Business Elite 2010 The world’s leading businesspeople Anita Hague & Robert Jolliffe October 2010 The search for the “new normal …”
Jan 14, 2016
Business Elite 2010The world’s leading businesspeople
Anita Hague & Robert JolliffeOctober 2010
The search for the “new normal …”
Today we will look at ….
• How did we get here?• How is the global business person
thinking?• The Global Business Elite – business
lives• The Global Business Elite – top-end
earners and spenders • BE:Europe media results
How did we get here?
2008 …
2009 …
2010 …
Thank God that’s over.Let’s just sit quietly and recover till
the world returns to ‘normal’.
Phew that was some ride. But …just look at all the opportunities we can seize.
The world has changed - this is the new normal.
Will eventually be taken over bythe companies on the right >>>>
New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break
2011 – two choices …
Cautious Dynamic
Government orregulatory approval
New markets
Strong image inmedia/ good reputation
Current andnew staff
Private sector
Potential customers
Access to cash
Loans via debt markets
Share capital via equity markets
Thank God that’s over.Let’s just sit quietly and recover till
the world returns to ‘normal’.
Phew that was some ride. But …just look at all the opportunities we can seize.
The world has changed - this is the new normal.
Will eventually be taken over bythe companies on the right >>>>
New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break
Access to cash
Loans via debt markets
Share capital via equity markets
Government orregulatory approval
Strong image inmedia/ good reputation
Current andnew staff
Private sector
New markets
Potential customers
Business success means communicationStrong message in suitable environment
Cautious DynamicStress your credentials -your growth/ innovation/
expansion strategy& your approach to risk
management/ control
Less money around – why you should
get it not your competitors
New customers –why should they buy
from you?New staff –
why should they work for you?
Regulators/ Governments – why should they
approve your projects?
How is the global business person thinking?
FT Global Business Sentiment survey 2010
Q. In the next six months, what changes do you expect in ...
65%
56%
55%
42%
22%
22%
22%
30%
13%
22%
23%
29%
Your company's results
Your industry's economicconditions
Global economic conditions
Local economic conditions
Improvement No Change Decline
Greatest optimism for global economy and company resultsScore for improvement in Global conditions the same as in 2009
Source: C-Suite Sentiment Survey 2010 529 Global respondents
Q. Overall, which 2-3 of the following are the most important goals/priorities for your organization this year? (global)
Cutting costs has decreased as a top priority while developing products, expanding into new markets and talent have increased in priority level
50%
48%
46%
38%
27%
61%
49%
43%
35%
20%
Cutting costs/improvingefficiency/increasing
productivity
Improving marketshare/competitive position
Developing and marketingnew products or services
Expanding into newmarkets
Finding and keeping newtalent
20102009
Source: C-Suite Sentiment Survey 2010 529 Global respondents
Q. Overall, which 2-3 of the following are the biggest external challenges to meeting your goals for the year? (global)
61%
33%
45%
38%
25%
64%
40%
44%
33%
19%
Economic conditions inyour markets
Global economicconditions
Pricing pressures in yourindustry
Government regulation
New competitorsentering your industry
2010
2009
Economic conditions (globally and locally) have waned as an external challenge since 2009. Meanwhile, govt regulation and new competitors have increased (Top 5)
Source: C-Suite Sentiment Survey 2010 529 Global respondents
Q. Over the next 12 months, is your organization increasing or decreasing investment in each of the following areas compared to the past 12 months?
35%
23%
18%
16%
13%
Information technology
Research & development
Advertising and marketing
Employee training anddevelopment
Human capital
Net increase minus decrease
Overall investments holding steady in majority of categories (Top 5)
Source: C-Suite Sentiment Survey 2010 529 Global respondents
Over half say performance, trust and innovation are key messages to communicated to stakeholders through recovery
Key messages to communicate through recovery
57%
52%
42%
41%
33%
33%
27%
26%
23%
11%
9%
Performance
Trust
Innovation
Stability
Risk management
Growth
Range of Products
Transparency
Compliance
Corporate Social Responsibility Initiatives
Self-regulation
Q. Which of the following corporate messages will be important for your company to communicate to stakeholders through the recovery?
Source: C-Suite Sentiment Survey 2010 529 Global respondents
Large, international and private sector companies provide best opportunities post recession
Market segment with best opportunites post recession
38%
37%
34%
33%
29%
26%
21%
17%
International companies
Large companies (1,000employees+)
Private sector companies
Medium size companies (250- 1,000)
Small companies (under 250)
Emerging markets companies
Domestic companies
Public sector companies
Q. Which market segments do you see as providing the best opportunities for your company as it emerges from the global recession and manages through the recovery?
Source: C-Suite Sentiment Survey 2010 529 Global respondents
What is it like to walk in the shoes of a Global Business Elite?
