CEO Survey

Dr. Burkhard Schwenker
Chief Executive Officer,
Roland Berger Strategy Consultants

Please find further information on our partner´s website

The ability to grow profitably is the main measure of success that distinguishes the best from the merely good. The basis of our evaluation is corporate development from 2001 to 2005. In addition, the company's individual growth strategy has been analyzed.

Europe's strengths are undisputable. Despite recent press coverage ringing in the demise of the continent in a globalized economy, a recent survey among CEOs of leading European companies proves otherwise. As part of the Best of European Business competition, a selection of 40 top European companies was surveyed, representing a total sales volume of more than EUR 500 bn and over 1.6m employees. This is what top European executives are saying:

• First: More than 80% see the importance of Europe's future role as stable or even increasing in all areas except purchasing and manufacturing. This is especially true for research, financing and management. 80% of the companies queried will increase near-shoring in Europe instead of focusing on emerging markets such as China and India.

• Second: European companies compete more on differentiation, less on cost. Whereas 86% consider differentiation to be important, low cost is important for only 58%. This demonstrates that Europe is focusing more and more on high value-added goods and services and less on commodities.

• Third: Most companies see access to innovation and talent as crucial for their success. This is not surprising, but what is important to note is that Europe offers both. The enlargement of the European Union has had many advantages, as firms find a well-educated workforce in the new EU member states.

Overall, CEOs are very positive about Europe's economic future, concentrating on innovative and high value-added goods and services with highly educated staff. They believe that Europe will play an ever more important role in their operations in key areas over the next decade, including management education, source of capital, product and service innovation, sales and marketing and the recruitment of managerial staff. But Europe's top CEOs also have a straightforward attitude about what politics should do for them:

• 95% demand more support for innovation, for example more world-class research and better education systems.
• 88% would like to see a deepening of the common market: Labor and product market regulations should be liberalized, the tax base for corporate taxation harmonized, and the cost of administration reduced.
• Equally important: The EU budget should devote much greater resources to R&D.

European companies are strongly committed to Europe and its development and are willing to be involved in enhancing the continent's role as a region of unique economic strengths and global business leadership.