Adaptability in turbulent times 1,409 32

19th Annual Global CEO Survey / Azerbaijan
Adaptability in
turbulent times
1,409 CEOs interviewed
in 83 countries
32 CEOs from 10
industries interviewed in
Azerbaijan
www.pwc.com/az
Introduction from
Movlan Pashayev
Dear Readers,
Dynamically integrating into
the global economy, Azerbaijan
plays an important role in
the formation of mega trends
and shaping up the country
landscape. PwC Azerbaijan
is
proactively
addressing
this positive change and
supports the Government by
solving important problems
of businesses and delivering
quality thought leadership
products.
I am proud to introduce
you PwC Azerbaijan’s 1st
Annual CEO Survey report
addressing
the
insights
of country CEOs on the
economic growth prospects
and mega-trends in the
turbulent times.
2
19th Annual Global CEO Survey / Azerbaijan
This year our firm has been
invited to participate in
PwC’s 19th Annual Global
CEO Survey presented on
World Economic Forum in
Davos. We are now a part of
the global report covering
the insights of 1,409 CEOs
from 83 countries all over the
world.
If we look at Azerbaijan
landscape, more than the half
of CEOs are still confident
about their revenue growth
even despite of devaluation
and dramatic reduction of
oil cost. Having said that,
75% of the interviewers
recognize more threats today
versus three years ago while
most of them take in these
threats as opportunities for
development.
Responding
the crisis, the majority of
CEOs are implementing
cost-reduction
initiatives
concentrated on the decrease
of headcount.
A number of CEOs in
Azerbaijan were surveyed
regarding their outlook on
the growth in the global
economy over the next year.
They predominantly hold
a negative outlook while
their global counterparts
are
more
optimistic.
Furthermore, they believe
that their companies will
grow in the long-term but
unlikely in the short-term.
I would like to thank 32
company leaders from
diverse range of industries
who have sat down with
us and contributed to this
survey. Their deep insight
shaped a comprehensive
and
accurate
report
comparable with our global
data and regional peers.
Movlan Pashayev
Country Managing Partner
PwC Azerbaijan
PwC Azerbaijan
3
Contents
4
06
13
Growing in complicated
times
Transforming:
technology, innovation
and talent
10
18
Moving beyond
globalization
Measuring and
communicating success
11
19
Addressing bigger
expectations
Research methodology
and contacts
19th Annual Global CEO Survey / Azerbaijan
CEO Survey Azerbaijan
Key findings from this year’s survey
42% of CEOs
57% of
believe that the
global economy
will decline in
2016
CEOs in
Azerbaijan feel
confident about
their revenue
growth
75% of CEOs see more
threats today versus three
years ago
81%
Availability
of key skills
CEOs are
considering
for 2016:
75%
72%
Shift in consumer
spending and
behaviours
Readiness to
respond to a
crisis
81%
50%
Implementing
cost-reduction
initiatives
Decreasing
headcount
63% of CEOs think stable
and effective tax system
should be government
priority
54% of them assessed
government to be ineffective
achieving this target
PwC Azerbaijan
5
Growing in
Growing
in times
complicated
complicated times
Today’s CEOs face a business environment that is
Today’s CEOs face a business environment that is
becoming increasingly complicated to read and adapt to.
becoming increasingly complicated to read and adapt to.
Seven years on from the global financial crisis, the business
Seven
yearsstill
on from
thereally
global
financial
landscape
has not
returned
to crisis,
what itthe
was. Will it
business
landscape
still
has
not
really
returned
to what it
ever? Exchange rate volatility, national debt, geopolitical
was.
Will it ever?
Exchange
rate volatility,
national
debt,
uncertainty,
an increase
in interest
rate as well
as overgeopolitical
uncertainty,
an
increase
in
interest
rate
regulation topped Azerbaijani CEOs’ list of concernsas
about
well as over-regulation topped the list of concerns about
threats to business growth.
threats to business growth of CEOs in Azerbaijan.
Concern about exchange rate volatility is the highest risk
Concern
volatility
isFigure
the highest
risk
cited byabout
94% ofexchange
CEOs in rate
Azerbaijan
(see
1). This
cited
by
94%
of
CEOs
in
Azerbaijan
(see
Figure
1).
This
opinion is also shared by Russian and global CEOs as a top
opinion
is also
by Russian
and prospects.
global CEOs as a
threat for
theirshared
organisations’
growth
top threat for their organisations’ growth prospects.
CEOs globally are keeping a very close eye on China given
are
the continued importance they placeCEOs
on itsglobally
economy
for
keeping
a very
their own growth prospects. Its economic
rebalancing,
the
close eyeand
on its
China
fragility of its debt-laden local governments
faltering
giveninvestors
the continued
manufacturing sector continue to spook
and rattle
importance
theysector
a number of industries – not least the commodities
place on its economy
that rode the wave of China’s rapid growth and now is
for their own
bearing the brunt of the slowdown.
growth prospects.
Its economic
The second menace is the budget deficit
with the debt
rebalancing,
the of
burden cited by 84% of Azerbaijan CEOs
and by 71%
fragility
of
its
debtCEOs globally.
laden local governments and its faltering manufacturing
sector
continue
to spook investors
andof
rattle
a number
of
Geopolitical
uncertainty
cited by 78%
business
leaders.
industries
– not
commodities
sector
that rode and
This comes
at a least
time the
when
terror attacks
are increasing
the
wave ofevery
China’s
now
is bearing
touching
partrapid
of thegrowth
world, and
many
linked
to the the
brunt
of the slowdown.
heightened
conflict in Iraq and Syria.
The second menace is the budget deficit with the debt
burden cited by 84% of CEOs in Azerbaijan and by 71% of
CEOs globally.
Geopolitical uncertainty cited by 78% of business leaders.
%
This comes at a time when terror attacks are increasing
and touching every part of the world, many linked to the
of Azerbaijani CEOs
heightened conflict
in Iraq
Syria.
does not
relateand
climate
25
change and environmental
damage to their
organisations’ growth
prospects unlike their peers
globally (50%)
Figure 1 CEOs are getting more concerned about a wide range of risks
Q: How concerned are you about the following potential economic, policy,
social and environmental threats to your organisation’s growth prospects?
Top-three threats
Key threats
Exchange rate volatility
73%
Government response to fiscal
deficit and debt burden
71%
84%
86%
78%
84%
74%
Geopolitical uncertainty
Interest rate rises
75%
76%
58%
72%
81%
79%
Over-regulation
66%
76%
69%
Increasing tax burden
Unemployment
32%
63%
46%
56%
Social instability
69%
65%
50%
Inadequate basic infrastructure
62%
56%
44%
Access to affordable capital
42%
Eurozone debt crisis
28%
26%
Climate change and
environmental damage
28%
23%
Azerbaijan
94%
92%
Russia
75%
51%
50%
World
Note: Respondents who answered somewhat or extremely concerned
PwC
6
1
19th Annual Global CEO Survey / Azerbaijan
Figure 2a CEOs’ top three business threat concerns
Q: How concerned are you about the following potential business threats to your organisation’s growth prospects?
