Slovak CEO Survey 2014 · 2017-07-28 · Dear business partners, This is the 5th year we have undertaken our Slovak CEO Survey, which again provides a unique insight into the mindset

Slovak CEO Survey 2014PwC and Forbes magazine surveyed how CEOs view prospects for the business environment in Slovakia.

Fit for the futureHarnessing technology to create value in totally new ways

www.pwc.com/sk/ceo-survey

122CEOs expressed their opinion

76%expect their revenuesto grow next year

44%plan to invest in new technology

Dear businesspartners,

This is the 5th year we have undertakenour Slovak CEO Survey, which againprovides a unique insight into the mindsetof Slovakia’s top CEOs. It is alwaysinteresting to see that every year, thereare new challenges facing Slovak businessleaders. It proves that business is truly

dynamic and that the only constant theme is change. Lastyear, innovation was on the top of CEO’s minds, howeverthis year their thoughts are focused more on new themessuch as technology and the digital economy.Our 17th annual global CEO survey shows that there arethree trends that will transform business: technologicaladvances, demographic fluctuations and global shifts ineconomic power. Together, they will create many newopportunities for innovation and growth, but they will alsoraise many new challenges. We believe organisations mustovercome particular challenges in their race to become fitfor the future. They’ll need to harness technology to createvalue in totally new ways; capitalise on demographic shiftsto develop tomorrow’s workforce; and understand how toserve increasingly demanding consumers across the neweconomic landscape. This means CEOs all over the worldwill have to become hybrid leaders who are comfortablestraddling two worlds – drawing on the best of the oldwhile operating at the frontiers of the new.

Another important message arising from this year’s CEOsurvey is the rising confidence in the global economy andgrowth of revenues. This indicates that we are switchingfrom survival mode to growth mode and the changes CEOsmake within their organisations now have less to do withsheltering their business from economic headwinds andmore to do with preparing for the future.My sincere personal thanks go to the 122 business leaderswho have shared their thinking with us. We appreciateyour support and thanks to you, we can say withconfidence that our 5th annual Slovak CEO surveyrepresents the voice of CEOs managing companies inSlovakia.

Todd BradshawCountry Managing Partner, PwC

Dear readers,

At last! Since the start of the economicdownturn in 2008, CEOs had not beenlooking to the future as optimistically asthey now do in our most recent survey.This optimism can be felt not only inSlovakia but all over the world.Customers are gradually recovering from

the shock that the last five years have brought and firmssee new ways of how to develop business; thanks, inparticular, to new technologies.

In a sense, optimism, however welcome, is fragile. Fromtime to time, ‘black swans’ appear in the world – eventsthat one would hardly expect under normalcircumstances. One of them was the earthquake in Japanin March 2011 that, in addition to the significantnumber of victims and damage, also hit the nuclear plantin Fukushima. Who could tell a few months ago that thesituation in the Ukraine would result in a tensionbetween Russia and the West not seen since the ColdWar?

It is difficult to be prepared for such situations. How thesituation in the Ukraine will develop and how it willaffect business in the CEE region, can only be answeredwith difficulty today. However, there are changes forwhich CEOs can prepare and they have highlighted themin our survey. Most often, they identified new technologyas one of the key challenges. It not only offers newopportunities for growth, but also changes businessmodels, and for many firms it brings an acute threat.

The only way to survive at this time of rapid change is tobe extremely effective. New technologies contribute tothis. Qualification of employees is equally crucial.Continuous costs monitoring is an essential standard.However, CEOs also point to other sources of wastage,such as corruption. If we want to break through globally,we must use every percentage point that can make usmore effective. Then, our optimism will stand on solidfoundations, even when other ‘black swans’ appear.

Juraj PorubskýEditor-in-Chief, Forbes Slovensko

2 Slovak CEO Survey 2014

CEOs in Slovakia are much more optimisticthan last year. The world economy, as well astheir businesses, will grow.

