Beyond that, Asia's top performers have demonstrated that they understand the underlying economic drivers of value creation and have managed their businesses accordingly. Infosys, for example, is typical of the new breed of high-tech companies for which human resources and customer bases are the most important assets driving economic value creation. Another excellent example of Asian shareholder wealth creation is Hong Kong's Johnson Electric Holdings, which operates a somewhat more traditional, asset-intensive manufacturing model. Much of that success can be traced back to early 1996, when Johnson Electric's management embarked on a major effort to improve asset productivity and boost margins. The region's top performers have realized that growth for growth's sake isn't the answer.
Profitable growth is the key to competing in an increasingly global marketplace.
Hasson is a vice president and director with Boston Consulting Group's Hong Kong office. Inc. All Rights Reserved. Copyright and reprint information.