FINDING NEW LEVERS FOR MANAGING COSTS AND GROWING MARKET SHARE
|As economies around the world experience a decline in rate of growth, corporations are compelled more than ever to protect their earnings through rigorous cost management programs and also undertaking greater efforts to increase market share and grow beyond their traditional markets.|
|IMF Reports that global growth rates is projected to be 3.5-3.7% with a downward revision of 0.3% from last October|
|Revisions reflect dampening of China, Russia, Euro-zone and Japan markets as well as uncertainties in Oil and Gas sector|
|More than half of S&P companies have reported sales below estimates to date|
|MNCs need to relook at both their current growth strategies, markets, and existing cost structures to address retention of shareholder value|
|There are three key components to ensure ongoing success in today’s economic climate. Firstly the ability to manage costs to reduce erosion of shareholder value as this allows future access to capital. Secondly, is to identify and capitalize on the new economies and geographies which require access to capital. And thirdly, is to have a leadership and organization structure which is sufficiently agile to operationalize the new growth strategies.
In the first of our three part series, InvestKL explores what strategies are being employed to drive greater cost efficiencies while delivering value globally.
|Contributor: Daniel H Goh, Senior Manager
of Advisory in InvestKL has 15 years of business
management experience in various
multinational firms across various industries
including Electronics, Medical Devices, Timber