This wave of enhanced mood has emergedafter three years of pessimism when it wasnot clear whether or not – and in what form –the Eurozone would survive the financial andeconomic crisis and how this would affectother regions. It seems that the largest threatis over; whilst last year only 15% of SlovakCEOs expected that development of theglobal economy would improve in thefollowing year, that number grew to 45% thisyear. The Global Survey findings are almostidentical; however CEOs from CEE countriesare more sceptical.

At the same time, openness of our economycauses the confidence in macro-dataimprovement to be reflected in the brighterexpectations of CEOs regarding their ownbusinesses. As much as 40% of CEOs believethat revenues of their firms in Slovakia willdefinitely grow, 36% identified ‘rather yes’ as

the answer (last year it was 29% and 38%,respectively). The three years’ estimates areeven bolder: altogether, as much as 84% ofCEOs expect that in the following periodrevenues will definitely or rather grow.Particularly positive are the CEOs from thetransport, information and communicationtechnologies and finance sectors. On theother hand, CEOs from the automotiveindustry, Slovakia’s top sector, are muchmore cautious. The majority incline to thestagnation of revenues.

Companies all over the world are currentlyinvesting in technologies because they realisethat digital advance is unstoppable and thatit relates to all players in all markets.Therefore, it is essential to keep pace with it.Eventually, new technologies affect the wayoperational effectiveness is improved as wellas the way of enhancing services forcustomers, whose consumer preferences arealso significantly affected by technologicalprogress and the digital revolution.

3PwC

Optimism and a fragile reality

Picture 1: The pace of innovation is accelerating dramatically and is influencing

the way we do and lead our businesses

Source: Richard Lipsey, Kenneth I. Carlaw and Clifford T. Bekhar

16th & 17th Century 18th Century 20th Century 21st Century19th Century

Printing

Factory system

Railway

Automobile

Lean production

Nanotechnology(process)

Steam engine Internal combustion

engine

Aeroplane

Internet

Electricity

Mass production

Biotechnology

Computer

Iron steamship

45% confident

global economy

will improve

40% very confident

in own business

growth

The answer to the question, what willsupport businesses in their growth, is alsoclosely connected to the response to wheretheir investments go. CEOs have learnt fromthe crisis years that investments inoperational effectiveness are inevitable inorder to overcome the competition battlesuccessfully. Over half of CEOs (54%) haveincluded them among their three majorinvestment priorities.

The priorities further include continuousimprovement of client services, which maybe achieved in different ways, such asimplementation of new technologies. Thereis no business sector that can avoid thisprocess and CEOs understand that in orderto benefit new technology, they must spendpart of their budget on it. And in particular, itwas new technologies that improved theirinvestment priorities' ranking the most.

Whilst last year only less than one-third ofCEO’s included them in their selection, thisyear it was 44%. About one-third ofrespondents intend to invest in R&D in thefollowing 12 months.


Investments: effectiveness and newtechnologies

Chart 1: Where are investments directed in Slovakia? Technologies recorded the most significant increase

Question: What are your top investment priorities over the next 12 months?

“We can see the combination of investment in technologies and a focus onclient services in many examples globally as well as within Slovakia.Telecommunications firms have been battling for customers on the web fora long time already, and energy companies compete using new digitalstrategies. Banks seek to differentiate themselves with innovative mobileapplications, and in some cases most of their communication is dedicatedto these products. To a lesser extent, this trend can be seen in the recentlylaunched smartphone taxi service in Bratislava. The common attributesof these services are the simplicity of access to it, mobility, and the newservice – for example, you can call a taxi via your smartphone with adiscreet click even during a meeting that is drawing to an end and you cansee you taxi driver on a map as he approaches, and he can see you, too.This is an example of connecting localisation to mobility and in particularit is the localisation that may become a significant theme in the future, forexample in retail applications as a localised advertisement, a loyaltyprogramme or touch-free payments.

The digitalisation of our homes may become another significant trend(Google recently purchased Nest, a company offering intelligentthermostats and fire alarms, for USD 3.2 billion), as may cardigitalisation (at the recent Geneva Auto Show, Apple announced theintegration of their iPhone system into the main display of certain newcars; Google is developing its own system). In American caradvertisements, the majority of airtime is devoted to these ‘smart’elements. Since technologies can be very disruptive to proven businessmodels, digital strategy often decides whether or not a firm will exist.”

