Weak economic recovery in the U.S. and Europe has meant lowered valuation of emerging markets, making them an attractive investment. Businesses are concentrating their attention accordingly, but that focus is rightly focused on profitability, not just expansion. Such scrutiny demands the eye of the CFO more than ever.
Achieving profitability in emerging markets – find out more
Achieving profitability in an emerging market is an evolving challenge. This video explores the strategies a CFO should consider to reach profitability within these emerging markets. [See a transcript of this video]
The CFO role in driving profitability
Developing these markets as engines of profitability is increasingly difficult due to robust competition and costs of growth. It’s no longer simply a matter of “Get in and get your share.” But more about being strategic around considering valuations, determining if your company is able to focus on more long term, considering joint ventures, etc.
As stewards of capital, CFOs must champion shareholder growth – profit plays a critical role. Though growth and deals will continue to originate from mature markets, the M&A pipeline will swell with emerging markets and frontier emerging markets (non-BRIC).