business realities in south east europe andrej vizjak, a.t. kearney eastern europe iztok seljak,...
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Business Realities in South East Europe
Andrej Vizjak, A.T. Kearney Eastern Europe
Iztok Seljak, Hidria Slovenia
Pandeli Garo, DDB Rosldwide Communication Group Albania
Svetozar Janevski, M6 Investments / Tikveš Winery Macedonia
A.T. Kearney is a leading global management consulting firm with 3000 employees in more than 50 legal entities and 35 countries
North America
• Alexandria
• Atlanta• Boca Raton• Cambridge• Chicago• Cleveland• Coraopolis• Costa Mesa• Los
Angeles
• Miami• Minneapolis• New York• Plano• San Diego• San
Francisco• Santa Clara• Southfield• Stamford• Toronto
Europe
• Amsterdam• Athens• Barcelona• Berlin• Brussels• Budapest• Copenhagen• Dusseldorf• Frankfurt• Geneva• Istanbul• Lisbon• Ljubljana
• London• Madrid• Milan• Moscow• Munich• Oslo• Paris• Prague• Rome• Stockholm• Stuttgart• Vienna• Warsaw• Zurich
South America
• Buenos Aires• Caracas• Mexico City• São Paulo
Asia
• Bangkok• Beijing• Dubai• Hong Kong• Jakarta• Kuala Lumpur• New Delhi• Seoul• Shanghai• Singapore• Tokyo
ANZ
• Melbourne• Sydney
My region Eastern Europe encompasses 23 heterogenous countries, all with high growth potential for our business
Country % CAGR 2000-07
$ bn. GDP 2007
$ GDP per capita 2007
mil. Population
2007Slovenia 10% 46 22933 2Czech Republic 17% 175 17070 10Estonia 21% 21 15851 1Hungary 16% 138 13762 10Slovak Republic 21% 75 13857 5Croatia 16% 51 11576 4Poland 14% 420 11041 38Lithuania 19% 38 11354 3Latvia 20% 27 11985 2Russia 26% 1290 9075 142Romania 24% 166 7697 22Kazakhstan 28% 104 6868 15Serbia 25% 42 5596 7Bulgaria 18% 40 5186 8Belarus 23% 45 4641 10Bosnia and Herzegovina 15% 15 3712 4Macedonia 11% 7 3659 2Albania 17% 11 3354 3Ukraine 24% 140 3046 46Armenia 23% 8 2297 3Georgia 19% 10 2355 4Moldova 18% 4 1248 3Montenegro 17% 3 4008 1Eastern Europe 25% 2878 6462 348% EE in World 5% 87% 5%% EE in Europe 15% 31% 43%
4A.T. Kearney X/mm.yyyy/00000
Annual transaction value of all M&As worldwide
43 33105 125
216 194299 325
244 188 161 204317
463
781856
1,575
1,765
2,796
1,650
881772
1,047
1,523
1,896
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Note: Annual value of all global mergers & acquisitions worldwide, equal to and larger than US$100 million transaction value (all numbers in US$ Billion)
Their common business reality is, that they do not have acquisition power for the global industry consolidation.
US$14,761 Billion (80% of Total Transaction Value 1982-2006)
US$3,699 Billion (20% of Total TransactionValue 1982-2006)
5A.T. Kearney X/mm.yyyy/00000
2. Benchmark Your
Growth Profile
1. Position YourScale Profile
3. Review YourGrowth
Direction
4. LeverageUniqueGrowth
Capabilities
5. ApplyAppropriate
Growth Paths
6. Adapt YourOrganization
Successful small-scale companies consider six imperatives to compete toward large scale players.
Their strategic options are summarized in the growth cube …
LargeIndustryLeaders
SmallerIndustry
Followers
SmallerIndustryLeaders
LargeIndustry
Followers
SalesGrowers
TopPerformers
ProfitGrowers
Under-performers
RegionalMulti-
BusinessNiches
RegionalProduct Niches
InternationalProduct Niches
TotalGlobal Market
DecentralizedProduct
Units
DecentralizedProduct and
Regional Units
CentralizedFunctional
Units
DecentralizedRegional
Units
Market-Related
Capabilities
Productand/or
RegionalFocus
Product- Related
Capabilities
Scale- Related
Capabilities
Acquisitions
OrganicGrowth
Cooperations
MegaMergers
1. Position yourscale profile
2. Benchmark yourgrowth profile
3. Review yourgrowth direction
6. Adapt yourOrganization
4. Leverage uniquegrowth capabilities
5. Apply the rightgrowth paths
… described in our new book, which has been applied to the specific local situation of each country.
RUSSIA
November 18,2008
SLOVENIA
Launched in 2008
Launch status of local versions
BULGARIA
Book launch end of April
SERBIA
Launched in2008
POLAND
Launched in2008
CZECH REPUBLIK
Spring, 2009
Business Realities in South East Europe
Andrej Vizjak, A.T. Kearney Eastern Europe
Iztok Seljak, Hidria Slovenia
Pandeli Garo, DDB Rosldwide Communication Group Albania
Svetozar Janevski, M6 Investments / Tikveš Winery Macedonia