In spite of the current economic downturn, emerging markets are key to the success of R&C multinationals. Large-scale investments have been made in these countries with the expectation of significant growth, and there is intense pressure to deliver on growth targets.
To be successful in these markets both retailers and consumer products companies are restructuring themselves, although their transformations are coming from different vantage points. Retailers, with their shorter tenure in emerging markets, are restructuring to penetrate markets better - which usually means decentralising and allowing more flexibility. On the other hand, consumer products companies, most of which already have strong brand presence, are streamlining and centralising parts of their organisations to leverage economies of scale in areas like shared services and supply chain.
Building to win discusses the approaches successful companies are taking — including the role of the regional office, advantages and disadvantages of various in-country operating models, culture considerations and talent retention issues.