Mercados Emergentes: una puesta a punto Prof. Robert Grosse Thunderbird School of Global Management Arizona, USA presentacion para SLADE mayo 2016

Pregunta: Cual es el rol de los mercados emergentes (es decir, paises en vias de desarrollo) en el siglo 21? Respuesta: por ser determinado, pero es cierto que son el motor de crecimiento del siglo.

PNB Crecimiento Anual %  chg  on   previous  year  

1991  

1995  

2000  

2001  

2005  

France  

1.20%  

2.33%  

3.84%  

1.83%  

1.88%  

0.30%   -­‐8.20%  

6.38%   -­‐7.76%  

3.18%  

0.50%  

Germany     United   Kingdom    

5.18%  

1.87%  

3.16%  

1.23%  

0.70%  

1.19%   -­‐9.68%  

7.68%   -­‐7.19%  

4.51%  

0.87%  

-­‐1.37%  

2.81%  

4.58%  

1.49%  

2.18%  

0.70%   -­‐18.48%  

5.21%   -­‐1.75%  

0.93%  

-­‐0.37%  

United  States    

-­‐0.19%  

2.51%  

3.63%  

0.76%  

3.05%  

0.40%   -­‐2.80%  

1.85%  

1.88%  

1.39%  

Japan     3.30%   Czechoslovakia   (Czech   Republic)   -­‐13.39%  

1.99%  

2.82%  

0.18%  

1.88%   -­‐0.70%  

3.04%  

5.40%   -­‐1.18%   -­‐18.68%  

-­‐0.20%  

5.74%  

2.69%  

2.76%  

6.17%  

3.89%   -­‐13.20%  

6.75%   -­‐10.64%   -­‐0.49%  

-­‐0.97%  

Poland    

-­‐7.27%  

6.72%  

4.10%  

1.21%  

3.54%  

4.78%   -­‐19.23%  

7.67%   -­‐6.59%  

4.00%  

-­‐0.11%  

Russia  

-­‐5.13%   -­‐4.19%  

9.53%  

4.97%  

6.20%  

5.45%   -­‐26.95%   22.51%  

4.10%  

2.38%  

1.89%  

4.72%  

2.82%  

4.62%  

3.11%   -­‐6.01%  

0.29%  

1.20%  

2.47%  

World  Total  

1.32%  

4.10%  

2008  

2009  

2011  

8.56%  

2012  

annual  %   change   2013  1990-­‐2013  

2.78%  

PNB Crecimiento Anual %  chg  on   previous  year  

1991  

1995  

2001  

2005  

ArgenNna    

9.53%   -­‐3.15%   -­‐0.80%   -­‐4.51%  

8.80%  

6.58%   -­‐7.49%   18.21%  

6.29%   -­‐0.09%  

3.34%  

Brazil    

1.00%  

1.30%  

3.15%  

4.93%   -­‐2.76%   13.34%   -­‐10.76%   -­‐1.63%  

1.70%  

Mexico    

4.14%   -­‐6.37%  

6.38%   -­‐0.04%  

3.25%  

1.23%   -­‐19.16%  

4.69%  

0.29%  

China    

6.38%   14.08%  

8.65%   10.15%  

8.16%  

7.00%  

9.52%   21.08%   10.46%   10.61%  

10.61%  

India    

1.29%  

7.09%  

4.28%  

5.63%  

8.80%  

7.05%   10.69%  

Indonesia  

5.08%  

7.79%  

4.70%  

3.76%  

5.54%  

5.92%  

Saudi  Arabia    

8.07%  

0.47%  

4.78%  

0.50%  

5.45%  

Turkey    

0.92%  

6.94%  

7.10%   -­‐7.80%  

Egypt    

-­‐3.25%  

4.54%  

5.26%  

Nigeria  

5.83%  

2.59%  

South  Africa    

-­‐1.01%  

World  Total  

1.32%  

4.11%  

2000  

4.31%  

2008  

2009  

2011  

2012  

annual  %   change   2013  1990-­‐2013  

9.12%   -­‐0.34%  

7.93%   -­‐2.83%   -­‐0.53%   1.86%   -­‐2.43%  

5.41%  

4.31%   -­‐18.08%   24.64%  

7.74%  

0.03%  

3.79%  

8.07%  

0.90%   -­‐16.50%  

