creating leadership with a global mindset arun maira, chairman the boston consulting group 22 april,...
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CREATING LEADERSHIP WITH A GLOBAL MINDSET
Arun Maira, ChairmanThe Boston Consulting Group
22 April, 2006Mumbai
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"The gods put dreams in the hearts of men – dreams, desires, aspirations that are often much bigger than they are. The greatness of a man corresponds to that painful discrepancy between the goal he sets for himself and the strength nature granted him when he came into the world."
Alexander the Great to his Secretary-General Eumenes
[From: 'Alexander: The Ends of the Earth' by Valerio Massimo Manfredi]
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RDE 100 OUTPERFORM OTHER FIRMSIndian 21 Performance Is Even More Compelling
50
100
150
200
250
300
350
TSR index(31/12/1999=100)
24/03/2006
Total shareholder return index(31/12/1999-24/03/2006)
31/12/1999
TSR Indexas of 24/03/2006
% increase since 31/12/1999
RDE 100
Emergingmarkets
S&P 500
268.3
206.2
97.9
168.3%
106.2%
(2.1%)
Note: TSR index of RDE Challengers based on TSR of 60 RDE companies listed in HK, New York, Mumbai and other major stock exchanges; emerging markets TSR based on Morgan Stanley Emerging Markets Index
Source: Datastream; BCG analysis
India 21 301.4 201.4%
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47Mn
19Mn 7
Mn
3Mn
5Mn
3Mn
India
Bangladesh
PakistanIran
Brazil
Mexico
Philippines
5Mn
4MnVietnam
2Mn
Turkey
Potential surplus population in working age group (2020)
-10Mn
China
-6Mn
Russia
5Mn
Indonesia
1MnMalaysia
0Mn
Ireland
Israel0Mn
THE FUTURE DEMOGRAPHIC MAP
Iraq
2Mn
-1Mn
CzechRepublic
Note: Potential workforce surplus is calculated keeping the ratio of working population (age group 15 – 59) to total population constant and under the assumption that this ratio needs to be broadly constant to support economic growth. Therefore, India will have 47 Million more people in the working age group/total population by 2020 compared to today, while France will have a deficit of 3 Million people in the working age group compared to today.
Source: U.S. Census Bureau; BCG Analysis
4Mn
Egypt
-17MnUS
-2 MnUK
-2 Mn
Italy
-3 MnFrance-9 Mn Japan
-0.5 Mn
Australia
-3 MnSpain
-3 MnGermany
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GDP vs GDP per capita in 2050GDP vs GDP per capita in 2002
GDP (US$ Bn)
GDP per capita (US$)
0
2000
4000
6000
8000
10000
12000
14000
0 10000 20000 30000 40000 50000
INDIA TO BE 3RD LARGEST ECONOMY, BUT WITH RELATIVELY LOW PER CAPITA INCOME
Pattern of Growth Not Witnessed Previously
GDP (US$ Bn)
GDP per capita (US$)
0
10000
20000
30000
40000
50000
60000
0 20000 40000 60000 80000 100000
US
Japan
ChinaIndia
UK
Germany
ItalyFrance
BrazilRussia
China
US
Brazil
Italy Germany France
Russia
UK
Japan
India
Bubble size corresponds to GDP sizeSource: Goldman Sachs Economic Paper # 99, BCG Analysis
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He or she who takes the first steps
Towards that which he/she deeply cares about
In ways that others everywhere wish to follow
CREATING LEADERSHIP WITH A GLOBAL MINDSET