According to a recent survey of global CEOs, the greatest business challenge facing Mexican companies in 2006 is profit growth, followed by execution of strategy; the unstable Mexican economy; industry consolidation; and maintaining leadership. The survey, conducted by The Conference Board (www.conference-board.org), also indicates that crucial issues for Mexican CEOs over the next 3-5 years include: steady top-line growth, execution of strategy, expansion into South America, strategic planning, cost of innovation, and industry consolidation.
Curiously, CEOs in South America have an almost entirely different set of concerns. In 2006, their top challenges will be increasing production, earnings and market share; corporate expansion; growth; diversification and consolidation; and government regulations. They see industry consolidation and diversification as continuing challenges over the next 3-5 years, as well as the added challenges of changing technologies and making new profitable investments.
While Mexican CEOs are concerned as well with seizing opportunities in North America, the South American CEOs cited European competition and expansion into Western Europe as particular worries.
By contrast, according to the survey, European CEOs have major concerns with speed; flexibility; adaptability to change; profit growth; and sustaining steady top-line growth. For U.S. executives surveyed, sustaining and generating steady top-line growth; executing strategy by top management; customer loyalty and retention; and profit growth are their major challenges.