page 5<br />BDO Ambition Survey 2011<br />
    13. 13. BUSINESS OPPORTUNITIES AND CHALLENGES<br />Page 6<br />Client name - Event - Presentation title<br />
    14. 14. CONDUCTING BUSINESS ABROAD HAS BECOME MORE DIFFICULT IN THE LAST 3 YEARS<br />Page 7<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    15. 15. HIGH CFO CONFIDENCE IN COMPANY’S OVERSEAS EXPANSION<br />Page 8<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    16. 16. COMPANIES IN ALL COUNTRIES SURVEYED EXPECT MORE FUTURE REVENUE TO COME FROM ABROAD <br />Page 9<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    17. 17. MOST COMPANIES ARE LOOKING TO EXPAND IN CORE SECTOR<br />Page 10<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    18. 18. MARKET SIZE AND GROWTH OPPORTUNITIES DRIVE INTERNATIONAL EXPANSION<br />Page 11<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    19. 19. COMPANIES NAVIGATE A RANGE OF CHALLENGES IN INTERNATIONAL EXPANSION<br />Page 12<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    20. 20. THE BIGGEST CHALLENGES RELATE TO RED TAPE AND FINDING THE RIGHT PEOPLE<br />Page 13<br /><ul><li>Red tape is a particular challenge to French and Russian companies, Retailers, and businesses expanding with new products & services
    21. 21. Local people- Japanese businesses, Prof services/ Transport & utilities, and those expanding In India
    22. 22. Currency- Chinese/ Brazilian/ German businesses, and those expanding in US/ Canada
    23. 23. Competition- Chinese, German and French businesses, Retailers, businesses expanding with new products & services , and those expanding into Europe
    24. 24. Culture/ language- Chinese/ Japanese/ Australian/ French businesses, and businesses looking to expand in India/ Brazil</li></ul>BDO Ambition Survey 2011<br />Much more difficult<br />
    25. 25. INVESTMENT IN PEOPLE WILL BE A MAIN FOCUS OVER THE NEXT THREE YEARS<br />Page 14<br /><ul><li>People are a particular focus in all European countries, Australia, and Professional Services businesses
    26. 26. Channels of distribution - German/ Brazilian/ Russian/ Chinese companies, Manufacturers and businesses expanding into Russia
    27. 27. Product development - Brazilian & Chinese businesses, Manufacturers and businesses expanding into Western Europe/ US/ Russia
    28. 28. Capital - UK/ Saudi, Real Estate and Natural Resources companies
    29. 29. Brand & marketing - Companies from all BRIC countries + Japan, Financial services businesses and Manufacturers
    30. 30. Acquisitions’ North American, German, French, and Australian companies</li></ul>BDO Ambition Survey 2011<br />Much more difficult<br />
    31. 31. INTERNAL SOURCES AND EXISTING CONTACTS ARE THE MOST TRUSTED SOURCES OF ADVISE <br />Page 15<br /><ul><li>European businesses are more likely to turn to internal sources (58%)
    32. 32. German (62%), Chinese (53%) and Russian businesses (50%) put more trust in clients/ existing contacts
    33. 33. Accountants/ tax advisers are most widely used in the UK/ Netherlands (52%), Australia (50%) and USA (46%)
    34. 34. Australians and North Americans are more likely to turn to law firms (52% and 41%)
    35. 35. German and Chinese businesses are far more likely to turn to trade organisations, etc (42%/ 33%)
    36. 36. Chinese businesses are by far the most likely to turn to Government agencies (42%)
    37. 37. Brazilian businesses show the greatest trust in market research (44%)</li></ul>BDO Ambition Survey 2011<br />Much more difficult<br />
    38. 38. GAINING FUNDING FOR INTERNATIONAL EXPANSION IS NOT GENERALLY A COMMON PROBLEM<br />Page 16<br />Difficulty gaining funding?<br />BDO Ambition Survey 2011<br />Much more difficult<br />
    39. 39. LOCAL KNOWLEDGE AND PEOPLE ISSUES ARE KEY WHEN EXPANDING INTERNATIONALLY<br />Page 17<br />BDO Ambition Survey 2011<br />
    40. 40. BDO GLOBAL MARKET OPPORTUNITY INDEX<br />Page 18<br />Client name - Event - Presentation title<br />
    41. 41. GLOBAL MARKET OPPORTUNITY INDEXExplanation<br />Page 19<br />BDO GLOBAL MARKET OPPORTUNITY INDEX<br />The index was created from CFOs’ stated intentions to expand in specific countries.  The arithmetic mean of 100 is based around intention to expand to all 18 countries listed<br /> <br />PROCESS<br />CFOs’ stated intentions to expand into specific countries were based on the frequency of CFO mentions of expanding into a country, and the priority order of the country being mentioned, up to a third mention<br />We correlated the ‘Specific countries that will be a focus for general expansion in the next three years’ against a pre-determined list of nineteen opportunity factors and sixteen challenge factors<br />The 6 most important factors driving opportunity for expansion were: market size, ease of entry, people and culture, market potential, acquisition opportunities, and better opportunities abroad than at home<br /> <br /> <br />BDO Ambition Survey 2011<br />
    42. 42. GLOBAL MARKET OPPORTUNITY INDEXExplanation continued<br />Page 20<br />The 5 top challenge factors were: geo-political risks, finding the right local people, in-market competition, red tape and corruption, and having money and resources to expand. This enabled us to determine which countries offer the greatest opportunities in the foreseeable future<br />Overall Opportunity Index is based on intention to expand internationally in three years’ time and the number of CFO mentions of a given country being expanded into<br />BDO Ambition Survey 2011<br />
    43. 43. CFOS SEE CHINA AS OFFERING THE GREATEST EXPANSION OPPORTUNITY: USA IS A CLOSE SECOND<br />CFOs see China as having THREE times the business opportunity of UK, Brazil or France<br />Page 21<br />BDO Ambition Survey 2011<br />
    44. 44. OPPORTUNITIES AND CHALLENGES DRIVING EXPANSION <br />Page 22<br />BDO Ambition Survey 2011<br />
    45. 45. CONTACT:International Executive Office, Brussels, BelgiumTel: +32 2 778 01 30 © Brussels Worldwide Services BVBA, September 2011 <br />Page 23<br />Client name - Event - Presentation title<br />

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