Alexander ŠrankPartner, PwC

Respondents could select threeareas out of options: improvingoperational effectiveness /enhancing customer service /implementing new technology /growing your customer base / R&Dand innovation / manufacturingcapacity / filling talent gaps / NewM&A, joint ventures, strategicalliances / securing raw materials orcomponents / other

Improving operational effectiveness(56% in 2013)

Enhancing customer service (61% in 2013)

Implementing new technology (32% in 2013)

Growing your customer base (37% in 2013)

R&D and innovation (31% in 2013)

0 10 20 30 40 50 60

54%

48%

44%

40%

34%

Innovations, which came out a winner in oursurvey last year when evaluating majoropportunities for the growth of business,retained a high ranking this year also. Asmuch as 38% of CEOs identified innovationas their primary choice. However, it wasbeaten this time: 46% of respondentsconsider increasing their share in the existingmarket as their top opportunity for growth –so an organic growth where the firm alreadyoperates.

To a much smaller extent they rely on newmarkets or M&A. This is a major differencecompared to global findings and theresponses provided by the CEOs from theCEE region who consider new territories andM&A almost twice as often.

5PwC

Playing in one’s own market

Chart 2: Existing markets rank top in ensuring growth

Question: What do you see as the main opportunity to grow your business in the next 12 months?

“The social, mobile, analytic and cloudtechnologies that underpin the digital revolutionare creating numerous opportunities forcompanies to generate value in totally new ways.

The smartest CEOs are focusing on breakthroughinnovation; putting disciplined innovationtechniques in place; and collaborating muchmore actively. They’re explicitly incorporating itin their strategies and using technology not justto develop new products and services, but also tocreate new business models, including forgingcomplete solutions by combining relatedproducts and services. In fact, they don’t think interms of products and services so much asoutcomes, because they recognise that productsand services are simply a means to an end.”

Patrik HornýPartner, PwC

Increased share in existingmarkets

Increased share in existing markets

Product/service innovation

Product/serviceinnovation

New geographic markets

Existing foreign markets

New geographic markets

Mergers & acquisitions

New joint ventures and/or strategic alliances

Mergers & acquisitions, new jointventures and/or strategic alliances

46%

43%*

38%

21%*

8%9%*

17%*

4%5%*

2%

* year 2013

Indications of the better mood in theeconomy and within firms have beenreflected in an appetite to employ newpeople. This is good news for the Slovakeconomy which has been suffering highunemployment for a long period. While 43%of CEOs say that they increased their staffnumber last year, 44% of firms plan to do sonext year. Almost one-third of companies donot plan any changes and over one-fifthexpect a reduction in the headcount.

Nevertheless, CEOs in Slovakia do not reachthe level of optimism as indicated by thefindings of the Global Survey (as many ashalf of CEOs worldwide plan to hire newstaff). However, compared to CEE countriestheir plans are bolder. It is rather anexpectation of retaining staff numbers thatpredominates within the entire region; onlyone-third of companies plan to increase theirstaff number.

A closer look at the industries shows wherenew jobs are available. There are still goodopportunities to find a job with the carmanufacturers and related firms, or in theinformation and communication andtechnology sector. However, also in thetransport industry which respondssensitively to the economic situation.


More jobs

Chart 3: Almost half of companies plan to increase their staff number

Question: What do you expect to happen to headcount in your organisation over the next

12 months? Do you expect it to increase / decrease / stay the same?

“When we look at the CEOs’ top 3 concerns,finding the right skills to run their operationssmoothly and effectively is on the secondposition.

Talent is one of the main engines of businessgrowth. So one of the biggest issues CEOs face isfinding and securing the workforce oftomorrow – particularly the skilled labour theyneed to take their organisations forward.

As labour recruitment becomes ever moreglobal, the fight for top science, technology,engineering and mathematics talent (STEM) isbecoming increasingly competitive.”

