Post on 30-Oct-2014
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Enviro-Can in India: A Solid Waste Management Proposal
Sarah Collins Andy Fraser
Zeeshan JiwaniPernille Mørkeberg
Mame Seydi
Snapshot of Our ProposalStaffing Strategy
Polycentric & Ethnocentric Upper
Management Approach
Organizational Structure
Global Geographic structure
Self-Contained Structure (Composed of
Regional Units)
Control Systems
• Local SBUs have autonomy, some bureaucratic controls in place
Management Style
• Style adhering to high context culture of India
• Formal Style & highly structured
Overview of our Business Plan & Opportunity
Level StrategyGlobalization Strategy
Entry-ModeEstablishing a wholly owned
subsidiary in Mumbai
Marketing StrategyLocal Responsiveness, Transfer
of Core Competencies, Cost Leadership (Efficiency) &
Product Differentiation
Enviro-Can’s Business Plan
Mission Statement
• We strive to provide the urban residents of Mumbai with cost-effective, efficient, eco-friendly waste management system
• We aim to provide our expertise in developing waste-to-energy infrastructure, solid waste management principles, and to create a framework that rewards Mumbaities for their conservation practices
Why is This A Viable Business Opportunity ?
• Rate of migration from rural to urban areas is increasing
• Land requirement needed for such a large disposal of “waste would be 169.6 sq. kms as compared to 20.2 sq. kms in 1997” (“Solid waste management at community level”, 2008, para. 4)
• 40% of the Indian population (400 million) living in the larger metropolitan cities, will generate around 125,000 metric tonnes of waste by 2030
Our Vision
Company Profile
• Expertise in solid waste management services
• Infrastructure development – collection and disposal of waste, recycling and integrated waste management systems
• Working with local municipalities to ensure efficient infrastructure development
• Training and Development of local workers
Our Vision (Continued)...
Entry Strategy
• Acquisition strategy in purchasing a local waste management organization in Mumbai and then enter into contracts with local municipalities
• Eventually set up our own subsidiary in Mumbai, before branching out to other metropolitan Indian cities (New Delhi, Kolkata, Chennai, and and surrounding agricultural areas)
• This strategy will allow us to achieve significant advantages
Solid Waste Collection Strategy
Adapted from: (Rathi, 2007, p. 115)
Other Waste
House to house and local businesses collection
Organic Waste
Non-Organic waste
Recyclable Compost Material (Output)
Sold to farmers
Sold to various agencies
Composting
Incinerated for fuel/energy
Sorting done by
local workers
Why Go International ?
• Local market maturation – slowing growth
– Obligation to shareholders to seek out risk adjusted return
• Strong business model capable of being implemented abroad
• Capable management team well versed in IB trends and India specific developments
Financial Information
• Mumbai generates around 5,800 tons of waste per day
• Solid municipal waste is comprised of: 60% organic waste, 25% recyclable material, and 15% is biodegradable and animal by-products
• Solid municipal waste market size of 500 Crore rupees (approx. $12.72 million CAD) in India
• Total Market size opportunity across the 3 major cities in India of 3.624 Crore rupees per year (approx. $92,213)
Financial Information (Continued)...• Initially, we will be targeting 10,000 – 15,000 households and
will need a capital investment of Rs. 200,000, and working capital of Rs. 100,000 (approx. $5,000 CAD for capital investment and $2,500 CAD required for working capital)
• We will need 2-5 acres of land to sufficiently manage waste from households and land will be segregated into specific zones
• We will need to setup composting bins which have sufficient moisture and earthworms which cost around Rs. 300 per kg. (bins will have to be covered with greenhouse nets to avoid direct sunlight)
India: A Brief Country Profile
• Largest democracy in the world
• 1.1B population residing mainly in rural areas– Exodus from rural to urban areas as economy expands
• Remarkable economic activity– 2008 GDP growth at 9.1%, second only to China– Growth driven by agriculture, services and industrial
sectors– Middle class growing at rapid pace
*Excellent opportunity for EnviroCan business model*
India: Areas of Concern
• High level of poverty, especially in rural areas
– 77% of population lives on less than $2 per day
• Corruption still an issue
• Religious tensions still exist
• Global economic slowdown
• Sub-par infrastructure
Cross-Cultural Distinctions & Implications
• In individualistic Western cultures, employees expect that there would some kind of feedback mechanisms in place
• However, “in managing international projects involving partners from collectivist societies (such as India), one has to bear in mind that discussing a person’s performance or abilities openly with him or her is likely to clash head-on with the society’s harmony norm and may be felt by the subordinate as an unacceptable loss of face” (Anbari, Khilkhanova, Romanova, & Umpleby, 2003)
Implications For Cross-Cultural Management
• Power DistanceCanada has more equality between levels of society Organizations in India tend to have an autocratic leadership
structure with numerous levels of hierarchy
• Uncertainty Avoidance India has more willingness compare to Canada to take risks and
uncertain situations frequent
• IndividualismCanadians tend to look out for themselves to a greater extent than
do the Indians Canadians like to make their own decisions whereas in India
decision are made by the group
Implications For Cross-Cultural Management (Continued)...
• MasculinityCanadians and Indians have quite a similar masculine
cultural dimension, and prefer characteristics of assertiveness, competitiveness and materialism, and task-orientated behaviors
• Long-term Orientation Indians associate themselves with thriftiness,
perseverance, respect for tradition, fulfilling social obligations, and saving face
Canadians value flexibility, need for variety, individualistic needs, and quick adaptation to the environment.