Lack of qualified
Lack of qualified
personnel has
personnel has
been the most
been the most
concerned issue
On the global scale,
concerned issue
for organisations
cyber threats, speed of
globallychange
over as
for organisations
technological
years.
globally over
well as stockthree
market
volatility
have
are among Businesses
the most burning
three years.
threats for business
been community,
increasingly
Businesses have
while the
minoritytheir
of the
adjusting
been
respondents actions
in Azerbaijan
are
and
increasingly
worried about these risks
development
adjusting their
plans due to constant threat of shift in consumer
actions and
spending and behaviours. Current economic downturn
development
plans
due to constant
of shift
in
makes
it urgent
for organisations
to threat
be ready
to respond
consumer
spending
and
behaviours.
Current
economic
to repercussions of a crisis (see Figure 2a). Thus, inability
urgent as
forone
organisations
be ready
todownturn
react on makes
time is itdeemed
of the real to
risks
for to
respond
repercussions
of a crisis
(See
Figure
2a). Thus,
CEOs
notto
only
from Azerbaijan
(72%),
but
also globally
inability to react on time is deemed as one of the real risks
(61%).
for CEOs not only from Azerbaijan (72%), but also globally
(61%).
Figure 2b CEOs’ business threat concerns
Q: How concerned are you about the following potential business
threats to your organisation’s growth prospects?
81%
72%
Availability of key skills
Shift in consumer spending
and behaviours
60%
Readiness to respond to a
crisis
61%
High or volatile commodity
prices
56%
57%
Bribery and corruption
56%
55%
Lack of trust in business
56%
57%
New market entrants
53%
57%
Cyber threats
41%
High or volatile energy
costs
41%
Speed of technological
change
Azerbaijan
72%
47%
50%
Supply chain disruption
Stock market volatility
75%
61%
52%
38%
19%
61%
44%
World
Note: Respondents who answered somewhat or extremely concerned
PwC
2
PwC Azerbaijan
7
Figure
Figure 33 The
The percentage
percentage of
of CEOs
CEOs believing
believing that
that the
the global
global economic
economic growth
growth will
will improve
improve over
over the
the next
next 12
12 months
months
Figure
Figure 44 CEOs
CEOs are
are confident
confident about
about business
business growth
growth prospects
prospects
Q:
Q: How
How confident
confident are
are you
you about
about your
your company’s
company’s prospects
prospects for
for
revenue
revenue growth
growth over
over the
the next
next 12
12 months
months and
and three
three years?
years?
These
factors
are having different
These
factors
are
These
factors
are having
havingplaces, but
effects
in
different
different
different effects
effects in
in different
different
togethertogether
they are increasing
the
places,
places, but
but together they
they are
are
of
CEOs
from
level
of
uncertainty
about
the
of CEOs from
increasing
the
level
of
increasing the level of
Azerbaijan
Azerbaijan believe
believe the
the
global economy.
CEOs from
uncertainty
about
uncertainty
about the
the global
global
global
economic
growth
global economic growth
economy.
CEOs
from
Azerbaijan
Azerbaijan
are
less
optimistic
economy.
CEOs
from
Azerbaijan
will
will decline
decline over
over the
the
are
less
optimistic
about
global
about
global economic
growth
are
less
optimistic
about
global
next
12
months
next 12 months
economic
growth
for
prospects
forprospects
the next
economic
growth
prospects
for 12
the
globally.
The
-months
than
their peers
the next
next 12
12 months
months than
than their
their peers
peers
globally.
The optimists
optimists
those
who
growth
will
improve
the
next
those
who think
think
global
growth
willwho
improve
over
the growth
next 12
12 will
globally.
The global
optimists
- those
thinkover
global
months
–
pessimism
among
months
– make
make
up
23%.
Overall
pessimism
among
improve
overup
the23%.
nextOverall
12 months
– make
up 23%. Overall
respondents
is
associated
with
continuing
global
economic
respondents
is
associated
with
continuing
global
economic
pessimism among respondents is associated with
continuing
challenges
such
as
declining
oil
prices,
stagnated
economic
challenges
such
as
declining
oil
prices,
stagnated
economic
global economic challenges such as declining
oil prices,
growth
of
as
as
of
commodity
boom.
growth
of China
China
as well
wellgrowth
as the
the end
end
of the
theas
commodity
stagnated
economic
of China
well as theboom.
end of the
commodity
boom.there is no absolute majority of
As
we
might
expect,
As we might expect, there is no absolute majority of
Azerbaijan
their
Azerbaijan CEOs
CEOs confident
confident about
their own
own company’s
company’s
As we might
expect,
thereabout
is
no
absolute
majority
of CEOs in
prospects
for
revenue
growth
in
the
coming
prospects for revenue growth in the coming year.
year. Only
Only 13%
13%
Azerbaijan
confident about
their own company’s
prospects
of
CEOs
from
Azerbaijan
are
“very-confident”
about
shortof CEOs from Azerbaijan are “very-confident” about shortforbusiness
revenuegrowth
growthcompared
in the coming
year.
Onlyof
of CEOs
term
to
and
those
term
business
growth
compared
to 26%
26%
and 35%
35%
of12%
those
from
Azerbaijan
are respectively.
“very-confident”
short-term
from
Russia
and
When
it
to
from
Russia
and globally,
globally,
respectively.
Whenabout
it comes
comes
to the
the
company’s
for
next
years,
CEOs
are
businessrevenue
growth growth
compared
to 26%
35%
of those
company’s
revenue
growth
for the
the
next 33and
years,
CEOs
are from
generally
about
their
future
Russia optimistic
and globally,
When
it comes to the
generally
optimistic
aboutrespectively.
their companies’
companies’
future
performance.
98%
of
from
company’s To
revenue
growth
the
next 3 years,
CEOs are
performance.
To illustrate,
illustrate,
98%for
of respondents
respondents
from the
the
USA,
74%
from
generally
optimistic
aboutand
USA,
74% of
of those
those
from Russia
Russia
and 75%
75% of
of CEOs
CEOs from
from
Azerbaijan
believe
companies
Azerbaijan
believe that
that their
their
companies will
will generate
generate more
more
their companies’
future
revenues
in
the
long-term
period
(see
Figure
4).
revenues
in
the
long-term
period
(see
Figure
4).
performance. To illustrate,
98% of respondents from
the USA, 74% of those from
Russia and 75% of CEOs
from Azerbaijan believe
%
%
that their companies will
generate more revenues in
of
of Azerbaijan
Azerbaijan CEOs
CEOs
do
the long-term period
do not
not know
know or
or refused
refused
to
(see Figure 4).
to comment
comment on
on their
their
%
%
42
25
company’s
company’s revenue
revenue
growth
growth prospects
prospects over
over
the
the next
next 33 years
years
8PwC
PwC 19th Annual Global CEO Survey / Azerbaijan
33
Figure 5 CEOs see more threats to their business today
Q: To what extent do you agree/disagree that there are more growth
opportunities/threats for your company than there were three years
ago?
