Telstra Global Finds More than Half of Hong Kong Companies have Achieved their Financial and Strategic Objectives in Asia

HONG KONG, March 25, 2014 /PRNewswire/ -- More than half of local companies operating in the highly competitive Asia region are experiencing growth -- and have achieved financial success over the last three years. According to a new Telstra Global survey released today, 65 per cent of Hong Kong companies have successfully achieved both their financial and strategic objectives during that time.

The outlook for the future is also strong with 83 per cent of companies expecting to meet or exceed their business targets in the next three years. This comes as a fifth of businesses in the region were very successful in achieving business targets over the last three years.

Telstra Global Managing Director, Mr Martijn Blanken said, "Multinationals from around the world are meeting and exceeding their strategic and financial objectives in Asia. As a company with a long track record of operating successfully throughout Asia, we launched Connecting Countries research to quantify the business sentiments of multinationals operating in the region, and ascertain the attributes and success factors of companies that are excelling in the region."

The first in an annual series, Connecting Countries research is commissioned to benchmark the mind-set and strategies of high performing international companies in Asia.

"While the outlook is generally very positive, Hong Kong companies identified three clear pain-points that are proving extremely challenging for doing business in Asia," added Mr Blanken. "Nearly 30 per cent say that finding good local talent is extremely challenging, and just over a fifth say companies expecting to see financial returns too quickly is extremely challenging as well as a lack of understanding of local culture."

The research identifies a superior category of top performing companies in Asia, termed Asia Business Champions in the report, and categorised as such based on having far exceeded their financial and strategic objectives in the last three years, and their expectation to succeed again in the coming three years. Asia Business Champions comprise top 5 per cent of overall companies in Asia.

"On a global level, the ICT industry is a standout in Asia, with more than 70 per cent of these companies having been very successful in Asia in the past three years, compared to 61 per cent of companies across other sectors," said Mr Blanken. "Over the next three years both financial services and insurance companies and those in the ICT sector are most bullish about exceeding their objectives in Asia, with 55 and 51 per cent respectively, compared to 42 per cent across the board."

"Besides the promising market conditions, successful companies in Asia have the necessary foundations -- strong leadership and communication across global headquarters and local offices, combined with a long term view and investment strategy," concluded Mr Blanken.

The Telstra Global Connecting Countries report also revealed:

Market Expansion

• 50per cent of companies see expanding into new markets as extremely important to the success of their firm in the next three years;
• China is the primary growth market for companies who see expansion into new markets as a high priority in Asia over the next three years, 50per cent nominated China as part of their strategic expansion plans;
• Additionally, companies are also focused on expansion into Singapore (38%), Hong Kong (33%) and India (32%).

Profile of High Performing Companies in Asia:

• The report identifies a superior category of top business performers in Asia, termed Asia Business Champions in the report, and categorised as such based on having exceeded their financial and strategic objectives in the last three years, and their expectation to do so again in the coming three years. Asia Business Champions comprise just 5per cent of overall companies in Asia;
• Asia Business Champions are more likely to have a global footprint than others in the study, 82per cent operate both in and outside of Asia;
• US and UK firms are over-represented in the ranks of the top five per cent - Asia Business Champions. 32% of Asia Business Champions are companies headquartered in the US, compared to a total of 14% of overall respondents being companies from the US. UK companies make up 8 per cent of Asia Business Champions, compared with only 3 per cent of overall respondents being companies headquartered in the UK;
• ICT and financial services companies are also over-represented in the Asia Business Champions category, 15per cent and 12per cent respectively, compared with 7per cent of all businesses.

Designed to provide insights into the business performance of organisations operating throughout Asia, the Telstra Global report, entitled "Connecting Countries" interviewed more than 4,100 executives and managers with national or multinational company experience working in Asia. These companies were headquartered in more than 20 countries around the world, including the United States, United Kingdom, Germany, Australia, Mainland China, Japan, India, Hong Kong, Singapore and Indonesia.

Find out more and download the Connecting Countries report: http://www.telstraglobal.com/connectingcountries

Research Methodology

This survey was commissioned by Telstra Global and interviewed 4,155 senior executives in Mainland China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam with professional experience working and studying in a country other than the one they are currently working in. Interviews for this study were conducted online and executives were drawn from databases of business professionals held by market research firm GMI. Additional interviewees were recruited through targeted outreach on LinkedIn and through other professional networks. Interviewees were incentivised with a US$2 donation to their choice of the Red Cross/Red Crescent, WWF or UNICEF. In addition 12 in-depth interviews were conducted with C-level executives in leadership positions with significant professional experience operating across multiple countries. These interviews lasted 75 minutes and were conducted in Beijing, Hong Kong, Singapore and Jakarta.