Grow, grow, grow

Presented by UMA

Agenda
What makes emerging market companies run? Emerging markets touting for talents. Weakness faced by companies in developing countries. Role played by companies in improving education system.

What makes emerging market companies run

Emerging world-spectacular growth in history. -share of GDP < 36% in 1980 to 45% on 08 to 51%in 2014 -EM share of consumption is 34% - America 27%. -In 09 Thailand grew at an annual rate of 15.3% and Taiwan at 18%. -Growth in emerging markets be 4% points higher than growth in rich countries- next 5 yrs.*

What makes emerging market companies run - Pursuit of growth- forces firm to engage in relentless innovations- mergers and acquisition, recruitment & retention. - EM gains- shopping spree- TCS bought Citigroup global $512m - HCI-Britains Axon Group -$672m, other ex; Reliance industries and Bharathi Airtel

Continues -Rapid growth & extensive restructuring- plenty of cash in many companies. -profit margin 10% double avg of west. -Hindalco- aluminium company- well planned acquisition-turn global force- boost $500m to15b -Reason- not just rapid growth, deal with over capacity -instead identified internal weakness, eliminated them.

Touting for talents Mysore palace- infosyss 335 acre campus Made in international style Training centres- Disney land, multiplex- golf ball Infy challenge global companies IBM- paid employees more than rivals- issued stocks to - Better chance for becoming millionaire. - Pay huge dividend- challenging west eg infy Huawei* -

Weakness faced by companies in developing countries.

- New to world class competition - Available talents lower compared to west (1990) - Many millions graduate pass out- local universities- lack of skill for competitions. - 25% engineering graduates, 15% finance accounting proffessional, 10% other degrees are qualified to work for MNCs

Continued..
-EM- 2 huge interconnected problems- recruiting, retraining workers during rapid growth. -producing world class workforce virtually over night -doubt achieve long term success with disadvantages. - Haier market leader uses sticks & carrots- naming & shaming photographs- mgrs magnetic badges red smiley face , yellow frowning face (good & bad performance). - Perform different activities to motivate employees.

Role played by companies in improving education system.

- Companies invest heavily in education system - Dispatch managers to give speeches to universities - GE motivated top 10 mgrs to cultivate good relationship with particular universitiy- spot bright youngsters treat them to tour the campus & scholarship. - Companies invest in local b-schools to improve quality education eg Pantaloon, intel.