3.92%  

0.07%  

2.42%  

0.60%  

3.44%  

4.40%  

6.95%   15.18%  

5.74%  

9.46%  

1.93%  

5.37%  

4.21%  

3.05%  

5.26%  

5.83%   -­‐19.17%   10.71%  

9.23%   12.02%  

3.96%  

3.05%  

3.34%  

2.66%  

4.73%  

3.05%  

8.46%   -­‐6.96%   -­‐9.66%  

1.09%  

4.10%  

4.72%  

2.82%  

4.62%  

3.11%   -­‐6.01%  

8.56%  

2.47%  

source:  Angus  Madisson  database  and  World  Bank  database  

4.94%   16.98%  

4.94%  

3.25%  

0.29%  

1.20%  

Comparacion de Tamaño Economico en el Largo Plazo (GDP in constant $US 1990 MM)

country/year

1

United States

272

1000

1250

1500

1600

1700

1820

1870

1913

1950

2003

517,383 1,455,916 8,430,762

520

800

600

527

12,548

98,374

Roman / Holy Roman Empire* Mongolian Empire√ China

13,193 10,421

43,551

64,627

80,107

n.r.*

n.r.

n.r.

26,820 26,550

61,800

96,000

82,800 228,600

189,740

241,431

244,985 6,187,984

India

33,750 33,750

60,500

74,250

90,750 111,417

134,882

204,242

222,222 2,267,136

2,815

6,007

10,709

100,180

224,618

347,850 1,280,625

United Kingdom†

n.r.

n.r.

90,000

320

800

26,232

Shaded boxes show the largest economy for that year. * The Roman Empire ended around 500 A.D. The Holy Roman Empire largely replaced it in about 800 A.D., with Charlemagne’s coronation, and then ceased to exist, arguably, in 1806. The countries formerly in the Empire had combined GDP of about $130,000 in 1820, still ranking far behind China. √ The Mongolian empire only lasted from about 1210-1294 A.D. During that time, nevertheless, the empire encompassed most of China, northern India, Mongolia, Turkey, Persia, most of Russia, Eastern Europe and Central Asia. If we add up the GDPs of these various pieces, the Mongolian Empire was by far the largest economy in the world during the 13th century. † The UK is shown without its colonies. So if, for example, colonial India were included until independence in 1947, then the UK would have been the largest economy during most of 1612-1913. Source: Angus Maddison database, Statistics on World Population, GDP and Per Capita GDP, 1-2008 AD http://www.ggdc.net/maddison/oriindex.htm

Per Capita GDP, 1-2013 (1990 International Geary-Khamis dollars) 1

1000 1500

1600

1700

1820

1870

1913

1950

1973

2003 2008 2013

France

473

425

727

841

910 1,135 1,876 3,485 5,186 12,824 20,891 22,223 19,480

Germany

408

410

688

791

910 1,077 1,839 3,648 3,881 11,966 19,088 20,801 19,784

Italy

809

450 1,100 1,100 1,100 1,117 1,499 2,564 3,502 10,634 19,090 19,909

United Kingdom

400

400

714

974 1,250 1,706 3,190 4,921 6,939 12,025 21,461 23,742 20,001

United States

400

400

400

400

527 1,257 2,445 5,301 9,561 16,689 29,074 31,178 31,866

Japan

400

425

500

520

570

Czechoslovakia (Czech Republic for 2013)

