Know your market

The role of emerging markets in the global economy continues to change at a ferocious pace. Yet despite the size and remarkable growth of these markets, a surprising number of companies fall short of their goals. So what is preventing them from fulfilling these aims?

Most likely, it is because business complexity continues to increase and it's a daunting task to manage emerging market operations, Manufacturers with operations in these countries are failing to properly assess the risks .

So what are the vital areas for consideration before establishing operations in emerging markets?

Deloitte recently carried out a study of 446 global manufacturers in 31 countries, focusing specifically on the operational approaches being used in China, India, south-east Asia, Latin America and Eastern Europe. It found just 56 per cent of companies conduct a rigorous risk assessment before entering an emerging market, and once operating in one only 45 per cent of executives carry out ongoing appraisals.