Fast Forward

Overview

Strategies for success in tomorrow’s hot new markets.

The global economy is at a turning point. Fast-growth economies in Asia, the Middle East, Africa, Latin America and Eastern Europe now form almost half of global GDP and, in 2010, they contributed 70pc to overall global growth. These trends are accelerating. By 2050, fast-growth economies are projected to account for 65pc of the global economy. In contrast, most developed markets are still struggling to recover after the global recession.

Today's global executives increasingly need the skills to manage across these very different environments. To explore this challenge, Ernst & Young hosted its first Global Growth Forum in Washington, DC, on 6-8 June 2011. Senior global businesspeople joined speakers including Henry Kissinger, former U.S. Secretary of State, James Wolfensohn, former president of The World Bank, and Min Zhu, deputy managing director of the International Monetary Fund, in a discussion of what this new reality looks like and how companies can succeed in it.

This report continues and expands that discussion through a series of additional interviews. It forms part of Growing Beyond, an ongoing Ernst & Young programme that explores how companies can grow faster by expanding into new markets, finding new ways to innovate and implementing new approaches to talent management.

Three key themes are starting to emerge:
1. A reversal of fortune. Developed and fast-growth markets will continue to diverge, but both will face challenges in the years ahead. Leaders must learn to operate across both environments.
2. New markets, new competitors. Entrepreneurs and companies from fast-growth markets are competing globally. Leaders must understand the challenges these new competitors present.
3. A global mindset. To succeed in this complex business environment, leaders will need to adopt a set of characteristics and traits that enable them to move fluidly across different cultures.

Through discussing these themes and understanding the implications for their companies, global executives, no matter where they are based, can greatly improve their chances of success in the coming years.