Intermarkets’ President Erwin Guerrovich replied:
Our 1987 major objectives were:
a – A targetted modest growth of 50%, owing to the area situation.
b – A re-structuration of our regional operations to answer both client’s new geographical requirements, and own servicing/financial efficiency.
c – Drive on selected local new business acquisitions to further develop our local base in some markets.
Overall, we are satisfied with 1987 as objectives have been met with growth, evaluated at end 1987, to be of 80% consolidated.
However, in individual countries conditions are stepping up in differences (clients priorities, individual markets’ true potentials) which had a bearing on individual offices’ performances. For instance, Saudi Arabia has recorded major growth, while Bahrain recorded decreased performance owing to the market being hit by Saudi commercial television, opening of the causeway and a loss of interest by many clients in Bahrain as a regional centre.
Most of the markets have started levelling off and have adjusted to new conditions. But as we predicted in 1984, the well-managed trading companies and industries have benefited, carving for themselves increasing market shares to the detriment of vulnerable competitors.
Our company looks forward to various new business gains that start in 1988 and the full effort of our regional re-structuration pinpoints towards an objective of 11 per cent consolidated growth.
Our outlook is optimistic. Saudi Arabia, Egypt, Oman, Yemen are growth areas. Developments in the Gulf conflict may hinder evolution.
Originally published in ArabAd in January, 1988