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
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 countryChina, USA and Germany are the top 3 global investment destinations and sources Page 3 BDO Ambition Survey 2011
6.
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
23. Competition- Chinese, German and French businesses, Retailers, businesses expanding with new products & services , and those expanding into Europe
24. Culture/ language- Chinese/ Japanese/ Australian/ French businesses, and businesses looking to expand in India/ BrazilBDO Ambition Survey 2011 Much more difficult
25.
26. Channels of distribution - German/ Brazilian/ Russian/ Chinese companies, Manufacturers and businesses expanding into Russia
27. Product development - Brazilian & Chinese businesses, Manufacturers and businesses expanding into Western Europe/ US/ Russia
28. Capital - UK/ Saudi, Real Estate and Natural Resources companies
29. Brand & marketing - Companies from all BRIC countries + Japan, Financial services businesses and Manufacturers
37. Brazilian businesses show the greatest trust in market research (44%)BDO Ambition Survey 2011 Much more difficult
38. GAINING FUNDING FOR INTERNATIONAL EXPANSION IS NOT GENERALLY A COMMON PROBLEM Page 16 Difficulty gaining funding? BDO Ambition Survey 2011 Much more difficult
39. LOCAL KNOWLEDGE AND PEOPLE ISSUES ARE KEY WHEN EXPANDING INTERNATIONALLY Page 17 BDO Ambition Survey 2011
40. BDO GLOBAL MARKET OPPORTUNITY INDEX Page 18 Client name - Event - Presentation title
41. GLOBAL MARKET OPPORTUNITY INDEXExplanation Page 19 BDO GLOBAL MARKET OPPORTUNITY INDEX 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 PROCESS 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 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 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 BDO Ambition Survey 2011
42. GLOBAL MARKET OPPORTUNITY INDEXExplanation continued Page 20 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 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 BDO Ambition Survey 2011
43. CFOS SEE CHINA AS OFFERING THE GREATEST EXPANSION OPPORTUNITY: USA IS A CLOSE SECOND CFOs see China as having THREE times the business opportunity of UK, Brazil or France Page 21 BDO Ambition Survey 2011
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