Escolar Documentos
Profissional Documentos
Cultura Documentos
Issue 15
13:20 Uhr
Jrgen Hambrecht
on European
management
culture
18.06.2010
think:act The global magazine for decision-makers by Roland Berger Strategy Consultants
07_15gb_01_Umschlag_aussen
Martin Walser
on justice and
injustice, money
and independence
Mastering complexity
India and its companies
can do more than just cheap
Issue 15
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We think so!
and therefore we would like to congratulate the following winners from the German round of
our Best of European Business awards for successfully finding this path:
Dr. Jrgen Hambrecht, CEO of BASF SE, as best European Manager; Hartmut Ostrowski,
CEO of Bertelsmann AG, for winning the Strong Leadership prize; and also both HOCHTIEF
Aktiengesellschaft and Symrise AG as recipients of our Growth Despite Crisis award.
We believe that Europes companies have both the chance and the potential to make the coming
years a European decade.
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first views f
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p contents
think:act is published in five languages (English, German, Chinese, Russian and Polish)
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contents f
business culture
50 Bracing for litigation
Management is a risky business.
We investigate D&O insurances.
52 Benefiting from diversity
BASF CEO Jrgen Hambrecht
on European management
56 Work in progress
61 Dont settle
What drives Steve Jobs?
industry report
regulars
34 Customer consulting
Customers provide the ideashow
companies reap the benefits
3 First views
62 Service | Credits
dossier
!
MANAGING
INDIA.
MANAGING
INDIAN?
DOSSIER #15
The country is boomingthis much we know. But
for some time now, there has been a great deal
more behind Indias growth than just an outsourcing destination for the developed world. Companies such as Tata are developing their own identity, while top Indian managers have experienced
success in businesses around the world. And
Indias markets offer considerable growth opportunities for American or European firms. In this
dossier, we take a closer look at the dynamics of
a country that is currently changing the world.
48 Future markets
Artificial photosynthesis and
microscopes for molecules
Dossier
Managing India.
Managing Indian?
Starting on page 13
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WORLD OF NUMBERS
3.46
FC Barcelona
308.8 million
FC Bayern Mnchen
295.3 million
Chelsea FC
268.9 million
Mobile professionals: In the last several years, players in Europes five top leagues have
increasingly demonstrated a willingness to switch teams. On average, football stars leave their
clubs 3.47 times over a 10-season period; in 2006, that figure was 3.28. Italians are the most
mobile, averaging 4.24 transfers a decade. With an average of 4.21 moves over the same time
period, African players show a similar inclination to seek new challenges.
Source: PFPO The Professional Football Players Observatory
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Costa Rica
27 %
Source: DFL
20 %
Germany
Manchester United
324.8 million
Real Madrid
365.8 million
Faroe Islands
17 %
Source: FIFA
16 %
Guatemala
Chile
16 %
Source: FIFA
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In a meeting with think:act, he makes it candidly clear why, after leaving the world of
politics in 2004, he now wants to use his
prominent position to reshape things. Our
economy must be completely deregulated,
opines the 50-year-old.
Tigipko believes that control must be quickly
regained over the rampant bureaucracy,
widespread corruption and the lack of willingness to pay taxes. In the meantime,
Ukraine has begun to support small and
8
reforms. Im ready to do that, and Im convinced that this will also be demanded by
Ukrainian politics, he says confidently.
Immediately after assuming office, he established a 60-day program that provided for
short-term changes such as doing away with
various bureaucratic provisions. He also had
the 2010 national budget prepared with the
assistance of the International Monetary
Fund (IMF). Many Ukrainians now have to
say goodbye to cherished comforts that the
government had once paid for. Next year,
for example, the price of gas for private
households will be scaled according to
income levels.
BANKS THAT DONT SPECULATE BUT ACTUALLY
SERVE THE REAL ECONOMY
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to promote greater involvement from foreign banks. Anyone who operates according
to honest commercial practices is welcome
to do business here, he says. I support a
combination of European, Russian and
Ukrainian banks. Its good for the competition and its the only way to revive the business sector, Tigipko emphasizes.
He would also like to see a similar mix in
other segments of the Ukrainian economy.
The political realm and other branches of
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Locking horns
According to conventional wisdom, conflict in management should be avoided. But is this really
true? Can struggles between the top managers of a company also be constructive?
