business elite 2010 the world’s leading businesspeople

Business Elite 2010The world’s leading businesspeople

Anita Hague & Robert JolliffeOctober 2010

The search for the “new normal …”

Today we will look at ….

• How did we get here?• How is the global business person

thinking?• The Global Business Elite – business

lives• The Global Business Elite – top-end

earners and spenders • BE:Europe media results

How did we get here?

2008 …

2009 …

2010 …

Thank God that’s over.Let’s just sit quietly and recover till

the world returns to ‘normal’.

Phew that was some ride. But …just look at all the opportunities we can seize.

The world has changed - this is the new normal.

Will eventually be taken over bythe companies on the right >>>>

New companies to buyNew premises to buildNew staff to hireNew products to launchNew markets to break

2011 – two choices …

Cautious Dynamic

Government orregulatory approval

New markets

Strong image inmedia/ good reputation

Current andnew staff

Private sector

Potential customers

Access to cash

Loans via debt markets

Share capital via equity markets







Access to cash






Private sector

New markets

Potential customers

Business success means communicationStrong message in suitable environment

Cautious DynamicStress your credentials -your growth/ innovation/

expansion strategy& your approach to risk

management/ control

Less money around – why you should

get it not your competitors

New customers –why should they buy

from you?New staff –

why should they work for you?

Regulators/ Governments – why should they

approve your projects?

How is the global business person thinking?

FT Global Business Sentiment survey 2010

Q. In the next six months, what changes do you expect in ...

65%

56%

55%

42%

22%

22%

22%

30%

13%

22%

23%

29%

Your company's results

Your industry's economicconditions

Global economic conditions

Local economic conditions

Improvement No Change Decline

Greatest optimism for global economy and company resultsScore for improvement in Global conditions the same as in 2009

Source: C-Suite Sentiment Survey 2010 529 Global respondents

Q. Overall, which 2-3 of the following are the most important goals/priorities for your organization this year? (global)

Cutting costs has decreased as a top priority while developing products, expanding into new markets and talent have increased in priority level

50%

48%

46%

38%

27%

61%

49%

43%

35%

20%

Cutting costs/improvingefficiency/increasing

productivity

Improving marketshare/competitive position

Developing and marketingnew products or services

Expanding into newmarkets

Finding and keeping newtalent

20102009


Q. Overall, which 2-3 of the following are the biggest external challenges to meeting your goals for the year? (global)

61%

33%

45%

38%

25%

64%

40%

44%

33%

19%

Economic conditions inyour markets

Global economicconditions

Pricing pressures in yourindustry

Government regulation

New competitorsentering your industry

2010

2009

Economic conditions (globally and locally) have waned as an external challenge since 2009. Meanwhile, govt regulation and new competitors have increased (Top 5)


Q. Over the next 12 months, is your organization increasing or decreasing investment in each of the following areas compared to the past 12 months?

35%

23%

18%

16%

13%

Information technology

Research & development

Advertising and marketing

Employee training anddevelopment

Human capital

Net increase minus decrease

Overall investments holding steady in majority of categories (Top 5)


Over half say performance, trust and innovation are key messages to communicated to stakeholders through recovery

Key messages to communicate through recovery

57%

52%

42%

41%

33%

33%

27%

26%

23%

11%

9%

Performance

Trust

Innovation

Stability

Risk management

Growth

Range of Products

Transparency

Compliance

Corporate Social Responsibility Initiatives

Self-regulation

Q. Which of the following corporate messages will be important for your company to communicate to stakeholders through the recovery?


Large, international and private sector companies provide best opportunities post recession

Market segment with best opportunites post recession

38%

37%

34%

33%

29%

26%

21%

17%

International companies

Large companies (1,000employees+)

Private sector companies

Medium size companies (250- 1,000)

Small companies (under 250)

Emerging markets companies

Domestic companies

Public sector companies

Q. Which market segments do you see as providing the best opportunities for your company as it emerges from the global recession and manages through the recovery?


What is it like to walk in the shoes of a Global Business Elite?