To answer this, we can look at the BE range of surveys
BE surveys across the globe
Why you should trust this survey
•Longest running international survey (since 1973)
•Multi media (print, TV, web)
•Large sample (robust sampling of ‘top-end’)
•Annual (tracking shifts more closely)
•Covers 26 countries globally (BE:Asia,US & Europe)
•Unique survey- only one of its type (Most senior person in organisation (VP of Finance @ Google would not be eligible!). BE:E sample are responsible for 2/3 or Europe’s workforce!)
BE Survey suite 2010
BE strongly supported across the globe adding weight to the survey
BE:Europe respondents conduct business internationally
Source: BE:Europe 2008 and 2010 only data
-8%+23%
+10%
+15%
-4%
+4%
Source: BE:USA 2008 and 2009/10 only data
…as do BE:US respondents
+14%
+22%
- 4%
-5%
No change
Source: BE:Asia 2009 and 2010 only data
BE:Asia respondents also look further a field
No change
+14%+9%
+7%
They are heavy business air travellers
81%81%(up 4% yr-on-yr)(up 4% yr-on-yr)
Source: BE:Asia, Europe and US
20
40
60
80
100
120
140
160
<149 150-249 250-499 500-999 1,000-1,499
1,500-4,999
5,000-9,999
10,000+
Number of employees in company
Inde
xThey work in the largest companies…
Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first
And are the most senior
Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first
20
40
60
80
100
120
140
160
180
200
220
240
Chairman/Pres CEO/MD Director/VP CIO/CTO H of Dept
Inde
x
€€10.3 trillion10.3 trillionCombined Global expenditure budgetsCombined Global expenditure budgets
Source: BE:Asia, Europe and US
In Europe budgets have been affected
2009 Vs 2008
Source: BE:Europe 2009 & 2010 only data
2010 Vs 2009
8%38%
Source: BE:Europe 2008, 2009 & 2010 only data
60
80
100
120
140
2008 2009 2010
CFO H of Dept
Budgets are still tightly controlled
The Global Business Elite- a highly desirable market for high-end consumer goods and personal
finance companies
Source: BE:Asia, Europe and US
€€1.05 trillion1.05 trillionCombined Global net worthCombined Global net worth
Source: BE:Asia, Europe and US 2007, 2008, 2009 and 2010 only data
60
80
100
120
140
2007/08 2008/09 2009/10
Inde
x
Asia Europe US
Their personal fortunes have been affected
Net worth
Source: BE:Europe 2008, 2009 and 2010 only data
20
40
60
80
100
120
140
2008 2009 2010
Inde
xBE:Europe average France GermanyUK Spain SwitzerlandItaly
Some retrieve their wealth quicker
The richest get richer
Net worth down 33%
>€370,000 <€90,000
Net worth up 22%
Source: BE:Europe 2008, 2009 and 2010 only data
Average Income
€256,975Europe +5%ASIA +14%
US +3%
Source: BE:Asia, Europe and US
Source: BE:Asia, Europe and US 2008 and 2010 only data
Luxury is back in fashion!Europe: A watch worth more than 4,500 euros - UP 25%A holiday/second home – UP 14%
In Asia:Fine wine/Champagne/Premium liquors – UP 36%A piece of Jewellery >US$5,000 –UP 24% In the USA boat or yacht – UP 22%A health club/spa/sport club membership – UP 26%
BE:Europe - media results
Thank God that’s over.Let’s just sit quietly and recover till
the world returns to ‘normal’.
Phew that was some ride. But …just look at all the opportunities we can seize.
The world has changed - this is the new normal.
Will eventually be taken over bythe companies on the right >>>>
New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break
Access to cash
Loans via debt markets
Share capital via equity markets
Government orregulatory approval
Strong image inmedia/ good reputation
Current andnew staff
Private sector
New markets
Potential customers
Business success means communicationStrong message in suitable environment
Cautious DynamicStress your credentials -your growth/ innovation/
expansion strategy& your approach to risk
management/ control
Less money around – why you should
get it not your competitors
New customers –why should they buy
from you?New staff –
why should they work for you?
Regulators/ Governments – why should they
approve your projects?
Thank God that’s over.Let’s just sit quietly and recover till
the world returns to ‘normal’.
Phew that was some ride. But …just look at all the opportunities we can seize.
The world has changed - this is the new normal.
Will eventually be taken over bythe companies on the right >>>>
New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break
Cautious Dynamic
Which companies to target?Where to build / relocate?Who to seek out to hire?
Which new products will succeed?Which markets should we target?
Business success needs information
Thank God that’s over.Let’s just sit quietly and recover till
the world returns to ‘normal’.
Phew that was some ride. But …just look at all the opportunities we can seize.
The world has changed - this is the new normal.
Will eventually be taken over bythe companies on the right >>>>
New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break
Business success needs information …
Cautious Dynamic
But which companies to target?Where to build / relocate?Who to seek out to hire?
