What CEOs Worry About
Competition, the impact of the Internet, and skills shortages are CEOs' top concerns.

As reported in Business 2.0

Tessa Romita 04/09/2001

Analysis: Global Challenges
Business, it has been said, is a jungle. Companies constantly scan the environment looking for threats to their survival. If they don't anticipate the danger, they are subject to certain death. What if you could ask the savviest of survivors-those who have fought their way to the top of the food chain-to share with you their perceptions of potential threats?

Accenture and the Conference Board did that at the beginning of this year. They asked 506 CEOs from around the world to name the critical external threats to their businesses and industries. The concerns of European and Asian business leaders differ from those of CEOs in North America. Challenges also differ according to company size.

North America (*252 CEOs surveyed)
Shortages of key skills 38.5%
Industry consolidation 37.3
Changes in type/level of competition 36.1
Impact of the Internet 33.3
Downward pressure on prices 33.3
Environment, health, and safety issues 33.3
Changes in supply/distribution systems 21.8
Access to/cost of capital 20.2
Changing technology 20.2
Regulatory issues (labor, market access, etc.) 15.1
Effects of corruption 6.7
Currency issues 6.3
Stakeholder relations 6.0
Pressure from institutional investors 4.0
Instability in emerging markets 3.2

Europe ( *110 CEOs surveyed )
Impact of the Internet 50.0%
Industry consolidation 48.2
Shortages of key skills 39.1
Changes in type/level of competition 29.1
Downward pressure on prices 29.1
Changes in supply/distribution systems 20.9
Changing technology 20.9
Regulatory issues (labor, market access, etc.) 18.2
Access to/cost of capital 11.8
Pressure from institutional investors 11.8
Stakeholder relations 6.4
Other external forces 5.5
Currency issues 2.7
Instability in emerging markets 1.8
Environment, health, and safety issues 0.9

Asia-Pacific ( 133 CEOs surveyed )
Changes in type/level of competition 59.4%
Impact of the Internet 39.8
Downward pressure on prices 36.8
Industry consolidation 29.3
Changing technology 25.6
Currency issues 14.3
Changes in supply/distribution systems 13.5
Shortages of key skills 13.5
Access to/cost of capital 12.8
Environment, health, and safety issues 12.0
Instability in emerging markets 12.0
Regulatory issues (labor, market access, etc.) 11.3
Stakeholder relations 10.5
Pressure from institutional investors 0.8 *

Less Than $1 Billion in Sales * ( *216 CEOs surveyed )
Changes in type/level of competition 41.2%
Shortages of key skills 39.4
Stakeholder relations 39.4
Industry consolidation 36.6
Impact of the Internet 34.7
Changing technology 22.2
Access to/cost of capital 19.4
Changes in supply/distribution systems 19.0
Regulatory issues (labor, market access, etc.) 13.9
Currency issues 6.0
Downward pressure on prices 6.0
Environment, health, and safety issues 6.0
Instability in emerging markets 6.0
Pressure from institutional investors 2.8

More Than $5 Billion in Sales * ( *122 CEOs surveyed )
Impact of the Internet 47.5%
Changes in type/level of competition 41.0
Industry consolidation 40.2
Downward pressure on prices 28.7
Shortages of key skills 22.1
Changing technology 20.5
Regulatory issues (labor, market access, etc.) 18.9
Changes in supply/distribution systems 18.0
Access to/cost of capital 12.3
Pressure from institutional investors 9.8
Stakeholder relations 9.8
Environment, health, and safety issues 9.0
Currency issues 7.4
Instability in emerging markets 4.9

Tessa Romita is a section editor for Business 2.0