They canprovided they are properly managed, as shown in the case of Google, among others.
Obamas experience is also played out regularly in companies all over the world. Ones
own ranks are seldom closed. On the managing boards of large corporations, it is practically unheard of for all the members to be of
one mind. And it is precisely when groundbreaking decisions need to be made that differing opinions and methods frequently
collide. This can often be exhausting, but it
also has positive effects for the company.
compromises. Each idea, each step was challenged. No decision was taken until it had
survived a process of constructive conflict.
This culture has been deliberately carried
over to the behemoth corporation they
founded. The success of Google vindicates
the approach of Page and Brinespecially
since the company is also highly successful
on the employment market. It seems that
talented workers do not want a cosseted
existence at any price.
ANYONE CAN CONTRADICTEVEN
THE SEASONED WARHORSES
Micropolitical sensitivities, born of age differences, for example, are completely disregarded. In order to make disagreement productive, it is important to refrain from treating older employees with kid gloves as well.
Google CEO Eric Schmidt has personal
experience of this. He often recounts how he
argued with founders Brin and Page about
technical questions, even while interviewing for the job. The founders are in their
mid-30s now, while Schmidt is 20 years their
senior. But the veteran manager, who had
already contributed substantially to the success of Sun and Apple, remembers this interview as one of the most entertaining he had
had in a long time. And Brin and Page
respected the opposition of this experienced
businessman, who never avoids an argument and is even prepared to question his
own views.
As CEO, Schmidt continues to propagate this
culture, which is based on questioning
everything and hiring the most widely
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also the person who is best able to implement it. Of course, this person also tends to
be someone who does not give up easily
under pressure.
One manager who will be leaving his company in the near future is easyJet boss Andy
Harrison. He is one of the main protagonists
in a massive conflict of visions with majority
shareholder and founder of the airline, Stelios Haji-Ioannou. He has said publicly that
he wanted the group to grow more slowly.
Instead of continuing to invest, he wanted to
distribute a dividend. The company managers had other ideas.
EVERY SUCCESSFUL CLASH ENHANCES
THE PROFILE OF A TOP MANAGER
Harrison and his colleagues on the management board had previously shied away from
this change in strategy, and had evidently
estimated correctly. In 2009, easyJet was
among the very few airlines in the world
that posted a profit. But this did not mollify
Haji-Ioannou. He recently resigned his position as non-executive director under protest.
Despite this, Harrison will still leave the
company. His position in financial circles
has been clearly established through his difference of opinion with the founder of the
company. Harrison has enhanced his profile
as an independent, top-level manager
something he will undoubtedly benefit from
in future disputes, whether at easyJet or
elsewhere. One thing his management
board colleagues now know for surehe is
not one to avoid a good argument.
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MANAGING
INDIA.
MANAGING
INDIAN?
DOSSIER #15
The country is boomingthis much we know. But
for some time now, there has been a great deal
more behind Indias growth than just an outsourcing destination for the developed world. Companies such as Tata are developing their own identity, while top Indian managers have experienced
success in businesses around the world. And
Indias markets offer considerable growth opportunities for American or European firms. In this
dossier, we take a closer look at the dynamics of
a country that is currently changing the world.
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D O S S I E R #1 5
14
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D O S S I E R #1 5
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+38.31%
Midsize and heavy commercial vehicles
(M&HCVs) up 33.55 percent;
light vehicles up 42.67 percent
Nov.
16
Dec.
Jan.
Feb.
Mar.
Apr.
May
Tata Group, Indias economic colossus. No other concern has had such a pervasive effect on the Indian
economy and society as this empire, which was
founded in 1868 by Jamsetji Tata. Tata products and
services are ubiquitous in India. The businesses
owned by this family-held company generate
between 3 percent and 5 percent of the countrys
gross national product.
ALL INDIANS ARE PROUD of Tatas success. Like
no other business in India, the threads of tradition and
the future, trust and incorruptibility, profit and social
responsibility, are held firmly in the hands of the
unassuming Ratan Tata. He has already unleashed
one revolution, when, at the end of the last millennium, he transformed the elephant that was Tata into a
pouncing tiger. The tigers first leap took it into the territory of the worlds biggest steel producers. Now it is
gathering itself for an attack on one of the most ferociously contested reserves of the old industrialized
nationsthe production of luxury cars.
