Intel, Compaq and Home Depot Ranked World's Top Growth Companies
CHICAGO (May 28) BUSINESS WIRE -May 28, 1998--
Empresas La Moderna, Alfa, Puretec, Celanese, Eagle Pac and Kimberly-Clark de Mexico Complete Global Top 10 Growth
Company List
Intel, Compaq, and Home Depot rank as the top three fastest growing companies over the past five years, according to
World's Top 200 Growth Companies, a study conducted by Deloitte & Touche Consulting Group and published in the World
Economic Forum's World Link magazine. Less well-known companies such as Empresas La Moderna (Mexico), Alfa (Mexico),
Puretec (U.S.), Celanese (Mexico), Eagle Pac Industries (U.S.), and Kimberly-Clark de Mexico (Mexico) share the top tier with
Intel and Compaq.
The Top 200 Growth Companies were selected by examining a world-wide pool of more than 30,000 companies over a
five-year period for compound annual growth. Adjustments were made for currency and inflation factors, and companies were
weighted to equate the relative sizes of operations. In addition, for the first time, total return to shareholders and job creation
were included as factors in measuring overall growth performance.
"Growth is not just for small, entrepreneurial companies -- companies of all sizes can grow," said Thomas L. Doorley, III,
founder and senior partner, Deloitte Consulting/Braxton Associates. "What they all have in common is that they achieve
sharply higher performance by bringing nearly twice the number of new products to market as their slow growth counterparts,
as well as their extensive and judicious use of strategic alliances."
The study demonstrates that companies are realizing that growth is a system. First, a company starts with valuable formulas
as its strategic platform for long term growth. Second, it needs strong foundations in leadership, culture, and processes to
take the company beyond this original formula. Lastly, a deep commitment to growth has to be fostered throughout the entire
enterprise. The 4th Annual Growth Conference (June 9-10 at Chicago's Westin River North Hotel), produced by the
Conference Board and Deloitte Consulting/Braxton Associates, will address many of these issues related to growth and will
provide companies with the opportunity to discuss how they too can align their entire organization for growth.
The World's Top 200 Growth Companies study points out a couple of companies that have achieved growth through this
system. For example, Home Depot, North America's largest home improvement retailer with 590 stores in operation, is
supplementing its organic growth with strategic acquisitions, such as the purchase of Maintenance Warehouse/America in
1996. And, while the North American market remains the main engine of growth, companies are looking to expand into foreign
markets, as witnessed by Home Depot's new store in Santiago, Chile. The company is also expanding its brand to include
other products and services such as Expo, which offers consulting services in addition to a broad range of merchandise for
large-scale renovators.
The top growing Mexican giant Alfa, a market leader in petrochemicals, food, steel, high-tech auto components, and telecom
services is another example of a company that has successfully developed a winning formula. While the domestic market is
the company's principal source of revenue, $1 billion of their sales were derived from exports to Europe, Asia and the U.S.
By 2002, the company plans to invest up to $2 billion in growing existing businesses, adding value to manufactured products
and investing in the domestic telecom sector to offset the cyclical nature of the industry and currency volatility.
"Growth doesn't just happen," added Doorley. "Companies must have a deep commitment to sustaining growth throughout the
enterprise. We have found that a company's capacity for growth is only as great as the weakest part of its organization."
Deloitte Consulting is one of the world's top three management consulting firms, providing services to transform your entire
enterprise -- your strategy, processes, information technology, and people.
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