Figure 6 Top three countries for doing business
Q: Which three countries, excluding the country in which you are
based, do you consider most important for your organisation’s overall
growth prospects over the next 12 months?
Givenare the
plethora
of
Given the plethora of uncertainties CEOs
facing,
it is
uncertainties CEOs are
little wonder that they are divided about whether there are
facing, it is little wonder
more threats or opportunities today. Three fourths of CEOs
that they are divided about
from Azerbaijan believe that their business
faces
moreare more
whether
there
threats today than three years ago. Meanwhile
only
44% see
threats or opportunities
more opportunities, whereas CEOs globally
are
more
today. Three-fourths of
optimistic (60%) (see Figure 5).
CEOs from Azerbaijan
believe that their business
faces more
threats today
As a response
to worsening
Mergers and
than three years ago.
global economic situation, in
acquisitions
Meanwhile only 44% see more opportunities, whereas CEOs
both on national
the coming 12 months
globally
arecross-border
more optimistic (60%) (see Figure 5).
and
Azerbaijani along with Russian
levels are not among top
andglobal
CEOs economic
globally aresituation, in
As
a responseactivities
to worsening
restructuring
concentrated
primarily
on costand
for Azerbaijani
and Azerbaijani
the coming
12 months
along
with Russian
Russian
CEOsare
though
reduction
activities.
Similar
to
CEOs
globally
concentrated
primarily
on cost
reduction
this is on the
agenda to
of thethe
year,the
thetop
top two planned
activities.
Similar
lastlast
year,
their peers globally.
restructuring
activities inplanned
Russia restructuring
and globallyactivities
are costinitiatives
andare
establishing
alliances
(see Figure
7). This
in reduction
Russian and
globally
cost-reduction
initiatives
and
is an indicator
of CEOs’
long-lasting
focus
onindicator
cost efficiency
establishing
alliances
(see Figure
7). This
is an
of
of their
companies.
CEOs’
long-lasting
focus on cost efficiency of their
companies.
It has become more difficult
to pin down where growth will
It has from,
become
more
difficult
come
but
CEOs
are still
Azerbaijan
to
pin
down
where
growth
banking
on
familiar
faces.
The
was not cited by
will come
from,
but CEOs
United
States
(39%)
and are
China
CEOs globally as
(34%),
and to
a lesser extent
still banking
on familiar
a country most
Germany
(19%)
important for their
faces. The United and
Statesthe UK
overall growth
(11%),
remain
the
countries
(39%) and China (34%), andthat
prospects over the next
most
CEOsextent
globally
cite among
to a lesser
Germany
12 motnhs
their top overseas
growth markets.
CEOs
in
Azerbaijan
(19%) and the UK (11%), cited
neighbouring
countries
as
the
geographies
most
important
remain the countries that most CEOs
globally cite
among
for their business growth (see Figure 6).
their top overseas growth markets. Azerbaijani CEOs cited
neighbouring countries as the geographies most important
for their business growth (see Figure 6).
Figure 7 CEOs are less confident about global economic growth prospects in the uncertain times
Q: Which, if any, of the following restructuring activities do you plan to initiate in the coming 12 months?
World
Russia
81%
Azerbaijan
68%
64%
49%
43%
27%
24%
7%
9%
22%
27%
31%
34%
8%
Complete a cross-border Complete a domestic M&A
M&A
PwC
28%
Outsource a business
process or function
Enter into a new strategic Implement a cost-reduction
alliance or joint venture
initiative
4
PwC Azerbaijan
9
Moving
Movingbeyond
beyond
Moving
beyond
globalisation
globalisation
globalisation
This complicated world picture is not just being shaped
This complicated
world
picture
is is
not
just
being
shaped
byby
complicated
world
picture
not
just
being
shaped
by This
economic
and geopolitical
trends.
There
is a more
economic
and
geopolitical
trends.
There
is
a
more
fundamental
economic and
trends.
There
is aa globalising
more fundamental
fundamental
shiftgeopolitical
taking place,
namely
from
shift
taking
place,
namely
from
a globalising
world
to one with
shift
taking
place,
namely
from
a
globalising
world
world to one with many dimensions of power, growthto one with
many
dimensions
of
power,
growth
and
threats
–
a
many
dimensions
of
power,
growth
and
threats
–
aThe
transition
and threats – a transition that is called multi-polar.transition
that
is is
called
multi-polar.
The
majority
ofof
CEOs
from
that
called
multi-polar.
The
majority
CEOs
from
majority
of
CEOs
from Azerbaijan
already
anticipate
this
Azerbaijan
already
anticipate
this
shift:
66%
(World,
83%)
Azerbaijan
already
anticipate
this
shift:
66%
(World,
83%)
shift:
66% (World,
83%)
predict
differing
fundamental
predict
differing
fundamental
belief
systems
underpinning
belief
systems
underpinning
societies,
63% (World,
79%)
predict
differing
fundamental
belief
systems
underpinning
societies,
63%
(World,
expect
increasing
role
of63%
regional
expect
increasing
role of79%)
regional
investment
banks,
societies,
63%
(World,
79%)
expect
increasing
role
of
regional
investment
63%
(World,
81%)
see
increasingly
divergent
(World,
81%)banks,
see
increasingly
divergent
systems
of laws
investment
banks,
63%
(World,
81%)
see
increasingly
divergent
and
liberties,
andand
56%
(World,and
53%)
see(World,
growing
trend
of
systems
ofof
laws
liberties,
56%
53%)
sees
systems
laws
and
liberties,
and
56%
(World,
53%)
sees
nationalism
andofdevolving
nations.
No wonder
there No
isNo
so
growing
trend
nationalism
and
devolving
nations.
growing
trend
of
nationalism
and
devolving
nations.
much
concern
about
growth
and where
it
will come
from.
wonder
there
is
soso
much
concern
about
growth
and
where
it it
will
wonder
there
is
much
concern
about
growth
and
where
will
come
from.
come
from.
The one area where CEOs from Azerbaijan (69%) and
The
one
area
where
CEOs
from
Azerbaijan
(69%)
and
globally
(72%),
in
contrast,
see
greater
convergence
is globally
the
The
one
area
where
CEOs
from
Azerbaijan
(69%)
and
globally
Internet
–
but
even
this
plays
a
core
role
in
highlighting
(72%),
in
contrast,
see
greater
convergence
is
the
Internet
––
but
(72%), in contrast, see greater convergence is the Internet
but
divergent
beliefs
even
as
it
brings
the
world
closer
together
even
this
plays
a
core
role
in
highlighting
divergent
beliefs
even
even this plays a core role in highlighting divergent beliefs even
(see
8).
asas
itFigure
brings
the
world
closer
together
(see
Figure
8).8).
it
brings
the
world
closer
together
(see
Figure
CEOs
globally
including
CEOs
from
Azerbaijan
believe
that
CEOs
globally
including
CEOs
from
Azerbaijan
believe
that
technological
advances
are
the
main
global
trend,
which
will
technological advances are the main global trend, which
will
most
likely
transform
wider
expectation
ofof
business
followed
most
likely
transform
wider
expectation
business
followed
byby
shifts
inin
demographics
and
global
economic
power.
shifts
demographics
and
global
economic
power.CEOs
CEOs
from
Azerbaijan
identified
other
global
will
power.