The acquisition of Jaguar Land Rover by Tata
Motors is the expression of a new self-confidence,
says Ralf Kalmbach, head of the Competence Center
Automotive at Roland Berger Strategy Consultants.
Their unassailable domination of the commercial
vehicle sector at home has given them a sense of
belief that they can compete at the top of the international automobile business. After 40 years of resistance to change, and having fallen into the wrong
hands, the British luxury brand Jaguar looked as if it
would follow its venerable, elderly customer base into
extinction. Then came Tata. With his clear vision,
Ratan Tata showed the former colonial power how its
once revered status symbol can be driven into the
future, continues Kalmbach.
The result was revealed at the last Geneva
Motor Show in the shape of new flagship model, the
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XJ. It is barely recognizable in comparison to its predecessor. Younger, more aggressive, it expresses a
repositioning of the brandand, at the same time, the
conquering spirit of India. Recently, Tata posted a profit for the luxury carmaker, which many had already
written off. According to Kalmbach, This initial success, unparalleled during the crisis, is an indication of
the determination and managerial skills that were
brought to bear in India to reinvent the brand.
NEVERTHELESS: the success with Jaguar is
being played out in the uppermost segment of the
automotive food chain. But Tata is also involved at the
other end of the spectrum, where it has unceremoniously reinvented the car itself, with the Nano. The idea
to create the first internationally competitive subcompact car came to Ratan Tata on a rainy day in Mumbai,
when he saw one of the countless tiny motorcycles
weaving through the streets carrying a family of five.
Surely it must be possible to provide this family with
a safer, more comfortable means of transportation?
he thought. And so the idea was born: create a new
D O S S I E R #15
98 %
78 %
Shareholder relations
4%
58 %
31 %
41 %
Defining strategy
9%
0%
47 %
93 %
Media relations
11 %
31%
17 %
31 %
Day-to-day management
27 %
28%
55 %
24%
Source: Harvard Business Review, March 2010
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D O S S I E R #15
7%
Sales were up
on the
previous year, to 396 billion Indian
rupees, in fiscal year 2009/2010.
The EBITDA rose by 6 percent.
Sales growth
369.6 bill.
270.2 bill.
185.2 bill.
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18
13:13 Uhr
produced high-value auto parts. For many parts suppliers, the Nano became a test laboratory for a business model, to discover how it is possible to make
money with parts for simple, inexpensive, environmentally friendly vehicles, Kalmbach explains. The
Nano was a wake-up call to the automotive industry, a
warning to finally change their strategy of expecting
customers to buy a bigger, and thus more expensive,
model every time they changed cars. Because that is
precisely what is not working any more. The car manufacturers in the US, Europe and Japan will never
again see absolute growth in their traditional battleground of big, expensive vehicles, says Kalmbach.
The growth of the future is taking place in the emerging nations, with small, affordable cars that allow millions to move around.
Yet even Tata had to learn that dispensing with
time-honored development structures in the automobile industry is a feat of strength that can only be
pulled off when pursued utterly without compromise.
Time and again, the development of the Nano
reached a point at which it seemed impossible to hold
to the upper price limit of 100,000 rupees, says
Kalmbach. But Ratan Tata had given his word to the
world. And against this background, he forbade his
organization to waver from its goal. His maxim:
a promise is a promise!
BHARTI, INDIAS LARGEST telecommunications
provider, has turned the practice of amassing huge
revenues from millions of small transactions into an
art form, by enabling an impoverished population to
join a communications network. India is the fastestgrowing mobile telephone market in the world. There
are currently 500 million cellular phones in use, and
by 2013 this figure is expected to top 900 million.
More than 120 million current users are supplied by
Bharti Airtel. No one in the world offers a cheaper price
per minutecurrently half a US cent. Revenue per call
is minuscule. But Bharti Airtel is making enormous
profits as more and more customers in rural areas are
brought into the fold. At the moment, the company is
registering an impressive 100,000 new customers
every working day.
While Indias current strength has grown out of
its role as a service outsourcing provider for the First
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D O S S I E R #15
India as an agricultural
problem area
Arable land in hectares per person
2.52
Australia
1.39
0.88
0.61
Canada
Russia
USA
0.35
Brazil
0.28
Thailand
0.16
India
0.10
China
21
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D O S S I E R #15
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Premium
>12
17
28
47
Mass
1.12.4
53
75
103
Basic
>1.1
132
114
78
2005/2006
2009/10
2013/14
Source: World Development Indicators Database, Datamonitor, Roland Berger; figures starting with 2009/10 are based on estimates.