To answer this, we can look at the BE range of surveys

BE surveys across the globe

Why you should trust this survey

•Longest running international survey (since 1973)

•Multi media (print, TV, web)

•Large sample (robust sampling of ‘top-end’)

•Annual (tracking shifts more closely)

•Covers 26 countries globally (BE:Asia,US & Europe)

•Unique survey- only one of its type (Most senior person in organisation (VP of Finance @ Google would not be eligible!). BE:E sample are responsible for 2/3 or Europe’s workforce!)

BE Survey suite 2010

BE strongly supported across the globe adding weight to the survey

BE:Europe respondents conduct business internationally

Source: BE:Europe 2008 and 2010 only data

-8%+23%

+10%

+15%

-4%

+4%

Source: BE:USA 2008 and 2009/10 only data

…as do BE:US respondents

+14%

+22%

- 4%

-5%

No change

Source: BE:Asia 2009 and 2010 only data

BE:Asia respondents also look further a field

No change

+14%+9%

+7%

They are heavy business air travellers

81%81%(up 4% yr-on-yr)(up 4% yr-on-yr)

Source: BE:Asia, Europe and US

20

40

60

80

100

120

140

160

<149 150-249 250-499 500-999 1,000-1,499

1,500-4,999

5,000-9,999

10,000+

Number of employees in company

Inde

xThey work in the largest companies…

Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first

And are the most senior

Source: BE:Europe 2010 High value flyers: 11+ flights AND business/first

20

40

60

80

100

120

140

160

180

200

220

240

Chairman/Pres CEO/MD Director/VP CIO/CTO H of Dept

Inde

x

€€10.3 trillion10.3 trillionCombined Global expenditure budgetsCombined Global expenditure budgets


In Europe budgets have been affected

2009 Vs 2008

Source: BE:Europe 2009 & 2010 only data

2010 Vs 2009

8%38%

Source: BE:Europe 2008, 2009 & 2010 only data

60

80

100

120

140

2008 2009 2010

CFO H of Dept

Budgets are still tightly controlled

The Global Business Elite- a highly desirable market for high-end consumer goods and personal

finance companies


€€1.05 trillion1.05 trillionCombined Global net worthCombined Global net worth

Source: BE:Asia, Europe and US 2007, 2008, 2009 and 2010 only data

60

80

100

120

140

2007/08 2008/09 2009/10

Inde

x

Asia Europe US

Their personal fortunes have been affected

Net worth

Source: BE:Europe 2008, 2009 and 2010 only data

20

40

60

80

100

120

140

2008 2009 2010

Inde

xBE:Europe average France GermanyUK Spain SwitzerlandItaly

Some retrieve their wealth quicker

The richest get richer

Net worth down 33%

>€370,000 <€90,000

Net worth up 22%

Source: BE:Europe 2008, 2009 and 2010 only data

Average Income

€256,975Europe +5%ASIA +14%

US +3%


Source: BE:Asia, Europe and US 2008 and 2010 only data

Luxury is back in fashion!Europe: A watch worth more than 4,500 euros - UP 25%A holiday/second home – UP 14%

In Asia:Fine wine/Champagne/Premium liquors – UP 36%A piece of Jewellery >US$5,000 –UP 24% In the USA boat or yacht – UP 22%A health club/spa/sport club membership – UP 26%

BE:Europe - media results







Access to cash






Private sector

New markets

Potential customers

Business success means communicationStrong message in suitable environment

Cautious DynamicStress your credentials -your growth/ innovation/

expansion strategy& your approach to risk

management/ control

Less money around – why you should

get it not your competitors

New customers –why should they buy

from you?New staff –

why should they work for you?

Regulators/ Governments – why should they

approve your projects?







Cautious Dynamic

Which companies to target?Where to build / relocate?Who to seek out to hire?

Which new products will succeed?Which markets should we target?

Business success needs information







Business success needs information …

Cautious Dynamic

But which companies to target?Where to build / relocate?Who to seek out to hire?

Which new products will succeed?Which markets should we target?

