Roland Berger Strategy Consultants celebrates the German winners of the "Best of European Business" competition – This year's theme: "Success in Asia"
Berlin, February 24, 2011
- Two companies are winners in the category "Success in Asia's Emerging Markets": DHL chosen among the big corporations and TÜV SÜD among the mid-size companies
- Jochen Zaumseil, Managing Director Asia Pacific at L'Oréal, receives the manager award in the "Success in Asia" category
- Dr. Dieter Zetsche, CEO of Daimler AG, takes the manager award in the "Growth Strategy in Asia" category
- Roland Berger CEO Dr. Martin C. Wittig: "The foundations have been laid for further success in the ASEAN markets."
- Roland Berger Chairman Professor Dr. Burkhard Schwenker: "Europe can be an economic power showing the way forward in our globalized world."
The international strategy consultancy Roland Berger Strategy Consultants paid tribute to two companies and two managers in recognition of their outstanding achievements. This year's evening ceremony for the "Best of European Business" Awards was held in Berlin's "axica" forum. In the corporate award category "Success in Asia's Emerging Markets", the accolade went to the logistics group DHL, represented by CEO Dr. Frank Appel, and to TÜV SÜD AG, represented by CEO Dr. Axel Stepken. Awards also went to individual managers. Jochen Zaumseil, Executive Committee member of L'Oréal and General Manager for Asia, received the manager award in the category "Success in Asia". As for the manager award in the category "Growth Strategy in Asia", this went to Dr. Dieter Zetsche, CEO of Daimler AG. The media partners for the "Best of European Business" competition are Financial Times Deutschland, manager magazin and TV broadcaster CNN.
This year's event is the sixth "Best of European Business" Awards so far organized by Roland Berger Strategy Consultants, the world's biggest strategy consultancy of European origin. The criteria for the competition centered this time on the theme of "Success in Asia". A special focus for the jury was the new growth markets alongside China and India – primarily the "ASEAN 5" states: Indonesia, Philippines, Malaysia, Thailand and Vietnam. The ASEAN 5 are expected to record annual growth figures of 6% right up through 2020. "These are the real growth engines in the region, generating around 90% of the combined national product of all ten ASEAN countries," pointed out Martin C. Wittig, CEO of Roland Berger, in his welcoming speech. "That's why we have made these economies the focus of this year's Best of European Business Competition."
The economic dynamism of the ASEAN 5 is pulling in investors worldwide, but especially from Europe. Europeans are the largest foreign investors in the ASEAN economies. "One dollar in five has come from European investors in recent years, but only one in ten from Japan or the US," said Wittig. "The foundations have been laid for European businesses to make further advances in the ASEAN markets." While he saw this as an encouraging development, he lamented the fact that the overall commitment of German companies in the ASEAN countries remained too timid. "We have been monitoring these markets and know that China and Japan are still well ahead there."
This is why Roland Berger Strategy Consultants made a conscious decision to honor those who can set an example to other German firms by running successful businesses in the ASEAN 5. As Wittig explained, exporting alone won't be good enough as we go forward. Rather, businesses need to enter the market through joint ventures and build their own presence on the ground. "This path demands that you take the time to analyze and understand the markets. Otherwise, an overhasty 'fast in' can all too quickly turn into a 'fast out'." Internationalization needs time and should proceed from a strong home base. He said that the award-winning companies had already come a very long way.
In his closing speech, the Chairman of Roland Berger Strategy Consultants, Burkhard Schwenker, linked the strengths of the prizewinners – as "excellent examples of excellent corporate leadership" – to the strengths of Europe and its businesses: "I'm convinced that we in Europe have enormous growth potential." He argued that if Europe succeeded in leveraging its industrial expertise in the right way, there would be a real prospect of sustainable growth. "It is not only the strength of our industry that makes us strong, but above all our ability to combine industry and services to create new solutions."
Schwenker continued: "Europe can boast first-rate businesses! There is a very successful European management model, clearly distinguishable from the American management style that has been dominating the globe." One of the things that successful European companies have in common is their strategic and long-term approach and the way they stick to their strategies. Schwenker also praised their tendency to seek long-term differentiation right from the outset, "in other words, by thinking in terms of customers, products and technologies and not fixating on the equity market." Another characteristic of European management was, he said, its ability to see the world in all its variety and draw benefits from this diversity.
With regard to the burgeoning economies of Asia, Schwenker thought that Europe had now come to a crossroad: "Europe can be an economic power pointing the way ahead in our global world, or it can become a straggler, dithering and watching as the US recovers and China establishes a dominant position." But Schwenker was convinced that, with its values, its industry expertise and its special way of running businesses, Europe has the potential to occupy a position of sustained leadership in the competitive global environment.
