Photos: Thomas Nielsen
QUARTZ+CO BAROMETER
JØRN ANKÆR THOMSEN
METTE KIRSTINE AGGER
JESPER BRANDGAARD
PETER KORSHOLM
SØREN P. OLESEN
2% North America
LASSE BOLANDER
MICHAEL THINGHUUS
THOMAS STIG PLENSBORG
BENT ERIK CARLSEN
KRISTIAN MAY
1% Central & South America***
ARE YOU THE BEST OWNER?
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he financial crisis doesn’t seem to release its grip just yet. So how do we cope with such an unpredictable situation with seemingly constant instability? According to ten top executives, one of the answers is to ensure best ownership. The fourteenth edition of the annual Quartz+Co Barometer puts best ownership under scrutiny.
emerging and new markets, the companies won’t be able to create a long-term sustainable competitive position. Therefore, it’s essential for companies to ask themselves: which kind of ownership structure will best support our development?” Anders Bruhn, Partner in Quartz+Co, explains.
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ccording to Anders, the answer is that owners or their representatives must determine for themselves what best ownership means, how they become the best owner of their assets today and how they ensure that the company as such has the best owner. IN LATE AUGUST 2011, BØRSEN AND QUARTZ+CO GATHERED 10 TOP EXECUTIVES FOR A PANEL DEBATE ON BEST OWNERSHIP
The need for Scandinavian companies to seek growth in emerging markets has never been greater. Thus, it is all the more disturbing that our recent barometer survey among 405 Danish companies shows that as much as 57 per cent expect to grow only within the Danish borders over the next five years.
Jesper Brandgaard, Executive Vice President
The international community is fragmented, markets are fluctuating, and Scandinavian companies have to cope with these premises whether they like it or not. “While international competitors sharpen their competitive edge and position in emerging markets, our survey shows that Danish companies maintain their local focus rather than take on a global perspective. If the ownership of these companies doesn’t support future expansion into
Mikael Thinghuus, CEO, Royal Greenland
and Chief Financial officer (CFO), Novo Nordisk Søren P. Olesen, CEO, Flügger Kristian May, CEO, MT Højgaard Lasse Bolander, Chairman of the Board, Coop Mette Kirstine Agger, Executive Director, Lundbeckfonden Ventures Bent Erik Carlsen, Former Chairman of the Board, Vestas Peter Korsholm, Former Managing Partner, EQT Partners Thomas Stig Plensborg, Professor, CBS Jørn Ankær Thomsen, Chairman of the board, Schouw & Co.
ON WHICH MARKET DOES YOUR COMPANY PRIMARILY EXPECT TO GROW OVER THE NEXT FIVE YEARS?
9%
57% Denmark
Sweden, Norway & Finland
3%
2% Russia
Eastern Europe**
7%
6%
Western Europe*
1%
China
1%
0%
India
Asia
DANISH COMPANIES FOCUS ON LOCAL MARKETS Quartz+Co and YouGov have asked 405 Danish companies about where they primarily expect to grow within the next five years.
Africa & the Middle East
But what does best ownership mean? Ten renowned executives invited by Quartz+Co to a panel discussion at our Copenhagen office all agreed that it signifies having the owner that creates most value for the company. However, the survey revealed that only a few companies have considered what best ownership means to them.
T
he current situation both in Scandinavia and the rest of Europe is characterised by low growth which means that entering new global markets is a prerequisite for substantial growth. This is why companies should frequently consider their options for mergers and acquisitions or for entering partnerships in order to gain access to both new markets and new expertise. Obviously, such changes will often challenge the ownership of the company, “While international and this is why the quescompetitors sharpen their tion of ownership is very competitive edge and important these years. position in emerging markets, Bent Erik Carlsen, former Chairman of the Board our survey shows that Danish in Vestas, elaborates on companies maintain their the matter: “If a company isn’t able to expand to new local focus rather than take markets, it will never beon a global perspective”. come anything more than a “small candy store”. The Chinese, and probably many others, are more than willing to approach the customers of these companies, once they’re prepared to compete in Europe and elsewhere – and they will be”.
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rises, such as the one we’ve experienced in recent years, should be perceived as an opportunity for companies to focus on core competences and best ownership to become better prepared for future challenges. Defective and inadequate ownership can be an obstacle for companies to reach their full potential both locally
and globally. “Many companies in the Danish business community, especially the mid-sized and small players, look like they’re suffering and will continue to suffer. To them, the discussion about the right owner is important. I think it’s a big problem for society if there’s a large number of companies that aren’t willing or able to think outside the box,” Lasse Bolander, Chairman of the Board in Coop, explains.
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lack of orientation towards global markets may be a consequence of uncertainty about the right ownership structure. This uncertainty may lead to a lack of development and consequently reduced competitiveness in new markets. “Owners confident that their ownership structure is right and thus value-creating for the company are more willing to take risks and enter new markets than those who are uncertain, since they’re convinced that they have the competences to lead their company and create results. This is a call for owners in the Scandinavian business community to focus on ownership itself; it’s the only way to create a strong business in the future,” Anders concludes.
Source: Quartz+Co Barometer, 2011. Note: The respondents may have provided more than one answer. The answers ‘Don’t know’ and ‘In another region’ haven’t been included in the chart. *Excluding Sweden, Norway and/or Finland **Excluding Russia ***Including Mexico