669

737 1,387 1,921 11,434 21,092 22,816 21,532

849 1,164 2,096 3,501 7,041 9,664 12,925 10,455

Poland

946 1,739 2,447 5,340 7,804 10,160 9,149

Federacion Rusa

400

400

499

552

610

688

943 1,488 2,841 6,582 6,335 9,111 10,593

World Average

467

453

566

596

615

666

870 1,524 2,111 4,083 6,469 7,614 8,061

Per Capita GDP, 1-2013 (1990 International Geary-Khamis dollars) 1

1000

1500

1600

1700

Argentina

1820 712

Brazil

1870

1913

1950

1973

1,311 3,797 4,987 7,962

2003

2008

2013

7,744 10,995 14,765

400

428

459

646

713

811 1,672 3,880

5,536

6,429 7,780

Mexico

400

400

425

454

568

759

674 1,732 2,365 4,853

7,159

7,979 8,009

China

450

466

600

600

600

600

530

552

448

838

4,803

6,725 12,486

India

450

450

550

550

550

533

533

673

619

853

2,134

2,975 3,984

580

612

578

874

803 1,490

3,582

4,428 6,577

2,231 11,040

7,629

8,435 10,298

Indonesia

565

Saudi Arabia Turkey

550

600

600

600

600

643

825 1,213 1,623 3,477

6,499

8,066 7,919

Egypt

600

500

475

475

475

475

649

910 1,294

3,052

3,725 5,329

Iran

500

650

600

600

588

719 1,000 1,720 5,462

3,995

6,944

753 1,262

1,258

1,524 3,104

415

858 1,602 2,535 4,175

4,130

4,793 5,358

666

870 1,524 2,111 4,083

6,469

7,614 8,061

Nigeria South Africa World Average

467

453

566

596

615

902

Como Pueden Competir en el Siglo 21 los Paises Emergentes? •  Con un mercado atractivo •  Con empresas competitivas •  Aceptando la idea de ponerse (empresa o pais) parte de cadenas de valor global •  Y aceptando la idea de ponerse como pais aliado de otros paises en comercio, flujos de capitales, flujos de fondos, etc.

Uso de Alianzas – Compras y Marca Ferreteria “Ace Hardware” •  Una red global de 5,000 tiendas independientes •  Fundada en 1924 en Chicago por una docena de dueños de ferreterias •  Metas: ahorros en compras y reconocimiento de marca

Cadena de Valor Agregado COMPRA de INSUMOS

IyD

PRODUCCION BASICA

ENSAMBLAJE

DISTRIBUCION

VENTAS

cada etapa en la cadena tecnologia

recursos financieros

manejo de la etapa

recursos humanos manejo de riesgos

SERVICIO POST-VENTA

fuente: Grosse 1999

Cadena de Valor – Telef Celulares COMPRA INSUMOS

Triad

USA, Korea, Germany, Japan

emerg mkt

pais de laTriada | mercado emerg

PRODUCCION BASICA de componentes

ENSAMBLAJE China

I&D USA, Korea

China

DISTRIBUCION Triada

cada etapa en la cadena tecnologia recursos financieros

admin de la etapa

recursos humanos

EMs

VENTAS Triada

EMs

SERVICIO POST-VENTA

admin de riesgos

Triada

marcas Apple y Samsung

EMs

Apple iPhone 3G S Componentes Principales y Bases de Costo Manufacturer Toshiba

Multi-Source Probability High High

Medium Samsung Infineon

Low Low

Medium Samsung (with Elpida die) Broadcom

Numonyx Infineon

Infineon

High

Low

High Low

Low

Infineon

Low

Murata

Low

Dialog Cirrus Logic

Low Low

(US Dollars) Component Description Flash Memory NAND, 16GB, MLC Display Module 3.5” Diagonal, 16M Color TFT, 320 X 480 Pixels Touch Screen Assembly Capacitive, Glass Application Processor ARM Core, Package-onPackage Baseband HSDPA/WCDMA/EDGE Dual ARM926 and ARM7Core Camera Module 3 Megapixel Auto-Focus SDRAM—Mobile DDR 2GB Package-on-Package (Mounted on Application Processor) Bluetooth/FM/WLAN Single Chip, WLAN IEEE802.11b/g, Bluetooth V2.1+EDR, with FM and RDS/RBDS Receiver Memory MCP 128MB NOR Flash and 512MB Mobile DDR RF Transceiver Quad-Band GSM/EDGE, Tri-Band WCDMA/HSDPA, 130nm RF CMOS GPS Receiver Single Chip, 0.13um, with Integrated Front-End RF, PLL, PM, Correlator Engine and Host Control Interface Power IC RF Function FEM Quad-Band GSM, Tri-Band UMTS Antenna Switch and Quad-Band GSM RX RF SAW Filters POWER IC Application Processor Function Audio Codec Ultra Low Power, Stereo, with Headphone Rest of Bill-of-Materials* Total Bill-of-Materials Manufacturing Costs* Grand Total

Cost Country $24.00 $19.25

Japan

$16.00 Korea $14.46 $13.00 Germany $9.55 Korea $8.50 $5.95

USA

$3.65

USA

$2.80

Germany

$2.25

Germany

$1.25

Germany

$1.35

Japan

$1.30

Germany

$1.15

USA

$48.00 $172.46 $6.50 $178.96

China

*Estimated Pending Complete Analysis Source: based on Rassweiler (2009).