Jens HörningPartner, PwC

44%plan to increase

headcount

(36% in 2013)

35%say headcount

will remain the same

(33% in 2013)

21%expect to decrease

headcount

(31% in 2013)

Even though high energy costs and the costsof input materials were often cited as businessrisks, they do not rank amongst the greatestthreats. Corruption, the lack of key skills, anda shift in consumer behaviour were even morefrequently cited by the CEOs and, as a result,ranked higher. Therefore, these are the areas

that, according to CEOs, have the greatestpotential to threaten the growth of their firm.

Almost one-third of CEOs are ‘very’ or‘somewhat’ concerned about bribery andcorruption. The next concern is the threat ofnon-availability of top-people connected also

to weak education system that does notgenerate sufficient volumes of them. Mostoften, the shifts in consumer behaviour havebeen accelerated by technological advances. Ifbusinesses are unable to take hold of them ina correct and timely manner, this could be areal threat to business.

7PwC

Risky corruption

“Most CEOs, as many as 63%, were concernedabout the consequences of bribery andcorruption. According to a comprehensiveEconomic Crime Survey carried out recently byPwC, 31% of organisations in Slovakia thatsuffered economic crime stated that theyexperienced bribery and corruption inparticular. From the point of view of occurrence, they areone of the top three forms of economic crime(along with property misappropriation andfraud in the purchase process). However, it isvery probable that the relative occurrence ofcorruption is even higher, because this type ofeconomic crime is difficult to detect. Briberyand corruption are one of the most seriouscategories of economic crime and many studiesconsider them as a major risk in businessglobally, both due to the risk of damage toreputation and the financial losses they cause.”

Alica PavúkováPartner, PwC

Chart 4: CEOs’ top concerns can be split into three areas: bribery, lack of skilled people and shifts in consumer behaviour

Question: How concerned are you about the following potential business threats to your growth prospects?

Bribery and corruption

Availability of key skills

Shift in consumer spending and behaviours

High and volatile raw materials prices

High or volatile energy costs

Speed of technological change

Rising labour costs in high-growth markets

Supply chain disruption

Lack of trust in business

Cyber threats including lack of data security

New market entrants

Inability to protect intellectual property

Somewhatconcerned

Extremelyconcerned

0 10 20 30 40 50 60 70

27% 36%

44% 17%

41% 19%

36% 19%

35% 12%

33% 12%

34% 9%

23% 14%

23% 12%

27% 7%

28% 3%

22% 4%


Cost saving and outsourcing are still “in”

What kept CEOs busy over the last 12months? They spent a great deal of effort oninitiatives focused on the reduction of costs(77%). Their top restructuring activities alsoincluded the outsourcing of businessfunctions or vice versa the insourcing, i.e.reinstating previously outsourced services.

And what will keep CEOs busy over the next12months? It appears that cost saving willremain at the top of CEOs’ to-do lists.Outsourcing is expected to continue to beranked highly. Preparing for a new strategicpartnership or joint venture should also bewithin the top three ranks.

When CEOs mentioned other necessarychanges, they often included newtechnologies.

Chart 5: CEOs plan to cut costs, as operating models evolve

Question: Which of the following restructuring activities have you initiated in the past 12 months? / do you plan to initiate in the

coming 12 months?

“It is not a surprise that, particularly during the last five years, cost reductionbecame the No. 1 theme for CEOs and an integral part of their strategic decisionsand plans. Outsourcing is also a resource that firms often apply in order tooptimise their business functions and make them more effective.

Additionally, there is a trend for joining forces and cooperating with otherplayers in the market – either in the form of mergers or strategic partnerships.These help enhance business in circumstances where organic growth is notsufficient.

However, this year technologies also came to the forefront to a significant extent.In relation to their plans, CEOs very often cited the innovation of technologiesand the implementation of new software. There is no doubt that the digitalrevolution is penetrating all business areas and sectors.”