About the winners
Dr. Frank Appel, CEO of Deutsche Post DHL, acting on behalf of the logistics company DHL, accepted the award for big corporations in the category "Success in Asia's Emerging Markets". The jury highlighted the company's strong presence in the ASEAN-5 economies as well as throughout Asia as a whole. DHL has been active for over forty years in the region, where it now employs more than 55,000 people. It has become the clear market leader in its core segments of express delivery and logistics. Almost 20% of its global revenues are generated in Asia. From January to September 2010, sales there grew by 40%. In the ASEAN-5 countries, DHL has around 20 subsidiaries that together employ nearly 10,000 staff. The company has already won a number of awards in the region itself that testify to its market leadership: in Malaysia, the Gold Medal in the "Most Trusted Brand Award"; in Indonesia, a "Most Admired Company" prize and "Most Sustainable Corporate Image" award, along with accolades in various other Asian countries, not least for customer satisfaction and environmental protection. The jury pointed out that, in Asia in particular, DHL has made sustainability a top priority. It runs programs to reduce and offset CO2 emissions and, last year, enabled almost 15,000 employees to take part in Volunteers Day and assist in numerous projects. Going forward, DHL in Asia will continue to pursue strong growth. The region is set to remain the most important driver for sales growth within the logistics group as it adopts innovative sector strategies and continually improves services.
TÜV SÜD AG, represented by CEO Dr. Axel Stepken, accepted the award for the best mid-size company in the category "Success in Asia's Emerging Markets". The jury was particularly impressed by the company's extremely rapid development and wide presence in Asia. TÜV SÜD didn't venture into the Asian market until 1997 but now operates in all the ASEAN-5 countries and throughout the rest of the region. It has almost 4,000 employees based in 14 different Asian countries, generating more than 13% of the group's sales. In the jury's opinion, key to this success has been a clever M&A strategy for market entry and a rigorous approach to strengthening market position in the ASEAN economies. Today, TÜV SÜD controls a total of twelve subsidiaries in the ASEAN countries from its Singapore location. The jury noted that the company had diversified intelligently: Alongside its classic products in the industry sector, it now offers special services in the consumer sector that are geared to the industrial structure of Southeast Asia. Only last year, the company opened laboratory facilities in Vietnam and other locations. Asia will remain its focal market and further substantial investments are planned, especially in growth markets such as electromobility, renewable energies and life-long learning.
Jochen Zaumseil, Managing Director Asia Pacific and member of the Executive Committee at L'Oréal, took the award for best manager in the "Success in Asia" category. After holding several positions in Europe and taking assignments in Mexico, Venezuela and Canada, he has spent the last seven years working in Asia – and with great success. The jury found that under Zaumseil's leadership, L'Oréal had doubled its sales in Asia – growing an average of 15% per year to reach the current sales figure of more than EUR 3 billion. In China alone, he oversaw earnings of more than a billion euros last year. Zaumseil's success is, above all, based on pushing for a long-term and consistent alignment with the specific needs of Asian consumers. Products are developed specifically for the Asian region in the company's large research laboratories in Japan and China and then produced locally. Zaumseil's aim is to make the continent the most important market for L'Oréal products. The jury saw Jochen Zaumseil as an exemplary representative of a successful European management style demonstrated by him in his daily work. The jury noted that he took his responsibilities seriously in Asia, including the emerging economies where standards can be low. Last year, for instance, L'Oréal published its first sustainability report for China. Its findings: Since 2007, the company has reduced its energy consumption by 23%, waste volumes by 37% and water consumption by almost 31% – impressive results, said the jury.
Dr. Dieter Zetsche, CEO of Daimler AG, was distinguished with the manager award in the "Growth Strategy in Asia" category. In explaining its decision, the jury pointed that, on taking up his position as CEO some five years ago, Zetsche had put Daimler's Asian business on a completely new footing. The company had since harvested the fruits of a tenaciously strategic realignment. In Asia, the company has now been growing significantly faster than the market as a whole. The group made impressive advances with its brands in 2010. Thus, Mercedes-Benz achieved 115% growth in China, recording the fastest growth among the luxury brands. The annual results in Hong Kong were up 37%, in Taiwan up 49% and in South Korea up 86%. Daimler has also established itself as the clear market leader in the Asian growth markets of Thailand, Vietnam and Indonesia. The jury also argued that this strong growth record had not been achieved at the expense of quality and profitability. In Asia, Zetsche has pursued a proven premium strategy for cars, while also going for new markets with utility vehicles and electric cars by means of various joint ventures to further consolidate its position.
The awards ceremony was hosted by the television presenter Carola Ferstl.
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