Download - Waste Management in Nigeria
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