CEOs from
Azerbaijan
identified
other which
global
trends,
from
Azerbaijan
identified
other
globaltrends,
trends,
which
will
influence
stakeholder’s
expectations
such
asas
oiloil
prices,
which
willthe
influence
the stakeholder’s
expectations
such
as
influence
the
stakeholder’s
expectations
such
prices,
health
awareness
ofof
people
and
improvement
ofof
oil
prices,
health awareness
ofand
people
and improvement
of
health
awareness
people
improvement
infrastructure
(see
Figure
infrastructure
9).9).
infrastructure
(see
Figure
Figure
9 Technological
advances
are
seen
asas
the
main
Figure
9 Technological
advances
are
seen
the
main
global
tend
global
tend
Q:Q:
Please
rank
the
top
three
global
trends,
which
you
believe
Please
rank
the
top
three
global
trends,
which
you
believe
will
bebe
most
likely
toto
transform
wider
stakeholder
expectations
ofof
will
most
likely
transform
wider
stakeholder
expectations
business
within
your
sector
over
the
next
five
years
business
within
your
sector
over
the
next
five
years
This
greater
devolution
ofof
power
threats
and
This
greater
devolution
of
power
brings
both
This
greater
devolution
power
brings
both
threats
and
and
opportunities.
Different
points
of
view,
exacerbated
opportunities.
Different
points
of
view,
exacerbated
by
opportunities. Different points of view, exacerbated by
by
economic
insecurities,
are
certainly
leading
tomore
more
economic
insecurities,
are
certainly
leading
toto
more
conflict.
economic
insecurities,
are
certainly
leading
conflict.
conflict.
However,
regional
trading
blocs,
for
example,
can
However,
regional
trading
blocs,
for
example,
can
lead
to
However, regional trading blocs, for example, can lead
to
lead
to
better
quality
trade
agreements
and
policies.
better
quality
trade
agreements
and
policies.
better quality trade agreements and policies.
CEOs globally including CEOs from Azerbaijan believe that
technological advances are the main global trend, which
will most likely transform wider expectation of business
followed by shifts in demographics and global economic
Figure
8 CEOs
must
navigate
anan
increasingly
complicated
and
multi-polar
world
Figure
8 CEOs
must
navigate
increasingly
complicated
and
multi-polar
world
Q:Q:
For
each
alternative,
please
select
the
one
that
you
believe
the
world
is is
moving
more
towards
For
each
alternative,
please
select
the
one
that
you
believe
the
world
moving
more
towards
PwC
PwC
10
19th Annual Global CEO Survey / Azerbaijan
55
Addressing bigger
expectations
Addressing
bigger
Addressing
bigger
Addressing
bigger
expectations
expectations
expectations
Figure 10 CEOs believe customers are seeking relationships with
organisations that address wider stakeholder needs
Q: Thinking about the wider stakeholder expectations you see, which of
As technology and other factors create an environment of
these statements best describes your organisation?
higher transparency, CEOs have set their radar on a wide
10 CEOs
believe customers
arerelationships
seeking relationships
with
Figure 10 Figure
CEOs believe
customers
are seeking
with
range of stakeholders.
Customers
the top priority,
As technology
and other factors
createremain
an environment
of
organisations
thatwider
address
wider stakeholder
needs
organisations
that address
stakeholder
needs
with
the majorityCEOs
of CEOs
in set
Azerbaijan
andon
globally
We are expected to address
higher
transparency,
have
their radar
a wide
Q:about
Thinking
about
the wider stakeholder
expectations
you see,
wider
stakeholder
needs
Q:
Thinking
the wider
stakeholder
expectations
you see, which
of which of
indicating
they
have
a
high
or
very
high
impact
on
their
As
technology
and
other
factors
create
an
environment
of
As technology
and other
factors create
environment
range
of stakeholders.
Customers
remainanthe
top priority,of
these statements
best your
describes
your organisation?
these statements
best describes
organisation?
business
strategy.
The
government
and
regulators
come
in
higher
transparency,
CEOs
have
set
their
radar
on
a
wide
higher
transparency,
CEOs
have set their
on a wide
with
the majority
of CEOs
in Azerbaijan
andradar
globally
Our customers seek a mix of
second.
That’s
than
industry
competitors
and
range
ofhigher
stakeholders.
Customers
remain
the peers
top priority,
indicating
have
a high
or very
high
impact
on
range
ofthey
stakeholders.
Customers
remain
the
toptheir
priority,
cost, convenience and
andthe
no
doubt
reflects
CEOs’
enduring
concerns
about
overwith the
majority
ofAzerbaijan
CEOs
in regulators
Azerbaijan
and globally
business
strategy.
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government
and
come
in
with
majority
of
CEOs
in
and globally
We aretofunctionality
expected
We are expected
address to address
wider stakeholder
needs
wider
stakeholder
needs
second.
That’s
higher
than
industry
competitors
and
peers
regulation
in
the
marketplace
(see
Figure
11).
indicating
they
have
a
high
or
very
high
impact
on
their
indicating they have a high or very high impact on their
We invest in a standalone
andbusiness
no doubt
reflects
CEOs’
enduring
concerns
about
overbusiness strategy.
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strategy.
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OurCSR
customers
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We weresecond.
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the
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regulation
the
(seethat
Figure
11). competitors
That’s
higher
than
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second. in
That’s
higher
than
industry
competitors
and peers
cost, convenience
and
cost, convenience
and
Azerbaijan
(66%)
and
globally
(70%)
feel
their
customers
are
functionality
and no
doubtCEOs’
reflects
CEOs’ enduring
about over- Our investors
functionality
and no doubt
reflects
enduring
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about overare seeking
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interested
in in
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We were
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seeconvenience
that the majority
of CEOs
ethical investments
marketplace
(see
Figure
11).in But
regulationregulation
in the marketplace
(see Figure
11).
Azerbaijan
(66%)
and globally
(70%)
their
customers
we were
surprised
to discover
thatfeel
in five
years’
time almost
We
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CSRvalue
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Creating
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half
of
Azerbaijani
CEOs
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that
theirfunctionality.
customers
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We surprised
wereinnot
surprised
seemajority
that
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of CEOs
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of
CEOs will
in
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helps
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ButAzerbaijan
we
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that
in
five
years
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seekingAzerbaijan
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that feel
address
(66%)
globally
theirwider
customers
are
(66%) and
globally
(70%)
feel(70%)
their
customers
are
profitable
Ourare
investors
are seeking
Our investors
seeking
almost
half
of
CEOs
in
Azerbaijan
believe
that
their
stakeholder
mostneeds.
interested
in cost, convenience
and functionality.
