Senior Partner & Managing Director; Asia-Pacific Leader, Corporate Development Practice
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.