What are the Consequences of NOT participating on the Emerging Multinationals Program?:

Due to the complex nature of a typical large diversified privately controlled business group, such an organisation can lose a lot if it does not continue to transform itself into a new cohesive organisation at each and every stage of its growth.

Many emerging countries are growing fast and privately controlled business groups are growing with them. Some of the groups have reached a stage of national importance. But what do they do next? How can they continue to grow? What is happening globally? How will global trends influence them in view of traditional multinational inroads into their local market?

When a business group reaches a certain size and the owner members/ and controlling shareholders are within their 2nd, 3rd, 4th or 5th Generation, the decision making process tends to become more widespread amongst a number of members of the business. The power at the top may dilute to such an extent that it would be difficult to continue steering the group in a top down way.

Owners may have taken over a number of the business units and they may be steering them in the direction they want to. This might not be necessarily congruent with the overall policy and direction which the CEO and Chairman may necessarily wish. These are very delicate periods for such top people. Unless there is a clear trust at the top the business might become unwieldy and lead to a breakdown into separate power blocks consisting of both owner members and non-owner members who might continue with their faithful alliance to particular controlling groups or a particular block or set of people.