24
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D O S S I E R #15
around the world gathered in Indias IT capital Bangalore for the annual World Oil & Gas Assembly (WOGA),
the pressing concern in the minds of the attendees
was not just whether recoverable supplies will
decrease faster than they can be replaced with alternative sources. The big issue was the need for an
alternative business model. We need evolution in this
business rather than revolution, said Tony Hayward,
CEO of British Petroleum. He was endorsed by Khalid
A. Al-Falih, CEO of Saudi Aramco, the worlds largest oil
company. Three Tstechnology, talent and teamingcan do a lot to meet the resource shortfall, said
Al-Falih. Mukesh Ambani, Indias top oil man and one
of the hosts at the event, couldnt agree more. Despite
the lack of direct resources, his companyReliance
Industries Limited (RIL)has become a major force
in the South Asian oil market.
AMBANI, WHO HAS SET UP a giant 580,000-barrels-per-day refinery in the city of Jamnagar in western Indian state of Gujarat, is now aggressively
importing crude oil and is looking for overseas acquisitions to meet the growing demand. Low production
and logistic costs will drive further expansion of Indian refining capacity, says a senior consultant on oil
and energy from Roland Berger Strategy Consultants.
Proper investment planning and controlling as well
as cost-conscious global sourcing will be key to further success of downstream players, he adds. Indian
crude oil demand of 161 mt per year (2009) has been
growing at 4.8 percent over the last five years.
Buzz about RILs international expansion
became louder when it raised around $700 million by
selling its treasury shares. RIL is reviewing a number
of global opportunities for growth in its core business, says a company spokesperson. The difficult
operating environment of the past year has made
available several interesting opportunities, where an
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D O S S I E R #15
investment from a greenfield project in 2009. Government-owned petrochemical company HPCL is the
anchor tenant of Vizag SEZ and plans to invest a
whopping $62 billion on a core area of 270 square km.
IN ORDER TO MAKE THE INVESTMENT regions more
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Chemicals and Petrochemicals. With foreign companies allowed to own 100 percent of Indian subsidiaries, the government hopes to attract more
foreign players in this growing segment.
AND FOREIGN COMPANIES do not just bring in
30
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D O S S I E R #15
A NEW BREED OF MULTINATIONAL CEO is emerging: charismatic, sleek and eloquentwith an Indian
background. PepsiCos CEO Indra Nooyi; Shantanu
Narayen, president and CEO of Adobe Systems; or
Sanjiv Kakkar, chairman of Unilever in Russia, Ukraine
and Belarus: These executives share the experience
of growing up in India.
Apparently, Indian managers bring multinational companies insight on leadership and management
that home-grown executives may lack. According to
Peter Cappelli, the joint author of the recent book The
Indian Way, Indian managers have a special knack for
empowering people by creating a sense of mission.
And theyre prone to address critical internal matters
rather than focus too exclusively on external affairs,
such as investor relations, M&A and share prices.
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unspoken feeling of failure among Indians who compared the situation of their country with others.
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D O S S I E R #15
ignored her and went straight to her mother to compliment her on raising such a good kid.
AND THEN THERES INDIAS educational system
based on British remnants and Jawaharlal Nehrus
legacy of investing in primary schools and universities. The system fosters a learning culture among
many strata of society. And today, its evident in Indias
companies as well, Cappelli and his co-researchers
found. For instance, a quarter of new hires in the United States receive no training of any kind in their first
two years of employment, while the Indian IT industry
provides new hires with about 60 days of formal training, according to a study by the Kauffman Foundation.
As Indias culture of educational achievement
has taken root, children have been placed under high
pressure to perform. The country trains 1 million engineers a year, compared with less than 100,000 in the
United States and Europe: It is home to an elite university system that has catapulted Indias scientific and
technical capacity to third in the world. Hence, when
young people arrive in a competitive work environmentat home or abroadtheyre accustomed to the
demands placed on them.
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p industry report
BUSINESS IN FOCUS
Customer consulting
Companies are looking for ways to work more closely with customers during the innovation process.
One idea: directly including end-users in product development. This works in both industrialized
nations and developing markets. The prerequisite: companies need to open up.
