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Presentation (Swm In India)
- 1. Enviro-Can in India:A Solid Waste Management ProposalEnviro-CanSarah Collins Andy Fraser Zeeshan Jiwani Pernille MørkebergMameSeydi
- 2. Staffing StrategyPolycentric &Ethnocentric Upper Management ApproachManagement StyleStyle adhering to high context culture of India
- 3. Formal Style& highly structuredOrganizational StructureGlobal Geographic structureSelf-Contained Structure (Composed of Regional Units)Control SystemsLocal SBUs have autonomy, some bureaucratic controls in placeSnapshot of Our ProposalOverview of our Business Plan & OpportunityLevel StrategyGlobalization StrategyEntry-ModeEstablishing a wholly owned subsidiary in MumbaiMarketing StrategyLocal Responsiveness, Transfer of Core Competencies, Cost Leadership (Efficiency) & Product Differentiation
- 4. Enviro-Can’s Business PlanMissionStatementWe strive to provide the urban residents of Mumbai with cost-effective, efficient, eco-friendly waste management systemWe 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
- 5. Why is ThisA Viable Business Opportunity ?Rate of migration from rural to urban areas is increasingLand 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
- 6. Our VisionCompany ProfileExpertisein solid waste management services Infrastructure development – collection and disposal of waste, recycling and integrated waste management systemsWorking with local municipalities to ensure efficient infrastructure developmentTraining and Development of local workers
- 7. Our Vision (Continued)...EntryStrategyAcquisition strategy in purchasing a local waste management organization in Mumbai and then enter into contracts with local municipalitiesEventually 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
- 8. Solid Waste CollectionStrategyHouse to house and local businesses collectionAdapted from: (Rathi, 2007, p. 115)Organic WasteNon-Organic wasteCompostingSorting done by local workersCompost Material (Output)Other WasteRecyclable Incinerated for fuel/energySold to farmersSold to various agencies
- 9. Why Go International?Local market maturation – slowing growthObligation to shareholders to seek out risk adjusted returnStrong business model capable of being implemented abroadCapable management team well versed in IB trends and India specific developments
- 10. Financial InformationMumbai generatesaround 5,800 tons of waste per daySolid municipal waste is comprised of: 60% organic waste, 25% recyclable material, and 15% is biodegradable and animal by-productsSolid municipal waste market size of 500 Crore rupees (approx. $12.72 million CAD) in IndiaTotal Market size opportunity across the 3 major cities in India of 3.624 Crore rupees per year (approx. $92,213)
- 11. 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 zonesWe 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)
- 12. India: A BriefCountry ProfileLargest democracy in the world
- 13. 1.1B population residingmainly in rural areas
- 14. Exodus from ruralto urban areas as economy expands
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- 16. 2008 GDP growthat 9.1%, second only to China
- 17. Growth driven byagriculture, services and industrial sectors
- 18. Middle class growingat rapid pace *Excellent opportunity for EnviroCan business model*
- 19. India: Areas ofConcernHigh level of poverty, especially in rural areas77% of population lives on less than $2 per dayCorruption still an issueReligious tensions still existGlobal economic slowdownSub-par infrastructure
- 20. Cross-Cultural Distinctions &ImplicationsIn 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 ManagementPower DistanceCanada has more equality between levels of society
- 21. Organizations in Indiatend to have an autocratic leadership structure with numerous levels of hierarchy Uncertainty AvoidanceIndia has more willingness compare to Canada to take risks and uncertain situations frequent
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- 23. Canadians tend tolook out for themselves to a greater extent than do the Indians
- 24. Canadians like tomake their own decisions whereas in India decision are made by the groupImplications 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 behaviorsLong-term OrientationIndians associate themselves with thriftiness, perseverance, respect for tradition, fulfilling social obligations, and saving face
- 25. Canadians value flexibility,need for variety, individualistic needs, and quick adaptation to the environment. Brief Cultural Profile of MumbaiThe most liberal and cosmopolitan city of IndiaDwellers more likely to mix irrespective of castes and religionsPeople are Greatly influenced of Western culture and lifestyle
- 26. Organizational Structure* Weare proposing to develop a subsidiary in New Delhi once business operations have been established in Mumbai
- 27. Control SystemsIndirectFeedback mechanismsBudgetsQuotasDirectOrganizationalStructureStaffing structureVisits from head officeMonitoring systems
- 28. StaffingRegiocentricRagpickersAcquired staffVP InternationalOperations3-5yrs$50,000/yrAppropriate CandidateAffirmative Action Policies ?