Which new products will succeed?Which markets should we target?
Effective, regularly updated, credible, actionable
information
For the Global Business Elite, worlds collide with international media
INFORMATION COMMUNICATIONInternational media
21.3
22.4
17.3
38.6
22.4
24.4
18.0
40.3
0% 20% 40% 60%
2008/2009 2009/2010 %
Net Readership of All International Titles- BE respondents are increasingly reliant on International media
Base: 2010: 8,245 2009: 11,222
60
70
80
90
100
2008 2009 2010
%
PrintTVOnline
Media consumption is increasing
Source: BE:Europe 2008, 2009 and 2010; Measurements: AIR print, daily TV and monthly web
+4%
+5%
+11%
Most reliable source of Business news remains newspapers and internet
47.7%
27.2%
17.1%14.6%
7.9%
50.5%
30.9%
18.9% 18.8%
9.9%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Newspapers Internet Magazines TV Radio
BE:Europe 2009 BE:Europe 2010
Most reliable source for Business news.Source: BE:Europe Sample (8,245) Universe (453,353)
Source: BE:Europe 2010; Weekly digital usage
Access online content via a Blackberry/Mobile phone: 47%
Use Wi-Fi networks: 39%
Watch a HD TV channel: 39%
Use a netbook computer: 35%
Stream / watch a video from a website: 29%
Visit a social networking site: 26%
Use RSS feeds / email alerts: 20%
Listen to music on their mobile: 17%
A digital week in the life of the Business Elite
The FT’s product portfolio is now more diverse than ever, with the launch of howtospendit.com, the iPhone app and the iPad app, to name but a few
The FT brand: Going from strength to strength
15.3
13.3
10.5
8.1
7.3
5.4
5.1
3
2.7
2.4
1.9
1.8
Financial Times
The Economist
Harvard Bus. Review
National Geographic
Time
BusinessWeek
Newsweek
Fortune
Forbes
The Wall St Journal Eur
USA Today
Int'l Herald Tribune
Source: BE: Europe 2010
BE: Europe 2010 – Print Publications
% Coverage
Number one
+4% (survey on survey)
15.4
9.6
9.4
8
7.5
6.7
5.6
5.5
5.4
4.8
4.5
4.1
3.8
3.3
2.6
2.5
ft.com
cnn.com
skynews.com
bloomberg.com
economist.com
bbc.com
euronews.com
businessweek.com
natgeo.com
hbv.org
newsweek.com
nytimes.com
wsj.com
time.com
forbes.com
cnbc.com
BE: Europe – International websites monthly reach
Source: BE: Europe 2010BBC.com excludes UK non-commercial sample
+10%(survey on survey)
23.2
16.7
12.0
12.0
9.5
9.4
9.1
8.4
5.5
5.5
4.4
FT + ft.com
Economist + economist.com
Harvard Bus Rev + harvardbusinessonline.org
National Geographic + nationalgeographic.com
Bloomberg Markets Mag + bloomberg.com
BusWeek + busweek.com
Time + time.com
Newsweek + newsweek.com
WSJE + wsj.com
IHT + iht.com
Forbes + forbes.com
FT newspaper combined with FT.com delivers even more of Europe's business elite audience
Source: BE: Europe 2010
+12%(survey on survey)
9.2
3.8
3.2
0.7
0.7
0.5
0.3
0.3
0.3
0.1
0.2
0.1
Financial Times
The Economist
Harvard Bus Review
The Wall St Journal Eur
BusinessWeek
Bloomberg Markets Mag
Time
Int'l Herald Tribune
Newsweek
Forbes
Fortune
National Geographic
Most Important Business Read
Please note that this was an open-ended question
Source: BE: Europe 2010
+16%(survey on survey)
On any one day, 73,116 senior business executives are reading the Financial Times in print or on-line, which equates to…
€689 billion
Total annual expenditure budget of FT readers and users on an average day– 22% of all available spend (previously 19%)
Source: BE: Europe 2010
UP 11% SINCE 2009
And finally, how has the FT performed on BE:Asia and BE:USA?
BE:Asia 2010• FT newspaper coverage up 16.5% - biggest increase of any international English
speaking title.• FT.com daily reach is up 10.5% since 2009.• FT newspaper and FT.com daily reach combined up 15.7% - biggest increase of any
international print & online combination!
BE:USA 2010• Strong growth from FT print - up 18%- the biggest increase amongst newspapers!• FT is #1 in audience profile position amongst CEO's; largest corporate budgets;
international business involvement; high earners, frequent travellers… to name a few!
Source: BE: Asia 2010, BE:USA 09/10
Business Elite 2010The world’s leading businesspeople
Anita Hague & Robert JolliffeOctober 2010
The search for the “new normal”…