Companies not hitting goals in emerging markets.

Despite the size and remarkable growth of emerging markets, a surprising number of companies are falling short of achieving their business goals according to a recent study by Deloitte's Global Manufacturing Industry Group. Just 47% of the more than 440 senior executives surveyed said their companies had been extremely or very successful in meeting their revenue goals in emerging markets.

What is preventing companies from fulfilling their goals? "Most likely it's because the complexity of their business continues to increase and it's a daunting task to integrate and manage their emerging market operations," suggests Gary Coleman, global managing director for manufacturing, and partner at Deloitte & Touche USA LLP.

Presenting the new research findings of the Innovation in Emerging Markets 2007 Annual Study, Coleman observed the trend that, "Companies are locating higher-value activities such as complex production, sophisticated research and development (R & D), and sales and marketing operations in emerging markets.

"What was originally seen as low-cost locations for routine operations, companies are moving up the value chain in emerging markets," he explains. "With this move, the challenge to provide innovative products and services that capture market share in the rapidly growing emerging markets intensifies. This intensity brings complexity, which for many companies makes it even more difficult for them to achieve their original emerging market goals."

For more information about the research, visit www.deloitte.com/manufacturing.