FEMSA KOF CADENA de VALOR COMPRA de cola, botellas, cajas, etc

Triad

emerg mkt

pais de laTriada | mercado emerg

PRODUCCION BASICA de la FORMULA (Coca-Cola)

I&D

PRODUCCION, EMBOTELL. & DISTRIBUCION (FEMSA)

(Coca-Cola; FEMSA)

VENTAS a tiendas, restaurantes DISTRIBUCION a clientes

Coca-Cola FEMSA & cadena valor agregado

SERVICIO POST-VENTA (FEMSA)

Estrategias de EMNEs •  Lall, Wells (1980s) – producir a costo bajo –  colaborar con terceros –  adaptar tecnologia –  seguir clientes etnicos

•  Ramamurti

-- conocimiento de clientes en EMs -- excelencia operacional en ambientes adversos -- similar a EMNs; pero son mas jovenes

Ramamurti perspectiva

Estrategias de EMNEs •  Cuervo-Cazurra

-- invertir para aprender

•  Matthews

-- 3 “L” link; lev; learn •  vincular, apalancar, aprender

•  Grosse

– encajarse en cadenas de valor -- secuencia dual de competir

Entonces: Como Competir? •  Identificar sus cadenas de valor •  Encajarse bien con los miembros de la cadena •  Buscar oportunidades de expansion en la cadena •  Buscar medidas de proteccion contra los demas miembros de la cadena •  Entrar en otras cadenas

ej: Itaúsa y sus Cadenas de Valor PRODUCCION BASICA

COMPRA de INSUMOS

Duratex (paneles madera); Elekeiroz (quimicos); Itautec (mfre ATMs)

(manufacturas)

DISTRIBUCION PRODUCCION BASICA

VENTAS a CLIENTES CORPORATIVOS

(financial services)

DISTRIBUCION a SUCURSALES

I&D Posibilidades de extension:

VENTAS a CLIENTES RETAIL, CORP

*alianza con banco en USA o Europa *extension a otros servicios financieros *manejo de serv. fin. ‘in-house’ de clientes *extension de lineas manufactureras

SERVICIO POST-VENTA

Cadena de Valor Global -- Exxon Exploracion del Petroleo Crudo

Indonesia

Canada

Estados Unidos

Kazakhstan

Irak

Produccion del Petroleo Crudo

Holanda

Canada

Estados Unidos

Rusia

Irak

(via oleoducto, barco, camion)

Transporte del Petroleo Crudo Refinacion del Petroleo Arabia Saudita

Canada

Estados Unidos

Belgica

Singapur

Transporte de Productos Refinados 1. Gasolina 2. Fuel Oil 3. Etileno 4. Otras bases petroquimicas Mercadeo de Productos Refinados

Estados Unidos

Brasil

Alemania

Francia

Reino Unido

Japon

Oportunidades para Empresas Latinas Exploracion del Petroleo Crudo

experto en explor.

Indonesia

Canada

Estados Unidos

Kazakhstan

Irak

Produccion del Petroleo Crudo

Holanda

Canada

Cia de transportes ej. CSAV

Estados Unidos

Rusia

Irak

(via oleoducto, barco, camion)

Transporte del Petroleo Crudo Refinacion del Petroleo

Arabia Saudita

Canada

Belgica

Transporte de Productos Refinados 1. Gasolina 2. Fuel Oil 3. Etileno 4. Otras bases petroquimicas

operador flota de camiones

operador estaciones de petrol

Estados Unidos

Singapur

fabricante de productos petroquim

Mercadeo de Productos Refinados

Estados Unidos

Brasil

Alemania

Francia

Reino Unido

Japon

Grupo Cisneros CADENA de VALOR - tv COMPRA de INSUMOS

PRODUCCION BASICA de PROGRAMAS

DISTRIBUCION a otros clientes DISTRIBUCION a CANALES TV

I&D

OPERACION de VENEVISION dom+intl

Programacion Comprada

extensiones: *adquerir canales en otros paises *entrar en ‘streaming video’ *otras cadenas – transporte, bienes raices

