Choice Bomeingha Tobon
Professor Kim Rutkowski
a) Corruption is cited as the most
pervasive obstacle that hinders many innovators in Africa. It acts as limiting
factor that hinder many business oriented individuals to invest in African
continent. Many investors, after investing in African continent they find
themselves being pulled back by corruption. A good example is Jan Arie van
Barneveld, the CEO of the Dutch staffing firm Brunel explained that his
decision to exit the market in Nigeria was corruption. Tolaram Company
developed a strategy that enabled them to survive in Nigeria. First, they
pulled honesty into business through forward integration and by working
independently. Indomie Company also employed more police officers who were not
b) Infrastructure is an important function
of investment in any continent whatsoever. In African continent lack of proper infrastructure
has made to its lagging behind in development since only local investors are
willing to invest. This being the main challenge to Tolaram company, they
devised a method to curb the problem. First, they had to make sure that water
and electricity is readily available, therefore they provided training on
electrical and mechanical engineering, finance among others. They deployed many
tracks to facilitate products to the market.
To make sure they have created markets Tolaram provided almost all its inputs to
eliminate misunderstanding with the suppliers who failed to meet its standards.
a) I would recommend indomie to use the
push strategy because that that could be the only strategy that can work in
African countries that is due to lack of adequate infrastructures. Taking the
product direct to consumers could be the solution.
b) Push strategy involves taking goods to consumer
directly.it involves using all whatever means that is available to ensure that
goods reach the consumer. Africa is an underdeveloped continent and its
infrastructure is still poor taking goods to consumer from the manufacturer is
a better idea rather than allowing the customer to look for the goods
themselves. This strategy will increase sales and the seller can be able to
evaluate their product by interacting with consumer directly.
c) Indomie corporate structure as it expands
will include four departments. First will include input supply department which
will be responsible of all input supply to the manufacturing sector. Second
will be the manufacturer department responsible for the all manufacturing functions.
The third department will be the market supply chain which is responsible for
supply produced goods to the warehouse and market. The fourth will be the sales
and marketing department which will be responsible for the local and online
a) The Tolaram strategy
will be to make sure that the bleaching and vegetable oil products are readily available,
and their products can be sold locally and globally. The corporate strategy would
involve assisting the farmers with the necessary input to produce the necessary
by product of the product. They should be able to constantly monitor the growth
of the farmers produce and provide the necessary fertilizer to the farmer. They
should deploy logistics to transport farm produce to the manufacturing firm. They
should also have supply chains department to allow movement of end products to the
warehouse, market and retails. To increase sale, they should be able to win the
market, for this reason they opt to have a strong marketing team both locally,
online and globally.
Customer relation is an important aspect of the business. Using the book
language hinders business aspects both to the suppliers and the customers. The
main impact of this is that it delays proper communication in the business
resulting in delays in which as a result reduces the profit margin of the
I feel like they could add rice because
it is kind of related to what they are already producing. My reasoning for this
is that, rice can be easy made and, it is meal that people can afford to get at
a cheaper price and it is also going to reach out to everyone.
In any market, there must be challenges and at the same time there are more
opportunities in the same market. The main obstacles in various markets include
competition – this poses as a threat to the market
b) Lack of resources-this is the most
threatening obstacle as it leads to closure of the entire business process
c) Lack of proper infrastructure-lack of
proper infrastructures especially in African countries act as a barrier to
companies and individuals willing to invest in that market.
d)Monopoly power-this obstacle prevent
other companies that are ready to enter the market.
On the other hand, some of the
opportunities available in the market include:
a) Technological advancement-use of modern
technology in the business provides a platform to improve on quality and
quantity of production.
b) Marketing strategies-modern marketing
strategies such as online marketing especially in Africa has made a huge impact
in sale of products.