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most
interested
in cost, convenience
and functionality.
But
ethical investments
ethical investments
customers
seeking
relationships
with
organisations
we be
were
surprised
to that
discover
that
in five
years’
time almostTop talent prefer to work for
we were will
surprised
to discover
in five
years’
time
almost
is ahalf
lot of
of Azerbaijani
change
in a CEOs
relatively
short time.
it is not organisations
that That
address
wider
stakeholder
needs.
social values
Creating
value for wider
believe
theirAnd
customers
be Creating with
value
for wider
half of Azerbaijani
CEOs believe
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customers
will be will which
are aligned
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just happening
on
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customer
front.
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talent
side
it
is
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stakeholders
helps
us to be us to be
seeking relationships
with organisations
thatwider
address wider
seeking relationships
with organisations
that address
Thateven
is amore
lot pronounced.
of change in41%
a of CEOs in Azerbaijan (World,
Our purpose isprofitable
centred onprofitable
stakeholder
stakeholder
needs. needs.
creating
value for
relatively
short
time.
And
it
59%), believe that top talent wants to work with
Top talent
prefer
Top talent prefer
to work
for to work for
shareholders
is That
not
just
happening
on
the
organisations
that
social
values
and
53%
That
a lotshare
of
in
a relatively
short
time.
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is not organisations
social values
is a lot
of is
change
inchange
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relatively
short
time.
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it(World,
is not
with social with
values
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focused
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front.
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the
talent
which
are
aligned
to their own
which
toprimarily
their
ownon
67%)
feel
it happening
will
even
more
important
in
years.
just
on
the customer
On
the
it isarefinancial
just
happening
on
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customer
front. Onfront.
thefive
talent
sidetalent
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matters in our
side it
is
even
more
pronounced.
Meanwhile,
44%
CEOs
inof
Azerbaijan
(World,
moreofpronounced.
41%in
ofAzerbaijan
CEOs
in 37%),
Azerbaijan
Our
is centred on
even
moreeven
pronounced.
41%
CEOs
(World, (World,
reporting
Our purpose
is purpose
centred
on
41% of CEOs in Azerbaijan
creating
creating value
for value for
believe
their
investors
seektop
ethical
andwith
53%
59%),
believe
that
talent
wantswith
to work
59%),
believe
that
top talent
wants
toinvestments
work
shareholders
(World, 59%), believe that
shareholders
(World,organisations
45%) believe
this
betheir
the case
in values
five years
that will
share
social
and(see
53% (World, We prioritise short-term
toporganisations
talent wantsthat
to share
work their
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overfocused
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focused
primarily on
We’re
primarily
on
Figure
67%)
feel even
it willmore
be even more important in five years.
67%)
feel10).
it will
financial
matters in our
organisations
thatbeshare
theirimportant in five years.
financial matters
in our
44%
ofAzerbaijan
CEOs in Azerbaijan
(World, 37%),
Meanwhile,
44%53%
of CEOs
in
(World, 37%),
reporting reporting
social
valuesMeanwhile,
and
(World,
believe
their
investors
seek
ethical
investments
and
53%
believe
their
investors
seek
ethical
investments
and
53%
67%) feel it will be even
We
prioritise short-term
short-term
(World,
believe
this
bein
the
case
in five
(World,
45%)
believe
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years
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years.
overprofitability
long-term profitability
over long-term
Figure
10).
Figure 10).44% of CEOs in
Meanwhile,
Figure
11 Customers
and clients
top priority
CEOs
Azerbaijan
(World,
37%), believe
theirare
investors
seekfor
ethical
investments
and
53%
(World,
45%)
believe
this
will
be
the
Q: What impact do the following wider stakeholder groups have on your organisation's strategy?
case in five years (see Figure 10).
11 Customers
and
are top
Figure 11 Figure
Customers
and clients
areclients
top priority
forpriority
CEOs for CEOs
Q: What
do thewider
following
wider stakeholder
groups
have
on your organisation's
Q: What impact
do impact
the following
stakeholder
groups have
on your
organisation's
strategy? strategy?
In the future
it seems clear
that CEOs believe
customers will put
a premium on the
In the futu
In the
future
way
companies
it seems cle
it seems
clear
conduct
themselves
CEOs belie
that
believe
inCEOs
boththat
domestic
customers
customers
willsociety
put will p
and global
a on
premium
on t
a premium
the
way compan
way companies
conduct themselv
conduct themselves
in both domes
in both domestic
global soci
and globaland
society
PwC
PwC
6
PwC
6
PwC Azerbaijan
11
Figure 12 A majority of leaders have an organisational
purpose that reflects greater expectations of business
Q: In which of the following ways has your organisational
purpose been impacted by stakeholder expectations?
(World, 12%) or “having changed within the last three years”
(24%). In total 63% of all CEOs (World, 69%) linked their
organisation’s purpose to a broad set of constituents in society
(see Figure 12).
But what do CEOs really mean by
purpose? For some, it’s why their
business exists; for others it’s more
around what their businesses do
or aim to achieve, or how business
is done. And how do they perceive
their organisation’s
of CEOsbroader
believe impact
on society? When
to describe
the asked
top talent
their corporate
purpose,
prefers
to work CEOs
for talked
about value for organisations
one or more of a
providing
variety of stakeholders,
including
competitive
shareholders, supply chain partners, employees,
customers
compensation
and society at large – as well as their business itself, in terms of
things like growth, productivity or cost.
59%
Over half of CEOs in Azerbaijan define their organisation by
the value that is created for society. This acknowledgement
Overof
half
Azerbaijani
CEOs
define their organisation
In this increasingly complex world, are leaders altering their
theofchanging
needs
of stakeholders
– is reflectedbyinthe
other
organisation's purpose in order to reflect greater
valueways
that is
created
for
society.their
This
acknowledgement
ofCEOs
the
that
CEOs
describe
organisation.
75%
of
In this increasingly
complex
world,that
are almost
leadershalf
altering
their changing needs of stakeholders – is reflected in other ways that
expectations
of business?
We found
(47%)
(World, 84%) believe their companies are expected to address
organisation’s
purpose
in
order
to
reflect
greater
expectations
of respondents in Azerbaijan (World, 45%) said that their
CEOswider
describe
their organisation.
75%
of CEOs
(World,
stakeholder
expectations;
94%
(World,
82%)84%)
tell us their
of business? purpose
We found
that almost
half (47%)
of respondents
organisation's
always
had a broader
purpose.