VENTAS SERVICIO POST-VENTA

Cadena de Valor: flores de Colombia

agricultor

transporte

corredor

transporte al por mayor retail

Embraer’s VALUE ADDED CHAIN BASIC PRODUCTION

PURCHASE of components

Triad country

(suppliers)

BASIC PRODUCTION (Embraer) airplane assembly

Emerging market

Distribution to Brazilian air force

(core business)

R&D Embraer DISTRIBUTION to airlines

R&D CTI university in San Jose dos Campos

SALES to airlines AFTER-SALE SERVICE

Embraer and Value-Added Chain

CADENA de VALOR Bimbo PURCHASE of INPUTS

PRODUCTION of wheat, sugar, plastic wrap (outsourced)

DISTRIBUTION to other customers

BASIC BAKERY PRODUCTION DOMESTIC DISTRIBUTION to stores

R&D mostly purchased

Posibles extensiones: ???

INTL DISTRIBUTION to stores

SALES, domestic and intl CUSTOMER RELATIONSHIP MANAGAEMENT

Diversificacion de las 20 empresas mas grandes por pais Country/ company*

Brazil

China

India

Russia

South Africa Mexico

Gazprom 5

SASOL 5

Lukoil 5

MTN GROUP 4 Femsa 3

Exxon Mobil 3 E.ON

Rosneft 4

THE BIDVEST ALFA 5 GROUP 5

Chevron 4

Daimler 2

Nippon Telegraph & Tel 2

Indus & Commerc HPCL 4 Bank of China 1 Agricultural Bank SBI 1 of China 2

TNK-BP Holding 4

ESKOM 9

Cemex 3

Phillips 66 4

Allianz 2

Hitachi 11

Sberbank 2

SHOPRITE HOLDINGS 4

Grupo Bimbo 2 Apple 4

BASF 5

Nissan Motor 1

Bank of China 2 Essar Oil 3

Sistema 15

SANLAM 3

Grupo Mexico 3

1

Petrobras 3

2

Banco 2 Bradesco

China Petroleum IOC 6 & Chemical 6 Reliance Petro China 4 Industries 6

3

Vale 3

China Mobile 1

4

Odebrecht 11

5

JBS Friboi 6

6

Ultrapar 4

7

Gerdau 1

8 9 10 11 12 13 14 15 16 17 18 19 20

promedio

BPCL 3

USA

Germany

América Móvil/ Wal-Mart Stores Volkswagen Grupo Carso 11 1 Group 3

Toyota Motor 1 JX Holdings 9

Berkshire Siemens 6 Honda Motor 2 Hathaway 12 General Motors BMW Group 2 Panasonic 4 1 General Electric Munich Re 4 Sony 5 15

