Seasoned finance chiefs explore revamping business models and coping with new competitors, currency risks, and changing capital structures.
At McKinsey’s annual Chief Financial Officer Forum, in London this June, CFO and chief operating officer Samih Elhage of Nokia Networks, Manik (“Nik”) Jhangiani of Coca-Cola Enterprises, and former Alstom CFO Nicolas Tissot took up some of the challenges facing today’s finance chiefs. Over the course of an hour, the panelists explored the pricing threat posed by a new breed of low-cost competitors now rising in emerging markets, the risks from the resurgent volatility of currency markets, and the brave new world of cheap debt financing and its implications for capital structures.
The discussion, moderated by Financial Times Lex column editor Robert Armstrong, shapes a profile of the skills and tactics that define the modern CFO. The edited highlights below begin with the question of whether CFOs should make challenging the existing business model part of their role.
Competitive dynamics and pricing