Brief Cultural Profile of Mumbai
• The most liberal and cosmopolitan city of India
• Dwellers more likely to mix irrespective of castes and religions
• People are Greatly influenced of Western culture and lifestyle
Organizational StructureChief Executive Officer
VP International OperationsIndia
Mumbai
New Delhi*
Production
Marketing
Human Resources
Finance
* We are proposing to develop a subsidiary in New Delhi once business operations have been established in Mumbai
Control Systems
Direct
– Organizational Structure
– Staffing structure
– Visits from head office
– Monitoring systems
Indirect
– Feedback mechanisms
– Budgets
– Quotas
Staffing• Regiocentric
– Ragpickers– Acquired staff
• VP International Operations– 3-5yrs– $50,000/yr– Appropriate
Candidate
• Affirmative Action Policies ?
Job Title Salary (Rs.)
Waste Management Collector/Driver
325 000
Waste Management Sorter/Handler
360 000
Facility Supervisor/Management team
400 000
Area supervisor/management team
450 000
Motivation• Traditional division of work and roles
– Career development• Job security• Education
– Challenging work• Clear descriptions• Integrity
– Greater freedom• Family-like atmosphere
Leadership
• Subordinate-boss relationship
– Perceived power
– Respect
– Face-saving
Communication Issues in India
• Trust• Social organization in India
– Religions and caste system affect business life– Hierarchy and roles in the organization
• Responsibility and orders• Clear communication about expectations
• Attitudes
– External vs. Internal control– Goal-settings practices in organizations
Communication Issues in India (Continued)...
• Languages in Mumbai– Marathi: official language in Mumbai– Hindi– English (associated language)– Provide employees with minimum skills in Marathi and
Hindi
• Time– Different time perception– Short-term orientation versus long-term goals
Context & Approaches to Work
• Context– Indirect communication and avoid of criticism– Develop diplomatic skills
• Approaches to work– Loyalty– Preferences
Reflection
• Reflection
– Transformational process
– New generation (less ideologically-driven, individualistic)
– Middle Class (western oriented)
SWOT Analysis of Doing Business In India
Strengths Weaknesses Great experience in providing
solid waste management services
Culture differences (management style, approaches to work etc)
Other favourable factors:
Reduced trade restrictions Economic liberalization Demand for sustainable energy
sources
Risk factors:
Infrastructure High training costs (consumer
awareness and creation of demand)
SWOT Analysis of Doing Business In India (Continued)...
Opportunities Threats
Large (growing) middle class
(with a more western-oriented
lifestyle)
Economic growth
Unexploited market for waste
management
Communal tension/clashes
between Hindus/Sikhs/Muslims
Cultural noise in the
communication process
Corruption
Degree of Acceptance of new
behaviour (recycling of solid
waste) by the Indians
Bibliography• Anbari, F.T., Khilkhanova, E.V., Romanova, M.V., & Umpleby, S.A. (2003). Cross Cultural
Difference and Their Implication for Managing International Projects. Retrieved October 25, 2008, from:
http://www.gwu.edu/~umpleby/recent_papers/2003_cross_cultural_differences_managin_international_p ojects_anbari_khilkhanova_romanova_umpleby.htm
• Bajpai, Vimarsh (1 November 2007) Earn Rs 6,000 crore to clean this muck. Retrieved October 22, 2008 from http://www.dare.co.in/opportunities/energy-environment/earn-rs-6000-crore-to-clean-
this- muck.htm
• Business Intelligence Lowdown (2008). Retrieved from Business Intelligence Lowdown Web page on October 20, 2008:
http://www.businessintelligencelowdown.com/2007/03/doing_business_.html
• Business Standard. (2008, August 27). Retrieved October 12, 2008, from Business-Standard Web site: http://www.business-standard.com/india/storypage.php?autono=332669
• CIA. (2008). CIA World Factbook. Retrieved October 19, 2008, from CIA Web page: https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#People
• Datamonitor (May 2008). Global Environmental and Facilities Services: Industry Profile
• Davis, J. H, Chatterjee J.R. and Heuer M. (2006). Management in India – Trends and Transition. New Delhi, Response Books
• Deresky, H. (2008). International Management: Managing Across Borders and Cultures. Upper Saddle River, NJ: Pearson Prentice Hall
Bibliography (Continued)...
• Development Alternatives Group (2004). Solid Waste Management at Community Level. Retrieved October 24, 2008 from http://www.devalt.org/newsletter/jun04/lead.htm
• Economist Intelligence Unit (2007). Country Profile India. Retrieved 10/20/2008, 2008, from http://portal.eiu.com/index.asp?layout=displayIssueTOC&publication_id=1910000791
• Gopalan S. & Stahl A. (2006) Application of the American Management Theories and Practices
to the Indian Business Environment: Understanding the impact of culture In Davis, J. H, Chatterjee J.R. and Heuer M. (pp. 376- 394). Management in India – Trends and Transition. New Delhi, Response Books
• Chatterjee J.R. and Heuer M. (pp. 376- 394). Management in India – Trends and Transition. New Delhi, Response Books
• Geert Hofstede Cultural Dimensions. (2008). Retrieved October 23, 2008, from www.geert-hofstede.com/geert_hofstede_resources.shtml
• Kwintessential (n.d.). Doing Business In India. Retrieved October 22, 2008 from http://www.kwintessential.co.uk/etiquette/doing-business-india.html
• Mumbai Commercial Capital of India (n.d.) Mumbai Religions. Retrieved October 22, 2008 from http://www.mumbai.org.uk/travel-tips/religion.html
• National Informatics Centre. Managing Human Resource: Trade Union. Retrieved October 19, 2008 from http://business.gov.in/manage_business/trade_unions.php
Q & A