Ivo DoležalDirector, PwC

Implemented/implement a cost-reduction initiative

Outsourced/outsource a business process or function

Entered/enter into a new strategic alliance or joint venture

Completed/complete a cross-border M&A

Insourced/insource a previously outsourced business process or function

past 12 months next 12 months

77% 64%

29% 25%

11% 22%

9% 14%

12% 11%

Respondents could select three areas out of options:implement(ed) a cost-reduction initiative / outsource(d)a business process or function / enter(ed) into a newstrategic alliance or joint venture / complete(d) a cross-border M&A / insource(d) a previously outsourced businessprocess or function / complete(d) a domestic M&A /divest(ed) majority interest in a business or exiteda significant market / end(ed) an existing strategic allianceor joint venture / other

9PwC

Burdensome social security contributions

CEOs consider the social securitycontributions of employers as the mostburdensome type of taxation. This isfollowed by corporate tax and VAT. At theopposite end of the scale are customs duties,property tax and tax for regulated entities(e.g. a special contribution made by banks).

In the ‘Paying Taxes 2014’ study issued bythe World Bank Group and PwC, Slovakiaranked 102 with regard to the overallevaluation of the tax payment system. Thisrepresents a fall of two places compared tolast year. However, Slovakia’s ranking is thebest compared to other V4 surrounding

countries (Poland 113, Czech Republic122,Hungary 124). Nevertheless, this fallindicates that some countries managed to domore in reforming their tax systems withinthe surveyed period.

Chart 6: Tax ranking as viewed by CEOs

Question: Please rank each tax from the most burdensome to the least burdensome

for your business.

the most burdensome the least burdensome

“The increasing tax burden is one of the mostimportant concerns of CEOs according to ourglobal as well as Slovak CEO Survey.

Today, more than ever before, there is a need tobe fit for the future and capable of making theright decisions, thus responding to the taxationchallenges we face as tax legislation becomesmore complex and tax planning morecontroversial, in particular due to thepublicised Governmental efforts to increase thecollection of taxes and reduce the publicfinance deficit.”

Christiana SerugováPartner and Tax Leader, PwC

Enhance the enforceability of law

Reduce the regulatory and administrative burdenon businesses

Introduce more flexible labour law

Create and foster a skilled workforce

Create a more internationally competitive andefficient tax system

Top 5 recommendations of businesses for the governmentAs was the case in previous years, we asked CEOs also this year to identify the areas that should be priorities for the government withregard to business development. The list of recommendations has not changed significantly over the years.

56%

45%

42%

33%

45%

Social security –employer Corporate

taxVAT Excise

taxEnviron-mentalcharges Property

tax

CustomsTax for

regulatedentities


Different plans

What is your current planning timeframe?Ideally, where would you like your planningtimeframe to be? The key message resultingfrom responses to these questions is that theplans of CEOs in Slovakia and the reality oftheir planning significantly differ. Whilst themajority of CEOs set plans for one yearahead, almost the same number of CEOsconsiders a three-year timeframe to be anideal period. Over one-fifth would prefera five-year plan. One-tenth of respondentswould like to see beyond this perspective.

There are several answers to the questionwhy 51% of CEOs focus on the forthcomingyear: from the fact that the constantlychanging environment does not allow themto set relevant plans for a longer period, tosituations where longer term plans areprepared by headquarters abroad.

The situation is different with regard toCEOs from CEE countries as well as theglobal average where one-year plans are inthe minority and three-year plans arepreferred. Therefore, in the future short-term planning might be preferred tolong-term; as a result of fast technologicalprogress that affects firms’ strategicplanning.

Less than 1 year

1 year

3 years

5 years

More than 5 years

Data are in %

Slovakia

Central and Eastern Europe

World

Current

Ideal

Current

Ideal

Current

Ideal

3 51 28 14 4

23 37 24 14

10 26 40 19

12 51 24 9

5 40 35 13

1 18 48 23 10

Chart 7: Many CEOs would prefer planning using other timeframes

Question: What is your current planning time horizon? Ideally where would you like your planning time horizon to be?

11PwC

What are the attributes of a leader of today?

“CEOs must now be able to run the business oftoday while creating the business of tomorrow.They must foster creativity and yet make surethat it’s systematic. To put it another way,today’s CEOs must be hybrid leaders capable oflooking into the near and far distance,combining the best of the old with the new andpiloting their organisations through enormouschanges to make them fit for the future.”

