Winning in Emerging Markets has received a great recommendation on the CNN show Fareed Zakaria GPS.

“ZAKARIA: We’ll get to the “Question of the Week” in just a moment. But first, as I do every week, I want to recommend a book.

This one is called “Winning in Emerging Markets: A Road Map for Strategy and Execution”. It was written by Tarun Khanna and Krishna Palepu.

Now, most business books are somewhat banal, stating the obvious, and often quite boring. This book is neither. It is smart, thoughtful, is filled with good research. It actually is a very interesting set of observations about emerging markets, what makes them tick, what makes businesses do well in them. It’s a first rate guide to emerging markets, really worth reading.”

Business must fill voids in emerging market nations

The Sunday Telegraph features an article based on an interview Prof. Tarun Khanna had with Sally Ashworth of McGraw Hill highlighting the fact that “why plugging ‘institutional’ gaps in societies will lead to gains for companies and the countries in which they invest ..”

Read the full article here

JP Morgan Chase has plans set to tap the overseas market again after the financial crisis, says the recent article by New York TImes. The company aims at unearthing opportunities in the BRIC countries.

Read the full article here

“JP Morgan just announced a major reorganization. The impetus is the bank’s strategic shift to pursue the banking opportunities in BRIC countries. This is one more example of western companies realizing that it is more risky to ignore emerging markets than to pursue them, despite all the institutional voids that characterize these markets. In fact, as we discuss in our book, companies like JP Morgan can gain by filling critically institutional voids in emerging markets, so it is a no brainer opportunity to pursue. Citi, HSBC, and Standard Charter all have been pursuing emerging markets vigorously for many years now. They all made significant commitments to follow through – some of them even considering moving headquarters to the Asia and dual- listing on Shaghai stock exchange. Meanwhile, home-grown world class banks – emerging banking giants as we call them in our book – are building great franchises in emerging markets. Examples include ICICI bank in India and Bank of China. While JP Morgan has recognized the obvious attractiveness of emerging markets, it has to contend with both its western counterparts who have been at it for a very long time, and the emerging banking giants who are determined not concede their home markets to western interlopers. It will be interesting to see who will win this emerging race!”, -Authors, Winning in Emerging Markets.

Do you agree? Looking forward to your comments and experiences in similar situations.

The authors present their views on the article by Foreign Policy highlighting the fact that, “If China is going to build on its growth, it’s going to need an industrial policy that backs it up instead of holding it back.”

Read the article here

“Many western observers think that as the Chinese currency is allowed to float with market forces, it will make Chinese exports more expensive. Couple this with the recent spate of increases in wages of Chinese workers announced by many companies operating in China, it is tempting to conclude that Chinese companies will suffer a setback in their global competitiveness. But this may be at best a short-term effect. To figure out the long-term consequences, one might want to look at what happened to the Japanese companies in the 1980s when energy costs increased dramatically, and Japanese currency appreciated significantly under international pressure. To deal with these pressures, Japanese companies redoubled their innovation efforts. For example, the Japanese auto industry created luxury brands Accura, Lexus, Infinity – brands that have successfully attacked mighty Mercedes, Audi, and BMW. So while we might see less of the low cost Chinese products flooding the western markets, we should also watch out for a slew of innovations from China in the next decade that might change all our lives.”, -Authors, Winning in Emerging Markets.

Do you agree? Looking forward to your comments and experiences in similar situations.

New York Times has recently talked about China deciding to allow greater flexibility in its currency.

Read the full article here

“China announced over the weekend that it will allow its currency Yuan to move with market forces, rather than being pegged to a fixed amount against the dollar. If this policy is really implemented, it will create an “emerging market” in Chinese currency. As we discuss in our book, currency markets, like all the other markets, need institutions to work well. Given that for the longest time, Chinese currency was regulated, there are many probably many institutional voids in this market. The creation of a currency market in China will create big opportunities for many private sector intermediaries.”, -Authors, Winning in Emerging Markets.

Do you agree? Looking forward to your comments and experiences in similar situations.

Sarah Green of Harvard Business Review IdeaCast interviews Prof. Tarun Khanna on “Winning In Emerging Markets.” Prof. Khanna explains how multinationals can thrive in emerging markets.

How Companies in Emerging Markets Break Out

Prof. Krishna Palepu gives an idea on winning strategies for multinationals and local companies in emerging markets.

 

Prof. Tarun Khanna has been interviewed recently by O Estado de S. Paulo.

Prof. Tarun Khanna will be present at The Bombay Stock Exchange (BSE) in Mumbai on 17th August for a panel discussion on “Emerging Market Multinationals: Growing Indian Firms in India & Beyond “ organized jointly by BSE, Aspen Institute India, Princeton Club of India and HBS at 5 pm IST.
Location: International Convention Hall, BSE, Mumbai
Time: 17th August, 5 pm (IST)

Are you planning to attend the event? Feel free to leave a comment.

Strategy and Execution for Emerging Markets

Harvard Business School Working Knowledge has put up an interview with the authors of ‘Winning in Emerging Markets’ in its June 21, 2010 issue.

In the interview, the authors offer a practical framework for being successful in emerging markets along with excerpts from the book.

Read the interview here