Developing a channel strategy decision support framework for a diesel engine supplier in Mozambique

Henco Du Plooy,Pieter Buys

doi:10.21511/im.16(1).2020.03

Abstract

The global economic competitiveness has forced many organizations to consider the emerging and developing markets for future growth opportunities. The Southern African country Mozambique was identified as such an opportunity. However, although the country has experienced more sustained historic economic growth than its neighboring countries, it is also riddled with corruption and bureaucracy. Due to the complex and challenging Mozambique business environment, this research project utilized SWOT and PESTLE analytical techniques to develop a decision support framework to support the organizational growth strategies in Mozambique. The approach allowed for both internally and externally focused data collection and evaluation. The qualitative data were collected during structured interviews with selected captains-of-industry in the Mozambican context. In the development of the decision support framework, key factors were identified, evaluated, and ranked in order of severity. Key internal factors found centered on human resources, including management style, skilled labor availability and retention, while external factors centered potential growth in the mining and gas industry, government interventions and stability, and lack of skilled labor availabity. Taking cognizance of these factors enables a systematic framework to guide the strategy development in the Mozambican marketplace. It is recommended that this framework should be a living framework, continuously evolving as new strategic information becomes available.

Highlights

The highly competitive and dynamic global economic environment seems to be forcing more and more companies into considering the developing economies, including those in Africa, as key to their future opportunities
Earlier research in the Mozambican business environment conducted by Du Plooy (2016) found that, the country experienced remarkable growth in a region where its neighbors sometimes battled to achieve only a third of the growth that Mozambique achieved, its rating on the global Ease of doing business (Trading economics, 2019) and Corruption (Transparency International, 2012) indices portrayed Mozambique as a very hostile environment loaded with risk for foreign organizations
Economic environment: all the particilocal skilled labor was ranked as the main pants agreed that they do not expect the threat to conducting successful business in Mozambican economy to worsen from its Mozambique

Summary

INTRODUCTION

The highly competitive and dynamic global economic environment seems to be forcing more and more companies into considering the developing economies, including those in Africa, as key to their future opportunities. As a global player in the manufactur- strengths and weaknesses) and based on that uning and aftermarket support of diesel-powered en- derstanding, developing the strategies that build gines, Company A understands that it has to take on its strengths while minimizing risks evolving advantage of this growth opportunity. It planned from any weaknesses it might have. Among the constraints being experienced is the uncertainty attached to the macro- and micro-business/economic envi-

METHODS

RESULTS

DISCUSSION

Findings

CONCLUSION