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Transcript of Ppt connecting english
International Business Case
ConnectingEnglish in Morocco
Lucile SCHWEITZER 3A5 Marketing
Macro-environment
• Economic opportunities: Perspectives of sustainable growth and development - Morocco attracts foreign investors - Low inflation, improved financial performance, and steady progress in developing the services and industrial sectors – An advanced status in its 2000 Association Agreement with the EU -France remains the country's first provider of Morocco (15.3% of total imports). After Spain (11.8%), China (8.4%), United States (6.9%) and Italy (5.9%) in 2010 - France is also its first client (21.5% of total exports), Spain (16.6%), India (6%), Italy (4.3%) and Britain (3.6%) in 2010.
• Political stability: some demonstrations during the Spring Revolution but without any violence (the King Mohammed is appreciated by the population) – A moderately free press - King MOHAMMED in 2005 launched a National Initiative for Human Development a $2 billion program – COFACE grade country risk stays unchanged: A4 (it’s not the case for Tunisia, Egypt, Libya, Bahrein, Syria, modified in April 2010)
• Socio-cultural opportunities: Low labor cost Francophile country (around 70% less expensive) -– French is often the language for business, government and diplomacy - Highly educated skilled resources – minimum wage = 200€
• Technological & legal opportunities: Reliable and affordable communication infrastructure: telecom and Internet. The law 09/08 for the protection of the intellectual property (near the European legislation) is a good point for Offshoring particularly in BPO and ITO –
• Geographical advantage: Proximity of the European Market and the Sub-Saharan Africa – A 1 hour time difference with France
Competition & Risk Analysis Mapping Competition Our real competitor are both local language
center: Calliope and Foreign entrant for practical language training: Berlitz
Risk Analysis Industrial risks - Personal Data Protection - Intellectual Property Commercial risks - Delay in the delivery - Delay in the payment (from 4 to 6 months) - High income and financing banking Human risks - Quality and quantity for Human Resources - Level of Training/skills and Language
Register
Quality & Performance
Experience & Recognition
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Intercultural Management
KEY VALUES - The family - The solidarity - The transparency - The loyalty - The honesty - The reward - The relationship
CROSSCULTURAL ISSUES Hoffstede’s results:
• Power Distance Index: 70 – in France: 68 • Individualism Rate: 46 – in France: 71 • Masculinity Rate: 53 – in France: 43 • Uncertainty Avoidance Index: 68 – in France: 86
LANGUAGES Arabic as a local language (public institutions), dialectal
Arabic, French perceived as modernity and education, Spanish as a 2nd or 3rd language (some areas), English for IT and international environment
RELIGIOUS ISSUES A Muslim country = Paternalism - Control - Fatalism -
The integration of social and economic – Passion
PERSONAL BEHAVIORS AND RELATED BEST MANAGEMENT Be patient, loyal, adaptable, thankful, clear in planning
tasks and objectives A mix between Paternalist Management practiced in
Latin countries and participative management practiced in Anglo-Saxon countries
II / E-learning Services Outsourcing from France to Morocco
Outsourcing the most as possible in Morocco: salary, call centers, CRM… • Morocco = 1st country for call centers (17 500 employees) – high qualified workforce –
reactive teams speaking currently French – wages are less than in France (minimum wage is 200€) – geographical proximity with France (U€) – Time difference is only 1 hour – Moroccans learn 4 languages at school (Arabic, French, English, Spanish)
In a recent Gartner study, Morocco will stay in the Top 30 of the destinations most attractive for outsourcing in 2011.
OUR NEXT PARTNER is OUTSOURCIA – a French company (headquarters in Paris) created in 2003 with 3 call centers in Casablanca. The company is pioneer in premium outsourcing in its 4 business areas.
Call centers: overall management of the customer relationships, a multilingual (7 languages: French, English, Spanish, Italian, Netherlands, Portuguese, Dutch) & multichannel offer.
BPO: outsourcing business processes, providing back office. ITO: IT services and software development. Offshore Academy: 1st school specialized in the business of customer relationships. Don’t need to train their employees, the company has a lot of experience with prestigious clients
from all over the world.
II / E-learning Services Outsourcing from France to Casablanca
Casablanca: the city where to setting up
• 80% of call centers are located in Casablanca or Rabat
• The economic capital in Morocco
Key features for location in CasaNearshore • A place dedicated to TIC in Morocco
launched in 2005 • Low rental for trays: 90 DHs/m2 (8€/m2) • Low income tax of 20% (against 40% to 42%
for income above 5000 DHs per month) • Tax exemption on profits in the first 5 years • Telecom costs are 35% below the market
price • Help for training if recruiting Moroccan people
(5800€ per employee)
The common bases for Outsourcing contract with Service Level Agreement
• Outsourcia will be in charge of our phoning and our e-learning platform in these languages: French, English, Spanish, Italian, Netherlands, Portuguese, Dutch – in one month
• ConnectingEnglish will provides to Outsourcia the lessons and teaching methodology used by phone and e-learning but the company ConnectingEnglish stays the only owner.
• ConnectingEnglish will train Outsourcia team to their teaching methods during 1 month and check at the same time their level in the 4 foreign languages.
• Outsourcia will present us a complete reporting every month on a PPT document and they will prepare a reporting call each week to show the quality of their work to ConnectingEnglish.