The
believe
their
companies
are
expected
to
address
wider
company
prioritises
long-term
over
short-term
views;
53%
in Azerbaijan
(World,divided
45%) said
that(16%
theireach)
organisations
rest
of CEOs’ opinions
equally
admitting
stakeholder
expectations;
94%
(World,social
82%)responsibility
tell us their is core to
(World,
64%)
say
that
corporate
not
changing
not considering
(World,
16%),
notopinions
always
had aand
broader
purpose. The
rest of
CEOs’
company
long-term
short-term
views;
53%
theirprioritises
business rather
thanover
being
a stand-alone
programme;
and
changing
but considering
to (World,
12%)
or changing
having changed
divided equally
(16% each)
admitting
“not
and not (World,
64%)
say that
corporate
social
responsibility
isnon-financial
core to
72%
(World,
72%)
say
their
company
reports
on
as
within
last three
years (24%).
In total
63% ofbut
allconsidering
CEOs
considering”
(World,
16%), “not
changing
to” their business rather than being a stand-alone programme; and
well
as
financial
matters
(see
Figure
10).
(World, 69%) linked their organisation's purpose to a broad
72% (World, 72%) say their company reports on non-financial as
set of constituents in society (see Figure 12).
well as financial matters (see Figure 10).
But what do CEOs really mean by purpose? For some, it’s
why their business exists; for others it’s more around what
their businesses do or aim to achieve, or how business is
done. And how do they perceive their organisation’s broader
impact on society? When asked to describe their corporate
purpose, CEOs talked about value for one or more of a
variety of stakeholders, including shareholders, supply chain
partners, employees, customers and society at large – as well
as their business itself, in terms of things like growth,
productivity or cost.
PwC
12
7
19th Annual Global CEO Survey / Azerbaijan
Transforming:
technology,
Transforming:
innovation
and talent
technology,
innovation and
talent
These barriers to execution are creating conflicts for companies
trying to balance changing stakeholder expectations with
pursuing business growth and profitability over both the short
and long term. Nevertheless, CEOs are increasingly aware that
they must overcome these barriers in order to transform their
businesses
align
broader strategies.
over
both the and
short
andthem
long fully
term.behind
Nevertheless,
CEOs are
It is evident that most businesses
today, in defining what they stand for,
increasingly aware that they must overcome these barriers in
recognise the needs of a wider set of
order to transform their businesses and align them fully behind
stakeholders – and their customers’
broader strategies.
expectations about how they address
It is evident that most
businesses
today, in defining
what
those
needs. Translating
a broader
they stand for, recognise
the needs
of ainto
wider
of
corporate
purpose
theset
everyday,
stakeholders – andhowever,
their customers’
expectations
about how
is another
matter entirely.
they address those Even
needs.theTranslating
a
broader
corporate
most committed can find
purpose into
theextreme
everyday,
however,their
is another
matter
it challenging
in the
to reshape
company
entirely. Even the most committed can find it challenging in
while facing day-to-day battles on every front to fight off
the extreme to reshape their company while facing day-tocompetition,
grow revenues and cut costs. There are a
day battles on every front to fight off competition, grow
number
of
barriers
thatcosts.
CEOsThere
say they
encountering
when
revenues and cut
are are
a number
of barriers
that
responding
to
the
changing
expectations
of
customers
and
CEOs say they are encountering when responding to the
otherchanging
stakeholders.
expectations of customers and other stakeholders.
Chief among
are the
Chief among these are the additional
coststhese
of doing
business,
costs of doing
business,
cited. Second comes the lack additional
of right capabilities.
Compliance
% cited. Second comes the lack of
with unclear or inconsistent regulations, also incur costs,
right capabilities. Compliance with
which are often passed onto customers
via higher prices. This
unclear or inconsistent regulations,
of Azerbaijan
adds to the premium
that
customers
often
have to pay for
CEOs see no
also incur costs, which are often
goods and services
deemed
(see
Figure 13).
barriers
for sustainable
passed onto customers
via higher
13
their business
prices. This adds to the premium
execution are
creating
conflicts
that
customers
oftenfor
have to pay for
companies
trying
to
balance
changing
stakeholder
goods and services deemed sustainable (see Figure 13).
expectations with pursuing business growth and profitability
4These
Sectionbarriers
C (Leyla) to
Contents Section A (Vedad) Section B (Leyla)
Section C (Leyla)
Section D (Sedi)
Which of the following barriers, is your organisation encountering
when
responding
to wider
expectations?
Figure
13 CEOs are facing a number
of barriersstakeholder
to execution when responding
to changing customer and stakeholder
expectations
Q: Which of the following barriers is your organisation encountering when responding to wider stakeholder expectations?
44%
42%
45%
38%
33%
31%
31%
28%
28%
24%
19%
Conflict between
stakeholder
interests and
financial
performance and
expectations
PwC
CEO Survey
19%
31%
28%
23%
20%
Misalignment
between stakeholder
interests and
business strategy
Insufficient
information about
wider stakeholder
expectations
Customers’
unwillingness to
pay
Azerbaijan
Inability to
effectively execute
on our strategy
Global
Strictly private and confidential
Unclear or inconsistent
standards and
regulations
Lack of the
right
capabilities
Additional costs to
doing business
8
PwC Azerbaijan
8 February132016
23
Figure 14 Marketing, brand, communications and risk
management are the top areas in which CEOs are making
significant changes to respond to stakeholder expectations
Q: To what extent are you making changes in the following areas in
response to changing stakeholder expectations?
Figure 14 Marketing, brand, communications and risk
management are the top areas in which CEOs are making
significant changes to respond to stakeholder expectations
How
define
Q:
To we
what
extentand
are you making changes in the following areas in
manage
risks
response to changing stakeholder expectations?
How we manage our
brand,
marketing
How
we define
and and
communications
manage
risks
At the top of CEOs’ minds from
Azerbaijan is the improvement of
risk definition and management
(97%; World, 93%) in order to
better assess upcoming threats
and avoid them. The next priority
have the brand, marketing and
communications (90%, World,
92%), and the partners and the
ways companies communicate
with them (91%; World, 85%) (see Figure 14).
Every CEO in the survey says they are making changes to the
way they use technology to assess and deliver on customer and
stakeholder expectations. They say the technologies delivering
the greatest returns are data and analytics.
How we develop new
How we manage our
‘ethical’
products
brand,
marketing
and and
services
communications
How
we develop
new
Workforce
rights
‘ethical’
products and
and wellbeing
services
72% of CEOs (World, 65%) ranked customer relationship
management systems as generating the second greatest return
in terms of successful stakeholder engagement.
Workforce
How werights
partner and
and
wellbeing
who
we partner with
Today, some of the most in-demand products reflect
customers’ changing values. Digitisation is central to these
efforts, allowing companies to obtain and utilise data about
business processes that is necessary to support innovation
efforts, and to remove costs from the system through greater
efficiencies.
