This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Message Matters: Companies That Credibly Communicate Emerging Market Strategy Realize A 30 Percent Performance Advantage

ARLINGTON, Va., Dec. 13, 2011 /PRNewswire/ --   Corporate Executive Board (CEB) (NYSE: EXBD), a leading research and advisory company, released new research today showing that a lack of clarity and credibility in emerging market strategy is leading to investor skepticism and, ultimately, discounts to corporate valuation. According to CEB analysis, companies with questionable emerging markets messaging generated an average total shareholder return of only 2 percent between 2008 and 2010, compared with a 32 percent return for companies with credible emerging markets messaging.    

In a study of 71 global firms, CEB found that 46 percent of companies that report having an emerging markets strategy lack a credible story in the eyes of investors. Enhancing credibility moving forward will be especially important for companies given the growing importance of emerging markets to their growth plans.  Nearly two-thirds of companies say they have accelerated growth targets in emerging markets.  Additionally, lack of credibility and clarity in emerging markets messaging has been identified by CEB as one of the top five barriers to global readiness for companies in its publication of Executive Guidance for 2012.

"As firms intensify investments in emerging markets, many will fail to earn economic returns in an increasingly competitive environment," said Michael Griffin, executive director at CEB. "Our research suggests that companies focused on emerging markets growth should clarify their strategy for investors and employees. Doing so has a substantial impact on performance."

Companies should start by clarifying their strategy internally.  In a survey of nearly 400 senior emerging market staff, CEB found that many companies' globalization strategies are not clear to their own employees.  More than a third of leaders either could not identify their company's strategic focus in emerging markets or did not understand their role in the company's globalization strategy.  These firms lagged their peers on key emerging markets performance indicators like growth, profitability and competitive positioning.

In addition to clarifying emerging markets strategy internally, to increase the effectiveness and credibility of their emerging markets messaging and win investor confidence, CEB recommends companies:

  • Clarify Strategic Intent –Distill emerging markets strategy into a limited set of messages (just three to five) that are clearly worded, company-specific and clearly tie with company's higher level strategic messaging.
  • Focus on Differentiation – Develop key messages that explicitly highlight ways in which their strategies are different from their competitors.
  • Employ Proof Points – Show investors a track record of execution where possible.  Forward-looking messaging should be verifiable so that it can be used to enhance credibility in the future.
  • Provide a balanced assessment– Incorporate risks and headwinds as a component of investor messaging, as well as how the company is positioned to mitigate them.

For more information please visit CEB's Executive Guidance for 2012, Assessing Global Readiness.

About Corporate Executive Board

By identifying and building on the proven best practices of the world's best companies, CEB helps senior executives and their teams drive corporate performance.  CEB offers comprehensive data analysis, research and advisory services that align to executive leadership roles and key recurring decisions. CEB tools, insights, and analysis empower member companies to focus efforts, move quickly, and address emerging and enduring business challenges with confidence.  CEB's client and member network includes 85 percent of the Fortune 500, 50 percent of the Dow Jones Asian Titans, and 70 percent of the FTSE 100.  It spans more than 50 countries, 5,300 individual organizations, and 225,000 business professionals.  For more information, visit

SOURCE Corporate Executive Board

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.54 -0.75%
FB $119.38 1.30%
GOOG $710.90 1.40%
TSLA $214.81 1.60%
YHOO $37.24 0.80%


Chart of I:DJI
DOW 17,725.70 +64.99 0.37%
S&P 500 2,054.53 +3.90 0.19%
NASDAQ 4,727.9340 +10.84 0.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs