Akzo Nobel scores high in global competitive test

Akzo Nobel scores high in global competitive test Arnhem, the Netherlands, February 24, 1999. - A study of global competitiveness undertaken by the European Institute of Business Administration (INSEAD), has rated Akzo Nobel the fifth most competitive company in the world. The survey of 263 leading firms in Europe and the United States, also places the Arnhem-based pharmaceutical, coatings, chemicals and fibers company at number one among companies in the process industries sector. These conclusions are contained in a report written by strategic marketing specialist Professor Jean-Claude Larréché, titled "The Competitive Fitness of Global Firms 1999". The performances of the companies surveyed were analyzed using a system developed by Professor Larréché to monitor the fundamental capabilities which influence the effectiveness of a firm in its markets. Based on management inputs, this methodology - known as Market Effectiveness Capabilities Assessment, or MECA - was developed specifically to address some of the key leadership challenges encountered in the creation of sustainable long-term growth in shareholder value. The corporate capabilities and Overall Market Effectiveness Capability (OMEC) of the companies were closely examined, and a ratings system assigned. Akzo Nobel is among 9 firms identified as "The Best of the Best MECA Global Firms in 1999", with ratings equal to or above 75. Even the weakest capabilities of these firms achieve world class levels. The company scored an overall rating of 75 on a scale of 0-100, the same as Dupont & Co Inc, EDS Corp, Hewlett-Packard Co and Novo Nordisk A/S. That places Akzo Nobel in the "World Class" category, 5 rating points below the highest level - "Exceptional". Its number one position in the process industries sector is shared with Dupont & Co Inc. Akzo Nobel achieves its highest rating in the category "Performance", with a score of 85. In "Market Strategy", "Corporate Culture" and "International", it falls within the range of 71 to 77. The company's lowest rating is in the area of 'Mission & Vision' (71). In 5 of the 12 fundamental corporate capabilities covered by the survey - Planning and Intelligence, Human Resources, Market Strategy, Marketing Operations and International - the company comes out as number one among companies in the process industries sector. The companies in the INSEAD survey are among the 500 largest European or the 500 largest American corporations. About 60 percent of them are incorporated in Europe and 40 percent in North America. 70 percent of these have revenues in excess of USD 5.0 billion. 36 percent enjoy double-digit growth in revenues. Sectors of the economy covered include Automobiles & Automotives, Computers & Electronics, Consumer Goods, Financial Services, Pharmaceutical and Health Care, and Process Industries. Professor Larréché - holder of the Alfred H. Heineken Chair at INSEAD - said the overall average OMEC ratings achieved by the firms in the survey - 65 (which is just about "world class" level) confirms that they not only lead the corporate world in terms of size but, on average, have strong market effectiveness capabilities. That high average rating notwithstanding, the "enormous" 36-point difference in the ratings variation of between 44 and 80 shows there is a great difference between the capabilities of the firms within this select sample of the world's largest corporations. "While an 80 rating corresponds to a firm at the forefront of developments in its industry, a 44 rating corresponds to a firm which will have great difficulties in sustaining competitive pressures and in delivering a steady performance to its customers, employees, and shareholders," he says. The first MECA report on the market effectiveness of corporations was published at the end of 1998, involved 173 global firms. Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings, chemicals and fibers. The fibers business, now known as Acordis, is intended to be demerged in the course of the second half of 1999. The company currently employs some 86,000 people in more than 60 countries. As from 1999 the Euro will be Akzo Nobel's external reporting currency. Consolidated sales for 1998 totaled NLG 27.5 billion (EUR 12.5 billion / USD 13.8 billion / GBP 8.4 billion). Financial results for the first quarter of 1999 will be announced on April 21. - - - Internet: http://www.akzonobel.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/25/19990225BIT00230/bit0001.doc http://www.bit.se/bitonline/1999/02/25/19990225BIT00230/bit0002.pdf