34
Franz Liebl, a professor of strategic marketing at Berlin University of the Arts, observes
how people tinker with things and adapt
their usage to solve a personal problem or
work around a manufacturers lack of imagination. This can often introduce real innovations in the process. Liebl calls it bricolage
or hacking.
Some figures offer encouragement: according
to the International Innovation Report, 40 percent of all successful innovations today stem
from customers. It is possible to utilize their
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[Juicy discovery]
OPUNTIAHOT NEW DRINK FROM A CACTUS?
Food and drink manufacturers serve taste-testing customers, have
every ingredient analyzed by experts and send trend scouts out into
the hottest restaurants. But sometimes it still doesnt taste good to
customers. Meanwhile, a collective of women in the Indian village of
Saurathra are brewing up what may be the next big drink on the
scene. The juice from the Opuntia cactus, a.k.a. the prickly pear cactus, became the public favorite at one of Indias booming regional
agricultural trade fairs, the Stavik Food Festival, in late 2009.
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industry report f
Kerala, they found a farmer who had invented a simple but clever
piece of climbing equipment for his own use. It enabled pickers to
climb the palm trees more safely and faster than any device developed by the engineering elite from around the world. Maricos CEO
Harsh Mariwala sat down to collaborate with the Coconut Development Board on fashioning a commercial version of the climbing
equipment
based on the farmers prototype. Some innovations
Untersatz
require the willingness to think outside your own box.
37
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p industry report
38
vote on the designs they like the best. Hundreds of thousands use
the platform to chat, blog, date, pose as models, take catalogue photos and purchase massive quantities of t-shirts.
The key question for US-based Threadless: how do you motivate consumers to participate and be creative? One key element behind their
success seems to be their strategy to remain entirely in the background as a company. Instead, Threadless manages the creativity of
its customers.
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with other patients benefits real-world usage. Whats more, the story
is true: brothers James and Benjamin Heywood founded the company when they were searching for information about their brother
Stephens illness. Another secret to success: transparency and
mutual clarity among interested parties. PatientsLikeMe sells the
aggregated, anonymized data to pharmaceutical companies such as
Novartis or UCBand states it openly. The patients do not mind
because they will certainly benefit from new medications.
39
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40
from overseas development. Recently, GE built its newest fullyfledged R&D location in Bangalore. As an example of the advantages
possible, this facility developed a portable ECG device for $1,000.
That makes it 90 percent cheaper than its predecessor. But the real
innovation is in GEs thinking: reverse innovation only works if a
companys R&D locations abroad are taken just as seriously as the
former innovation center in the USA. It would seem that this works
very well at GE.
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industry report f
ers constantly analyze opportunities for improvements, test product innovations and share ideas. If needs change in practical applications, the company can adjust its products quickly to suit those
needs. However, to keep its co-developers involved, Ethicon must
always be fully prepared to rework its product portfolio to meet the
changing requirements of medical professionals. Why? Because if
you ignore their feedback, doctors will quickly lose interest in the
cooperative arrangement.
41
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p industry report
FINANCIAL SERVICES
This business area of Roland Berger has 30
partners and 250 consultants in more than
20 countries around the world. Its key competencies lie in risk managementrecently
stregthened by Roland Bergers takeover of
KDB Business Consultingstrategy consulting for banks, and in the insurance sector.
Specific areas of expertise within risk management include credit and liquidation risks
in the banking sector following the discussions surrounding Basel III, as well as the
new regulations for the insurance industry
under Solvency II.
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industry report f
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industry report f
KOTLER AND POLITICS In the last several years, Kotler has spent more and more time on
marketing for nonprofit organizations. His orientation to social marketing is conveyed in books
such as Up and Out of Poverty: The Social Marketing Solution (1999). He is continually striving and
hoping for more improvement, as he also conveyed in his interview with think:act. At the end of the
discussion, he offered a statement regarding the political situation in his home country. I am in a
cautiously upbeat mood, and I would be even more positive if the political parties in the US would
finally work together for the common good. Instead of thinking for themselves, politicians stick only
to their respective party line. They do that to be re-appointed by their party. I hope the time will
soon come when politicians can be free and independent in their reasoning. And when that happens, I hope that people will have more respect for politicians.