II / E-learning Services Outsourcing from France to Casablanca
Action Plan
• To sign up the outsourcing contract and discuss the SLA with Outsourcia – 3 weeks • To make a trip to Morocco to visit their buildings and meet their teams – 1 week • To outsource the salary and CRM – 1 testing month • To report our 1st month of collaboration – 1 day • To train their teams to our teaching methods, briefing about our company/business/target clients – 1 month • To outsource of our phoning and e-learning – after 3 months – 1 testing month • To report these 4 activities outsourced – 1 day
III / Language training center offshoring for business and sales development in Morocco
Casablanca is the economic capital where there’s a concentration of higher educated workforce and a strong equipment rate of the population
Reasons to offshore: - Fit a local and a global demand - A place to learn Arabic: global demand (immersion) - A lack of language training center with a full range of languages - E-learning isn’t well develop, it’s a new market with a potential of growth
Key features for location in CasaNearshore : A place dedicated to TIC in Morocco launched in 2005 • Low rental for trays: 90 DHs/m2 (8€/m2) • Low income tax of 20% (against 40% to 42% for income above 5000 DHs per month) • Tax exemption on profits in the first 5 Y • Telecom costs are 35% below the market price • Help for training if recruiting Moroccan people
Mode of entry: Moroccan law - partnership with a local company specialized in training Timing: soon as possible because competition is already there
III / Language training center offshoring for business and sales development in Morocco
Resources needed • Human: 12 teachers (native speakers and professionals) – 5 administrative employees • Technical: computers, phones, chairs and tables • Financial: Rental the building, Telecom/Electricity costs, Wages
Demand/target market: global demand and local demand, particularly professionals/businessmen. Local demand: call-centers/international and large companies Global demand: companies doing business with the Arab World
Marketing mix Service: 6 languages available: French, English, Arabic, Spanish, Hindi, Chinese – lessons for face to
face, phone, e-learning, immersion Promotion: Local Economic Newspapers, Business School, Call-centers Price: affordable price for Moroccan companies and European companies – Package for business group Place: at our local language training center – inside our clients walls – online – phone
Competitive advantage: A French company – 6 languages
Position with the French headquarter: 1st center partner for teaching Arabic – a subsidiary in Morocco
III / Language training center offshoring for business and sales development in Morocco
The budget Function Number Mensual salary (DH) Annual salary (DH)
Marketing Director 1 10000 130000 HR Responsable 1 10000 130000 Accountant 1 10000 130000 Chief Executive Officer 1 20000 260000 Teachers 12 1200000 15600000 Direction Assistant 1 5000 65000
Total Cost 16315000
Cost Mensual cost Annual Cost (DH) Annual cost (Euros) Rental cost 25000 300000 Water, Internet and Electricity 2000 24000 Phones (15) 10000 120000 Office furniture 100000 1200000 Tables (10 per class) 21000 252000 Security and Cleaning labour 5000 60000 Salary cost 16315000
Total Cost 18271000 1588782,609
Year Number of learners Monthly Training Price Annual Training Price Turnover 1 250 10000 120000 30000000 2 275 10000 120000 33000000 3 300 10000 120000 36000000
The turnover
Outsourcing VS Offshoring Strengths • Reduce and control operating cost • Focus on core capabilities • Gain access to world class capabilities • Free resources for other processes • Resources not available internally • Reduce time to market • Accelerate re-engineering benefits • Function difficult to manage • Share risk • Transfer fixed costs into a variable cost model
Weaknesses • Loss of control on applications • Fear of sub-optimal cost • Quality benefits • Difficulty of managing suppliers with high process
quality standards and different cultures • Need to match EMS provider with OEM needs
Strengths • Be present on a new market: respond to a local
demand • An implementation in the Maghreb Zone: Morocco
as a « country test »: hyphen between Europe and Africa
• Faster time to market by providing visibility into effort, focus and risks
• Lower travel and coordination costs • Higher degrees of trust and goodwill and few
contract cancellations • Reduce and control operating costs • More sophisticated jobs can be create if the less
important jobs have been sent oversea
Weaknesses • Need for adaptable management practices • Retaining managerial control • Gaining operational efficiency • New physical, temporal, cultural, and organization
barriers • Proprietary Information: way to teach languages • Losing customers because the company is engaged
in offshoring • In Morocco, laws are not as protective of workers
and the environment as in France
IV / Market entry Optimal mode and Strategy
The best solution for Connecting English is to offshore a language training center in Casablanca because this subsidiary could fit with a local and global demand in a long term. Maybe for the moment, htey can just outsource some services to Outsourcia, in order to know better the Moroccan market.
Strategic recommendations • To invest in communications and BtoB event organization, to be
recognized • To be perceived as the leader in language teaching on the BtoB
market, within the professional target • To get paid by customers (Moroccan companies) and ensure them
reimbursement by the State up to 75% (it’s guaranteed by the OFPPT for Moroccan companies)
IV / Market entry Optimal mode and Strategy
Our Key Success Factors - We have the best teachers: professionals and native
speakers in various businesses - A worldwide presence and recognition - A French company with a real know-how - An innovative way to teach: e-learning, phoning, face to face
and immersion - International clients have confidence in ConnectingEnglish