Surgutneftegas VODACOM 2 Soriana 2 3 GROUP IMPERIAL Eletrobras 1 Transneft 1 GFNorte 3 HOLDINGS 5 IDGC Holding PICK'N PAY Industrias Embraer 1 China Telecom 2 NTPC 5 Valero Energy 2 Metro Group 3 Toshiba 3 3 STORES 9 Peñoles (BAL) Baoshan Iron & STEINHOFF Grupo Modelo Deutsche Itausa 9 Larsen 5 Inter Rao 1 Ford Motor 1 Toyota Tsusho 3 Steel 8 INTL HLDGS 6 (AB Inbev) Telekom 4 China Communic MASSMART Grupo Carso (see Ipiranga 3 Tata Group 5 VTB Bank 1 Fannie Mae 1 Deutsche Post 4Mitsubishi Corp 13 Construction 4 HOLDINGS 4 Amer Movil) CPFL Energia X5 Retail Lenovo Group 3 BHEL 4 Edcon 4 Grupo Televisa4 AT&T 3 RWE Group 5 Tokyo Electric Power 1 1 Group 1 China United Impala Platinum Grupo Elektra 4 Deutsche Bank Telemar (Oi)1 GAIL 5 Magnit 1 McKesson 2 Aeon 1 Telecomm 1 2 (part of Salinas) 3 Banco do Brasil El Puerto de CNOOC 2 Bharti Airtel 1Severstal 5 SAPPI 3 CVS Caremark 3Bayer 3 Mitsui & Co 2 2 Liverpool 2 Ping An Insurance Hewlett-Packard ThyssenKrupp BRF Foods 2 SAIL 2 Tatneft 3 Barloworld 3 Mexichem 3 Mitsubishi UFJ Financial 1 2 3 Group 5 Foxconn Intl Chennai Petro Norilsk Nickel DE BEERS Arca Continental Verizon Comms Braskem 1 Continental 2 Seven & I Holdings 4 Holdings 1 4 2 CONS MINES 5 3 3 Pao de Acucar Minmetals Novolipetsk ANGLOGOLD Grupo Inbursa United Health Deutsche PNB 1 Dai-ichi Life Insurance 1 1 Development 3 Steel 3 ASHANTI 2 (part of Carso) Group 2 Lufthansa 5 PICC Property & Grupo Comercial JPMorgan Chase Votorantim 7 M&M 11 Mechel 6 TRANSNET 5 Talanx 3 Fujitsu 3 Casualty 1 Chedraui 2 2 China Resources Cardinal Health CSN 4 ICICI Bank 2 RusHydro 1 SPAR GROUP 6 Mabe 2 Celesio 3 Marubeni 1 3 2 China Shenhua Cemig 1 Infosys 2 UC Rusal 3 AVENG 7 Grupo BAL 7 IBM 4 Commerzbank 2Idemitsu Kosan 8 Energy 3

3.20

China Constructin ONGC 3 Bank 1 China Life MRPL 3 Insurance 1

5

Japan

2.36

3.44

3.12

4.60

3.55

2.68

3.44

3.4

FEMSA’s geographic spread of affiliates Que mas pueden hacer ellos? •  Extenderse a otros paises •  Comprarle mas de Heineken (ya tiene las marcas Dos Equis, Sol, Tecate) •  Extender las OXXO a otros paises •  Entrar en otros productos aprovechando canales de distribucion •  Buscar mecanismos de proteccion contra Coca-Cola y Heineken

mas  Filipinas

Wipro’s FIT into a GLOBAL VALUE ADDED CHAIN CLIENT PURCHASE of components

CLIENT BASIC PRODUCTION

WIPRO BACK-OFFICE SERVICES

Triad country

Emerging market

CLIENT’S ASSEMBLY

Wipro R&D

CLIENT’S DISTRIBUTION domestic and intl

R&D universities

Wipro and a Value-Added Chain

CLIENT’S SALES to CUSTOMERS WIPRO AFTER-SALE SERVICE (call center)

LATAM’s VALUE ADDED CHAIN PURCHASE of inputs

PRODUCTION & DISTRIBUTION

PROVISION of AIRLINE PASSENGER SERVICE

OPERATION through ONE-WORLD ALLIANCE

R&D (in logistics)

extensiones?

PROVISION of AIRLINE CARGO SERVICE

LATAM (LanChile+TAM) & value added chain

AFTER-SALE SERVICE

Grupo Empresarial Antioqueño Affiliate Network Oportunidades: *Extender lineas de produccion *Extenderse a otros paises *Buscar alianzas para extenderse *Enfocarse en mas actividades a traves de la cadena de valor

Top 25 emerging market state-owned companies in the 2014 Fortune Global 500 Company name 1 2

Country of origin China China

Industry

Sales 2013

% Govt. Ownership 457.2 73.96% 432.0 86.7%

($US bill)