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So how does marketing even remain responsive during times of never-ending turbulence? According to Kotler, having one
script for bull markets and one for bear
markets is no longer sufficient. Companies
often get into trouble if they dont have an
early-warning system in place. They see the
warning signs but dont counter them.
How does one set up an early-warning system? In Chaotics, Kotler mentions two suitable methods: scenario planning and flexible budgeting. In other words, smart marketing managers create the ability to expect
the unexpected. And they have flexible
response systems. Take Regal Entertainment, for example, which is the biggest
movie theater chain in the US. It continually
monitors attendance figures for individual
moviesshould the figures decline, it immediately stops showing the movie in question.
Their reasoning is that an outdated offer
will not draw anyone in and will show that a
company does not know its customersand
that could result in losing their trust.
KNOWLEDGE IS POWER
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that process, but the broader and increasingly important G20. Third, the
entire world of communication and marketing is adapting to the development of new media.
Sure, back in 2005 we knew the Web and digital communication were
transforming the way we do business. But few of us foresaw the rapid
development of social media, or the way conventional media like daily
newspapers and even terrestrial television would now be struggling to
survive. Journalism, famously, is the first rough draft of history. As we
chart our daily progress into the unknown through such CNN programs
as World Business Today, it is best to be humble about the future. It
may be an exciting place, but as we march unstoppably toward it, peer at
it and try to map it out in our minds, it can play us many a trick. We need
a dependable guide. And that is where think:act comes in. There is a
need for high-quality writing about the challenges we face today and
tomorrow. But if you want disciplined analysis and inspired thinking
from some of the best minds in the world, look no further than this exclusive publication.
I wish think:act well for the next five years, and for many years after that.
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FUTURE MARKETS
Printing will be faster in the future. Plants are teaching us about energy production, while IBM is
revolutionizing the world of electric batteries. And propeller-powered flight is experiencing a revival.
artificial photosynthesis
Plants grow thanks to the process of photosynthesis.
With the help of sunlight, water and CO2, they produce
sugar molecules that form into wood fibers. In other
words, plants store energy that they release at a later
point in time when they are burned in the form of wood,
coal or petroleum. Now, researchers are looking for ways
in which photosynthesis could be used to store energy
without going through the biomass formation phase.
Instead, the plan calls for solar energy, combined with
CO2, water and a catalyst, to be transformed directly into
synthetic fuels such as hydrogen in order to produce environmentally friendly electricity in a fuel cell when needed. Experts call the concept artificial photosynthesis. The
difficulty lies in finding the right catalyst.
It would seem that US-based Sun Catalytix has made
tremendous progress in this quest. The company was
founded by Dan Nocera, a professor at the Massachusetts
Institute of Technology (MIT) in Cambridge, near Boston.
He and his team claim that they have found a way to generate enough electricity to meet the daily energy requirement of a family home using around nine liters of water
and some sunlight. The US government also sees promise
in the research and pledged $4 million in early 2010 for the
company to make the process market-ready.
48
turbo-ink technology
Those with a high volume of printing or copying to do
must still rely on the xerographic process that was developed back in the 1930s. The toner is transferred to the
paper by means of a complex interaction of lighting elements and rotating rollers. And because the printing
device must run like clockwork, procurement and maintenance of these machines is expensive.
So far, anyone looking to print more than 40 pages a
minute was left disappointed as this simply wasnt possibleuntil now. Several companies have introduced prototypes that are based on ink technology that enable faster
printing speeds. For example, the Australian company
Silverbrooks Technologies is planning on manufacturing
60-page-a-minute printers for around 250 using its
Memjet technology. The Japanese company Kyocera,
though, claims to have set a new world record in fullcolor, high-speed printing with its KJ4 print head. With a
resolution of 600 x 360 dpi, the print head has a printing
speed of 330 meters a minute. In addition, turbo ink
technology offers a competitive advantage. Since it does
away with rotating components, maintenance costs
drop substantially. If Memjet keeps its promise, office
printers might even become disposable.
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An open rotor
engine from US
company GE
open rotor
Rising energy costs and stricter climate regulations are
forcing the aviation industry to develop more efficient
propulsion systems. The open rotor concept appears to hold
much promise, with fuel savings of up to 30 percent. In 2007,
the easyJet aviation company introduced its idea for an ecojet based on this concept, and it plans on being able to halve
CO2 emissions by 2015. In 2009, a group of suppliers including Boeing, Rolls-Royce, RUAG Aerospace and Deharde
Maschinenbau agreed to conduct joint research in this field.
