This publication is the tenth annual report in the Value Creators series published by The Boston Consulting Group. Each year, we publish detailed empirical rankings of the stock market performance of the world’s top value creators, distill managerial lessons from their success, highlight key trends in the global economy and world capital markets, and share our latest analytical tools and client experiences to help companies better manage value creation.

This year’s report addresses the challenges of value creation in a time of turbulence and uncertainty in the global economy. It also provides a comprehensive perspective on corporate strategy that integrates the traditional focus on business strategy with a new strategic focus on a company’s fi nancial policies and investors’ priorities and goals.

EXECUTIVE SUMMARY
It is a time of turbulence in the global economy. Macroeconomic, political, regulatory, and technological changes are roiling the business environment. As a result, many companies confront uncertainty and change.

• No one knows for sure how far the global financial crisis will reach or whether the world economy will suffer a recession
• It is unclear what the full economic impact of rising energy prices will be
• Many companies face the rise of a new class of global competitors from rapidly developing economies that will reshape the competitive dynamics of their industries

Increased turbulence is taking place against the backdrop of a major discontinuity in capital markets.

• The days of consistent high returns in the neighborhood of 15 percent per year, which characterized the 1980s and 1990s, are likely gone for the foreseeable future
• Most analysts see future returns more in line with the long-term historical average of approximately 8 to 10 percent per year.or even less
• It is becoming considerably more diffi cult to deliver the kinds of returns that executives and shareholders have come to expect ...

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The 2008 Value Creators Report
Eric Olsen, Frank Plaschke, Daniel Stelter
The Boston Consulting Group, Inc.

About the Authors
Eric Olsen is a senior partner and managing director in the Chicago office of The Boston Consulting Group and the firm’s global leader for value management.

Frank Plaschke is a partner and managing director in BCG’s Munich office and leader of the Value Creators research team.

Daniel Stelter is a senior partner and managing director in the fi rm’s Berlin office and global leader of BCG’s Corporate Development practice.

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PDF format, 2.4MB, 76Pages.

CONTENTS
Note to the Reader 4
Executive Summary 5
Creating Value in Turbulent Times 7
Forces of Uncertainty 7
Corporate Strategy Revisited 8
Focusing Corporate Strategy on Value Creation 10
The Logic—and Limits—of Traditional Corporate Strategy 10
An Integrated Model of Value Creation 11
Business Strategy, Financial Strategy, and Investor Strategy 13
Starting a Dialogue on Value Creation Goals 15
A Stake in the Ground 15
Why TSR Is the Best Metric 15
How High Should a Company Reach? 16
Developing a Value Creation Fact Base 20
What’s Behind TSR Performance 20
A Holistic View of Financial Policies 22
The Investors Who Matter—and What Matters to Them 26
Aligning Around the Right Strategy 28
Let the Debate Begin 28
The TSR Impact of Alternative Value-Creation Scenarios 28
The Corporate Strategy Timeline 30
Ten Questions That Every CEO Should Know How to Answer 33
Appendix: The 2008 Value Creators Rankings 34
Global Rankings 38
Industry Rankings 42
For Further Reading 70

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About The Boston Consulting Group

The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy.

We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results.

Founded in 1963, BCG is a private company with 66 offices in 38 countries.

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