- 29. MotivationTraditional division ofwork and rolesCareer developmentJob securityEducationChallenging workClear descriptionsIntegrityGreater freedomFamily-like atmosphere
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- 31. Communication Issues inIndiaTrustSocial organization in IndiaReligions and caste system affect business lifeHierarchy and roles in the organizationResponsibility and ordersClear communication about expectationsAttitudesExternal vs. Internal controlGoal-settings practices in organizations
- 32. Communication Issues inIndia (Continued)...Languages in MumbaiMarathi: official language in MumbaiHindiEnglish (associated language)Provide employees with minimum skills in Marathi and HindiTimeDifferent time perceptionShort-term orientation versus long-term goals
- 33. Context & Approachesto WorkContextIndirect communication and avoid of criticismDevelop diplomatic skillsApproaches to workLoyaltyPreferences
- 34. ReflectionReflectionTransformational processNew generation(less ideologically-driven, individualistic) Middle Class (western oriented)
- 35. SWOT Analysis ofDoing Business In India
- 36. SWOT Analysis ofDoing Business In India (Continued)...
- 37. BibliographyAnbari, 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.htmBajpai, 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_.htmlBusiness Standard. (2008, August 27). Retrieved October 12, 2008, from Business-Standard Web site: http://www.business-standard.com/india/storypage.php?autono=332669CIA. (2008). CIA World Factbook. Retrieved October 19, 2008, from CIA Web page: https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#PeopleDatamonitor (May 2008). Global Environmental and Facilities Services: Industry ProfileDavis, J. H, Chatterjee J.R. and Heuer M. (2006). Management in India – Trends and Transition. New Delhi, Response BooksDeresky, H. (2008). International Management: Managing Across Borders and Cultures. Upper Saddle River, NJ: Pearson Prentice Hall
- 38. Bibliography (Continued)...Development AlternativesGroup (2004). Solid Waste Management at Community Level. Retrieved October 24, 2008 from http://www.devalt.org/newsletter/jun04/lead.htmEconomist 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 BooksChatterjee J.R. and Heuer M. (pp. 376- 394). Management in India – Trends and Transition. New Delhi, Response BooksGeert Hofstede Cultural Dimensions. (2008). Retrieved October 23, 2008, from www.geert-hofstede.com/geert_hofstede_resources.shtmlKwintessential (n.d.). Doing Business In India. Retrieved October 22, 2008 from http://www.kwintessential.co.uk/etiquette/doing-business-india.htmlMumbai Commercial Capital of India (n.d.) Mumbai Religions. Retrieved October 22, 2008 from http://www.mumbai.org.uk/travel-tips/religion.htmlNational Informatics Centre. Managing Human Resource: Trade Union. Retrieved October 19, 2008 from http://business.gov.in/manage_business/trade_unions.php
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Editor's Notes
- #3 A study by an outside management consulting team narrowed our choices to 4 countries from which India was the most favourable
- #5 Urbanization is likely to reach 36% around 2025 (“Country Profile India”, 2007, EIU.com, p. 23) This Represents a 212.5% increase from 40,000 metric tonnes in the present (“Waste management: The new buzz word”, 2008, para. 3) In this way, Mumbai will be targeted by Enviro-Can because it has the largest population and waste generation per capita – “6,256 tons of waste per day in 2001” (Rathi, 2007, p. 105)- This escalation could be accounted to India’s population explosion, change in consumption patterns among urban populations and relatively high spate of waste generation, which has a direct relationship with the amount of waste generated in a community. ” (Solid waste management at community level, 2008, para. 3)
- #7 - Transfer of core competencies- Global economies of scale and scope- Protect proprietary technology and skill baseAcquisition provides rapid entry into established market
- #11 - Capital investment will be used to finance labour costs, equipment, composting material, nets, and miscellaneous costs (trucks and recyclable equipment)- As our operations increase, we will target restaurants and other industries that produce waste that is biodegradable and recyclable.
- #14 - Where the project leader could discuss their performances through on-going appraisal systems, offer constructive criticism, and allow for decision-making initiatives.