It has long been known that propeller aircraft are more
fuel-efficient than jet-engine airplanes. Back in the 1970s,
during the first oil crisis, the aviation industry had tried to
find ways to use this technology for modern wide-body aircraft. Research was soon abandoned when oil prices dropped
and the problem of high noise levels appeared unsolvable.
However, now equipped with high-tech computers and new
high-performance materials, the industry is taking another
run at the issue.
To a large extent, a propulsion systems efficiency
depends on what the intake air is used for. Because propeller
engines use air less to drive the rotors and more for thrust
purposes, their efficiency is much higher than that of jets. In
addition, the open rotor concept benefits from the fact that
bigger rotors can be used because a heavier housing is no
longer needed. One design seems very promising: it has an
enclosed engine and two exposed rotors with sickle-shaped
blades that turn in opposing directions. This configuration is
meant to decrease the energy loss resulting from vortices. All
in all, one airplane with a capacity of 100 to 200 passengers
equipped with such propellers would reduce CO2 emissions
to 10,000 metric tons annually and see fuel savings of around
$3 million per year.
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eral hundred thousand euros a year for millions in coverage, essentially let individuals
hedge the personal financial risks they face
by playing in the top league. At the same
time, the policies are a tool for making corporate entities responsible for the actions of
their employees and protecting corporate
assets.
D&O POLICY HOLDERS ARE MORE
LIKELY THAN EVER TO BE SUED
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business culture f
D&O COVERAGE: 11 QUESTIONS
YOU SHOULD ASK
In some cases, these risks can impact the subsidiary organizations directors, officers and
managers. In others, executives from the
home territory may be at risk: Some have
even been known to question if they should
get off the plane in countries in which their
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42
39
Market positioning
21
23
Market performance
18
15
Financial goals
IMPORTANCE
very important
1
2
not important
3
Strategist
IN T E R N A L
Profitability
Doer
Organization shaper
Motivator
Entrepreneur
Representative
EX TERNAL
Spokesperson
Networker and philanthropist are clearly considered more important
Networker
Philanthropist
Europe
USA
ROLE IN PRACTICE
AIMS
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WORK IN PROGRESS
One current study explains paths to growth, while another describes the prospects of the aerospace
industry. In a new book, consultants show why green business is a huge topic for Roland Berger. And
a project with the University of Oxford seeks the fundamentals behind good reputation management.
RESTRUCTURING
BOOK
Green benchmarking
More and more companies are now seeing
that making money via environmentally
sound business is not just a realistic possibility, but actually an alluring way to tap new
sources of revenue. As a result, Roland Berger has chosen the theme of Green Business
as one of this years five main topics. In addition to a number of individual studies, the
consultants are currently working on a book
that summarizes both the various aspects
that make up green growth and the companys considerable experience in this field.
56
STUDY
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INTERVIEW
RESEARCH PROJECT
How to manage a
brands reputation?
How does one manage a brands reputation?
The University of Oxford has chosen Roland
Berger as a case study for best practices associated with international brand management. Together with experts from the Centre
for Corporate Reputation at the Sad Business School, Roland Bergers marketing consultants will analyze the companys reputation among various target groups. Aim of the
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ALEXANDER METTENHEIMER is the CEO and a personally
liable partner with Merck Finck & Co., a private bank. The 57-year-old
management spokesman has been with the bank since October 2001,
and is responsible for the Financial Markets department as well as the
Research, Legal, Communications, Auditing
and Central Administration departments. He
learned the subtleties of banking with
Citibank in London.
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!
business culture f
Dont settle
Soon, think:act will be available on the iPad. The iPad is the latest
stroke of genius by Apple CEO Steve Jobs. Jobs is the ultimate
rulebreaker. But what drives him? Some personal insights
JOBS ON
DROPPING OUT
I naively chose a college that was
almost as expensive as Stanford,
and all of my working-class parents savings were being spent on
my college tuition. After six
months, I couldnt see the value in
it. I had no idea what I wanted to
do with my life and no idea how
college was going to help me figure it out. So I decided to drop out
and trust that it would all work
out OK. It was pretty scary at the
time, but looking back it was one
of the best decisions I ever made.
