Dream Deferred The story a High Tech Entrepreneur in a Low Tech World

Robert Kennedy College Midterm exam in Entrepreneurship October 2011

KEY TOPICS: Entrepreneurship; Entrepreneurs; Telecommunications; Social Capital; Network Capital; Partnership

Table of contends

Executive Summary ...3 Introduction ..4 Question 1 ...4 Question 2 ...6 Question 3 ...6 Question 4 ...7 Conclusion & Recommendations..... .7 References & Bibliography .......9

1. Executive Summary

Introduction Monique Mandy, born in Liberia and Post Graduate in Harvard business school, decided to put into practice the vision for the business with which she became acquainted while working at the United Nations in projects promoting entrepreneurship. Business In this perspective, and taking advantage of the favorable environment for the development of telecommunications companies in emerging countries on the African continent, she founded the Adesami Communications International in 1993. Objectives / Vision / Target She was radiant for betting on investing in their continent and at the same time being able to benefit thousands of low-income people by allowing them to have access to telecommunications services at affordable prices. The market was appropriate for the service that she wanted to implement and the competition was low. There was thus a lot of space for it to be a success. Outcome At operations level the company was limited by the license to start their business. This had not yet been released and the company was subject due to lack of information, lack of regulations and system complexity. In addition, the country was very demanding and there was a huge bureaucracy that conditioned the advancement of businesses. Monique Mandy realized that the country represented a great risk that had not been properly explored, and several situations that would erupt, would have a decisive impact on the outcome of the company Adesami.

2. Introduction Monique Mandy was an entrepreneur with vision, who graduated from business school at Harvard. She developed her business plan in Telecommunications and the chosen market was Africa. Despite having successfully completed her training she learned in her new experience that some aspects would become relevant for the failure of her company. This topic discusses some important aspects that should be considered and anticipated by Monique Mandy before starting activities in a complex and unknown market in a foreign Country. The following questions help us understand where Monique failed and in which ways she can improve the next time she explore a Technical business in an emergent market.

1. Answer questions to guide

Q1. Why did Monique Mandy fail to launch a new innovation in Tanzania? Monique Mandy failed in their chance of being successful in the market of Tanzania because although it has taken some preliminary steps, several aspects were not taken seriously. To be considered; The research was not complete

Some important aspects were not considered in her research as: Market needs Opportunities and Expansion. Basic questions should have been analyzed by her, such as; What is my idea? Why can become a business? What is the market? Who are the main customers? Who can help us get into the market vs. licensing? How long to implement the business? How can we make money? This sharing of information would help her to consolidate her idea and her business before it starts. Only after being active in the market, she found that Adesami had to resize and expand its service package to position in the market.

Business environment

Although most African countries that have adopted socialism and move to a system of open market, leading them to privatize companies, and facilitate investment to attract capital and create jobs, Monique Mandy should have been more cautious and shared their intentions with friends near the area of telecommunications, with experience in emerging markets, local people, and government entities that have better knowledge of African markets. This sharing and detailed research could make her realize that these kinds of business, where companies need to obtain a license to operate a particular service, the first requirements that must be met are the requirements of the Institute governing the rights of Telecommunication. Besides these, there are other institutions involved, such as that governing labor rights, migration and foreign services, and others that clearly could have had a direct influence on the business. Mandy Monique could have avoided certain type of constraints if she had come into contact with companies as a consultant PWC, Ernst & Young, KPM. Companies that provide ancillary and at the bottom ensures a safe entry of foreign firms in unfamiliar markets, analyzing their projects and Counseling the same on important aspects that should be considered and respected. Partnership with local companies

It seems to me that Monique Mandy, slightly underestimate the complexity of the business and the difficulties they might encounter in implementing her project and was influenced by knowledge that the Government of Tanzania was to facilitate privatization and companies that develop the Telecommunication infrastructure in the country. The beginning of any business is characterized by a series of happening and obstacles facing the front of the manager. With an experienced local partner, it could be more easily overcome in some of the legal problems and relationship found during the implementation phase. Among other things, financial problems could also have been controlled with the gain of a partnership. Problems of Human Recources

For important reasons, the implementation of the company in Tanzania was made not totally organized. An important question for the organization of a company is the framework of its managers and staff. This framework should be done in a balanced way at the outset to avoid internal problems in the future. The company did not give the necessary relevance in this respect favoring thereafter a series of problems created by a major internationalization of cultures in the same company that instead of bringing innovation and great ideas brought relations problems.

