2 February 2024
PwC Japan Group
The PwC Japan Group (Chairman: Koichiro Kimura) today released the results of PwC’s 27th Annual Global CEO Survey Japan Edition. This survey focuses on the responses from 179 Japanese CEOs extracted from the survey published by PwC Global on January 15, 2024. The survey provides a comparative analysis of Japanese companies with companies around the world as a whole, as well as major foreign countries. It also examines the current situation in which Japanese companies stand and their future issues.
This global survey shows that global CEOs increasingly hold a notion that their company will no longer be economically viable a decade from now, if it continues on its current path (45% in 2024 vs 39% in 2023). Nevertheless, an optimistic outlook for the global economy is increasing among CEOs. More Japanese CEOs are optimistic about the global economy; however, 64% answered that their company will no longer be economically viable a decade from now. This percentage is relatively high compared to CEOs around the world, the US and Western Europe, and surpassed 50% for the second year in a row.
We asked CEOs about factors inhibiting reinvention. Japanese CEOs chose ‘Bureaucratic processes in my company’, ‘Lack of technological capability in my company’ and ‘Lack of skills in my company’s workforce’ at high percentages. Global CEOs mentioned ‘Regulatory environment’ and ‘Limited financial resources’ as factors inhibiting reinvention, both of which Japanese CEOs are less concerned about.
We asked CEOs about generative AI, which attracts huge attention as a leading innovative technology. Over 40% of Japanese CEOs recognised the improvement of ‘Efficiency in my employees’ time at work’ and ‘Efficiency in my own time at work’ as benefits of generative AI. Meanwhile, around 60% of global CEOs anticipate these positive impacts, which indicates that there may be some room for better utilisation of generative AI at Japanese companies.
We asked CEOs about the progress of the actions their companies are taking to address climate change. Japanese CEOs selected ‘In progress’ for each action at a higher rate than CEOs worldwide and in the US and China. The percentages were particularly high for ‘Improving energy efficiency’ and ‘Innovating new, climate-friendly products, services or technologies’.
Koichiro Kimura, Chairman of the PwC Japan Group, stated, ‘This survey showed that the willingness of Japanese CEOs to reform is evident in the various responses. Although the level of urgency about the future has declined slightly compared to the previous survey, it is clear that the majority of CEOs continue to view the situation of their companies a decade from now as an issue. In addition, many CEOs seem to be aware that factors inhibiting reinvention exist in their companies, but they are unsure if they can execute necessary transformation on their own. Technological disruption and decarbonisation have become inevitable issues for all companies. However, both require professional expertise, and furthermore, unexpected risks can suddenly emerge in both areas. Are you a company that can sustain voluntary change for decades, not only when your company faces an actual crisis, but also in any economic or social environment, in preparation for crises yet to be seen? It is exactly at this time, when the economy and company business performance are expected to remain strong, that companies are being questioned about their preparedness.’
PwC surveyed 4,702 CEOs across 105 countries and territories from 2 October through 10 November 2023. The global and regional figures are weighted proportionally to country nominal GDP. The industry and country-level figures are based on unweighted data from the full sample of 4,702 CEOs. The full findings can be accessed on pwc.com/ceosurvey, and the interviews can be found at https://www.strategy-business.com/inside-the-mind-of-the-ceo.
The Japan edition focused on the responses from 179 Japanese CEOs and made a comparative analysis with companies around the world as a whole, as well as major foreign countries.
The PwC Japan Group is a collective name for the member firms of the PwC global network in Japan and their affiliates. Each firm within the PwC Japan Group conducts its business as a separate, independent business entity.
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