Sinopec Oil China Natl Petroleum Oil Co. (PetroChina) 3 State Grid China Electric power 333.4 100% 4 Gazprom Russia Oil 165.0 50% 5 ICBC China Bank 148.8 70.4% 6 Petrobras Brazil Oil 141.5 60.5% 7 Pemex Mexico Oil 125.9 100% 8 China Construction Bank China Bank 125.4 59.9% 9 PDVSA Venezuela Oil 121.0 100% 10 Lukoil Russia Oil 119.1 92% 11 Rosneft Oil Russia Oil 117.1 69.5% 12 Agricultural Bank of China Bank 115.4 82.9% China 13 China State Construction China Construction 110.8 60.5% non Engineering free-float 14 China Mobile China Telephone service 107.6 73.7% Communications 15 Bank of China China Bank 105.6 67.9% 16 Petronas Malaysia Oil 100.7 100% 17 China National Offshore China Oil 96.0 64.4% Oil 18 China Railway China Construction 95.7 63.3% Construction 19 PTT Thailand Oil 92.6 66.0% 20 SAIC Motors China Autos 92.0 100% 21 China Railway Group China Railroad transport 91.2 56.1% 22 Indian Oil India Oil 81.3 87.3% 23 China Life Insurance China Insurance 80.9 68.4% 24 Sinochem Group China Chemicals 75.9 100% 25 China FAW Group China Autos 75.0 100% Sources: companies from Fortune Global 500 list. July 21, 2014; company webpages for all other information.

Top 50 emerging markets family-based business groups in 2013 Company name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42

Tata Group Mittal Reliance Industries Grupo Carso Ping An

Country of origin India India India Mexico China

Hutchison Whampoa Odebrecht JBS Aditya Birla Koç Group Sistema Interros Saudi Binladin Pao de Azucar Zhejiang Geely Hold. Antarchile Femsa Rembrandt Group Cencosud Gerdau Alfa Group Grupo Alfa Cemex Grupo Luksic Grupo Bimbo Charoen Pokphand Gr Haci Ömer Sabanci Falabella Mahindra & Mahindra Votarantim San Miguel/Petron Orascom Shoprite Holdings Ltd Organizacion Soriana Camargo Correa Group Wipro Globo Group Grupo Modelo Sun Hung Kai Swire Pacific Pick N Pay Grupo Ardila Lulle

China/HK Brazil Brazil India Turkey Russia Russia Saudi Arab Brazil China Chile Mexico South Afr Chile Brazil Russia Mexico Mexico Chile Mexico Thailand Turkey Chile India Brazil Philippines Egypt South Afr Mexico Brazil India Brazil Mexico China/HK China/HK South Afr Colombia

Industry conglomerate steel chemicals conglomerate insurance, banking, invest conglomerate conglomerate meats conglomerate conglomerate conglomerate conglomerate construct; congl supermarkets autos conglomerate beverages conglomerate retail stores steel conglomerate conglomerate cement conglomerate bread conglomerate conglomerate retail stores conglomerate conglomerate oil, beer, telecom+congl grocery stores grocery stores engineering & constr BP outsourcing media beer real estate real estate grocery stores conglomerate

Annual sales 2013 ownership ($US bill) 138.0 Tata 132.0 Mittal 73.1 Ambani 64.5 Carlos Slim 64.5 CP Group 53.0 43.0 43.0 40.0 42.6 34.0 more than 30 more than 30 27.0 25.8 22.7 18.3 18.0 18.0 16.8 16.6 15.9 15.0 13.8 13.8 13.4 12.1 11.9 11.0 11.0 10.4 more than 10 10.1 8.0 8.0 7.3 7.2 7.1 6.9 6.6 6.3 6.3

Li Odebrecht Batista Birla/Pilani Koç Yevtushenkov Potanin Binladen Diniz Li Angelini Garza Laguera Rupert Paulmann Gerdau Fridman Garza Sada Zambrano Luksic Servitje Dhanin Sabanci Falabella Mahindra Moraes Zobel Sawiris Weise Martin Camargo Corrêa Premji Mourinho Diez Fernandez Kwok Swire Ackerman Ardila Lulle

Emerging Market MNEs and their International Expansion Company/trait

home country

Key Competitive Advantages

Countries with operations

% intl sales

Aramex

United Arab Emirates

Knowledge of & relationships with clients in Middle East

60 countries in Middle East, Asia, and globally

>80%

Femsa

Mexico

Strategic alliance with Coca-Cola; client relationships in Latin America; diversification; flexibility

Argentina, Brazil, Colombia, Costa Rica, Guatemala, Nicaragua, Panama, Peru, Venezuela, Philippines, US