Enviro-Can in India: A Solid Waste Management Proposal

Sarah Collins Andy Fraser

Zeeshan JiwaniPernille Mørkeberg

Mame Seydi

Snapshot of Our ProposalStaffing Strategy

Polycentric & Ethnocentric Upper

Management Approach

Organizational Structure

Global Geographic structure

Self-Contained Structure (Composed of

Regional Units)

Control Systems

• Local SBUs have autonomy, some bureaucratic controls in place

Management Style

• Style adhering to high context culture of India

• Formal Style & highly structured

Overview of our Business Plan & Opportunity

Level StrategyGlobalization Strategy

Entry-ModeEstablishing a wholly owned

subsidiary in Mumbai

Marketing StrategyLocal Responsiveness, Transfer

of Core Competencies, Cost Leadership (Efficiency) &

Product Differentiation

Enviro-Can’s Business Plan

Mission Statement

• We strive to provide the urban residents of Mumbai with cost-effective, efficient, eco-friendly waste management system

• We 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

Why is This A Viable Business Opportunity ?

• Rate of migration from rural to urban areas is increasing

• Land 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

Our Vision

Company Profile

• Expertise in solid waste management services

• Infrastructure development – collection and disposal of waste, recycling and integrated waste management systems

• Working with local municipalities to ensure efficient infrastructure development

• Training and Development of local workers

Our Vision (Continued)...

Entry Strategy

• Acquisition strategy in purchasing a local waste management organization in Mumbai and then enter into contracts with local municipalities

• Eventually 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

Solid Waste Collection Strategy

Adapted from: (Rathi, 2007, p. 115)

Other Waste

House to house and local businesses collection

Organic Waste

Non-Organic waste

Recyclable Compost Material (Output)

Sold to farmers

Sold to various agencies

Composting

Incinerated for fuel/energy

Sorting done by

local workers

Why Go International ?

• Local market maturation – slowing growth

– Obligation to shareholders to seek out risk adjusted return

• Strong business model capable of being implemented abroad

• Capable management team well versed in IB trends and India specific developments

Financial Information

• Mumbai generates around 5,800 tons of waste per day

• Solid municipal waste is comprised of: 60% organic waste, 25% recyclable material, and 15% is biodegradable and animal by-products

• Solid municipal waste market size of 500 Crore rupees (approx. $12.72 million CAD) in India

• Total Market size opportunity across the 3 major cities in India of 3.624 Crore rupees per year (approx. $92,213)

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 zones

• We 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)

India: A Brief Country Profile

• Largest democracy in the world

• 1.1B population residing mainly in rural areas– Exodus from rural to urban areas as economy expands

• Remarkable economic activity– 2008 GDP growth at 9.1%, second only to China– Growth driven by agriculture, services and industrial

sectors– Middle class growing at rapid pace

*Excellent opportunity for EnviroCan business model*

India: Areas of Concern

• High level of poverty, especially in rural areas

– 77% of population lives on less than $2 per day

• Corruption still an issue

• Religious tensions still exist

• Global economic slowdown

• Sub-par infrastructure

Cross-Cultural Distinctions & Implications

• In 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 Management

• Power DistanceCanada has more equality between levels of society Organizations in India tend to have an autocratic leadership

structure with numerous levels of hierarchy

• Uncertainty Avoidance India has more willingness compare to Canada to take risks and

uncertain situations frequent

• IndividualismCanadians tend to look out for themselves to a greater extent than

do the Indians Canadians like to make their own decisions whereas in India

decision are made by the group

Implications 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 behaviors

• Long-term Orientation Indians associate themselves with thriftiness,

perseverance, respect for tradition, fulfilling social obligations, and saving face

Canadians value flexibility, need for variety, individualistic needs, and quick adaptation to the environment.

Brief Cultural Profile of Mumbai

• The most liberal and cosmopolitan city of India

• Dwellers more likely to mix irrespective of castes and religions

• People are Greatly influenced of Western culture and lifestyle

Organizational StructureChief Executive Officer

VP International OperationsIndia

Mumbai

New Delhi*

Production

Marketing

Human Resources

Finance

* We are proposing to develop a subsidiary in New Delhi once business operations have been established in Mumbai

Control Systems

Direct

– Organizational Structure

– Staffing structure

– Visits from head office

– Monitoring systems

Indirect

– Feedback mechanisms

– Budgets

– Quotas

Staffing• Regiocentric

– Ragpickers– Acquired staff

• VP International Operations– 3-5yrs– $50,000/yr– Appropriate

Candidate

• Affirmative Action Policies ?

Job Title Salary (Rs.)

Waste Management Collector/Driver

325 000

Waste Management Sorter/Handler

360 000

Facility Supervisor/Management team

400 000

Area supervisor/management team

450 000

Motivation• Traditional division of work and roles

– Career development• Job security• Education

– Challenging work• Clear descriptions• Integrity

– Greater freedom• Family-like atmosphere

Leadership

• Subordinate-boss relationship

– Perceived power

– Respect

– Face-saving

Communication Issues in India

• Trust• Social organization in India

– Religions and caste system affect business life– Hierarchy and roles in the organization

• Responsibility and orders• Clear communication about expectations

• Attitudes

– External vs. Internal control– Goal-settings practices in organizations

Communication Issues in India (Continued)...

• Languages in Mumbai– Marathi: official language in Mumbai– Hindi– English (associated language)– Provide employees with minimum skills in Marathi and

Hindi

• Time– Different time perception– Short-term orientation versus long-term goals

Context & Approaches to Work

• Context– Indirect communication and avoid of criticism– Develop diplomatic skills

• Approaches to work– Loyalty– Preferences

Reflection

• Reflection

– Transformational process

– New generation (less ideologically-driven, individualistic)

– Middle Class (western oriented)

SWOT Analysis of Doing Business In India

Strengths Weaknesses Great experience in providing

solid waste management services

Culture differences (management style, approaches to work etc)

Other favourable factors:

Reduced trade restrictions Economic liberalization Demand for sustainable energy

sources

Risk factors:

Infrastructure High training costs (consumer

awareness and creation of demand)

SWOT Analysis of Doing Business In India (Continued)...

Opportunities Threats

Large (growing) middle class

(with a more western-oriented

lifestyle)

Economic growth

Unexploited market for waste

management

Communal tension/clashes

between Hindus/Sikhs/Muslims

Cultural noise in the

communication process

Corruption

Degree of Acceptance of new

behaviour (recycling of solid

waste) by the Indians

Bibliography• Anbari, F.T., Khilkhanova, E.V., Romanova, M.V., & Umpleby, S.A. (2003). Cross Cultural

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this- muck.htm

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http://www.businessintelligencelowdown.com/2007/03/doing_business_.html

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Bibliography (Continued)...

• Development Alternatives Group (2004). Solid Waste Management at Community Level. Retrieved October 24, 2008 from http://www.devalt.org/newsletter/jun04/lead.htm

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Q & A