How we partner and
Our
who
wevalues,
partner ethics
with and
codes of conduct
How
we measure
Our
values,
ethics and
success
and what we
codes
of conduct
hold ourselves
How
we measurefor
accountable
success and what we
hold
ourselves
How
we minimise social
accountable
for
and environmental
impacts
of oursocial
business
How
we minimise
operations
and
environmental
impacts of our business
operations
How we
manage our
How
taxwe
affairs
manage our
tax affairs
World
Azerbaijan
Azerbaijan
World
Figure 15 Most CEOs see data and analytics technologies as
Figure
15 Mostthe
CEOs
see data
and analytics
technologies
as
generating
greatest
return
for stakeholder
engagement
generating the greatest return for stakeholder engagement
Q: Select the technologies with the greatest return in terms of
Q: Select the technologies with the greatest return in terms of
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PwC
tools
listening tools
PwC
14
19th Annual Global CEO Survey / Azerbaijan
management
systems
9
9
What are CEOs doing to develop the workforce they need
What are CEOs doing to develop the
Figure 17 CEOs are most likely to change their talent strategy
%Almost
for today and tomorrow?
three-fourths are making
workforce they need for today and
to focus on their leadership pipeline
changes to the way how they develop their leadership
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pipeline. of Azerbaijan plan
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to decrease
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Figure 17 CEOs are most likely to change their talent strategy
headcount of
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16 Nearly
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50
50
Q: Do you expect headcount at your company to increase,
decrease or stay the same over the next 12 months?
Figure 16 Nearly half of CEOs expect to decrease
headcount over the next 12 months
Q: Do you expect headcount at your company to increase,
decrease or stay the same over the next 12 months?
31%
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Azerbaijan
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CEOs also recognise the importance of tying workplace culture to
behaviour; with 34% (Word, 41%) making changes to this aspect of
their talent strategies (see Figure 17). Indeed, companies that are
CEOs also recognise the importance of tying workplace
highly coherent – those with strong alignment between their value
culture to behaviour; with 34% (Word, 41%) making changes
CEOs
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as their
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alignment
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(see Figure 16).
PwC
10
PwC Azerbaijan
15
When asked to cite
top three outcomes
most important
to Azerbaijani
today, CEOs
When asked to cite top three outcomes society
most important
to
citedfor
need
for
Azerbaijani society today, CEOs cited need
skilled
skilled workforce,
workforce, improvement of a more understandable
and
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effective tax system and new jobs for workforce
(see Figure
18).
of a more
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CEOs in Azerbaijan
effective tax system
view economic
and new jobs for
factors to be most
of Azerbaijani
workforce
important to society
CEOs cited economic factors
(see
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society, 18).
while
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Figure 18 All of top three outcomes cited by CEOs to be
important to society are economic factors
Q: Which three outcomes do you think are most important to society
today in Azerbaijan?
$
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Tax system
Azerbaijan
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Figure 19 Tax system, income equality and skilled workforce
were rated by CEOs as priority for the government, but assessed
the government to be ineffective in achieving these outcomes
% of CEOs who think issue
should be a top-three government
priority
social concerns like good
three, other
health
and well-being
of the
CEOs
in Azerbaijan
factors
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important
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top
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other
they think society
reduced environmental
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outcomes
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greater
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equality,
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development
of in
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digital and
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support
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globally
rated
similarinfrastructure,
factors to be the
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globally rated similar factors to be the most important to
society
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More
than
50 % of CEOs indicated that the government’s
actions in providing stable and effective tax system, a
More than
50 % ofgreater
CEOs indicated
that theare
government’s
skilled
workforce,
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actions
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ineffective or greatly ineffective. However, infrastructure
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received
positive
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95% ofare
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infrastructure
received
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positive
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as 95%
of CEOs
evaluated
the outcomes
(see
Figure19).
When
it comes
to which
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government’s
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(see
need to be government priorities-they stated that clearly
Figure19). When it comes to which of these outcomes need
understandable tax system, high levels of employment
to be government priorities-they stated that clearly
and skilled workforce need to be government priorities in
understandable tax system, high levels of employment and
which
think most
are necessary.
skilledthey
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Russia
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skilled
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According to the World Bank Report on Azerbaijan in April
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According
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insome
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% of CEOs who think the government has
been ineffective in achieving these outcomes
11
19th Annual Global CEO Survey / Azerbaijan
Top priorities CEOs believe businesses should help deliver in
Top
Top
priorities
priorities
CEOs
believe
believe
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should
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81
81
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Figure 20 There are numerous outcomes CEOs believe
Figure
Figure
2020 There
are
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numerous
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CEOs
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Q: What does your organisation bring to society, which is not
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CEO from a telecom company
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Figure 21 CEOs acknowledge the importance of tax and see it
Figure
Figure
2121that
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Q:Q:With
With
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44%
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80%
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Figure 22 CEOs believe delivering skilled workforce,
Figure
Figure
2222CEOs
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believe
believe
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skilled
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anddelivering
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Q: Which three of the following outcomes do you think should be
Q:Q:Which
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in Azerbaijan?
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development.”
development.”
CEO from the financial sector
CEO
CEO
from
from
thethe
financial
financial
sector
sector
“We provide reliability and tailoredsolutions
for our
partners.”
“We
“We
provide
provide
reliability
reliability
and
and
tailoredtailoredsolutions
solutions
forfor
our
our
partners.”
partners.”
CEO from the chemicals sector
CEO
CEO
from
from
thethe
chemicals
chemicals
sector
sector
“We are financing students’ overseas
education
and
bringing
world-class
asset
“We
“We
are
are
financing
financing
students’
students’
overseas
overseas
management
principles
and
practiceasset
toasset
education
education
and
and
bringing
bringing
world-class
world-class
Azerbaijan.”
management
management
principles
principles
and
and
practice
practice
toto
Azerbaijan.”
Azerbaijan.”
CEO from an asset management company
CEO
CEO
from
from
anan
asset
asset
management
management
company
company
“We display quality governance of
contracting,
and
investing
in skills
“We
“We
display
display
quality
quality
governance
governance
ofof
development
ofand
the
workforce.”
contracting,
contracting,
and
investing
investing
in in
skills
skills
development
development
ofof
the
the
workforce.”
workforce.”
CEO from an Oil & Gas company
CEO
CEO
from
from
anan
OilOil
&&
Gas
Gas
company
company
PwC
PwC
PwC
12
1212
PwC Azerbaijan
17
Measuring and
communicating
success
Measuring and
communicating
success
More than half of CEOs in Azerbaijan agree that the
business landscape is changing in a way that firms will not
be sustainable with only having profit-driven business
model (see Figure 23).
Most Russian CEOs also agree with the view that the
success of the business in the twenty-first century will be
defined not only by profit. This view is supported by more
than
two-thirds
of theinCEOs
in the United
States,
well as
More
than
half of CEOs
Azerbaijan
agree that
the as
business
nearly two-thirds
executives
around
landscape
is changingofinbusiness
a way that
firms will
not bethe world.
sustainable with only having profit-driven business model
Strategy&
recently studied some of the world’s most
(seePwC’s
Figure
23).
successful companies, noting that a key part of their success
was committing to an identity and aligning their entire
Most CEOs from Russia also agree with the view that the
organisation around that. Therefore, besides profit
success
of the business
in the twenty-first
be what
maximisation,
the companies
should becentury
able to will
define
defined
not
only
by
profit.