David GreenPartner, PwC

Last autumn, five years had passed since thecollapse of the investment bank LehmanBrothers, an event that initiated the globalfinancial crisis. For businesses all over theworld it was a period of testing theirstrength and resilience and not all of thempassed this test and survived. Today, we donot talk anymore about the crisis but aboutthe new normal, in which CEOs must learnto operate. Not only the unpredictability ofcapital markets, but also global shifts ineconomic power and changes in consumerpreferences bring the new requirements towhich CEOs must adjust the way theymanage their business.

We asked Slovak CEOs whether and how therequirements of leadership had changedover the last five years. The answer isambiguous, but in current environment, keyattributes of a leader are dominated by: anincreased importance placed on the abilityto have a vision and strategy, the ability tothink globally within a local context, and theability to manage critical situations. Oftenmentioned qualities of a leader included thecapability to innovate, and inspire andmotivate others.


Fit for the futureWhat is the major lesson learnt from the post-Lehman period in terms of leading a business?CEOs unanimously believe that ethics in business is essential for a sustainable business in thelong-term. And not only that; please read the other inspiring recommendations of the leaders ofbusiness in Slovakia.

“Nothing is older than yesterday's success.Therefore, it is necessary to be perceptive aboutthe signs and things around us.”Marek KramárCEO, Arval Slovensko

“Focus on watching costs carefully, improvingthe effectiveness of production with a strategicfocus on the development and consistentimprovement of the core business.” Teodor LysákCEO, CHIRANA T. Injecta

“Focus on core business, outsourcingof processes with insignificant added value,better selection and acceleration of innovativeactivities.”Miloš KrausCEO, Danfoss Power Solutions

“In technology & software development –innovate to global extent in a local context.”Rastislav KulichCountry Manager, Google

“Having one’s own view on the matter, notletting oneself be swayed by trends and the‘herd’ behaviour of the media, getting to theheart of the matter rather than just scratchingthe surface.”Pavel TrenkaGroup CEO, HB REAVIS Group

“Use foresight, read between the lines, do notpanic, place even greater emphasis on cash flowmanagement, motivate and inspire employees,trust in yourself, work harder and work withheart.”Vladimír ŠrámekCEO, DECODOM

“Thorough focus on the effectivenessof processes and cost effectiveness should not beweakened even at times of expansion andgrowth. Only then will it be possible to managethe impact of the crisis and the reduction ofvolumes and strengthen one’s owncompetitiveness.”Ľuboš LesayManaging Director, IKEA Components

“Being alert, monitoring the situation globallyand locally, having patience in solving criticalsituations, focusing on own strengths.” Igor FiloManaging Director, Keller špeciálne zakladanie

“Diversification of sales - ensures greater stability compared to beinglinked to one or two key customers. Controlling and immediatefeedback. Internal corporate culture – loyalty to the firm even at timesof crisis.” Ivan PriesolCEO, I.P.C. REFRACTORIES

13PwC

“No business objectives are more importantthan ethical and legal standards. The idiom,‘the end justifies the means’, no longer applies.Due to globalisation, legal standards havebecome more comparable.”Roman KnapCEO, SAP Slovensko

“The flexibility of an organisation and its abilityto step out of its own shadow can lead to successwhen all other means fail.”Ladislav ValábekManaging Director, Magellan Slovakia

“No trees grow to the sky. Constant pressure onincreasing revenues and growth, under anycircumstances, brings risks that are difficult tomanage. Balance, sustainability andeffectiveness are important.”Pavol LančaričCEO, Orange Slovensko

“Careful cost management, a conservativeapproach to clients’ funds, simple andtransparent products, common sense.” Alexandra PavlovičováCEO, Poisťovňa Poštovej banky

