- Title
- An institutional framework for expanding into Africa: a focus on global multinational companies
- Creator
- Dipha, Lazola
- Subject
- International business enterprises -- Management
- Subject
- Globalization -- Economic aspects
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MBA
- Identifier
- http://hdl.handle.net/10948/29984
- Identifier
- vital:30804
- Description
- Global multinational companies (MNCs) continue to face unique challenges in expanding into African emerging markets (AEMs). The biggest contributor to this is their lack of understanding and unwillingness to embrace the exceptional dynamics that exist in these countries, which has resulted in the majority of them defaulting to execute their own country’s domestic market strategies, resulting in failure to realise sustainable businesses. A misaligned and inappropriate strategy will fail dismally in terms of long-term sustainability of businesses. Urban & Hwindingwi (2016) took a diverse view in evaluating emerging markets, which will also be implemented in this study. They argued that “[they] see these features of emerging markets as symptoms of underlying market structures that share common, important and persistent differences from those in developed economies. Emerging markets reflect those transactional arenas where buyers and sellers are not easily or efficiently able to come together. The institutional voids make a market ‘emerging’ and are a prime source of the higher transaction costs and operating challenges in these markets”. “Market structures are the products of idiosyncratic historical, political, legal, economic and cultural forces within any country. All emerging markets feature insti-tutional voids, however, although the particular combination and severity of these voids varies from market to market”. In the previous years, corporate leaders and investors globally have pinned their hopes on the African growing story of promise becoming a reality. With a youthful, urbanising inhabitants, plentiful natural resources and a rising middle class; it looks like the continent has the correct components required for long-standing growth, possibly outshining the so-called tiger economies of East-Asia a generation ago. According to the McKinsey Global Institute titled Lions on the Move 2010 report; they forecasted consumer spending within the continent to grow by 40% and move GDPs by $1 trillion between 2008 to 2020. However, there are plenty multinationals that have become disheartened in their pursuit of operating in Africa.
- Format
- xiii, 112 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economics Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Hits: 841
- Visitors: 953
- Downloads: 184
Collections
NMU Business School
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | LAZOLA DIPHA.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |