Business Leaders Must Balance a 'Two-Speed' World of Developed and Emerging Markets

Emerging markets are no longer satellites circling far away from the center. Leaders now must figure out how to fold their emerging-market businesses into the core of their companies and generate predictable returns from their still sizable mature-market businesses.

Ultimately, today's chief executives will be judged on how well they manage this balancing act of leading in a two-speed world. Half of the global GDP growth in this decade is expected to come from Asia. Brazil will deliver greater growth than Germany, France, or the U.K. And it is not just the speed of emerging markets that is different. Culture, talent, business models, and the role of the state all play out differently in these economies. The emerging markets are also producing global challengers, companies that rival traditional multinationals for industry leadership.

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Keywords: supply chain management, value chain, emerging markets, leadership in emerging markets