This
view
is
supported
by
more
they stand for, how they add value to all internal
than
two-thirds of
the
CEOs
in the
United
States,
well assuch
stakeholders
and
build
their
identity
around
it. asHaving
nearly
two-thirds
of
business
executives
around
the
world.
purpose is what should help define success in the long run.
PwC’s
Strategy&
recently
studied
some
of the
world’s
Over
half of CEOs
globally
(53%)
define
their
organisation
bysuccessful
the value that
is created
for customers.
But of
most
companies,
noting
that a key part
ofthose
their
CEOs,
over
a third (35%)
talk about
value fortheir
wider
success
was
committing
to analso
identity
and aligning
society,
employees
and/or
supply
chain partners,
reflecting a
entire
organisation
around
that.
Therefore,
besides profit
clear recognition
of the changing
of their
maximisation,
the companies
shouldexpectations
be able to define
what
theycustomers.
stand for, how they add value to all internal stakeholders
and build their identity around it. Having such purpose is
This
acknowledgement
of the in
changing
what
should
help define success
the longneeds
run. of customers –
as well as those of other stakeholders, including their
employees – is reflected in other ways that these CEOs
describe their organisation. 84% of CEOs globally believe
their companies are expected to address wider stakeholder
expectations; 82% tell us their company prioritises longterm over short-term views; 64% say that corporate social
responsibility is core to their business rather than being a
stand-alone program; and 72% say their company reports on
non-financial as well as financial matters.
PwC
18
19th Annual Global CEO Survey / Azerbaijan
Figure 23 Majority of CEOs in Azerbaijan also believe that in the
long-run success of business will not be only about seeking financial
profit
Q: To what extent do you agree that business success in the 21 st century
will be redefined more than financial profit?
11%
21%
28%
13%
14%
16%
76%
65%
56%
CEOs in Azerbaijan
CEOs in Russia
Agree
Neither
Global CEOs
Disagree
13
Research
methodology
and
Research
Research
contacts
methodology
and
methodology and
contacts
6%
In total 32 CEOs took part in the Azerbaijan Survey this
year. The CEOs of Azerbaijan state companies did not take
In total 32 CEOs took part in the Azerbaijan Survey this year.
part in the Survey. To obtain a comprehensive picture we
The
CEOs
Azerbaijan
state
companies
didSurvey
not take
part in
In total
32of
CEOs
took
part
in
the
Azerbaijan
selected
CEOs
from
different
industries
represented
inthis
the
the Survey.
To obtain
a comprehensive
picture we
selected
year. The
CEOs O&G,
of Azerbaijan
companies
did
take
country,
including
financialstate
sector,
telecom,
etc.not
The
CEOs from
different industries
represented
in the
country,
part
in
the
Survey.
To
obtain
a
comprehensive
picture
we
CEOs
were asked
regarding
development
including
Oil &questions
Gas, financial
sector,
telecom, etc. The CEOs
selected
CEOs
from
different
industries
represented
in
prospects
for the
world economy,
companiesprospects
and thefor
were asked
questions
regardingtheir
development
country,
including
O&G,
financial
sector,
telecom,
The
different
markets,
changes
business practices,
and etc.
the world
economy,
theirincompanies
and different
markets,
CEOs
were
asked
questions
regarding
development
business
development
They
also asked
to
changes
in business trends.
practices,
andwere
business
development
prospects
for
the
world
economy,
their
companies
and on
express
their
opinions
on government's
policies.
the
trends.
They
were
also
asked to express
their All
opinions
different
markets,
changes
in
business
practices,
and
government’s
policies.were
All the
interviews
Azerbaijan
were
interviews
in Azerbaijan
finalised
by theinend
of
business2015.
development
They
wereConfidentiality
also asked
to was
finalised
by
theConfidentiality
end of trends.
November
2015.
November
was
maintained
throughout
express
their
opinions onobtained
government's
policies.
the
throughout
the
research.
obtained
themaintained
research.
Information
in theInformation
study
wasAll
not
interviews
in
Azerbaijan
were
finalised
by
the
end
of
in the study
was
not attributed
to any
attributed
to any
particular
company,
butparticular
referred tocompany,
only in
November
Confidentiality
was
maintained
but
referred
to only
in
thesize
industry
asthroughout
a whole, the
relation
to the2015.
industry
asrelation
a whole,tothe
of organisation
size
of organisation
and
other
demographic
data.
the
research.
Information
obtained
in the study
was not
and
other
demographic
data.
attributed to any particular company, but referred to only in
relation to the industry as a whole, the size of organisation
and other demographic data.
94%
100%
6%
Gender
100%
of CEOs
Gender
of CEOs
World
94%
Azerbaijan
Azerbaijan
World
Figure A Profile of CEOs from Azerbaijan who participated in the Survey
Figure A ProfileCompanies'
of CEOs fromrevenue
Azerbaijan who participated in the Survey
Less than 50 mln
Companies' revenue
9
9
50-250 mln
251-500 mln
2
More than 500 mln
Refused to answer
Standalone company
11
Less than 50 mln
50-250 mln
251-500 mln
More than 500 mln
11
2
3
Type of companies
Type of companies
22% ownership or backing
Business
has government
Yes
12%
PwC
22%
NoYes
3
12%
7
7
Don't know/Refused
PwC
60%
Subsidiary of a parent
9%
53%
company which is based
Standalone
company
15%
in this country
60%
Subsidiary of a parent
38%
Subsidiary of a parent
9%
company which is based
company which is based
25%
outside of this country
15%
in this country
Subsidiary of a parent
38%
company which is based
25%
Business
has government ownership or backing
outside
of this country
Don't know/RefusedNo
Refused to answer
53%
78%
87%
78%
1%
87%
1%
14
14
PwC Azerbaijan
19
Working group and
key contacts
Editorial and writing: Movlan Pashayev, Yodgor Gafurov,
Aysel Suleymanova, Leyla Aliyeva, Vedad Rzaly,
Zumrud Mammadova
Face-to-face interviews: Movlan Pashayev,
Petko Dimitrov, Yodgor Gafurov, Aysel Suleymanova,
Zumrud Mammadova
Research and data analysis: Yodgor Gafurov,
Leyla Aliyeva, Vedad Rzaly
For further information on the survey content,
please contact:
Movlan Pashayev
Azerbaijan Managing Partner
[email protected]
Emin Shikhgayibov
Azerbaijan Advisory Leader
Director
[email protected]
Nazim Hajiyev
Azerbaijan Deals Leader
Director
[email protected]
Aysel Suleymanova
Marketing & Communications Manager
[email protected]
The Landmark Office Plaza III
12th Floor, 90a Nizami Street
AZ1010, Baku
Tel: +994 (12) 497 2515
www.pwc.com/az
20
19th Annual Global CEO Survey / Azerbaijan
PwC Azerbaijan
21
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