The minute I dropped out I could
stop taking the required classes
that didnt interest me, and begin
dropping in on the ones that
looked interesting.
JOBS ON
BEING FIRED
Woz and I started Apple in my
parents garage when I was 20.
We worked hard, and in 10 years
Apple had grown from just the
two of us in a garage into a $2 billion company with over 4,000
employees. We had just released
our finest creationthe Macintosha year earlier, and I had just
STARTING AGAIN
I really didnt know what to do
for a few months. I felt that I had
let the previous generation of
entrepreneurs downthat I had
dropped the baton as it was being
passed to me. I met with David
Packard and Bob Noyce and tried
to apologize for screwing up so
badly. I was a very public failure,
and I even thought about running
away from the valley.
But something slowly began to
dawn on meI still loved what I
did. The turn of events at Apple
had not changed that one bit. I
LOVE
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credits
FOLLOW-UP
READING TIPS
MASTHEAD
PUBLISHER
Prof. Dr. Burkhard Schwenker, CEO
Roland Berger Strategy Consultants
Am Sandtorkai 41
20457 Hamburg, Germany
Tel.: +49 40 37631-40
AUTHORS
Nina Jeglinski (Kiev), Frank Gruenberg, Gerd
Huebner, Christoph Hus, Kunal Majumder (New
Delhi), Tobias Moorstedt, Marcus Schick, Andr
Schmidt-Carr, Guido Walter, Rhea Wessel,
Johannes Wiek
DIRECTOR
Torsten Oltmanns
CONTRIBUTING AUTHORS
Charles Hodson (New York)
ENGLISH EDITION
Geoff Poulton, Patricia Preston, Asa C. Tomash
PUBLISHING COMPANY
BurdaYukom Publishing GmbH
Konrad-Zuse-Platz 11
81829 Munich, Germany
Tel.: +49 89 30620-0
MANAGING DIRECTOR
Dr. Christian Fill
EDITORS IN CHIEF
Alexander Gutzmer (resp.),
Deputy: Tobias Knauer
ART DIRECTION
Blasius Thaetter
MANAGING EDITOR
Marlies Viktorin
EDITORIAL
Tobias Birzer
62
GRAPHIC DESIGN
Andrea Huels, Ngoc Le-Tuemmers, Sabine Skrobek
PRODUCTION
Wolfram Goetz (resp.), Franz Kantner,
Silvana Mayrthaler, Cornelia Sauer
PHOTO EDITORS
Beate Blank (resp.), Michelle Otto, Benno Saenger
PHOTO CREDITS
Cover: Illustration Pietari Posti, ullstein bild/
Lieberenz, imago/Rolf Braun; p. 9: dpa/Vladimir;
p. 10: dpa/Patrick P; p. 1415: Illustration Pietari
Posti; p. 16: AFP/Manan Vatsyayana; p. 17: gallerystock; p. 18: gettyimages/Bloomberg; p. 2021: pr;
p. 22: gallerystock/William Caste Photo; p. 23: gettyimages/The India Today Group; p. 2630: gallerystock/BIWA, pr; p. 3133: Illustration Pietari Posti,
pr; p. 35: Benno Saenger; p. 36: imago/
David Ewing; p. 37: gallerystock/Richard Maxted;
p. 38: gallerystock/Geof Kern; p. 39: gallerystock/
PHILIP KOTLER:
Chaotics
PETER
CAPPELLI:
The India Way
PRINTER
Pinsker Druck und Medien GmbH, 84048 Mainburg
COPYRIGHT
The contents of this magazine are protected by
copyright law. All rights reserved.
NOTICE
Opinions expressed in the articles of this magazine
do not necessarily reflect the views of the publisher.
EDWARD LUCE:
In Spite
of the Gods
service@think-act.info
Do you have any questions for the
editor or the editorial team? Would
you be interested in learning more
about studies by Roland Berger
Strategy Consultants? Just send an
e-mail to service@think-act.info
YOCHAI
BENKLER:
The Wealth
of Networks
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Seite 1
Issue 15
13:20 Uhr
Jrgen Hambrecht
on European
management
culture
18.06.2010
think:act The global magazine for decision-makers by Roland Berger Strategy Consultants
07_15gb_01_Umschlag_aussen
Martin Walser
on justice and
injustice, money
and independence
Mastering complexity
India and its companies
can do more than just cheap
Issue 15