US companies operating in the high growth Asian region are achieving success, according to a new Telstra Global survey. An impressive 68 percent of US-headquartered businesses in the region have met their financial and strategic objectives over the last three years.
The report identified the top performing businesses in Asia as ‘Asia Business Champions’ and found US companies make up the largest percentage of international businesses leading in Asia.
Telstra Global, Head of EMEA and the Americas, Tom Homer said, “As a company that has a long track record of operating successfully throughout Asia, we wanted to quantify the business sentiments of multinationals operating in the region. Our research was also designed to ascertain the attributes and success factors for businesses that are excelling in Asia and the experiences of international executives contributing to the growth of these operations.
“US companies in Asia reported that it is extremely important to manage across countries with honesty, integrity, cultural sensitivity and adaptability,” added Mr. Homer. “Interestingly, 38 percent of US businesses in Asia see that bringing senior leaders to local offices is extremely important compared with 33 percent of all other businesses. And 54 percent of US companies find it is extremely important to communicate the needs of the local market to global headquarters compared with 43 percent of all other businesses.
The research identifies a superior category of top performing companies in Asia, termed Asia Business Champions in the report, and categorized as such based on having far exceeded their financial and strategic objectives in the last three years, and their expectation to succeed again in the coming three years. Asia Business Champions comprise just 5 percent of overall companies in Asia.
“On a global level, the ICT industry is a standout in Asia, with more than 70 percent of these companies having been very successful in Asia in the past three years, compared to 61 percent of companies across other sectors,” said Mr. Homer. “Over the next three years both financial services and insurance companies and those in the ICT sector are most bullish about exceeding their objectives in Asia, with 55 and 51 percent respectively, compared to 42 percent across the board.”
“Besides the promising market conditions, successful companies in Asia have the necessary foundations – strong leadership and communication across global headquarters and local offices, combined with a long term view and investment strategy,” concluded Mr. Homer.
The Telstra Global Connecting Countries report also revealed:
Market Expansion
- 50 percent of companies see expanding into new markets as extremely important to the success of their firm in the next three years;
- China is the primary growth market for companies who see expansion into new markets as a high priority in Asia over the next three years, 50 percent nominated China as part of their strategic expansion plans;
- Additionally, companies are also focused on expansion into Singapore (38%), Hong Kong (33%) and India (32%).
- The report identifies a superior category of top business performers in Asia, termed Asia Business Champions in the report, and categorized as such based on having exceeded their financial and strategic objectives in the last three years, and their expectation to do so again in the coming three years. Asia Business Champions comprise top 5 percent of overall companies in Asia;
- Asia Business Champions are more likely to have a global footprint than others in the study, 82 percent operate both in and outside of Asia;
- US and UK firms are over-represented in the ranks of the top five percent – Asia Business Champions. 32% of Asia Business Champions are companies headquartered in the US, compared to a total of 14% of overall respondents being companies from the US. UK companies make up 8 percent of Asia Business Champions, compared with only 3 percent of overall respondents being companies headquartered in the UK;
- ICT and financial services companies are also over-represented in the Asia Business Champions category, 15 percent and 12 percent respectively, compared with 7 percent of all businesses.
Designed to provide insights into the business performance of organizations operating throughout Asia, the Telstra Global report, entitled “Connecting Countries” interviewed more than 4,100 executives and managers with national or multinational company experience working in Asia. These companies were headquartered in more than 20 countries around the world, including the United States, United Kingdom, Germany, Australia, China, Japan, India, Hong Kong, Singapore and Indonesia.