“In our field of business, where the average termof a contract is 3–4 years, short-term objectivesbased on cost-cutting measures (set by clients’managers who are often engaged for a periodless than three years) are considered risky withregards to the impact on the quality of servicesprovided. Therefore a lesson learnt from thisshould be: changing and setting the amount ofprofit and parameters as well as the ways theyare achieved (both in terms of time and ethics)more realistically, gradually to ensure businessself-regulation and thus prevent non-systematicgovernmental measures.”František StankManaging Director, LeasePlan Slovakia

“A strategic presence in several countries andseveral regions in order to be able to identifyand balance fluctuations and timediscrepancies.”Peter KinkaManaging Director, PORR

“Be able to change plans quickly andstrategically. Learn to make short-term plansand at the same time see them in the long term.Calculate even more and be more flexible.” Ivana MolnárováCEO, Profesia

“I would emphasise the importance of selectinggood quality management and their specificengagement in the financial performance of thecompany, which is closely connected toproviding clear information about thecompany’s position.”Jozef GimaDirector, RYBA Košice

“It is not sufficient just to have a clearvision/strategy, but it’s important to haveseveral alternatives for its completion and -based on economic development - flexiblyadjust one’s own actions and decisionsregarding the steps for its completion. At thesame time, this vision should reflect actualeconomic development in a flexible way, ratherthan being fixed only to a long-term positiveeconomic outlook.”Marek JuhásManaging Director, STILL SR

“Flexibility and adaptability seem to be thedisruptive tools to update the strategies webuilt and the goals we set. The key of successwill come from the speed and effectiveness yourcompany develops in order to reach and fulfilcustomers' needs.”Ramiro LafargaCEO, O2 Slovakia


“Cash is king; do not bet on unrealistic plans.”Jaroslav ŽlábekCEO, Schneider Electric Slovakia

“Resilience and flexibility in terms of sticking tolong-term strategies.”Paolo RuzziniGeneral Manager, Slovenské elektrárne

“If you want the gods to laugh, tell them yourplans. I would say that the lesson to be learnt isto be very prudent in planning and avoid anyexpansion that relies on a brighter future.Everything that is done should be built on firmfoundations in the current situation, ratherthan on the expectation of a better future.”Ondrej SmolárCEO, Soitron

“Difficult times create room for the developmentof sound firms, since the weak ones vacate theroom. Therefore, good times must be used tokeep yourself fit. In plain language – behavingreasonably with development in mind, ratherthan resting on our laurels.”Bohuš HlavatýCEO, Tatry Mountain Resorts

“More accountability and ethical conduct inbusiness dealing is required to change thenegative impact of the recent crisis and create asustainable value system going forward,otherwise we’ll be repeating the lesson.”Dino AjanovicCountry General Manager, TNT Express

“Always have a plan B available, because thesituation in the market changes fast and thefirms that are able to adapt quickly to thesituation and even benefit from it, will succeed.”Ľuboš ImreManaging Director, Toyota Material HandlingSlovensko

“Do not be afraid of TRYING new things indifficult times. Reducing costs will not beenough, development is necessary for the future.Do not fear failure, even when markets fall andthe future is uncertain.”Roman PodolákCEO, UNION poisťovňa a UNION zdravotnápoisťovňa

“Increase flexibility, reduce the time it takes tomake strategic decisions, and improve yourdiversification of risks.” Igor GnapCEO, VAŠA Slovensko

“As Jim Collins says: “People are not your mostimportant assets. The right people are.” Then itwill suffice if we do our best and not get in theirway. The external environment is notimportant. Businesses with the right peoplegrew, even in times of crisis. Those that havemissed this point up to now will start growingsoon.”Milan MurckoCEO,YIT Reding

“Managing a business has stopped being an issue of capabilities,personal motivation, and leadership that brings firm’s success, but israther a comprehensive set of activities aimed at ensuring survival ina volatile and non-supportive environment.”Vladimír VokáľCEO, Unimedia

Global CEO Survey 2014Three trends that will transform businessPwC has conducted the Global CEO Survey for 17 years already and every year it is officially presented at the World Economic Forumin Davos. In the 2014 edition of the Survey, we asked CEOs which global trends they believe will transform their business.

