WASTE MANAGEMENT IN NIGERIA

INTERNATIONAL HR MANAGEMENT

ATLANTA MODULE SPRING 2012

• BANJI BAMGDBADE • RIZWAN HABIB • DEREK MITCHELL • EMEKA ODENIGBO

WASTE MANAGEMENT INC.

• Founded in 1894

• Headquarters in Houston, Texas

• Largest waste disposal company in North America

• $13 billion revenue in 2011

• 20 million customers

• Strategic acquisitions ($800 million)

• Invest in waste-to-energy production since 2007

• Shanghai Environment Group

• Waste-to-energy plant in Virginia

Waste Management Inc.

• Invest in recycling and new waste technology • Waste-to-energy • Landfill gas to energy • Recycling • Land reuse

• $500 million to increase fleet fuel efficiency

Think Green

From everyday collection, to environmental protection, Think Green.

Think Waste Management

• Invest in recycling and new waste technology • Waste-to-energy • Landfill gas to energy • Recycling • Land reuse

• $500 million to increase fleet fuel efficiency From everyday collection, to environmental protection, Think Green.

Think Waste Management

Think Green

Waste Hierarchy

WELCOME TO NIGERIA

Country Profile• Most populous country in Africa

• One third larger than Texas

• Government: Multi-party federal system

• Literacy rate: 68%

• Multiple ethnic groups • 50 languages • 250 dialects

• GDP: $357.2 billion • Per capita: $2,400 • Real growth rate: 5% • Inflation: 11.5% • Unemployment: 21%

• Agriculture • Arable land: 33% • Cocoa • Peanuts • Palm oil • Corn

• Imports: $50.7 billion • Machinery, chemical,

transport equipment

Business Environment

• Labor force: • 50.13 million

• Industries • Crude oil, textile, coal,

tin, steel & cement • Exports: $60.9 billion • Petroleum

• Communications • Main lines: 1688 million • Mobile: 42 million • Internet users: 10 million

• Transportation • Total: 194,394 km • Highways: 3,505 km • Waterways: 8,600 km

Waste Disposal Problems

• Tons of waste produced daily

• Ineffective waste management

• Current disposal methods cause environmental hazards

Waste Disposal Problems

DUMPING IN

NIGERIA

BUSINESS PROPOSAL

• Greenfield & Joint-Venture relationship • Partnership with Nigerian government • Waste Management: 51% share • Nigerian government: 49% share

• Decision factors • Lack of work process standards • Sustainability • Partnership incentives (equipment, location etc.)

• Investment • $52 million dollars in Lagos • $50 million from Nigerian government

Mode of Entry

• Recruitment

• Staffing & employee development

• Training

• Compensation

• Performance Management

• Performance measures and indicators

• Labor relations

• Health & safety

Human Resource Management

• Financial returns

• Local acceptance

• Cleaner and healthier environment

• Expansion

Measures of Success

Organizational Structure

CEO

VP-HR/Admin VP-LogisticsVP-IT VP-Customer ServiceVP-Operations

Employees

Management Management Management ManagementManagement ManagementManagement Management ManagementManagement

CIOCFO COO

• Lack of infrastructure

• Corruption

• Absence of waste reuse & recycling

• Country instability

• Lack of record keeping

• Technological advantage • No local capacity to

handle increasing waste managements needs

• Business growth • Nigeria will embrace

foreign investment • Market experience

• Established industry competencies

• Offer more services than local companies • Waste processing,

recycling, sale of recycled goods

• Revenue opportunity • Large underserved market

Pros Cons

FEASIBILITY

FailureSuccess

• Higher than average chance for success • No substantial investment by local company • Technical capacity not available locally

• Tax breaks and guarantees • Government grants tax breaks to foreign companies

requiring special infrastructure • Exclusivity rights

• 5 year guarantee • Create opportunity to recoup investment

Feasibility

• Sell controlling share to Nigerian government • Alternative is to sell a private company

• Acceptable losses • Expect to recoup 60% - 80% of initial investment

Exit Strategy

THINK GREENContact Info.

Derek Mitchell dlmitchell3001@gmail.com

www.linkedin.com/in/dereklmitchell