Exam II Lectures 6.2.pptx

Session 9 African Company Strategies Three Strategies 1. City-based vs Country-based 2. Business Model Clone vs Business Model Innovation 3. Short-term vs Resilience INDIANA UNIVERSITY City-based vs Country-based 40% of Humanity by 2100 !!!! 3.9B People By the end of this century, the UN projects th...

Session 9 African Company Strategies Three Strategies 1. City-based vs Country-based 2. Business Model Clone vs Business Model Innovation 3. Short-term vs Resilience INDIANA UNIVERSITY City-based vs Country-based 40% of Humanity by 2100 !!!! 3.9B People By the end of this century, the UN projects that Africa, which had less than one- tenth of the world’s population in 1950, will be home to 3.9 billion people, or 40% of humanity. 51 million people will live in the Abidjan – Lagos strip by 2035. Megalopolis: how coastal west Africa will shape the coming century Rapid Urbanization: Emergence of Megalopolis: - Coastal West Africa is undergoing rapid urbanization, with cities like Lagos, Accra, and Abidjan expanding at an unprecedented rate. -"Megalopolis," a continuous urban area stretching along the coast from Senegal to Nigeria. - This urban growth is driven by factors such as population increase, rural-tourban migration, and economic opportunities in these cities. - This megalopolis is projected to become one of the most significant population centers in the world by the end of the century. Megalopolis: how coastal west Africa will shape the coming century Climate Change Vulnerabilities - Coastal West Africa faces significant vulnerabilities to climate change, including sea-level rise, erosion, and extreme weather events. - The region's densely populated coastal cities are particularly susceptible to these impacts, posing significant challenges for infrastructure and human settlements. Economic Potential - Despite facing climate-related challenges, Coastal West Africa also possesses significant economic potential, including natural resources, ports, and strategic location for trade. - However, unlocking this potential requires addressing issues such as governance, infrastructure development, and environmental sustainability. Megalopolis: how coastal west Africa will shape the coming century Global Implications - The development and challenges of Coastal West Africa have implications beyond the region, influencing global issues such as migration, security, and climate change adaptation. - International cooperation and support are crucial in addressing the challenges and harnessing the opportunities presented by the emergence of this megalopolis. “...the most successful companies have come up at it from wanting to do the right thing for the continent. So it’s about what we call doing good by doing well. They didn’t come here just because they wanted to make money. They said, “I want to solve a problem and on the back of that I will make money.” You have a longer-term perspective. You have a mind-set of really trying to make a difference and improving people’s lives. And on the back of that also being a win quite How to in Africa, McKinsey successful company for its shareholders.” M-KOPA Solar Across East Africa more than 300,000 households previously without electricity are powering homes and devices with solar panels and using mobile money to pay for it. Hello Tractor This Nigerian-based company provides farmers with affordable access to tractors and other agricultural machinery, enabling them to increase their productivity and yields. LifeBank: This Nigerian-based company uses technology to connect hospitals with blood banks and other medical supplies, improving the availability and accessibility of critical medical resources. Solar Sister: This organization operates in several African countries and empowers women to become clean energy entrepreneurs, selling solar lamps and other energy products in their communities. Sanergy: This Kenyan-based company provides affordable and hygienic sanitation solutions in informal settlements, improving health and sanitation outcomes for residents. Business Model Clone vs Business Model Innovation Sanergy: This Kenyan-based company provides affordable and hygienic sanitation solutions in informal settlements, improving health and sanitation outcomes for residents. Short-term vs Resilience Resilience: Companies can structure their organizations and decision processes for resilience by embracing six principles of long-lasting systems Principle 1: Redundancy Redundancy buffers systems against unexpected shocks, albeit at the expense of short-term efficiency. It can be created by duplicating elements (such as by having multiple factories that produce the same product) or by having different elements that achieve the same end (functional redundancy). Principle 2: Diversity of responses Diversity of responses to a new stress helps ensure that systems do not fail catastrophically. In business, this requires not only employing people from different backgrounds and with different cognitive profiles but also creating an environment that fosters multiple ways of thinking and doing things. Principle 3: Modularity Modularity allows individual elements to fail without the whole system collapsing. Because a modular organization can be divided into smaller chunks with welldefined interfaces, it is also more understandable and can be rewired more rapidly during a crisis. https://hbr.org/2020/07/a-guide-to-building-amore-resilient-business Principle 4: Adaptability Adaptability is the ability to evolve through trial and error. It requires a certain level of diversity, obtained through natural or planned experimentation, in combination with an iterative selection mechanism to scale up the ideas that work best. Processes and structures in adaptive organizations are designed for flexibility and learning rather than stability and minimal variance. Principle 5: Prudence Prudence involves operating on the precautionary principle that if something could plausibly happen, it eventually will. This calls for developing contingency plans — which can be envisioned and prepared for through scenario planning, and other techniques. Principle 6: Embeddedness Embeddedness is the alignment of a company’s goals and activities with those of broader systems. It is critical to long-term success because companies are embedded in supply chains, business ecosystems, economies, societies, and natural ecosystems. Articulating a purpose — the way in which a corporation aims to serve important societal needs — is a good way to ensure that the company does not find itself in opposition to society and inviting resistance, restriction, and sanction.