Q2. What effect did Country and market conditions have on this? The effects of the country and the market that had contributed to the failure of Adesami Communications are due to the fact that of the excessive bureaucracy imposed by the government system in Tanzania. Procedures and printed laws were rarely observed. There was great difficulty in finding in the area of technology, a person who was able to realize and fulfill questions and clarify procedures for regulations, instructive and applicable laws. The access to information was extraordinarily difficult it was critical to have clarifications on the regulations of this business. To achieve results the companies had to align and cooperate in corruption and only in this way was possible to overcome excessive bureaucracy often created to result in the disbursement by the companies to state officials. Telecommunications Legislation in Tanzania is not the same as those applied in most countries.

Q.3 What is the importance of Social Capital and networks in Entrepreneurship? Explains this using Monique Mandys case. In the case of Monique Mandy it became clear the importance of social capital in the business world and the importance of interpersonal relationships. Several times she had brilliant ideas which could have helped to develop her project successfully but their ideas did not work without support. To move forward it needed more than just their knowledge. She should share the idea of the business with local friends, partners, and colleagues, to consolidate the business and realize how it can work in the system of Tanzania. She needed some support, but who knew her to be able to influence? Who was she in that market to be worth helping? How could she grow the idea that her idea was an asset and her business would be a success? She seeks to partner in the local market without any indication, counseling or people who have already tried out any business relationship with those companies. Thus the first partnership, which initially seemed the most certain, never got to perform. The second initiative was a desperate attempt to try to participate in the project jointly with a local company with knowledge of local procedures, laws and political situation. This partnership also has not had the desired effect since their license was withdrawn shortly afterwards. There was a third, previously thought to a person who had some influence at government level but this influence did not materialize. He costs 5% of the company to Monique Mandy.

This case shows the importance that relationships can have on the business environment. Certain types of relationships can help the success of a company. If Mandy did not have them, she could have found a local partnership or a partnership with a company that had a solid relationship and privileges from the government. This kind of relationships usually begins with partnerships between states. The only support and clear support and information that Mandy received had come very late, and the competition was already in favor with substantial funding that dictated the Adesami end.

Q.4 Did Monique learn out of this failure? What would she do or avoid next time? It was evident that, Monique Mandy did not give up on her idea although she was very disappointed with the context found in their continent. On the contrary, now she knows what is exactly needed to invest in emerging countries. She took some conclusions and now she knows that to enter in an emerging market the investment is a major element. Do not focus only on the investment itself but also the type of investor that one should look to invest in Africa. She would opt for an investor now, aware of the emerging market and with the coolness needed to invest and wait for the return. Another important aspect focused by Mandy was the complexity of emerging markets, it becomes favorable to a lack of internal rules and regulations. Thus, she became aware that a return to Africa would necessarily have to be with a local partner, detailed selected, which would bring the advantage of local information and vision. This partner should bring not only access to information but also investment in partnership. Mandy also realized the importance of human resources in the company. The diversity of cultures should be well addressed to conflict and difficult with resolution. In this optical Monique Mandy, will previously select a specialist on the area to consider all the relevant and necessary aspects to the success of the teams.

Conclusions; Monique Mandy has proven to be a sight to choose a good business. She still showed deficiencies in adapting her business plan to the reality of the environment in which to apply. Although she had born in Africa analysis it seams that she stay away for long time. Her research on the Tanzania market seemed to be very weak and limited. Perhaps due to lack of experience she has not been able to measure the complexity of Tanzania popular culture limiting her research to the service that she planned and the target audience that she planed to achieve. Her business plan revealed some imbalance, ending up with difficulties due to local and financial constraints.

Recomendation; In a next attempt Monique Mandy should take into account the difficulties that led to the failure of International Adesami to overcome their first experience difficulties. Her research and analysis should be put into practice but if the unknown of the market becomes really absolute it requires, a small investment on consulting firms that will put her on track for the laws in force, its applicability, and gives help to get the necessary licenses for practical exercise of the company. This way, the weaknesses relating to the lack of laws at the level of the Telecommunication regulations, taxes, market laws, will be overcome. In addition, it must have some restraint and work her idea with time. Analyzing the market at the enterprise level, in order to find the right partner, the appropriate network, the most qualified technicians, adequate investment and market demands in which they will establish.

Reference list;

Case; Dream Deferred: The story a High Tech Entrepreneur in a Low Tech World Social Capital Theory of Social Structure and Action, Nan Lin Edgar Schein, Corporate culture and Leadership (1984) Spencer Johnson, Quem mexeu no meu queijo; Como Lidar com a Mudana no seu Trabalho e na sua Vida Ken Blanchard, Sheldon Bowles; Gung Hoi , os segredos ancestrais da liderana e da motivao Web Sites; http://www.amazon.com/Social-Capital-DavidHalpern/dp/0745625479/ref=tmm_hrd_title_0/181-9779322-0800350#reader_0745625479