So what does the future hold? CEOs told us they think three big trends will transform their businesses over the coming five years. Four-fifths of them identified technological advances such as the digital economy, social media, mobile devices and big data. More than half also pointed to demographic fluctuations and global shifts in economic power.

Of course, these trends aren’t new. What has changed is the pace at which they’re unfolding – and the way they’re colliding to createa completely different environment.

The digital revolution has put more power in the hands of more people than ever before. Collaborative networks are replacingconventional corporate modes of operating. Consumers are swapping information and advice on the virtual airwaves.

Meanwhile, demographic shifts caused by slow – or no – population growth in some countries are causing a massive redistribution ofthe world’s workforce. And since work is what generates wealth, that will have a huge bearing on future consumption patterns as well.

These global forces are also changing society in fundamental ways. On the positive side, for example, a billion people will be better offthan they are now, as incomes in the emerging economies rise. On the negative side, unemployment and resource shortages could beexacerbated.

The business community won’t be divorced from such problems. On the contrary, it will be expected to engage with them – and therewill be a pay-off for those that get it right. Companies that come up with innovative solutions to serious social issues will earn morerevenues and more trust.

Find out more by visiting www.pwc.com/ceosurvey.

CEOs identified three transformative global trends

Question: Which of the following global trends do you believe will transform your business the most over the next five years?

(Top three trends CEOs named.)

Base: All respondents (1,344)

Source: PwC‘s 17th Annual Global CEO Survey

81%Technological

advances

60%Demographic

shifts

59%Shift in global

economic power

Todd BradshawCountry Managing Partner, PwC+421 2 59350 [email protected]

Zuzana SehnalováMarketing and Communications Leader, PwC+421 2 59350 [email protected]

Juraj PorubskýEditor-in-chief, Forbes Slovakia+421 2 208 66 [email protected]

© 2014 PwC. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers Slovensko, s.r.o. and PricewaterhouseCoopers Tax, k.s., which are member firms ofPricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

www.pwc.com/sk/ceo-survey

PwC, Námestie 1. mája 18, 815 32 Bratislavatel.: +421 2 59350 111, fax: +421 2 59350 222PwC, Aupark Tower, Protifašistických bojovníkov 11, 040 01 Košicetel.: +421 55 32153 11, fax: +421 55 32153 22

Contact

Slovak CEO Survey 2014

The Survey was conducted by consultancy firm PwC in co-operation with the Slovak edition of Forbes magazine. The CEOs contactedreplied via an on-line or printed questionnaire from 1 December 2013 to 28 February 2014.

122 top representatives of companies operating in the Slovak market participated in the Survey. Industry sectors included: automotive,chemicals, construction & civil engineering, financial services (banking & insurance), industrial manufacturing, pharmaceuticals, retail & distributive wholesale, information technology, telecommunications, transportation & logistics, energy and other.

Characteristics of companies represented in the survey:Type: 56% a subsidiary or branch of an international parent company, 40% privately owned Slovak company, 4% a subsidiary of a Slovakcompany in this country. Years of doing business in Slovakia: 48% 5 – 15 years, 40% 15 – 25 years, 9% over 25 years, 3% less than 5 years.Revenues: 31% EUR 5 – EUR 15 million, 18% EUR 15 – EUR 30 million, 18% EUR 30 – EUR 100 million, 14% less than EUR 5 million, 10% over EUR 250 million, 9% EUR 100 – EUR 250 million

About Forbes

Forbes Slovensko is a monthly Slovakia's country edition published by the Business Consulting & Media, s.r.o. under a licence agreementwith Forbes Media LLC. Forbes Media encompasses Forbes, the largest business media brand worldwide, Forbes.com, as well as 29 licensee editions. See www.forbes.sk for more information.

About PwC

PwC firms help organisations and individuals create the value they’re looking for. We’re a network of firms in 157 countries with morethan 184,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you andfind out more by visiting us at www.pwc.com/sk.

Slovak CEO Survey 2014 · 2017-07-28 · Dear business partners, This is the 5th year we have undertaken our Slovak CEO Survey, which again provides a unique insight into the mindset

Documents