Senior Advisor, Sr. Partner Emeritus
In October, we released Creating Value in a Lower Growth Economy: The 2013 Australian Value Creators Report, by Nicholas Glenning, Ramesh Karnani, Gerry Hansell, and Alan Wong. The report analyzes recent total shareholder returns and investors’ expectations for ASX 200 companies—and addresses the implications of these for senior management.
Despite relatively favorable conditions in Australia, equities here continue to lag behind global leaders. The report shows that the main driver of the disconnect between economic and market performance appears to be a failure on the part of many companies to meet investor expectations regarding their fundamental value. Nonetheless, there are some standout performers and, indeed, some standout industries.
Only the right blend of growth and margins will maximize shareholder value, and this blend will differ from company to company. To help companies understand how to achieve that balance, the report explores BCG’s concept of “value patterns,” which describe strategic moves that have been empirically shown to create value for companies with similar starting points and profiles. Specifically, we apply the value patterns concept to three Australian companies to identify success factors in their sustained value creation.
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
© Boston Consulting Group 2023. All rights reserved.
For information or permission to reprint, please contact BCG at firstname.lastname@example.org. To find the latest BCG content and register to receive e-alerts on this topic or others, please visit bcg.com. Follow Boston Consulting Group on Facebook and X (formerly Twitter).