Effective, regularly updated, credible, actionable

information

For the Global Business Elite, worlds collide with international media

INFORMATION COMMUNICATIONInternational media

21.3

22.4

17.3

38.6

22.4

24.4

18.0

40.3

0% 20% 40% 60%

2008/2009 2009/2010 %

Net Readership of All International Titles- BE respondents are increasingly reliant on International media

Base: 2010: 8,245 2009: 11,222

60

70

80

90

100

2008 2009 2010

%

PrintTVOnline

Media consumption is increasing

Source: BE:Europe 2008, 2009 and 2010; Measurements: AIR print, daily TV and monthly web

+4%

+5%

+11%

Most reliable source of Business news remains newspapers and internet

47.7%

27.2%

17.1%14.6%

7.9%

50.5%

30.9%

18.9% 18.8%

9.9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Newspapers Internet Magazines TV Radio

BE:Europe 2009 BE:Europe 2010

Most reliable source for Business news.Source: BE:Europe Sample (8,245) Universe (453,353)

Source: BE:Europe 2010; Weekly digital usage

Access online content via a Blackberry/Mobile phone: 47%

Use Wi-Fi networks: 39%

Watch a HD TV channel: 39%

Use a netbook computer: 35%

Stream / watch a video from a website: 29%

Visit a social networking site: 26%

Use RSS feeds / email alerts: 20%

Listen to music on their mobile: 17%

A digital week in the life of the Business Elite

The FT’s product portfolio is now more diverse than ever, with the launch of howtospendit.com, the iPhone app and the iPad app, to name but a few

The FT brand: Going from strength to strength

15.3

13.3

10.5

8.1

7.3

5.4

5.1

3

2.7

2.4

1.9

1.8

Financial Times

The Economist

Harvard Bus. Review

National Geographic

Time

BusinessWeek

Newsweek

Fortune

Forbes

The Wall St Journal Eur

USA Today

Int'l Herald Tribune

Source: BE: Europe 2010

BE: Europe 2010 – Print Publications

% Coverage

Number one

+4% (survey on survey)

15.4

9.6

9.4

8

7.5

6.7

5.6

5.5

5.4

4.8

4.5

4.1

3.8

3.3

2.6

2.5

ft.com

cnn.com

skynews.com

bloomberg.com

economist.com

bbc.com

euronews.com

businessweek.com

natgeo.com

hbv.org

newsweek.com

nytimes.com

wsj.com

time.com

forbes.com

cnbc.com

BE: Europe – International websites monthly reach

Source: BE: Europe 2010BBC.com excludes UK non-commercial sample

+10%(survey on survey)

23.2

16.7

12.0

12.0

9.5

9.4

9.1

8.4

5.5

5.5

4.4

FT + ft.com

Economist + economist.com

Harvard Bus Rev + harvardbusinessonline.org

National Geographic + nationalgeographic.com

Bloomberg Markets Mag + bloomberg.com

BusWeek + busweek.com

Time + time.com

Newsweek + newsweek.com

WSJE + wsj.com

IHT + iht.com

Forbes + forbes.com

FT newspaper combined with FT.com delivers even more of Europe's business elite audience



9.2

3.8

3.2

0.7

0.7

0.5

0.3

0.3

0.3

0.1

0.2

0.1

Financial Times

The Economist

Harvard Bus Review

The Wall St Journal Eur

BusinessWeek

Bloomberg Markets Mag

Time

Int'l Herald Tribune

Newsweek

Forbes

Fortune

National Geographic

Most Important Business Read

Please note that this was an open-ended question



On any one day, 73,116 senior business executives are reading the Financial Times in print or on-line, which equates to…

€689 billion

Total annual expenditure budget of FT readers and users on an average day– 22% of all available spend (previously 19%)


UP 11% SINCE 2009

And finally, how has the FT performed on BE:Asia and BE:USA?

BE:Asia 2010• FT newspaper coverage up 16.5% - biggest increase of any international English

speaking title.• FT.com daily reach is up 10.5% since 2009.• FT newspaper and FT.com daily reach combined up 15.7% - biggest increase of any

international print & online combination!

BE:USA 2010• Strong growth from FT print - up 18%- the biggest increase amongst newspapers!• FT is #1 in audience profile position amongst CEO's; largest corporate budgets;

international business involvement; high earners, frequent travellers… to name a few!

Source: BE: Asia 2010, BE:USA 09/10

Business Elite 2010The world’s leading businesspeople

Anita Hague & Robert JolliffeOctober 2010

The search for the “new normal”…

business elite 2010 the world’s leading businesspeople

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