German Greats
<h>German companies</h>were honored for their outstanding achievements in business at a gala dinner in Berlin on November 20. At the awards, Roland Berger CEO, Burkhard Schwenker called for a new entrepreneurial spirit in Europe. Europe has a fundamental problem: "It isn't communicating." With solid growth rates, outstanding businesses and the largest market volume in the world, Europeans are "almost obligated" to take over from the Americans as the driving force of the global economy, according to Schwenker, CEO of Roland Berger Strategy Consultants. Yet, he says, this positive news is not adequately communicated. Schwenker made these remarks as part of his opening speech to the second annual Best of European Business competition in Berlin on November 20. Confidence in the European Union had slipped to 48%, the consultant said, pointing to a recent Eurobarometer survey. Political leaders had not been able to cut red tape sufficiently to turn the European Union into a construct that was "truly closer to the people." In comparison to other leading regions, Europe lacked entrepreneurial spirit and the creativity for new products. "What we need, here in Europe, is a change of mindset. Competitiveness must be writ large. We need a new sense of openness toward all things new, more entrepreneurial verve and a better connection to the needs of Europe's citizens and its companies." | ||||
Now in its second year, the Best of European Business competition honors outstanding achievement in business across ten of Europe's largest national economies, concluding with a pan-European award held in Brussels in March 2007. CNN serves as the media partner of the entire competition, with national media co-sponsoring individual events. The Berlin gala, held at the Russian Embassy was supported by the Financial Times Deutschland and business weekly, the manager magazin. Each year, a jury of business and political leaders selects those large companies and SMEs that have used Europe's diversity to their advantage. Prizes are awarded in three categories: Growth, Europeanness and Cross-border M&A. Setting the standard Business leaders are likely to embrace Schwenker's recommendations, according to a CEO survey launched in conjunction with the awards: 73% of European top managers believe that Europe has a positive impact on the performance of their companies. The winners of this year's competition are vivid examples for this belief. Haniel, a leading industrial group, has 40,000 of its 60,000 employee workforce in European countries other than Germany. Award winner Vaillant has become such a strong player in its domestic European market, that conquering the Chinese market can only be the logical next step. | ||||
Others, including the Benteler AG and sportswear manufacturer Puma have proven that aggressively tackling the European market spells strong growth. Automotive suppliers Benteler increased its annual revenue by 15% each year between 2001 and 2005, while Puma tripled its turnover in the same period. Pan-European acquisitions worth EUR 100 billion helped energy company E.ON become Europe's number one supplier. Building bridges toward Russia Europe's relationship with its largest neighbor, Russia, was the topic of the high-level panel discussion at the gala, which underlined that European companies have no time to rest on their laurels. Expanding a business into a new market required a true willingness for partnership, Russian Ambassador Vladimir Kotenev, said. Europeans were all too hasty in dismissing all Russian business interests as motivated by greedy oligarchs. John Kornblum, former US Ambassador to Germany shared his view. He underlined that good business was always a two-way process that included the needs and interests of all parties involved. BASF board member John Feldman, who steers the partnership between the chemical giant and Russian energy company Gazprom, was even more explicit: "There is no room for colonialism in business. Those times are over." He argued for a gradual rapprochement, building on mutual understanding to achieve a trust-based relationship. Roland Berger, founding chairman of the consultancy, expressed optimism that business could play a positive role in enhancing the Euro-Russian relationship: "business can act as the motor," powering existing ties. | ||||
And the winners are..
Growth The Benteler AG is internationally active with its business divisions Automotive, Steel/Tube and Distribution. Within these highly competitive markets, the company was able to grow profitably by focussing on the right products in its line, developing innovative products for a global customer base and streamlining sourcing costs, making it more competititve. The jury also highlighted Benteler's commitment to customer service and client proximity, with its 150 points of sale in 34 countries. Sportswear manufacturer PUMA took home the second award in this category. Since 2001 the company has tripled its turnover and doubled the number of employees. The combination of sports, lifestyle and fashion has paid off for PUMA. The leaping cat has become synonymous with innovative product design and the development of the Sportlifestyle concept. The invention of the latter has allowed PUMA to achieve sustainable growth over the past few years. The jury praised the use of its brand strength in its core areas including football, running and motorsport, where PUMA is currently the leading supplier for Formula 1 racing. PUMA will be the dominant athletic outfitter at the football World Cup in 2010, where it will outfit the African national teams and current World Cup holder, Italy. Europeanness The Franz Haniel & Cie Group's success is based on its strong European presence. Through its different companies, it is present in 24 European countries, having created 55,000 jobs across the region. Celesio, the pharmaceutical wholesale, pharmacy and pharma services company is Haniel's biggest business area within the Group. The jury complimented Haniel on its above industry growth. It also highlighted the Group's presence in growth markets in Eastern Europe, where its four other fields of activity perform particularly well. Leading European heating technology group, Vaillant, was awarded the second prize in this category. The jury noted that international competition in the technologically advanced markets Vaillant is active in, such as air-conditioning systems, had pushed the company to develop a highly innovative product range. Given the company's investment into the European market with its newest solutions, expanding the business to China and other global markets would be a natural consequence. Cross-border M&A E.ON, one of the world's leading energy companies took home the prize in this category. It was lauded for its decision to refocus its business on core activities and for achieving strong growth in the energy market, as part of its M&A activities. These amounted to a total of over EUR 100 billion over the past six years. The acquisition of PowerGen gives E.ON the foundation it needs to launch an ambitious internationalization strategy. The buy-up of Ruhrgas, on the other hand, gave E.ON a successful in to the gas market. These two strategic moves created the largest energy company in Europe, which has been similarly successful on the continent's stock exchanges. If you have questions or comments regarding this, or any other story, please do not hesitate to contact us:  | ||||
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